If you’re like most people, you know someone who has terrible money management skills. In 2014, it was reported that 82% of Americans have a budget. Before we go into the financial tips, let’s talk about why we need to budget.
Some people fear setting a budget because they believe that the plan will make money even more scarce. After all, having to spend less money means having less money for the bills. However, a great budget plan will help you straighten your priorities and show you where you’re throwing your money away.
For starters, 90% of Americans overpay their utility bills. One reason being that many of them pay in full, rather than negotiate a minimum amount. Another reason being that they don’t know that PSE&G and whatever providers their neighbors are using are not the only companies out there. These are things that having a budget will help you notice because “less money” can cause people to become more creative.
A budget can also have the opposite effect, as it can show people that they have more money than they think. By setting some money aside for the important stuff, you can now see where everything else is going, and cut out the wasteful expenses. $5 coffee every day, the top cable plan full of channels you don’t watch, and the unlimited data and texting you don’t use are just some of those expenses.
The best budget plan I’ve ever used is one I learned in the book, The Secrets of the Millionaire Mind, by T. Harv Eker. The plan is called the Jars System. How it works is, you have 6 transparent jars that each represent a category in which to use your money. You can also use bank accounts or even clear sandwich bags instead. Every time you get paid, you divide the money into each category. The categories all have a certain percentage that is meant to be given, like 55% for one jar and 10% for another.
Click page 2 now to learn how 6 jars will help you save money!