Disclaimer: This information is accurate and true to the best of my knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
Budgeting can be challenging for a lot of us.
We might find ourselves overspending on coffee in an effort to boost our energy levels or purchasing an inordinate amount of subscriptions before realizing just how much money we have dished out…
Fortunately, you can take control of your finances: it is not easy, but it is most certainly possible, and these tips will likely help.
1. BUDGET TO ZERO BEFORE THE MONTH BEGINS
You’ll want to make sure that every single dollar is accounted for at the very beginning of the month (if possible): rent, groceries, coffee outings, investments, savings, etcetera. If you do this, chances are you will rarely overspend and you will never have to worry about not having enough to hold you over during tough times.
2. CREATE A BUDGET WITH YOUR SPOUSE (IF APPLICABLE)
If you have a spouse, it’s probably best to create your budget together, because marriage can be tough at the best of times and the last thing you need is a dinner filled with inquisitive questions about where the money is going!
Instead, it’s advisable to sit down, take out a notebook, and write down every expense you have so that you can both plan for the future together. This approach can allow you to maintain a happy and healthy relationship while also setting yourselves up for future success when it comes to your finances!
3. REMEMBER THAT EVERY MONTH IS DIFFERENT
It’s important to remember that every month is different, especially if you are self-employed and have unpredictable income. In that case, it’s best to budget at the lower end of your earnings.
Example: If you generally earn $2000-$4000 every month, budget for $2000 so that you will never be in trouble.
Additionally, it’s important to remember that your expenses may fluctuate each month — medical bills might come up and your tax expenses could be much higher than you might have expected! — so it’s essential to budget accordingly, that way you don’t have to deal with financial stress and emotional stress simultaneously.
4. START WITH THE MOST IMPORTANT CATEGORIES
When budgeting, you will want to start with the most important categories:
- Rent/Mortgage
- Groceries
- Business Expenses
- Education
- Health Expenses
Generally, your rent/mortgage is the most important — and highest — expense you have. You can usually get groceries one way or another if you’re really in a pickle, but it’s hard to come up with enough money to pay the rent if you haven’t budgeted for it!
Eating well is important, so you’ll want to pay for groceries that nourish your body. If you have children, it might cost quite a bit to get healthy food for all of them.
If you run your own business, you will likely have to pay for advertising costs and various other materials, subscriptions, etcetera to get things up and running!
It’s essential to budget for these expenses.
5. PAY OFF YOUR DEBT
If you have credit card debt or student loans, paying them off as quickly as possible is ideal so that you can put that money towards other things!
6. DON’T BE AFRAID TO TRIM THE BUDGET
If you find that you’re budgeting for $400 worth of groceries and you can get by on $200, why not minimize your expenses? There’s nothing wrong with trimming your budget and investing the difference or paying off any debt you may have sooner than later if that is doable for you.
7. SET A SCHEDULE AND STICK TO IT!
As humans, we are creatures of habit: if we become accustomed to jogging every morning at 5 am, it can be difficult to not get our exercise in. Similarly, going grocery shopping on Sunday evenings every single week can help us develop a routine so that we can be conscientious of our budget—you may also want to look into when grocery stores offer the most discounts if you have a flexible schedule!
It’s so easy to overspend when we see all of those advertisements tempting us to purchase the latest products, but saving money can honestly change your life for the better, and budgeting is the first step in the right direction!
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