Andrew Lloyd Beaver PA says when it comes to budgeting a lot of people have a negative connotation with it, as they think it can limit their lifestyles decisions, instead of restricting you from doing things you love, it will give you the ability to do the things you want to without guilt or buyer’s remorse.
Andrew Lloyd Beaver PA says try it and see how it changes your perspective on money.
Budgets give you knowledge and control over what you can do.
If you're spending now and accounting later. You're just playing a game of chicken with 0 and it's gonna bite you in the ass every time.
It should be noted that every successful person budgets. Even the ultra-rich get a budget from their accountant. Those who don't usually go bankrupt.
Why?
Because during times of crisis or in case they lose their jobs they don’t have enough money to even cover their car payments let alone monthly expenses.
A lot of people don’t go broke because they don’t make enough or they are not smart,
But when it comes to money they just tend to buy things like 11-year-olds, and the next thing you know they have 5 loans and debt so losing their main sources of income and jobs can prove fatal to them.
So it is often a great idea to take a step back and be more aware of where your money is going, how can you make more, and how much you can spend without any guilt.
Budgeting during the pandemic is crucial says Andrew Lloyd of Beaver, PA.
Those who were harder hit by the pandemic can and should budget.
1. Use "mental accounting"
Be very disciplined about how your spend your money. Label and seperate your money in envelopes to see where your spending is going. Include your bills, weekly expenses, future expenses and savings.
2. Look at your incoming and outgoing cash flow
Look at how much you need to spend on a per-spend basis. For example add up how many times you go to the grocery store a month and then divide your total budget. This gives you the amount of money you can spend per grocery trip and allows you to plan your meals accordingly.
3. Plan expenses ahead
Always plan ahead says Andrew Lloyd. It is easy to cope with unexpected bills when you planned ahead. This is done by simply saving a small portion of your check each week. Soften the financial impact when you have savings.
“Think of these little tips as ways to supplement your wages to help your own cash last longer,” Andrew Lloyd says.
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