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When it comes to dealing with your blogging expenses, are you a good money manager?
Do you spend money on your blog? I do. Some of you noticed I have a new theme. It’s true.
I spend money on my theme. I pay my host and buy plugins I want and plugins my technical helper says I need. I also pay my virtual assistant.
If you do monetize, do you report your outgoing expenses to your accountant? My accountant told me blogging expenses are tax deductible.
Guest author Eada has tips for budgeting. Follow them and you’ll be a better money manager offline and perhaps even online when it comes to affording your blogging expenses.
Let’s get started learning how to be an effective money manager.
Budget Blowout – 5 Common Budgeting Mistakes and How to Avoid Them
Creating and adhering to a sound budget is frequently seen as the foundation for maintaining financial stability. To this end, there is an abundance of information available about how to effectively create a budget and track spending, but advice about how to proceed when you do blow the budget is harder to find.
People are often ashamed and embarrassed to admit they have gotten into a difficult financial situation, however, it is an error that many of us face at some stage in our lives. Here are a few of the common mistakes to avoid.
5 Easy Ways to Be an Effective Money Manager
Overspending on Credit
Particularly in the days of PayPass, or tap and go technology, it is easy to overspend on your little plastic friend. If you are occasionally relying on your credit card to bridge a fiscal gap in your pay cycle, it may not be an issue, but if you are spending more than you earn and relying on credit to make ends meet, then this issue needs to be addressed.
Because added interest makes your credit card debt increasingly difficult to pay, it can lead to a spiral of debt. If you are in this situation, consider consolidating your charges into a small money loan. Borrowing money to clear debt may seem counterintuitive, but the interest is generally lower, and many people find it easier to repay a consolidated amount.
Because our credit card bills aren’t constantly in front of us, it can be easy to overspend.
Not Accounting for Savings
How much do you have put away for a rainy day? Ideally, once you have covered your necessary fixed expenses, you’ll want to set aside at least 10-20% towards building an emergency fund and saving for retirement before allocating money towards discretionary spending.
While this isn’t always possible, you should strive to have at least a month’s income saved at any given time to protect you against unexpected expenses.
Living paycheck to paycheck
Many people find themselves in a situation where they are scrambling at the end of each month, trying to stretch the last of their money while waiting for the next paycheck to come in.
Calculating a monthly budget can avoid this unnecessary stress as you can deduct a set quantity from each paycheck to cover large expenses like rent and bills. Planning ahead will help you avoid running out of money if the rent and power bill fall into the same pay cycle. It can also help you to create and work towards financial goals as you understand your incomings and outgoings better.
Not tracking your spending
If you’re not paying attention to where your money is going, you risk overspending on things such as groceries and luxuries. Because these expenses can fluctuate, you should always note how much you have left to spend before heading to the shops to avoid an accidental budget blowout.
Assigning every, single, cent
When people are too ambitious with their budget and fail to account for “play” money, this can frequently lead to budget burnout. Creating a realistic budget which allows you to indulge in small ways throughout each month will help you stick to it more consistently.
Don’t be discouraged by a budget blow-out. Everyone makes mistakes – get back on that metaphorical horse and try again until you succeed. It will be worth it when you see your bank balance rise.
Wrapping Up: How to Be a Better Money Manager
Host blogger’s comments:
Eada shares tips to help you be an effective money manager offline. Follow her strategies and with the money you save, you can better afford your blogging bills and all your bills.
Readers, please share so other people read Eada’s strategies for being a more effective money manager.
It’s your turn. What blogging expenses do you have? What methods can you share for being a better money manager?
Author: Eada Hughes
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