I feel you already know a little bit about me and so, today, I decided to share some tips on budgeting that really helped me to keep to my budget over the years. It’s not hard to write down your budget for the month once you get in the habit of doing it, the hard part is sticking to it and all the short cuts you find are really welcome. So don’t feel that just because something worked for me you have to do it the same way, for you and where you are in your life, you might need to do things differently and that’s FINE!
Even now, out of debt, I still spend a lot less when I go to the supermarket with my cash envelope, I know this so I rarely take my card because I will be tempted to buy something that isn’t on the list!!! If I only have cash I cannot buy more things because I don’t have how to pay for it!
Budgeting Tips
- Make a Zero Balance Budget.
Make a plan for your money before the beginning of the month and tell your money where to go.
What you Earn – Your Payments = 0
- Every Month is Different.
Some months there are birthdays, school expenses or holidays, prepare for these occasions!
- Start with the Most Important Categories.
Giving, saving, food, housing, transportation…
- Pay Off Debt.
If you are on the journey to pay off debt use the Debt Snowball Method to reach your goal faster. Remember personal finance is 80% Behaviour and 20% Head Knowledge!
- Create a Misc Category in Your Budget.
This exists because , life! If something comes up during the month that you had not budgeted for you have this small amount to cover that.
- Use Cash.
Have a separate envelope for groceries, Misc, Fun Money, and put the amount of cash you designated for these categories in there. Empty envelope means, you are done spending on these categories for the month.
- Have Goals.
You need Goals and Big Dreams no matter where you are on your financial path. If you have a big enough WHY to save or get out of debt it will be easier to stay on the path.
And remember to give yourself lots of grace because changing behaviours is hard, but you will get there.
S
