Budgeting like, parenting or cooking is a skill to be learnt and then practiced.   If you are not in overdraft and you are doing well and you most probably learnt how to budget.

The financial wisdom you acquired could have been from your parents who taught you the importance of financial planning or from an uncle who dropped the golden nugget financial tip. Many people today have learnt how to budget by attending a financial workshop or utilized the services of a family financial advisor like someone as myself.

If you are not doing well financially then carry on reading the article, since you are going to learn some of the best financial advice you are ever going to receive.

The golden rule is NEVER SPEND MORE THAN YOU EARN.  I have worked with many types of people from millionaires to families who earn the average income of NIS 14,000. At the end of the day, they all stick to their budget that we worked on together.

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The best tip for observing this rule is to learn how to differentiate between what you want and what you need.  Usually, 25% of your supermarket trolley is items that you want.  We have closets full of shirts, trousers or shoes which are all the colours of the rainbow which we never wear.  Are all of these items worth going into overdraft for?

The next tip is to build a saving scheme for a rainy day.  This safety net fund should have an amount of between 3-6 months of your monthly income.  Your income is NIS 10,000 so you should aim to NIS 30-60,000. There are always surprises and this money should be saved those emergency situations.  The money should be easily obtainable and not closed in a saving scheme, because when you need it you need it now.

Investing money – always a good idea – but remember never invest with money that you need to pay the rent. Good budgeting and long term planning will help you understand what proportion of your income can be used for investing and when you need the money to become available.  These investments are to to be confused with the safety net fund mentioned earlier.

Start your married life with mapping out your financial goals with your spouse.  Live modestly and save hard.  Instead of meeting friends in a pub, entertain at home and have a pot luck night.  Bargain shop. Learn how to do some elementary house maintenance and car repairs.  You not only save money but you can use these skills to make money.  You are young, doing with less is not a struggle it should be a way of life, later on, you will appreciate the better things a lot more.  My parents started their life in a two room flat before they could buy something bigger, they lived within their means.

Only take out a loan for an investment like buying a home.  Never pay interest for something that loses its value like a car.  Save today for what you want tomorrow.

BUDGETING does not raise today’s standard of living but definitely enhances your quality of life.

To help you save money in Israel, please download my free e-book the link is http://suzykahati.com/l/