Outline decision rules for how to make the most of a fixed budget?

Question

Outline decision rules for how to make the most of a fixed budget?

Answer 1

Priorities ..

List everything you spend on .. then put them all in a single list in 'priority order' ..

'Basic Foodstuffs' is likely to be top, then Rent, then Utility bills, Credit card debt, Pension payments, save for bills (eg. Insurance etc when due) .. and so on .. ..

You should have 'save for holiday', 'save for birthday/Xmas etc in the list as well ..

Somewhere near the bottom will be 'Restaurant Meals', 'Starbucks' and (if you are a guy) 'Cloths Shopping' ...

Then, each month, spend starting at the top and stop when the money runs out .. and NEVER spend using a Credit Card ..

If you discover each month you never get more than half way down the list, start crossing things off ...