Instead of working deep into the nitty-gritty of your finances, you can also take a more top-level approach by way of macro budgeting. Apps like Mint, You Need a Budget, and Personal Capital, are all technology tools you can use to build budgets and track all of your spendings in one place. If you are intimidated by making your budget and following every expense, there are various tools to help you. Maybe you went out to eat a few more times than you usually do, and if so, you can cut those expenses by making meals at home instead. There might have been an out of the ordinary circumstance that required you to spend more money, like a Christmas party, or it’s possible you found several expenses that can be cut. This is a signal for you to examine the food expenses from last month to see where your spending went overboard. Imagine you budget €500 per month for food, but last month you notice that you spent €700 on food-related expenses. One of the biggest benefits of micro budgeting is using this information to help you make better choices. All of your money for the month is accounted for, and there is €0 leftover. Using ZBB, we can see that you had €250 remaining to invest in your Bondora Go & Grow account, where you can grow that wealth even more over time. Over that time, you spent €1,500 on expenses like rent, food, and the like, and paid €250 in debt payments over the month. This way, you can account for all of your monthly income so that your income minus all expenditures on the month always comes out to zero. In ZBB, all of your expenses are categorized into either expenses, savings, debt payments, investments, or other related categories. You might remember we discussed this in a previous blog post. One strategy for micro budgeting is zero-based budgeting (ZBB). How much money do you spend daily or monthly on recurring expenses like food, utilities, rent, and other similar expenses? Concurrently, what is your monthly income, and is it steady or variable? Factoring in all these numbers, you can more easily create a reasonable budget for you to maintain. The idea behind micro budgeting is to examine your finances on a granular level. Using micro budgeting helps you account for all your spending.
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