Budgeting is a huge step towards financial success. This step is crucial if you are really determined to start saving more money for the future or if you’re planning to save for a trip or whatever financial goals you have – this step can definitely help you achieve it. However, sometimes, no matter how many times we tell ourselves to start doing it, we still end up taking it for granted or we are continuously putting it off.
Well if you are like that, we are definitely on the same boat. I totally understand the frustration. I can’t remember how many times I attempted to start budgeting but still end up sabotaging it. I mean, it’s just so easy to fall into the trap of temptation and sabotage it. But after having to quit my job and being unemployed, it made me realize how important it is to create the perfect budget plan and to really stick with it.
Now, after having so many budgeting fails, I have finally determined the key on how we can really stick to it and that is to create a budget plan suited for you and your family. Keep in mind that not all budgeting tips you see on the internet will work for you. Each family has different needs – that’s why it’s important to only stick with a budget plan that will work for you and you’re family. That way you won’t feel like it’s too much of a chore and the easier it will be for you to consistently stick with it.
And to help you get started on your budgeting journey, I have gathered 7 budgeting tips and tricks that’ll help you create an effective budget. Check them out!
Don’t be afraid to start from scratch
If your current budget is not working for you or your family, don’t be afraid to start over. Remember, that you are the boss of your own money, so, if something is not working, wipe the slate clean and start over.
Create a realistic budget
You need to create a budget that you and your family are comfortable with. If you know that you could never get by on spending 250$ for food, change it. It is important to create a budget that you can really commit to – something that won’t make you feel like you are sacrificing too much.
You can also try reducing the amount spent on food slowly until you’re comfortable with your intended goal.
Budget down to zero
If you make a certain amount of money every month, create a budget for that whole amount. From your utility bills, groceries, other monthly expenses and of course for your savings. Put every dollar to work. This will make sure that every dollar you make is accounted for.
This tip has seriously helped me so much. Normally, if I only create a budget for monthly expenses, all that extra money left will be spent on unnecessary things. Doing this also helps me keep savings as a priority.
Track your spending
Knowing where every dollar goes allows you to see where your money is going. Being aware of how and where you spend your money is a huge step in gaining financial control.
I can’t emphasize enough on how this tip has been an eye-opener for me. Tracking our spending made me realize how much money we were wasting on unnecessary things. So, always make it a habit to track every dollar and update your budget after spending money.
Prioritize your debt
It is always a must to prioritize your debt. This was one of my biggest mistakes. When I was still working, I loved using my credit card to splurge on things that I wanted. Even if it was something that was way out of my budget, I always had the greatest excuse in talking myself into buying it.
Now, buying something nice for yourself once in a while is not a crime, but my problem was when my credit card bill came, I chose to pay the minimum payment and spent the money that was left on unnecessary things. Then I got hit with all those interest rates and ended up paying more.
So, don’t be like me. Don’t let those interest rates hit you. Make your debt a priority in your budget every month. The sooner you’ll be debt free, the more money you can save.
Create a category for incidentals
No matter what we do, we can never predict how the whole month goes. Like, what happened to us last month, we didn’t anticipate our car breaking down or a couple of extra charges popping up. That only led to a couple of arguments and a large amount of stress.
That’s why it’s always better to set an amount of money for whatever it is that may come up, instead of stressing out when those things happen.
Budget money for fun
If you feel like you are depriving or restricting yourself from the enjoyment, then give yourself a specific amount of money that you can spend on whatever you like. Give yourself a little room to indulge in your wants. Doing this will help lessen the temptation to splurge. Just don’t go overboard with the amount that you set and remember that once you’ve already spent it, then it’s gone.
Remember that creating the perfect budget is not about sticking with all the tips and tricks that you see all over the internet, it’s about finding the perfect tips that will work for you and your family and then stick with it. It’s always best to work with something that you’re comfortable with, something that is realistic and suited for you. Find what works for you and your family, try them out and don’t give up.
So, take these budgeting tips and apply them to creating your family budget!
What about you? How do you create an effective budget? Let me know in the comment section below or send me an email, I would love to hear from you!