Improtance of Budgeting Approach
There are several ways how to budget your expenses. The internet is full of budgeting tips and you can choose which one works best for you. Choose the plans that apply to your situation and those that you can follow without any difficulty. This is very important especially if you’re doing it for the first time. Try the simpler procedures first and when you’re comfortable with them you can adopt the more advanced way of planning later on. The great disadvantage in choosing the more difficult approach right away is that the task may confuse you and you’ll abandon the project permanently.
Choose the budgeting plan you can easily accomplish
It’s important to choose the budgeting plan that meets your budgeting acumen. There are many different ways how to do it but which one works best for you. Let’s talk about the “time approach”. For me it’s the easiest way of doing it. Easy may depend how astute you are in making plans. There are people who are very good at what they do and there are those who aren’t. Budget planning is not about what budgeting scheme you’re planning to pursue but how good are you at accomplishing the method you’ve chosen to implement. Some people may use the most comprehensive plan they can think about while your technique may involve only the plus and minus method. You add all your expenses and deduct it from your income.
What are the different “time approach” methods of budgeting?
You can use the computer in making your budget or you can write it depending which makes you feel comfortable. The more comfortable you are the better the outcome will be. Well, that’s the general idea. You don’t have to finish everything in one setting and most of all you don’t have to do it alone. Involve the entire family in making your budgeting plan.
- Annual approach
This plan involves the entire year of budgeting. You have to have a steady job with a steady income. It’s easy for you to project how much you earn monthly and you know how much you’re spending on what. This plan is ideal for those who have been doing budgeting planning in the past. They have a good grasp of their monthly expenses; they can easily list them on a monthly basis from their memory or from the previous spreadsheets they have in their possession already. This task is daunting to the beginners.
This is the half-year version of the first one. Everything works out the same except you only do only 6 months of your budgeting plan. This also difficult for the beginners to do
This is still difficult for beginners. But if you’re in the habit of listing what you’re buying and throw them away afterwards, this may not be very difficult for you to do. You can make a permanent listing on a monthly basis instead of daily and you keep them this time. It’s almost the same except you have to do it for 30 days instead of daily. Or You can choose the bi-monthly budgeting plan where in you base your budget every 15 days.
This is ideal for beginners. The listing is done on a daily or weekly basis. Do the daily planning for a month and then slowly progress to weekly and then monthly. When you become an expert nothing will be too difficult for you.