You have decided it’s time to create a budget. Maybe you’re spending too much each month. Or you may not even know where your money is going. A budget can help solve both of these problems and more.
How many are still on track with their Money Savings Challenges for the year? Creating a budget that incorporates savings can help you to be successful with meeting and exceeding your goal for the year.
A budget can also help you get your finances under control so you can get out of debt and find the funds to pay for that new car, a much needed home renovation, or a down payment on a new home.
I will admit…I was anti-budget for many years, but once I saw how much it benefited myself and my family, I was hooked!
Once you’ve created your budget, here are some simple strategies to keep it in place:
Why did you create your budget? Keep in mind your reason for creating a budget in the first place.
Surely your intention wasn’t to create a budget so strict that there’s no wiggle room for entertainment or an occasional ice cream cone! Your goal is to be wise about how you spend the money you receive each month.
True, this may mean that you’ve had to cut back on discretionary spending, but the ultimate pay off is being able to do the things you truly want to do.
Make it simple. If your budget is too difficult for even a financial genius to understand, you won’t stick with it.
- Your budget should be simple enough to understand so you’ll be able to use it and adjust it when necessary. The easier it is to use and manage, the more likely you’ll be to stick with it.
Be realistic. Is your budget realistic for you and your family? If you’re planning to cut all your expenses at once, you may be trying to do too much too soon.
- Start out making small changes to how you spend money, instead of broad, sweeping changes that are totally unreasonable. Small budget changes are easier to maintain than large ones. Remember, everything in moderation brings the best results.
Include short-term goals you can reach quickly. Short-term financial goals can make living with a budget easier.
Perhaps you have several low balance credit cards you’d like to pay off before tackling the higher balanced cards. You could also work on paying off the credit card with the highest interest first.
Whichever way you choose to pay them off, you’ll need to find extra money each month by cutting down on other expenses.
Here’s an effective plan for paying off your credit cards using short-term goals:
- Pay the minimum payment on all credit cards except the one you’re trying to pay off first. Each month pay a little bit extra in principle for that card. Before long that card will be paid in full.
- Contact your credit card company and negotiate better rates. You’d be surprised to see how willing they may be to adjust the interest rates or payments.
- Consider getting a personal loan or line of credit and pay off all high interest credit cards. You’ll save a bundle in interest payments.
Include long-term goals to work toward. Do you have concrete, long-term goals within your budget? Have you determined to pay off a high interest, high balance credit card before you go on a long dreamed of vacation?
- Put posters or photographs of that destination where you can see them throughout the day. This will help you stick to your budget when you want to spend money you maybe shouldn’t.
It’s possible to stick to your budget by following these simple strategies. Remember, however, that once you get your finances under control, it’s not a reason to revert back to old habits.
Following a budget won’t always be easy and there may be times when you have an emergency that makes you deviate from your plan. If that happens get back on track as soon as you can.
Before you know it, all your sacrifice will have been worth it when you realize your dreams really are within your reach!
Liz Mays says
People who are spenders really do need to change in little bits at a time otherwise, they won’t stick to it. It’s kinda like dieting! lol
Ashley Gill says
My husband created a very strict budget, but it does include a little room for an ice cream cone! These are some great tips! I wonder if he has thought about all of them!
kay adeola says
Thank you for the tips,we have budgeted for years and seem to have it going well never have to worry about a thing.
Amanda McMahon says
One important consideration is whether or not you know a necessity and a want.
mburbage says
I am trying to budget the house, it’s insane! You gotta do it though , it’s important to know where the money is going
Pam says
Very good tips. My husband and I had a budget when we were younger and had small kids. It really kept us in line. I think that being realistic with your goals is so important. If you become defeated because you were too strict, it will backfire on you. Kind of like dieting. 😉
Amber Louise Edwards says
We’ve been working hard on getting our budget just right. It’s a work in progress and we always seem to find something we need to alter each month. Like a little more needs to be put into the utilities budget during certain months and not so much in another budget. But for the most part, it has been a difference of night and day in our finances after setting up our budget. We feel like we have so much more freedom because we have planned ahead as to where our money WILL go, instead of just tracking where it went.
Chubskulit Rose says
I do believe in budget allocation in order not to over spend. When I first moved in here, my husband had over 14k in credit card debts so I designed a budget every month and we paid it off in over a year that my husband was shocked.
Aisha Kristine Chonga says
Thanks for the tips and reminders – I always needed to be reminded of these things constantly hehehehe.
Jennifer W says
Great tips, I learned to budget when I was a single mom. When you are the sole support for your kids, you learn to budget and stick to it or you are in a lot of trouble.
Ave says
I have been thinking on creating a budget, but never really get to it. Thanks for sharing great tips, hope that I can create a functioning budget soon.
Pam W says
I think the comment about short term goals is spot on. You need to see progress or you won;t keep up with the budget. Or at least that;s what Ive experienced.
Joanna Sormunen says
Great tips! And you are so right, the motivation is so important. We need to remember the reason behind the budget to stay on it.
Elise says
Great advice! Somehow, when I was young, I got the impression that budgets were only for poor people. Lol. Now that I’m older I understand how beneficial they are no matter how much or little money you have!
Wendy Bottrell says
Great tips! It really does work calling the credit card companies and asking for lower rates!
becca says
this is great advice and i am so writing this all down so I can start doing this thank you for the awesome advice
Kristin Sumner says
Great tips! Yeah, our budget went out the window in December :(, now we play catch up until taxes come in.
Megan says
Great tips! I always try to take it one step at a time so that I don’t get frustrated when I don’t reach my goals.
@thetravelguru_ says
Live below your means, my parents have been doing that for years. Know your credit score! If most people would make their coffee at home and take lunch, that will help save money right away. I wish more people would live with a budget!
kristentoneycampbell says
Great advice here! All things money make me nervous – my husband handles all of that, thank goodness!
Robin (Masshole Mommy) says
Excellent tips. I am one of those people who has a general idea of my budget in my head, but I don’t follow a budget strictly. Maybe I should start?
Michele says
This is all very good advise and I would love to see everyone (including ME) following it! I do know all about budgeting—it’s getting me to actually do it and stick to it that can be a problem!
Amanda Love says
Those are great tips! I’m not good at budgeting and consider myself a shopaholic. I just can’t pass up a sale. I will have to take some of your tips to heart. Thanks for sharing.
Amberlee Cave says
Thank you for the tips! I definitely want to fix our budget this year. We always find out we are out of money too late. lol
Teresa Mccluskey says
These are great tips! I may take some and try them out!
Lawna says
I definitely spend way to much money on my little girl. Dang all the cute toys, shoes, and clothes! I am going to try something new beginning next month, going to try to put money back from each paycheck. I think I may have to use a couple of your tips!
KalleyC says
I love all these tips! We started to have a comprehensive budget and I’m in love with it!
Rea says
Love your tips! Very helpful. We are on this journey too. I hope it will be successful.
Terry My Journey With Candida says
Great tips for all of us that should be budgeting. I don’t… I know I should, but I let my Hubs take care of it. When I need money, I just hold out my hand. I KNow…. not good, but thats the way we do it.