Ready to get real about your money? Everyone has to start somewhere: here are fifteen tips to help you get off to a strong start with your budgeting.
Start With Your Goals First
If you don’t know why you’re budgeting, you won’t have a reason to stick with your budget. Determine what your financial goals are and use them to guide your budgeting.
Factor in Debt
Paying off debt should always be a priority, but you should specifically make room for it in your budget. Make a long-term and short-term plan to become debt-free.
Don’t Be Afraid To Make Changes
Different people require different budgeting techniques. Don’t be so stringent with your budgeting that you can’t be flexible with your approach.
Understand You’re Making a First Draft
You’re new to budgeting, so naturally, your first budget won’t necessarily work for you. Having something is better than nothing; remember, you can always adjust.
Be Honest
If you’re lying to yourself about how much you spend on going out to eat or on your hobbies, you’re never going to have a successful budget. Be honest about your spending: all of it.
Try Budgeting Apps
Many apps can simplify budgeting for you; try them out and see if they click with you.
Automate Monthly Payments
Most companies make it easy for you to automate your bills. Doing so will streamline your budgeting and free up some headspace since you won’t have to worry about remembering to make a payment.
Use a Spreadsheet
A spreadsheet works just fine if you aren’t much of an app person. Just ensure you’re budgeting in a way that makes sense and feels appropriately organized.
Cut Spending as Needed
Once your budget is fully formed, audit your spending. You’ll probably realize you’re spending too much in certain areas, so revisit your budget if it doesn’t align with your financial goals.
Don’t Forget the Fun
Too many people take an overly serious approach to their budget. And while it’s good to take your budgeting seriously, you should always make room to spend money on the things you genuinely love doing.
When in Doubt, Overestimate
It’s always best to overshoot a budgeting category and have leftover money than the other way around.
Practice Budgeting Daily
Get into the habit of updating your budget daily. Open your app or spreadsheet as a part of your morning or evening ritual so you don’t miss any expenses.
Keep It Simple
An in-depth budget is great, but it’s probably wise to keep things less complicated if you’re new to money management. The easier your budget is to follow, the more likely you are to follow it.
Automate Savings
Once you’ve determined how much you want to save each month, there’s one straightforward way to ensure you stick to it: have your bank automatically put the money in your savings so you aren’t tempted to spend.
Start an Emergency Fund
A firm budget always considers the worst-case scenario. And while you hope it never happens, aim to be ready for it by starting an emergency fund and funding it with your budget.
