4 Ways to Implement Good Budgeting
Financial Literacy
0 POINTS
Complete the units, enroll in new courses, answer survey questions
By gaining points, you can win a personalised one on one coaching session
Complete the course to see how your learning has improved and gain 10 points
Answer the questions in each unit to generate your custom action plan and gain points
Collect points to be able to ask an expert any question you may have
| Module 1 | Financial Literacy |
| Unit 1 | Financial Literacy PreTest |
| Unit 2 | 5 Reasons Why You Need a Financial Plan |
| Unit 3 | 5 Common Sources of Income in a Household |
| Unit 4 | 3 Main Categories of Expenses in a Household |
| Unit 5 | 3 Steps on How to Create a Yearly Budget |
| Unit 6 | 4 Ways to Implement Good Budgeting |
| Unit 7 | 4 Essential Formal Financial Services that you Should Know About |
| Unit 8 | Financial Literacy PostTest |
Powered By WP Courseware
Unit Summary
Knowing where to spend your money efficiently you can keep your expenses within your means; putting you on the right track for building a fulfilling future in all aspects of life.
-
steps on how to manage your expenses and thus, implement good budgeting:
-
Move high debt payments to lower debt payments
-
Pay all debts on time
-
Build your credit profile
-
Manage what you see as your essentials and non-essentials efficiently
Hi, did you know that creating a budget is not sufficient? Making sure you reach your financial goals, cover emergencies and pay bills on time is also essential in financial planning. By disciplining yourself to follow your budget you are acquiring good budgeting skills, making your life easier to live. However, good budgeting is encouraged not only for building your money but also, most importantly for giving you the freedom to live life your own way; making every moment count.
In this video, you will learn how to implement good budgeting, by starting with managing your expenses. Knowing where to spend your money efficiently you can keep your expenses within your means; putting you on the right track for building a fulfilling future in all aspects of life.
The following are 4 steps on how to manage your expenses and thus, implement good budgeting:
-
Move high debt payments to lower debt payments:
-
Choose debts with minimum interests. For example, when you are not able to pay off your credit card in the same month, then you are better off taking loans since the interest rates are much better.
-
Take debts to cover assets rather than discretionary spending. Loans against property give you more time to pay them off and with a lower interest. This makes them easier to settle than personal loans.
-
Pay all debts on time: The most important key to good managing of debts is ensuring interests are kept at minimum. So, pay your monthly bills on time to avoid late fee and financial charges; thus making your debts easier to pay off.
-
Build your credit profile: Don’t sacrifice positive accounts for those that have already affected your credit. Just pay your old debts off when you can afford too. Build up your credit profile to build up your financial opportunities.
-
Manage what you see as your essentials and non-essentials efficiently:
-
By ranking essentials and discretionary items in order of importance you can eliminate extra unnecessary expenses.
-
Use whatever is left from your income, only when your essential payments are fully covered first.
-
Extra money earned can be spent on non-essentials as a trade-off to saving however, controlling purchases and making rational spending decisions is vital.