Money management is never as simple as just opening an account with your community bank and looking at the monthly statements. Proactive financial planning and investing strategies are essential to keep enough money in your accounts and make sure it grows in a way that suits your prospective needs.
According to MSN, sticking to a budget can be as difficult as making one in the first place. With the correct financial investment advice and spending structure, there's no reason you can't live comfortably while putting aside funds for the future.
Needs and wants
The Bureau of Labor and Statistics' (BLS) most recent release on American spending habits shows the main expenditure most households have to deal with is housing, easily twice as expensive as any other essential cost. Food and transportation were second and third in overall share of a family budget, with the three absorbing more than half of annual outgoing money on average.
CNN Money says knowing these figures is essential to creating a budget. An accurate reflection of monthly expenditures helps determine what amount is actually left once necessary bills are paid, and this excess is where savings and entertainment are derived from on a monthly basis. LifeHack recommends making lists before shopping for both essentials and frivolities, reducing overall output by adhering to these documents when you're out at the store and tempted to indulge.
Following the plan
Using an interface that's both easy to understand and access will help you setup and actually follow through once a budget is established. Mobile banking is a good example of practical money management, and with more smart phones supporting monetary apps, it might make sense to have your guidelines on you at all times.
LifeHack says you should regularly review your budget, but MSN points out that this could put you too much on edge. Consider a budget the way you would a diet – sometimes you might splurge, but if you beat yourself up about it, you're less likely to stick with it in the future. Getting right back into the game after an unnecessary expenditure will ensure you can recover your financial balance.