Let’s paint a scene for you:
It’s the start of a new month and you’ve just wrapped up a fun weekend with friends. The previous month was a good one, but not overly active. You had a few dinners out, a minor bar tab here and there, some packages delivered from Amazon, a reasonable trip to Costco. Nothing quite out of the ordinary.
You’re enjoying your Sunday evening when all of a sudden, you get an email notifying you of your new credit card balance. Suddenly, your relaxing little Sunday evening is no longer. It’s official: with one look at that new outstanding credit card balance, the night has given you a major case of the Sunday Scaries.
How in the world did my credit card bill get so high? Where did all of my money go?
We’ve all been there, haven’t we?
It’s no fun, that’s for sure, but these little surprise anxiety attacks pop up all too often when there’s no set financial plan or intentional budgeting being done. If you’re looking to avoid letting money be a trigger for you, then it’s time to commit to a budgeting method once and for all. In other words, it’s time to take back control and stop letting your credit card statement (and other bills) get the best of you.
However, it’s not just as simple as creating a budget once and then calling it a day. In order to truly reap the rewards of your budgeting skills, you need to actually put in the work. Below, we’ll outline 5 key ways you can stick to your budget more effectively from now on:
Tip #1: Start with your goals
Budgeting is SO much easier if you know your “why”:
- Why are you budgeting?
- What are your savings goals?
- What is your timeline?
- How much do you need to save?
- What adjustments do you need to make?
Tip #2: Find a method that works for you
There is no one “right” way to budget, except the way that works for you (…that you know you’ll stick with!). If you know you’re more likely to stick to budgeting if you use an app, then give some of these a try:
- You Need A Budget
- Mint
- Clarity Money
- Every Dollar
On the other hand, if you’re more of an old-fashioned write-everything-down kind of person (…that’s our style, too!), then give our budgeting workbook a try!
Tip #3: Stick with it for at least 3 months
Studies show it can take up to 12 weeks to truly build a habit. Give yourself at least 3 straight months of budgeting to really get the hang of it. If you need to, take things week by week when you’re first starting out so that you can get a better feel for the process.
Tip #4: Allow yourself some wiggle room
Budgeting is a lot like dieting – too much restriction will backfire! Give yourself some wiggle room for unexpected expenses or overspends. Budget for a little spending money each month so you don’t feel overly restricted.
Tip #5: Find an accountability buddy
Find someone who cares about your best interests and ask them to hold you accountable to your goals. Meet with this “buddy” each month to discuss your progress as well as what adjustments you might need to make.
Some other good budgeting tips?
- Review your bank account and credit card statements from the past 3 months to get a true understanding of your spending habits/expenses
- If you plan to buy a home or make any other updates, make sure it fits in your budget first
- After each month ends, go back and see how close you were to sticking to your budget goals
- Try the 50/30/20 method:
- 50% of your monthly income should cover fixed expenses (your needs)
- 30% of your monthly income should cover your variable expenses (your wants)
- 20% should fund savings, investments, and other retirement contributions
*For more tips like this, be sure to check out our budgeting workbook!
What’s your favorite budgeting tip? Let us know!
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