Tips Series: Budgeting Tips to Make the Most of your Money

By • Dec 19th, 2010 • Category: Budget

Here is todays post on Budget Tips

To many people, budgeting is burdensome because it makes them do extra paperwork and work with numbers.  Worse, it makes them put control or limit to how they spend money.

But all that work delivers important benefit that can enhance your life, especially if you are living on limited income.  Budgeting provides you with a goal to achieve with your money.  It prevents you from spending unnecessarily on unimportant things so that you can have the important things.

If you are working on limited money, trying to solve your debt problem, planning to retire early, and trying to make the best use of your money, you should budget.

In a nutshell, here are some guidelines you should consider to make an effective budget:

Have a goal in mind in budgeting.  Your goal could be as simple as being able to make ends meet or being able to save enough to invest and be comfortable when you retire.
Help your budget make you aware of your financial situation, income, expenses and habits.  Be aware of how you spend money and how others want you to spend money.  These others are your friends and neighbors, advertisers and marketing people who want you to buy their product – even if you can live without them.  See if there is anything you need to change in your spending habits in order to live within your budget.
Make sure you have all the information you need to create a budget.  This information includes an accurate account of your spending, and more.  Many sites on the internet gives detailed tips on how to budget your income like
Small spending like coffee, gum, lottery ticket, and a soda can add up.  Keep a spending diary to track them down.
Make sure you account for hidden expenses and automatic payments.  Examples for this are utility fees, taxes, interests and bank penalties.  Forgetting them can mislead you into thinking you have more money than you actually have. Look at automated payments by your credit card to reveal “leaks” in your budget.
Account for emergency expenses.  Things always happen that are unplanned, and you should have an allowance for these emergency spending.
Be realistic with budgeting.  It’s useless to create a budget you know you can’t follow.  No matter how much limited your budgeted money is, allow for spending on things that makes your life fun such as occasionally treating yourself to a movie, or buying coffee.  Also figure out what kind of spender you are so you can change your habit and come up with a realistic budget you can stick to.
Change your budget to reflect financial conditions.  If your income decreases, there are some spending you have to forego or consume less.  If your income increases, you can give yourself more of your wants, or better yet, you can save to build wealth.


Ronaldo Tumbokon is a freelance writer whose interests include personal finance, parenting, music and the internet.

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25 Responses »

  1. @marissa910 thanks so much! Im glad you found me again! 😉

  2. i used to watch your videos ALL THE TIME! then i forgot your channel name & i didn’t watch you for like, three months. today, i discovered your videos again and i started freaking out. ;D anyway, your room is literally my inspiration for my room. mine is small & my FAVORITEEEEEE color is tiffany blue. ahah. :) & for my 13th birthday, i wanted to redecorate it! now i have more ideas! (: thankyou so much darling. <3

  3. @guitarherowomen13 tan or brown

  4. I kind of want to do a beach theme for my room but im not sure what color to use for my accent wall if I use like a light blue for my main color. HAve nay ideas?

  5. @LegallyBrunette214 Hi. My room is small and has white walls. I’m thinking of doing a black and white theme. My curtains are black. Do you have any random ideas for me? It would be much appeciated. Thanks.x

  6. Lots of good tips :)

  7. @HaleysCommet09 either a darker purple or a neutral, black white or even brown!

  8. I want to d my room a light purple almost lavender color. What do you suggest is a good accent color? I’m stuck. Please help.

  9. Your room is amazing.

  10. @therealoracle I like Ikea but they are none near me so target is the next best.

  11. Target??? its all about IKEA!!! Target is a 7, Ikea is a 9.

  12. You seem like you have good taste i want a zebra bedding maybe with some pink(not any baby pinks more of a hot pink) my funiture is black im not sure what colors to paint my wall border etcc…. also what color laminate wood would you suggest?? thanks your vid helped alot such a cute room

  13. you should put flowers in that cup thing!!!! :)

  14. I love Audrey Hepburn!!!!!!

  15. i have a loft bed, and i dont knwo if i shoudl get rid of it… i haev about the same size room as you & i want a full size bed..what should i do0o’?

  16. I wanna redo my room so the theme is pink and white and a little black. I have a black book shelf and a white dresser that I feel like painting( patterns and stuff) so how should I paint them?

  17. How did you save up? I am only like 12 years old so Im not allowed to work, and my parents are definetly not going to pay. I REALLY WANT TO DECORATE MY ROOM! Plz help!!

  18. wat color room should i paint for my bf and i ?

  19. I’m getting my room redone. Were in the process. Once everything is in my room again that i need and want and its designed and organized, and i have everything set up and hooked up, and painted, and repaired, its gonna be sooooo nice! I can’t wait! Your video inspired me! xD target is my best friend for my room makeover aha! :’)

  20. What was your budget? Like mine is 700, what was urS?

  21. @LegallyBrunette214 oooh haha ok :)

  22. @Krystalheart4ever throw them on the floor lol

  23. what do u do with the pillows when u sleep

  24. Your really beautiful!


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