How to Budget Money
I’m sure all of us wants to learn how to save money but fact is it’s not easy. There are times that you’re able to save a few bucks but some expenses will come and you need to pull out that money you saved. Learning how to budget money is not easy at first but once you make it a habit, you will be successful.
Tips on How to Budget Money
1. Give yourself a reward. If you stay on budget for three months, you totally deserve a reward! So, plan for it… stay on track… and deliver. Whether it’s an extra gift card to a shoe store, or a night out with your significant other, rewarding yourself is a great way to help keep your eye on the prize and realize your why for budgeting.
2. Review your budget. It’s important to review your budget on a regular basis – not only to see what isn’t working, but to see what is working. I think both parts are equally important, because without knowing both, you won’t be as successful.
Are you saving the amount you thought you would each month? Is it going towards the goal you originally set, or do you need to change your goal a bit? Are you still spending too much on shoes, or did you do really well at cutting back? Do you have some wiggle room? Tighten it up a bit by putting even more into savings (or into paying off debt).
3. Make it automatic. If you haven’t yet, make your savings contributions automatic – meaning, a set amount should come out of your paycheck each week without you having to blink an eye. Automatic deductions help us so much!
4. Pay with cash. While paying with a credit card is great (especially if it has rewards attached), paying cash keeps you accountable. Instead of picking up an extra thing here and there while you’re grocery shopping, you’ll be more likely to weigh how much you really need each item if you know you have a limited amount of cash on you.
5. Don’t stop believin’. Did you sing that line, like I did? I want you to keep in mind that budgeting isn’t always easy! It’s just like learning any new skill, changing your diet, or even trying to lose weight – it takes work. So when something doesn’t go perfectly, don’t get too stressed out. Just pick yourself up, dust yourself off, and do better next time. Believe that sticking to a budget is possible, and it will be.
6. Forgive yourself. If you do mess up – by splurging on an outfit you really didn’t need, or by spending too much on date night – forgive yourself! It’s the only way to move on and do better next time.
Also check out these money saving tips: