For your own convenience, divide it in 3 levels.
1.The first level; Starters
a) Sticking by you Budget.
Making a budget and then staying faithful with it are two opposite poles which are hard to meet. So, use your will power to convince yourself that for your own betterment first and welfare of people dependent on you, this has to be done the way you want. Which is that firstly you will make a budget, that is an idea of earning and expenditure, and then whatever you conclude from it, you severely stick by it. Use a computer program, or a pencil or anything to make some sketch of your proposed budget.
Some things should be kept in mind while making a budget, for example, it is no fun and you need to be very serious about it, do not over-exceed in money matters but rather go for below the line. For instance you made a budget of 100 $ earning of 10 days and 40$ expenditure and a saving of 60 $. It is so simple, but the issue is, that without 100$, the key amount, the whole budget fails and if you think that you can get them in 10 days and relying on "can" "may" "will", you make a budget, then it is pure folly and nothing else. Be practical and not hypothetical and just a man of calculations of no value at all. Only count that amount which is in YOUR hand and once you make a budget, follow it like a divine statement.
b) Emergency Funds.
I was standing in middle of the road, it was 2:00 am and the night was cold with my car stuck in this horrible place and I forgot my wallet at home and now stranded in here almost dying of hunger, cold and other thoughts of scary nature... Avoid such situations, or situations much similar or totally opposite by just having " Emergency Funds". Money need not to be in wallet only, it can travel with you in your socks , boats and even undergarments (I prefer undergarments though). In other words, emergency funds inclusion in your budget gives it reliability and much closer to reality. You should always "allocate emergency money for emergency situation" outside your domestic budget and must never take money from your emergency funds unless and until you really face one.
Note: Giving money to your girl friend for covering her loss or because her mother was ill or spending money when you badly need to drink or sleep or any such situation is "NOT AT ALL AN EMERGENCY".
c) Spend less than you earn or Earn less and spend nothing.
Well, if you do it, obviously you will save money and saving money is the coolest thing on planet if you are earning huge amounts of dollars. But, if you are already earning low, then saving is not "suitable" then you should either work hard in the same job to be upgraded for pay increments or quit it, resign and leave to find a new one. I hope you follow my point that earning 500 $ a month and saving 50$ is not equal by any means to earning 3000$ and spending 2500$ and saving 500$.Conclusively, if you earn high you save if you earn low there is no saving at all, since spending is almost reduced.
d) Run towards something to get hit.
It may sound wayward and insane but it is absolutely based on facts and figures. The third law of Newton states that for every action there is an equal and opposite reaction and in our terminology it applies on "setting a goal" and " hitting it fiercely". Make fix goals in your life and all your actions , financial savings and earnings must direct towards achievement of that particular target. A life without a target is like life of such athlete who hears the running signal and now rushing in all directions without any particular finishing line. The ultimate end of means is achieving.
Conclusion.
This is first level, that is for starters. Once you achieved that, then, there is intermediate and advance level with much complex and calculation based tips. Anyhow, get a good start and your life is already changed if you just take the initiative now.
Kashif Ali
Article Source: http://EzineArticles.com/?expert=Kashif_Ali
Kashif Ali - EzineArticles Expert Author
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