Budget, Budget, Budget the word which is sometimes associated with belt tightening, going without…using spreadsheets to track your spending.
And you know what more than half of us don’t have a budget and they don’t like the word being mentioned to them.
Here are some tips on how to create and stick to your budget-:
Understand exactly what your income is and make sure that the budget is as accurate as possible, whether you earn fixed income, self employed, this is very important especially if you are married, in long term relationship or family, then the budget would apply to your household
Budget for the unexpected:– whether you like it or not there will always be those unexpected expenses that crop up from time to time. This could be an expensive car repair or additional medical costs. These are unknown but put some money aside every month for these unforeseen costs.
Understand why you are budgeting – There is no point going through this entire exercise if you do not believe in it. Understand that it is a plan to help you better manage your finances to ensure a more positive outcome.
Involve all members of the household– If your partner or other members of the household are not on the same page as you with the budget, it is going to be a frustrating and problematic process. Involve them from the start, explain the reasons and work on it together. If there is no buy-in from you partner or other people that form part of the budget, it is only going to lead to problems.
Put the budget into action – If you have not worked with a budget regularly, it will take discipline to remember to keep accurate records and update it as often as necessary. There is no point in doing a budget that has missing or incorrect information. You do not have to be pedantic about every last cent as this will become painful but ensure the vast majority of the money is accurately accounted for. Initially this will take a bit of discipline but it will soon become second nature.
With these five tips start budgeting, for the better.