03 Cards Tips: How to Make an Effective Budget

Sticking to your budget is probably be one of the hardest things you do. There is always that urge to spend a little more. However, most people failed to realize that there are a number of uncomplicated ways they can effectively make a budget and stick to it.

At 03, we are dedicated to ensuring that our customers are financially literate and prudent. That is why we have collated tips on how to make an effective budget in this article. Enjoy!

  1. Allocate your income/expenses

In making an effective budget, you should allocate the appropriate amount of your monthly income to different categories. Do not guesstimate your income. Divide your income into categories such as;

Housing/Utilities: This includes your monthly rent, utility bills and home insurance.

Food: The amount you spend on food; groceries may vary from time to time. Try to estimate what you spend at the grocery store and if you enjoy eating out, estimate the amount you spend at restaurants. Use that figure to estimate what you spend in a month and after you have figured that out, try to stick to it each month.

Transportation: If you have a car, you have to put into consideration the total amount you spend in filling your tank per month. After you have done that, endeavor to stick to it each month. If you do not have a car, then factor in the money you pay each month to take public transportation or taxi services.

Savings/Loan Repayment: These include your debts and your savings in this category. Lastly, calculate miscellaneous expenses. You might have expenses that do not fit into any of these categories, they should go into the miscellaneous category.

  1. Use budgeting apps

A lot people are not aware of the fact that there are budgeting apps that can help them create an effective budget. These apps help track transactions and help look at them on a monthly basis and visualize the data for you. When tied to your bank accounts or credit cards, they help track your spending and notify you when you are exceeding your spending limits.  You do not have to keep all your transaction details in your head anymore. Get a budgeting app!

Some great budget tracking apps include; Reach, Mint

  1. Automate your budget

After creating a budget, sticking to it might be a huge challenge but one tip you can employ is automatically deducting as much as you can so it goes to the right place before you have the chance to spend it. For example, you can set up automatic bill payments for your credit cards. Visit www.03card.com for more information.

  1. Use a credit card

Credit cards have valuable uses for budgeting. One pivotal advantage is that it tracks every expense you make and helps you understand where you spend all of your money on a month-to-month basis. Some credit cards also come with online tools that help you categorize and chart you expenses.

So there you have it, the 03 ways to making an effective budget. Follow the above tips and you would be taking your first step to financial prudence.

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