7 Budgeting Tips for Everyday Life
It’s the B word. And it’s considered a cuss word in some homes—budget.
Budgeting has gotten a bad reputation. You, like many people, may view it as a straitjacket for your money.
Not so!
A budget gives you permission to spend. It’s you telling your money where to go instead of wondering where it went.
At its core, a budget is spending your money on purpose. It’s being intentional with how you spend your money. And the great thing is, since it’s your money, you get to decide how it’s spent! Once an item has been budgeted for, you can spend that money on that thing without guilt. Without worry you’ll overdraft your account. Without hesitating if the money is better spent on something else.
How amazing is that?! What an incredible way to spend your money and live.
Here are my top seven budgeting tips:
Tip 1: Plan how you’ll spend your paycheck before payday.
This means you sit down and plan exactly how you’ll spend the money before it hits your account. Give every dollar a job to do. A job could be pay the rent or mortgage. Another job could be transfer into savings. And yet another job could be pay for date night. You decide. Every dollar gets a job. Otherwise those dollars will sprout little legs and take off running.
Tip 2: Do a budget together.
If you’re married, do a budget together. Make it fun! Make it an at-home date night. Put the kids down. Turn off the TV, computers and iPad. Pop a bottle of wine or make some hot chocolate. Turn on your favorite tunes.Y’all need to be on the same page with money. If you’ve said vows, the two of you are now one. You share a bed. If you have kids, you share genetics. You need to share a bank account. It’s no longer your money and my money. It’s our money.Share your dreams. Share your goals. Remember: you’re on the same team. Working together to reach your goals will allow you to achieve them faster.If you’re single, find an accountability partner to help you stay on track with your goals.
Tip 3: Remember every month is different.
Summer vacations, back to school, Halloween costumes, Thanksgiving dinner, Christmas gifts… Every month is different. Don’t create a cookie-cutter budget because it won’t work.Yes, some bills will be the same each month like your rent/mortgage and insurance. Others will be consistent bills, but different amounts like electricity, water, natural gas, etc. While other categories will be a one-and-done like the ones listed above.The best way to ensure you don’t overlook month-specific expenses is to have your calendar with you while you create a budget.
Tip 4: Track your progress.
It’s important to track how you’re doing. Confirm how you’ve said you’d spend your money is actually how you’re spending your money. Make adjustments as needed. In addition to tracking your progress with your monthly budget, track your progress on your goals! How much debt have you paid off? How much money have you saved? Celebrate your wins!
Tip 5: Have a “miscellaneous” category.
This is the best category in your entire budget. Yup, I said it. This is basically a catch-all. You know those sneaky, unexpected expenses you either forgot to add in your budget or come up out of the blue? Field trip money, birthday parties, school pictures, etc. When something comes up, you can use the money in this category to cover the expense without having to take away money you’ve decided to spend on something else.Keep an eye on the things that end up using this money. If it’s frequent enough, you might want to consider creating a permanent category for that item.
Tip 6: Use cash for categories that are notorious budget busters.
Groceries, restaurants, date nights, fun money… These categories are easy budget busters if you’re not meticulous and careful. Plus, who wants to have to keep a running calculation for all the times you run to the grocery story? That’s too much work.Once you decide how much money will be allotted for these categories, go to the ATM and take it out in cash. Separate the cash by clipping each category in separate paperclips and slap a sticky note on top identifying which category the money belongs to. When you go to spend it, you’ll know exactly how much left you have to spend in the category after you’ve made your purchase. You’ll also know if you’re spending over the amount. Cash keeps you honest.
Tip 7: Give yourself grace.
Y’all we’re all human. You are not perfect, and your budget will never be perfect. But what you should strive for is consistency. Being consistent with making a budget, working it, tracking your spending will all help you move closer to your money goals.When you slip up—and you will—give yourself and/or your partner grace. Make note of it, decide how to avoid similar mistakes, forgive and move forward.
When you realize a budget doesn’t restrict your freedom, but gives you freedom you will be well on your way to achieving your money goals. That’s what I like to say is winning with money.
Need some help creating a budget?
Want some accountability in reaching your goals? Schedule a meeting to see if 1:1 financial coaching is your next right step.
