Five ways to build a budget and stick to it
It's time to get serious and you know that you want to do this, but how?
If you want to put a budget together, but you don’t know where to start, here are some ways to help you get started:
1. If you don’t want to build your own Excel spreadsheet, you can find my beautiful templates online! Check out my Etsy shop! I have a Deluxe Financial Planner and an Annual Budget Planner all set up and available for you. ( I also have an expense tracker, debt payoff calculator, compound interest calculator and a net worth calculator) All in Microsoft excel and Google Sheets.
2. Or you can start by writing out all your expenses on a simple piece of paper, then subtract the total from your monthly salary. Whatever is left over can be allocated wherever you’d like.
3. Still not convinced? Ask you friends and family members how they put a budget together! You may learn some new and inspiring things.
4. Tracking your expenses is critical to completing your budget. Try and track your expenses for an entire month You can either jot down what you spend in a little notebook, utilize your banking app or use my app “GET TRACKING”. This way you will know how much you actually do spend on groceries, eating out, dog grooming etc. A solid number is always going to benefit you rather than an estimate.
5. Adjust as the months go by. It’s okay to change things or re-arrange money. It’s your money, but make sure to check in either on a weekly/biweekly basis to make sure things are how you said they would be and don’t feel discouraged if you don’t follow it to a tee.
There have been MULTIPLE times where I’ve created my budget and then changed it up completely because of an emergency expense, spontaneous shopping decision or by being plainly oblivious to my spending. However, after years and years of working at it, I’ve realized that with a little bit of budget practice it becomes easier. You will begin to memorize your monthly expenses and when you go to make a bigger purchase you will know if it’s do-able or not.
Trust me, by practising to build a budget, you gain the confidence you need to stick to it. Please don’t quit if you over-spend on your budget! Keep at it and keep tweaking. It’s can actually be fun to see how you can piece together the challenge of money management, think of it like a puzzle!
So, how can you stick to it? Once you have some positive months and you start finding ways to save a bit more, invest a bit more, build up your emergency fund or build up your “fun account” ... it will become something that you do unconsciously. It takes practice and a little bit of discipline. To hold yourself accountable, tell someone what you are doing! I know that sharing your personal budget with another person (even your partner!) can be a little uncomfortable. If you don’t feel like disclosing your budget to anyone, then ask yourself: What needs to happen in order for me to stick to it?
Perhaps you need to set a time in your schedule to review your budget, like I’ve mentioned in my money dates post, and then to reward yourself when you do.
Ultimately, you’ll stick to it if it’s a positive experience and you see yourself achieving your intended goals, so ensure your goals are realistic and achievable. Go through the SMART financial goals exercise and afterward, set it up in your budget.