Need a financial reset? Budgeting is the answer.
Keeping track of your finances is the first step to financial freedom. Utilize these tips to make the most of your budget-friendly lifestyle.
Try These Budget Tips
Here are go-to pieces of budget advice to help you streamline your savings.
Budget to Zero Before Every Month
Every month is different, so it’s important to adjust your budget on a month-to-month basis. Our favorite budgeting tactic is to assign every dollar a job, until every dollar is accounted for.
Writing out your budget can be a powerful visual tool to keep you on track. Be sure to get this done before every month begins so your income is accounted for.
Create Your Budget Together
If you’re sharing expenses, you should be sharing a budget.
Keeping everyone in the loop is essential for anyone who shares expenses. The only way to hold yourself and your budget partner accountable is to make the money plan together.
Match Saving to Spending
Looking to curb your spending and boost your savings? Try this budget hack.
For every purchase outside of your essentials, add the same amount of cash to your savings. For instance, if an outfit you’ve been eyeing costs $54.17 then you have to contribute $54.17 to your savings account before you buy the item.
It takes a lot of willpower, but if you stick to the plan it will pay off.
Try A Monthly Challenge
Save a dollar every day, don’t spend unnecessary cash for a month, the list goes on.
If you need to jumpstart your savings fast, dedicate a whole month to it. Find a monthly savings challenge that suits your needs and see how much you can save in 30 days’ time. This is another budgeting tip that takes a ton of willpower, but it’s nothing you can’t handle if you’re serious about your savings. Just one monthly challenge can totally refresh your outlook on your financial future.
Leave Buffer Room in Your Budget
Yes, you should assign every single dollar a job, but some of those dollars should be assigned as buffers.
There’s nothing worse than an account overdraw. Your budget is meant to help you, not spread you too thin. Having some extra cash to pad your account will protect you in the long run.
We recommend that you have $75 of padding for checking accounts and $250 of padding for savings accounts, but these numbers should be adjusted depending on the minimum balance for your accounts.
Cash Only Systems
Swiping plastic doesn’t always feel like you’re actually spending money. Online banking can make things confusing.
If certain aspects of your budget are always tripping you up, try paying for them exclusively in cash. If you get carried away with fun money or the grocery bill, store your budgeted cash away in an envelope until you’re ready to spend it.
Keeping your card out of the equation can guarantee that you won’t go over budget.
1% Better Every Day
Writing out your budget isn’t going to entirely transform your finances. It’s a step in the right direction, but there is tons of work beyond the budget. It takes strong determination and willpower, and it won’t all happen overnight.
Give yourself some grace when things go awry. Getting 1% better every day is all you have to do to make serious headway into a brighter financial future.
When you first start budgeting there are likely an array of bad habits you have to unlearn and new habits to adopt. Take small steps every day to incorporate these new habits. Starting slow will make your budgeting lifestyle sustainable.