Money guru Carmen Perez, the expert behind Make Real Cents, is here to teach In The Know how to get richer.
If budgeting is the battle bus you usually commute on, Perez has tips to suit every personality. Organizing your finances in the way that is convenient for you can not only save you money, but also catch up on debt. And let’s get real: this will definitely help relieve some stress.
“The big question to ask yourself isn’t necessarily what budget fits your income – it is more like what fits your personality and lifestyle,” said Perez.
Here are some types and budgets of monetary personalities that may resonate with you.
The planner
If you’re the type of person who lives on spreadsheets and friends are expected to create itineraries, you might be a planner.
“A no-nonsense approach like zero-based budget might work for you,” said Perez. “With this approach, you are investing all of your money in expenses, savings, and debt payments each month.”
With this method, your earnings minus your expenses should be zero by the end of the month. Perez recommends the You Need A Budget app for this method.
The free spirit
If your mood is chaotic, then you probably need some flexibility in your budget.
“A less restrictive method like the 50/30/20 budget could be great for you,” said Perez. “This simple approach divides your expenses into three simple categories. Fifty percent of your income should be used for necessities: things like rent, supplies, transportation, and food. [The] The next 20 percent of your income should be used for monetary goals, such as: B. to save, invest or to reduce your debts. “
If this all sounds intimidating, don’t worry: with this plan, 30 percent of your income will continue to be used on flexible spending. However, the ratio is fully customizable. So use what suits your goals. Perez recommended Nerd Wallet for free spirits.
The chiller
Yes, there is even a budget for those who don’t like tracking their expenses. Using this cash-handling method, Perez has paid off $ 57,000 in debt in less than three years.
The story goes on
“At the beginning of each month, you set aside money you need for basic necessities and savings,” she said. “Take out the rest of the cash money and divide it into different envelopes that represent different categories of expenses. When the money is gone, it’s gone. “
You may be shopping a little less online, but at least you know exactly where your money is going.
Bonus tips for budgeting beginners
Perez advised not to do any purchases that you don’t need until you have a good night’s sleep, just to make sure you really want it.
She also said you should investigate your spending behavior. Review why and when you are spending so you know what works and what doesn’t.
Finally, don’t be afraid to check your bank account. You need to know how much money you are taking in and out of to address these issues.
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If you enjoyed this story, read these five tips to give your finances a “spring clean”.
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The Post Money Guru Reveals Best Budgeting Strategies for Each Personality Type, first featured in In The Know.
