Knowing how to budget money isn’t as hard as you may think. It’s just a way of being more balanced with your money, a way to keep track of your ins and outs. You’ll have control over your money rather than it having control over you. Although I am not a financial advisor here are some tips I personally learned along the way.
5 tips to budget your money
Write A List of Your Income and Expenses
This is so vital because it allows you to compare what you make to what you actually spend. You narrow down what’s really important versus what’s not.
When creating your budget make a list of all your expenses such as electricity, rent, car insurance, savings, groceries, etc. Take that amount and subtract it from your income. Whatever is left will either shock you or put a smile on your face.
Your budget should match your needs first then your wants.
Track Due Dates
There have been times where when I created my budget for the month I forgot to add a bill. And then I thought I had more money than what I actually had. Talk about having an anxiety attack. So now I write down the due dates of each bill so I can budget accordingly.
Develop A Method
You can have separate accounts in your bank that hold the money for your bills. This will help you to visually see that that money is accounted for and it can’t be touched.
And there are budgeting planners or apps. Both are very affective if that is the route you would like to go. They all will help you to budget your money.
Plan For Wants
It’s easy to know if you have the money to buy yourself a cup of coffee. That just might take a few extra dollars. But what if you want to go on vacation or buy a new car?
That takes time and a lot of planning.
One possible way to speed that up is by pushing pause on unnecessary “wants” in your budget. Such as your coffee runs in the morning or eating out every week. Just until you have met your goal. It may seem like torture, but once you’re in Florida or in your new SUV, it’ll totally be worth it.
Don’t fall into the trap that since you have a credit card or have a high paying job that you should be fine.
THINK AGAIN!
The kind of expense of buying a new car or going on vacation can take you way off your budget, if you don’t plan for it. If you choose not to, you have restricted yourself rather than free yourself. More than likely you’re going to have to play catch up, becoming a slave to your money.
And instead of choosing to cut down on certain wants now you will be forced to, in order to compensate. Which will cause you to not be able to budget your money properly and feel stuck.
For tips read my blog How To Save Money.
Review Budget
We all can expect changes in life, especially in our finances. So it’s important to review your budget from time to time.
The times my husband and I reviewed our budget is before we bought a car, after paying off debt, or when we got a raise. Losing a job or increasing your savings is another perfect time to review your budget. Basically, any major life changes that will affect your finances.
By sticking to a budget you will have control over your money rather it having control over you!
If this has helped you or you can relate let me know in the comments!
Although I do share from my personal experience or I've researched it, this blog has been prepared for informational purposes only. Visitors who rely on any information do so at their own risk. For more information please visit my disclaimers page.