8 essential tips to stick to your budget
Sticking to a budget when you are trying to save money for a future goal can be hard. It requires a lot of discipline and commitment.
In a previous post we saw the importance of having a budget and the basic steps to create one. If you haven’t read, I encourage you to check it before continuing with this one.
A simple budgeting guide to manage your finances
Ok, now that you know how to create your budget let’s find out some tips to actually stick to your budget for financial success.
1. Be realistic about your goals
So many times we set unreachable goals that actually set us up to fail. Setting realistic financial goals is the first step to stick to your budget.
If you want to succeed you will have to push yourself but you also have to be realistic.Break down your big goals into bite-sized goals.
2. Track your spending
Tracking your spending will allow you to see where your money is going, for that you can use technology to your advantage. There are plenty of good apps for smartphones that you can use to help you track your spending, set financial goals, and adjust your budget.
Don’t forget to prioritize your spendings between needs and wants
3. Categorize your expenses
Take a moment to categorize your expenses into areas such as housing, grocery, entertainment, transportation. Categorizing will allow you to see where your money is going and it be easier to make adjustment if needed
4. Don’t use your credit card
Credit cards can be great for some occasions but too many people use them as a way to spend on things they don’t need.
Keep in mind that using someone else’s money comes with interests and fees. Don’t use your credit card especially if it’s for non-essential things.
Making sure that you are using money you currently have is an essential key for your financial goals
5. Plan ahead for social events
If social events such as birthdays, baby showers, and Christmas are important for you, it’s essential to plan a budget for it.
Remember to only buy things that you can afford.
6. Avoid impulse purchasing
Before buying something big or small give yourself some time to see if you actually need it. Most of the time we only need 24 hours to realize a purchase wasn’t worth the money. So take a good night of sleep and see if on the following day you still want that item.
7. Plan your meals
Food is often where a lot of people tend to overspend. Planning your meal for a week is a great way to avoid exceeding your food budget. Before going on grocery shopping make a list of the things you need to buy and if you know you will be tempted to buy more than what you need you can do your grocery shopping online.
Online shopping has many different benefits, you can do anywhere and anytime but more importantly you can remove items if you see that you are over the budget you fixed.
Whether you choose to do your food shopping offline or online a tip you should consider is doing it on a full stomach to avoid buying unnecessary extras.
8. Use a budgeting rule
Some people split their money using the 50/30/20 rule which consists of putting 50% of your income on needs, 30% on wants and 20% on savings. This method will help you create a reasonable budget that you can stick to
Hope this blog post was useful. If you feel like you need more help to manage your finances don’t hesitate to ask a professional.