Budgeting is the best way to monitor your finances and be sure that you’re not spending more money than you make. Whether you’re starting out for the first time or you’re making some adjustments, keep some of these tips in mind to build a budget that you can use to guide yourself towards financial success.
1. Know what you have to work with, and be specific. Determine how much money you’re making each month, and how much you’ll spend paying for bills and necessities. Don’t guess, and don’t leave anything out. The more precise you can be, the better. Take a month or two to monitor fluctuations and trends in your spending to help figure out how much you can save and how much you should allocate for monthly charges.
2. Set both long and short term goals. Have something in mind to work towards to keep yourself motivated, and you’ll be less likely to stray from your savings path. You should work towards creating an emergency cushion for yourself, but don’t forget about saving for other big things, like a house, a vacation, or even future children! However, bigger goals like this could take longer to reach. Set a few short term goals for yourself that you know you can attain. Seeing that success can be a great motivator to keep up your hard work.
3. Hold yourself accountable for everything. Once you’ve come up with a plan for yourself, stick to it! You might say you plan on saving $100 from every paycheck, but it’s easy to push that plan to the side as soon as something fun comes up in the here-and-now. While a night out with friends or a short trip might sound fun, doing those sorts of things often can seriously derail your financial plans. Remind yourself of your goals often to stay on track.
4. Be realistic. Some things are out of your control – you can’t give yourself a raise, and you can’t make your debt magically disappear. You have to make the best of what you’re given, or find ways to make adjustments, and be flexible when you have to be. While it’s great to be optimistic, don’t set rules for yourself that you know you can’t live by.
5. Take advantage of useful budgeting tools. There are a ton of ways to keep track of your finances, but finding an easy-to-use and helpful tool can really make a difference. Using BudgetSimple is a great way to monitor your spending, and they offer so many helpful tips for saving and planning for your financial future.
6. Work with a partner. Check in with a spouse, a friend, or a family member to hold yourself accountable for your financial decisions. Surrounding yourself with likeminded, budget-savvy people will also help you to stay on track. You’re less likely to overspend if others you’re with are conscious of their spending, too.
Are you planning a budget for the very first time? What are some of the things you’re taking into account? What goals are you hoping to achieve?
