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So you are ready to create a budget and become one step closer to reaching your financial goals. When you have a budget you can keep better track of where you are spending your money. That $2 dollar cup of coffee you get everyday before work adds up to be $500 dollars every year. This is where a budget comes in handy. It forces you to look at where you are spending your money and how you can better spend and, most importantly, where you can save.
Here are tips on living life successfully on a budget:
Get Started: You have to start somewhere, so make a spreadsheet. This will help you keep track of everything and give you a reality check by looking at the hard numbers. You want to include your take home income along with your spouse’s. Next, outline your fixed costs: mortgage/ rent, car payments, cell phone bill, cable, internet, student loans, utilities, etc.
Look at Your Variable Expenses: Eating out, gas, and shopping are all considered variable expenses. Keep all your receipts , so can see how much you spend and set an amount you can stick to. Eating out all the time or constantly shopping means less money for you to save.
Weave Your Safety Net: You want to build up an emergency savings account to cover unexpected expenses, which will happen. Treat it like a bill, so every month you add $100 dollars (or another amount) and watch it grow. With this, you won’t have to scramble when your car totals or when your child needs braces.
Get Creative: Use any way to help yourself save, even for smaller purchases. One way is using envelops--write what you are saving for, such as that special set of golf clubs, and every paycheck tuck a little money into them. Sometimes it is easier to save money when you have a tangible goal.
Break Up the Bills: Another great thing about having a budget is you can keep track of your bills and when they are due. Have a lot of bills due at the end of the month? Try splitting them ahead of time. That way, you have steady payments instead of all at once. This is a great option to prevent yourself from outspending when bills aren’t due.
Pay Down Debt: Interest will only build up if you don’t pay off your debt. So focus making larger payments, so you can fight those interest rates. Once your debt is gone, it’ll be a lot easier to save.
Share the Responsibility: Get your spouse on board with budgeting. It’s a lot easier as a team, and you can keep each other in check when it comes to spending.
Set Limits: It’s hard, but set a limit on what you spend for birthdays and holidays. Focus on few, well-thought gifts and combining it with sales, rather than on quantity.
Separate the Money: Sometimes making your money more out of reach is the best way to get used to saving. You want to make sure that the money is not in your checking account. Most banks will let you have multiple savings accounts, but just having one is enough.
Tighten Up the Belt: Once you’ve tracked your expenses, you can start analyzing what you spend on. You can always find ways to cut costs. You can limit how often you go out to eat. You can buy fewer groceries if you find yourself throwing food away. If you find you can’t resist a good sale, then don’t put yourself in situations that’ll tempt you.
Remember, your budget is for you and you are allowed to change it. You might have to play around with it at first and in time you will learn how to better manage your money. Always remind yourself why you are saving and what it will do for your future. Keep yourself motivated, and budgeting will become easier over time.
How will you get started with budgeting? What tricks do you use to help yourself save money?
Here are tips on living life successfully on a budget:
Get Started: You have to start somewhere, so make a spreadsheet. This will help you keep track of everything and give you a reality check by looking at the hard numbers. You want to include your take home income along with your spouse’s. Next, outline your fixed costs: mortgage/ rent, car payments, cell phone bill, cable, internet, student loans, utilities, etc.
Look at Your Variable Expenses: Eating out, gas, and shopping are all considered variable expenses. Keep all your receipts , so can see how much you spend and set an amount you can stick to. Eating out all the time or constantly shopping means less money for you to save.
Weave Your Safety Net: You want to build up an emergency savings account to cover unexpected expenses, which will happen. Treat it like a bill, so every month you add $100 dollars (or another amount) and watch it grow. With this, you won’t have to scramble when your car totals or when your child needs braces.
Get Creative: Use any way to help yourself save, even for smaller purchases. One way is using envelops--write what you are saving for, such as that special set of golf clubs, and every paycheck tuck a little money into them. Sometimes it is easier to save money when you have a tangible goal.
Break Up the Bills: Another great thing about having a budget is you can keep track of your bills and when they are due. Have a lot of bills due at the end of the month? Try splitting them ahead of time. That way, you have steady payments instead of all at once. This is a great option to prevent yourself from outspending when bills aren’t due.
Pay Down Debt: Interest will only build up if you don’t pay off your debt. So focus making larger payments, so you can fight those interest rates. Once your debt is gone, it’ll be a lot easier to save.
Share the Responsibility: Get your spouse on board with budgeting. It’s a lot easier as a team, and you can keep each other in check when it comes to spending.
Set Limits: It’s hard, but set a limit on what you spend for birthdays and holidays. Focus on few, well-thought gifts and combining it with sales, rather than on quantity.
Separate the Money: Sometimes making your money more out of reach is the best way to get used to saving. You want to make sure that the money is not in your checking account. Most banks will let you have multiple savings accounts, but just having one is enough.
Tighten Up the Belt: Once you’ve tracked your expenses, you can start analyzing what you spend on. You can always find ways to cut costs. You can limit how often you go out to eat. You can buy fewer groceries if you find yourself throwing food away. If you find you can’t resist a good sale, then don’t put yourself in situations that’ll tempt you.
Remember, your budget is for you and you are allowed to change it. You might have to play around with it at first and in time you will learn how to better manage your money. Always remind yourself why you are saving and what it will do for your future. Keep yourself motivated, and budgeting will become easier over time.
How will you get started with budgeting? What tricks do you use to help yourself save money?
Budget
Money
Posted >1 y ago
Responses: 3
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I had used USAA for Investments for awhile and played around with stocks, but I never liked dealing with the fees. As soon as I found Robinhood, where there are zero fees for trading, I started all my positions there, ESPECIALLY since they offer free stock to anyone who signs up. Shameless plug if you want my referral code: https://share.robinhood.com/mattj422
I also made sure to leave my TSP alone - you won't find low fees like that elsewhere.
Honestly, I still use the Excel Budget that they gave us at the Transition Readiness Seminar since it was so robust.
I also made sure to leave my TSP alone - you won't find low fees like that elsewhere.
Honestly, I still use the Excel Budget that they gave us at the Transition Readiness Seminar since it was so robust.
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One of the biggest things that has struck home with me is with regards to the purposeful management of your money. Ask yourself this: If you were the CFO of a company called YOU, Inc., would you fire yourself for poor money management? Are you spending your money as wisely as you would if someone was paying you to manage theirs?
I am in a position as an advisor for a collegiate sorority. I help the girls manage their money and we manage it quite well. It's different though, when you have to put food on the table and gas in the car, rather than simply deciding "Okay, are we going to buy the T-shirts from X company at $14.00 each, but we know their work and it's really good, or are we going to buy from Y company which hasn't developed a reputation yet and we don't know the quality of the work but they are offering it to us at $10 a shirt?"
Disclaimer: Religion coming - proceed with caution :)
From a spiritual standpoint, "our" money and "our" life doesn't belong to us anyway. We are simply "managers" of the body, the life, and the money that Big Man Upstairs has trusted us with. If we managed our money as MANAGERS for the Lord and trying to make the best choices with the money He has blessed us with, rather than having an attitude of gimme gimme gimme it's MINE, we'd be less likely to overspend in areas that we know are really not necessary. Example: at the grocery store checkout line Voice of Reason says "Amanda, you do NOT need that package of M&Ms. That's $1.19 you don't need to spend and you really don't feel like jogging around the block tonight to work it off..."
I've been lazy lately, and not practicing this concept at the level that I would like to, but I'm trying to get back on track.
I am in a position as an advisor for a collegiate sorority. I help the girls manage their money and we manage it quite well. It's different though, when you have to put food on the table and gas in the car, rather than simply deciding "Okay, are we going to buy the T-shirts from X company at $14.00 each, but we know their work and it's really good, or are we going to buy from Y company which hasn't developed a reputation yet and we don't know the quality of the work but they are offering it to us at $10 a shirt?"
Disclaimer: Religion coming - proceed with caution :)
From a spiritual standpoint, "our" money and "our" life doesn't belong to us anyway. We are simply "managers" of the body, the life, and the money that Big Man Upstairs has trusted us with. If we managed our money as MANAGERS for the Lord and trying to make the best choices with the money He has blessed us with, rather than having an attitude of gimme gimme gimme it's MINE, we'd be less likely to overspend in areas that we know are really not necessary. Example: at the grocery store checkout line Voice of Reason says "Amanda, you do NOT need that package of M&Ms. That's $1.19 you don't need to spend and you really don't feel like jogging around the block tonight to work it off..."
I've been lazy lately, and not practicing this concept at the level that I would like to, but I'm trying to get back on track.
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I think this is interesting. The most important part of budgeting is determining: "what is the endstate / goal"? Saving money for no clear purpose other than "financial security" seems meaningless ans possibly harmful. There should always be an endstate in mind to focus on.
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