3 Simple Steps To Start A Budget
No matter what stage you are in life, one thing that constantly comes up in our daily agenda is the issue of money. Whether we have a handle on our finances or are just starting a budget, getting control of your money and where it’s going, is the best way to ensure that you are ready for anything life decides to deal you and your family.
There are simple steps you can take right now to take control of your finances and be in charge of your budget. Once you feel comfortable about how you are spending your money and feeling secure about your saving, you’ll find yourself with a huge weight lifted off your shoulders and have the ability to live the life you deserve, worry free.
1. Tell Your Spending
One of the biggest roadblocks we meet when it comes to creating a budget is being honest with our spending. We find that it is so easy to spend money here, swipe your card there, and at the end of the day, have no idea where all of that money went. The first thing you need to do is make a plan for each category of your spending. Telling your money where to go ahead of time, is the best way to ensure that you control those extra dollars you carelessly throw away everyday, without even knowing it.
If you know you go out and eat a lot, be sure to put an honest budget that you can stick to in your “Eating Out” plan. If a monthly budget doesn’t seem like a reasonable time for you to stick with, try doing a weekly or even daily budget. This way, you can monitor how much you have left in each category more closely.
2. Keep Track
Whether you are old fashioned with a pen and notepad, or if you are keeping track of your finances via a mobile app, keeping track of your budget will ensure that you are sticking with it. Keeping a notepad and pencil in your purse or pocket is great way to quickly jot down expenses wherever you are. Creating a spreadsheet document on your computer is an easy way to keep track of your spending and can be organized to keep you updated at the end of the day. Some mobile apps that work very well with budgeting are Mint, Cents, and LearnVest. Always choose a method that works best for you and something you can easily stick with.
3. Automated Saving
Saving is probably the hardest part about budgeting. It is really tempting to see that you have extra money left over here and there, and not want to put it towards your food, clothing, or home budgets. The point of budgeting is so that you can create a comfortable savings amount and are not left zeroed out at the end of the month. The easiest way to put money away and save it is by looking at your budget, dividing up the least amount you can live with in all of your expense categories, and automatically putting your funds into a savings account, before anything else. By saving your money, you are paying yourself and rewarding yourself for all your hard work and effort. Making sure you are saving first, automatically putting money aside that you will not touch, instead of just doing it later, will ensure that your savings will grow and you can see the rewards of your hard work.
Creating a budget should not be a stressful task or burden on you and your family. By putting a budget in place you are ensuring that not only will you be taken care of financially, but that you will never have the stress of not knowing where all of your money is going. A budget offers you the freedom to be worry free of money problems, a luxury many of us crave.
More Posts To Help You Save: