Budgets! Synonymous with overwhelming; work; failure.
Budgets don’t have to be any of those previous mentioned words. Budgets should be easy, helpful, and adaptable to anyone’s style.
Budget-Fu Starts with a Decision
Pick a specific reason for a budget, it’ll help you stick to it.
Think about the goals you want to accomplish for the year and decide what is most important for you. Are you making a budget to track your spending and see where your money goes? Or are you wanting to save money for something specific?
Decide on the reason and write it down. As you make progress, record it in a place you can see often, so you can measure your success and keep on target.
Start Simple My Little To-Dai
When it comes to managing a budget, start simple!
As with any goal, if you set your sights too high, you risk failing. Be realistic. Try looking at one aspect of your budget that needs help, like cutting back your food budget.
Save $10 dollars a week amounts to $520 a year! An extra $520 to pay down debts will save you in interest costs and help you become debt free. It’s a step-by-step process, and every little bit helps.
Creativity Will Make Your Budget Stronger
Simplifying your food budget is an easy way to start. Though there are many areas you can budget for similar benefits: entertainment, utility costs, transportation, education, you name it.
With a little bit of creativity, you can save in almost every expense category there is! Here’s some great ways to save without giving up the benefits.
- Grab a RedBox movie or two. The typical theater movie costs $8. Have a family of four? That’s $32 plus concessions. Get twice the movies with all the popcorn you can eat for $4.
- Carpooling saves you half your travel cost by simply switching between who drives.
- Get out of the shower! And maybe grab a shower timer while you’re at it. Hot water showers up utility bills making it hard to save.
- Used text books. Whether or not you’re in school, buying the latest edition of a text book requires all your savings and a finger or two. Buy the previous edition for pennies!
Knock Out Credit Card Spending
Financial planners say to use cash as often as you can. Be honest with yourself about your spending limit and be diligent about sticking to that amount.
Credit cards allow an unlimited amount of spending. Cash forces you to stay within the amount of money you have.
When you pay with cash, the debt is paid off immediately, which also means you won’t be stuck overspending or paying interest rates on credit cards.
Get In Touch With Your Inner-Ninja
Find what budget format works with your style. What works for one, might not work for you. There are plenty of budgets to choose from. Search around for the perfect budget for you.
If you are making a budget to save for a wedding, or vacation or something specific, set up your budget that works around that specific goal.
If you are looking to see where all your money is going, decide on a format that allows for visualizing your spending habits.
Don’t Let Fear Sabotage Your Budget
Budgets don’t have to be scary. Practicing these few simple steps will make you a ninja budget master in no time!