In these hard economic times creating and sticking to a budget may be the difference between who wins, and who loses. Here are some tips to help you set-up your budget today!
1. Nobody Wants To!
Nobody wants to set-up a budget, they do take time, however it is the only way you'll know where you can cut from and where you can't.
2. 3 Steps to a Good Budget
- Figure out how you're spending your money now. Save all your receipts for a month to help you determine exactly where your money is going! - Set long term goals and set time lines for those goals. - Keep track of your spending at regular intervals to ensure you're following through.
3. Use Your Computer
Software programs like Microsoft Money and Quicken have built-in budget making tools to make creating a budget easier.
4. Stay Sane!
Making your budget too strict will just make you want to quit. Focus on those categories that help you achieve your long term goals and worry less about the others.
5. Small Change
Every bit counts so if you notice that you're making more than one trip a week to the ATM and have no clue where the money is going you may want to set-up an easy to use system to keep track of all those small purchases we make everyday. Limiting this to a specific amount in your budget should help without writing down every little detail.
6. Beyond the Limit
You can't spend more than you take in or eventually you'll be in very deep debt. It is a common practice for many but don't let that be an excuse.
7. Luxuries Can Wait!
One way to help tame spending on luxury items is by creating an account for each item you wish to purchase and then putting a little bit of money it it every so often until you can buy it straight up!
8. 90%
A good goal is to only spend 90% of your income while saving the additional 10% for luxury items.
9. Only What You Know
Don't count on money you think you're going to get, only count that which you have or know for sure will be coming in.
10. Raises
As we get raises we tend to spend more. Watch out for that trap and try to keep the same budget even after getting a raise or increase your savings percentage to match the raise.
Overall budgets are hard to start and even harder to keep however in this day and age they are more important than ever!
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