{"id":116306,"date":"2022-11-17T08:04:54","date_gmt":"2022-11-17T13:04:54","guid":{"rendered":"https:\/\/canadianbudgetbinder.com\/?p=116306"},"modified":"2024-12-18T08:03:12","modified_gmt":"2024-12-18T08:03:12","slug":"5-benefits-of-an-economical-budget-october-2022-budget-update","status":"publish","type":"post","link":"https:\/\/digitalskyweb.co\/canadianbudgetbinder.com\/2022\/11\/17\/5-benefits-of-an-economical-budget-october-2022-budget-update\/","title":{"rendered":"5 Benefits Of An Economical Budget"},"content":{"rendered":"\n

<\/path><\/svg><\/span><\/span>Estimated reading time: <\/span>26<\/span> minutes<\/span><\/p>\n\n\n\n

Learn about the advantages of having an economical budget and why it is essential for your financial well-being.<\/p>\n\n\n\n

An economical budget<\/strong> helps people adopt a lifestyle that fits their financial needs. <\/p>\n\n\n\n

I struggle to understand how anyone could spend money frivolously and without care.<\/p>\n\n\n\n

I’ve never had a moment where I’d spend money that I didn’t have apart from a mortgage.<\/p>\n\n\n\n

As a well-traveled man, I’d book many holidays while working in the UK but saved in advance.<\/p>\n\n\n\n

I’d never go on holiday if I had a debt to pay that was not my mortgage or vehicle, even though I had no car payment.<\/p>\n\n\n\n

Perhaps my mindset is different, and that’s ok because we all view lifestyles differently. <\/p>\n\n\n\n

Today, I want to briefly discuss the benefits of having an economical budget and why it might work for you.<\/p>\n\n\n\n

Economical Budget vs. Bare Bones Budget<\/h2>\n\n\n\n

What does being economical mean? Economical means that you work towards not wasting and using the resources that you do have.<\/p>\n\n\n\n

You might be considered a thrifty if you’re economical and use what’s already on hand. <\/p>\n\n\n\n

Perhaps you will shop for secondhand items instead of buying something new. <\/p>\n\n\n\n

When you’re at the grocery store, you might consider products that are reduced in price.<\/p>\n\n\n\n

On the contrary, having an economical budget doesn’t mean you are living a bare-bones lifestyle.<\/p>\n\n\n\n

Where economics is watching your money, a bare-bones budget has little to no money to work with.<\/p>\n\n\n\n

A bare-bones budget is basic and tight because every dollar is already spent and then some.<\/p>\n\n\n\n

For example, we need milk and cereal but can only afford to buy one or the other. <\/p>\n\n\n\n

Working with an economical budget allows you to make choices based on frugality rather than necessity. <\/p>\n\n\n\n

For example, with a bare-bones budget, you may not have $5 to spend on a secondhand top this month, so you have to save for it. <\/p>\n\n\n\n

With an economical budget, you likely have $5, but choose to spend as little as possible.<\/p>\n\n\n\n

An economical budget is tightening the ropes to save money; with a bare budget, the strings are ready to snap. <\/p>\n\n\n\n

So, which type of budget do you choose? That depends on your needs but, most of all, your income vs. debt.<\/p>\n\n\n\n

Often, this is called your debt-to-income ratio, <\/a><\/strong>which is easy to calculate.<\/p>\n\n\n\n

What’s important to remember here is the end goal, not what type of budget you use. <\/p>\n\n\n\n

There’s no shame, only positivity if a budget is used correctly, and eventually, you can loosen the reigns. <\/p>\n\n\n\n

Take Caution When Using Credit<\/h2>\n\n\n\n

Indeed, there are credit cards, bank loans, and other means to obtain cash that needs to be paid back if there are no emergency savings. <\/a><\/strong><\/p>\n\n\n\n

Be prepared to understand not only the monthly debt but the overall cost of the loan or debt based on interest and the term.<\/p>\n\n\n\n

A holiday on a credit card for $4000 at 19%<\/strong> interest and pay the minimum of $75 <\/strong>back each month. <\/p>\n\n\n\n

It will take nine years and 11 months<\/strong> to pay off the balance. The total interest is $4,883.69<\/strong>.<\/p>\n\n\n\n

That fun $4000 holiday will now cost you a whopping $8883.69.<\/strong><\/p>\n\n\n\n

Let’s say, for example, that you convince yourself that you’ll pay for the holiday over two years.<\/p>\n\n\n\n

The repayment cost would be $201.63 monthly to pay off the balance in 2 years. For a total interest of $839.23<\/strong>.<\/p>\n\n\n\n

For the same debt, you’d need $368.63 per month<\/strong> to pay off the balance in 1 year with a total interest of $423.52<\/strong>.<\/p>\n\n\n\n

Economical Budget Success Tips<\/h2>\n\n\n\n

If using an economical budget is where you are financially, you still need to be frugal.<\/p>\n\n\n\n

Although we have wiggle room, we tend to stick to an economical budget.<\/p>\n\n\n\n

We try to keep things in perspective when we splurge because expenses can quickly get out of hand. <\/p>\n\n\n\n

I can only offer success tips based on our zero-based budget experience<\/strong><\/a><\/span>.<\/p>\n\n\n\n

Economical Budget Success Tip #1<\/strong><\/h2>\n\n\n\n

Without Budget Management, A Budget Will Fail.<\/p>\n\n\n\n

Continuously monitor and update your budget by reviewing it monthly while you input your data.<\/p>\n\n\n\n

Economical Budget Success Tip #<\/strong>2<\/h2>\n\n\n\n

Always keep a thrift mindset and be resourceful with what you already have in your home. <\/p>\n\n\n\n

Considerations range from food to clothing and other materials needed for projects.<\/p>\n\n\n\n

Economical Budget Success Tip #<\/strong>3<\/h2>\n\n\n\n

Remove any triggers that might manipulate you into spending money you don’t have. <\/p>\n\n\n\n

Economical Budget Success Tip #<\/strong>4<\/h2>\n\n\n\n

Understand why you are using an economical budget, and be careful not to waste money.<\/p>\n\n\n\n

Perhaps you have a goal you are trying to attain, such as saving $4000 for a holiday. <\/p>\n\n\n\n

Economical Budget Success Tip #<\/strong>5<\/h2>\n\n\n\n

Just because you use a budget doesn’t mean you are not successful with your money.<\/p>\n\n\n\n

I’ve heard in the past that only people who are broke use a budget because they can’t manage their money. <\/p>\n\n\n\n

Let me tell you that we are far from broke and will always use a budget. <\/p>\n\n\n\n

Frankly, who cares what anyone thinks as long as you positively affect how you see your financial future?<\/p>\n\n\n\n

Mr. CBB <\/p>\n\n\n\n

Discussion:<\/strong> What does an economical budget mean, and how would you use one?<\/p>\n\n\n\n

Please leave me your comments below. <\/p>\n\n\n\n

CBB Family Budget Report For October 2022<\/h2>\n\n\n
\n
\"Monthly
Monthly Budget Income Report<\/figcaption><\/figure>\n<\/div>\n\n\n

October Budget Summary <\/h2>\n\n\n\n

Hey Friends, <\/p>\n\n\n\n

What a month October was, but ending the month with goblins and ghosts constantly improves things.<\/p>\n\n\n\n

In October, we spent a lot of money on needed health and beauty products.<\/p>\n\n\n\n

We also purchased new winter gear for our son and Mrs. CBB, who needed a second jacket. <\/p>\n\n\n\n

She successfully found a secondhand winter jacket; however, it was not warm enough. <\/p>\n\n\n\n

Just in time for the snow, our son has his new BOGS, which he loves. <\/p>\n\n\n\n

We are working with him soon to learn how to tie his laces, but slip-on shoes and boots are perfect. <\/p>\n\n\n\n

I don’t know about many of you, but we do more online shopping than ever. <\/p>\n\n\n\n

We hardly ever go shopping at a physical store unless it’s for groceries, secondhand, Dollar store, or Shoppers Drug Mart. <\/p>\n\n\n\n

We’ve lost our feel for shopping in person, although not 100%.<\/p>\n\n\n\n

Do any of you ever feel this way?<\/p>\n\n\n\n

Thanks for reading,<\/p>\n\n\n\n

MR. CBB<\/p>\n\n\n\n

Year To Date Percentages 2022<\/h2>\n\n\n
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\"Month-to-Month
Month-to-Month Budget Year To Date Numbers <\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

Our savings <\/strong>include investments and any savings for this month based on the net income<\/strong> of $10,878.20.<\/strong><\/p>\n\n\n\n

Equally important is saving money on our projected expenses<\/a><\/strong> in the coming months.<\/p>\n\n\n\n

An example of projected expenses would be buying Christmas gifts in December or throughout the year.<\/p>\n\n\n\n

All categories took 100% of our income, showing<\/strong> that we accounted for all the revenue in October<\/strong> 2022.<\/strong><\/p>\n\n\n\n

This type of budget is a zero-based budget<\/strong><\/a> where all the money has a home.<\/p>\n\n\n\n

Budget Expenses Percentages For October 2022<\/h2>\n\n\n\n
\"October
October Household Budget Percentages<\/figcaption><\/figure>\n\n\n\n

Monthly Home Budget Breakdown<\/h2>\n\n\n
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\"Monthly
Monthly Budget Income Report<\/figcaption><\/figure>\n<\/div>\n\n\n

Below is a breakdown of our expenses, which helps us understand where our money goes.<\/p>\n\n\n\n