How To Take Control Of Your Spending On A Budget!
You know where your money comes from – chores, allowance, gifts. But do you know where your money goes? Sometimes it might feel like it disappears, and you can't remember how it was spent.
Many people start a budget to keep track of their hard-earned cash. A budget is simply a plan to teach you how to be responsible with your money and take control of your spending.
A great way to think of budgeting is as dividing a pie, or your piggy bank, into pieces.
All of your money together is the whole "pie," and each piece stands for a different place for that money to go. Some places involve spending and some saving – movies on Saturday, your best friend's birthday gift, giving to your favorite charity, putting away a few bucks in your CU account.
As you begin to divide up your money, you'll start to see that some of the pieces are bigger or smaller than others. For example, saving for a major purchase like a new bike will be a larger piece than your weekend spending-money piece.
There are a few simple ways to help you divide your money pie in just the right way for you, and help conquer the too-much-spending habit at the same time.
- Tracking – start by figuring out how much money you have, how much you usually earn, and how much you spend.
- Saving – whenever you get money, save some at [CREDIT UNION NAME] in your Share Savings Account.
- Balancing – Figure out ways to save and earn more money, and spend less. Maybe you can earn more by doing extra chores, or spend less by buying fewer toys per month and looking for coupons for things you like.
Once you identify all of your pieces and their sizes, your budget pie will begin to take shape!
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