How to Budget: The Final Tips
Now that Granny had shown the travellers how to budget, she gave them a few more tips:
Understand what percentage of your money goes to each category. This will help you manage your overall picture.
So, Jonah and Edna had the following breakdown:
And Mira and Teyus had the following breakdown:
Constantly look at your budget and ask yourself if you need to change it.
Maybe you need to save more for the things you want, maybe the ‘must haves’ have become cheaper or maybe it’s your birthday and you want to treat yourself to a large banana split.
Always review it and don’t be afraid to change it, as long as you can pay for the ‘must haves’. Change this by first changing the amount you want to spend, then see how the percentages will change.
If you spend more than your budget or in any one category, ask yourself why it happened.
Did you under estimate the expenditure?
Did you buy more than you needed?
Did you use it all?
How much was wasted?
Once you do this, look and see if your budget needs revision.
The most important: Do not buy anything that you don’t need or does not give you a lot of joy.
The travellers were pleased to learn all of this and couldn’t wait to share it with their parents!