A budget is one of the best things to have in a financially responsible person’s life. If you’ve got one, then congratulations, you’ve made that vital first step into taking control of your income and expenses! It’s also one of the most basic financial must-haves, so it’s an awesome thing that you have down!
But wait—a problem that most people have with their budgets is consistency and overall maintenance. You could easily forget about it, lose track of the things you spend on, and simply lose motivation to keep your budget intact. Don’t fall into that trap, hun! Here are some tips to follow that can help you stay on the right track.
- Set a couple of dates every month to work on your budget.
It’s all about organization. Think of it this way—your budget is like a good old healthy relationship. It’s like your girlfriend or your boyfriend that needs regular dates to make it work. Literal dates. Think of 2 days within a month that you can set aside with just doing your budget or updating it. It could be on the 10th and the 20th, the 14th and the 29th, whenever you want! A budget needs commitment so that you won’t forget about updating it. This way, it’ll be easier for you to remember and prepare for it as well. By the end of the year, your budget will look super satisfying and you’ll be able to see how much you’ve progressed financially. Woot!
- Not Google sheet savvy? Use a money management app.
Google sheets can be great for budgeting. There are loads of templates online you can use as well! But sometimes, Google sheets may need some sort of knowledge of formulas to get all the budgeting math down.
If you want something more frizz-free and automated, you can use a money management app instead! They’ve got lots of neat features such as syncing all your banking apps together, notifying you when bills are due, handing you progress reports, and so many more. The only downside is that some need subscriptions you must purchase. The paid apps are worth it though because they can make your life easier. Try out apps like Mint, Buddy, YNAB (You Need a Budget), and others.
- Organize your budget into expenses, savings, and wants.
Not sure what categories to place on your budget? A good way to start is splitting it into 3 at first, which is your expenses, savings, and wants.
From there, you can think of the smaller categories that you regularly use your finances for. Under expenses, what bills do you pay? Jot down all your regular expenses such as meals, groceries, utilities, rent, internet, etc. Under savings, you can write down existing stocks, investments, and other stuff you have in your portfolio.
Finally, under wants, what are you saving for in the very near future? Do you want to travel or buy a shiny new gadget? Note that down there. Another tip: you can allot around 50% of your income for expenses, 30% for savings, and 20% for wants. But of course, this is all up to you and how you want to deal with your money.
- Track your progress.
First off, you need financial goals. You should have made those before working on your budget, whether that’s retiring at 50 years old or getting married and starting a family at 35. Once you have your financial goals down, keep track of your progress always! Make sure to see how far you’ve come every other month and check where you’re at. If you don’t seem to be saving enough money to reach your goals, adjust your budget accordingly (more on this in the next point). If you are, then awesome! Just think of how satisfying that’ll look like, luv!
- Cost cutting in your budget is normal. Don’t worry about it.
Budget cuts are totally okay and most of the time, necessary! Again, budgets are supposed to help you reach your goals, and if some costs aren’t keeping you on the right track, then you’ve got to make those cuts.
Perhaps you can save by making your grocery budget smaller or getting a cheaper plan for your internet. Maybe you could cook at home rather than going out for meals. You need to remember though, that these budget cuts aren’t permanent and aren’t there to prevent you from enjoying life.
Again, when the next month comes, track your progress, and then make the necessary adjustments. It’s okay if you don’t get your budget right on the first few tries! The important part is that you keep working on it ‘til it works for you.
