5 Practical and Simple Budgeting Tips
Are your finances getting you down? Are you tired of making payments on meal that you ate 6 months ago? Did you know that you aren’t the only one? Would you like to ask for help from a financial coach? You might be here because you don’t know where else to turn. Living paycheck to paycheck is emotionally draining and keeps you captive. Practical and simple budgeting tips to start you on a new journey to financial freedom. How would it feel to tell your money where to go instead of it telling you?
In this article, we will lay out our top 5 practical and simple budgeting tips that you can use to help avoid a financial crisis. Here's how you can start:
1. Set Goals
What is your why? Where do you want to be in 6months, 1 year or 5 years? Are you working to pay off your student loans, mortgage, save up your emergency fund or go on a trip? What are you willing to sacrifice to make that happen? Write it down. Use it to help you make your budget.
2. Budgeting, The Heartbeat
Doing a monthly budget is where it all begins, it’s the heartbeat of your financial plan. Schedule a time that you and your spouse can do it together. It is important for both to contribute to the monthly budget, ensuring that you both have the same goals about your finances. Give every dollar a name, when doing this it gives you control over its destination.
3. Stop the Bleeding, Ditch the Credit Cards
Stop the bleeding!! Now that you have your budget you can stop paying for meals that you ate three months ago! Cut up your credit cards. This is one of the hardest and scariest parts. Having plastic keeps us detached from the emotional part of each transaction. When you use cash for purchases there is a more emotional connection and you think more about what you are purchasing and spend less.
4. Bye Bye Cable, Cutting Expenses
How many channels can you really watch? Okay, maybe you don’t get rid of it but reevaluate how much you are paying for it. Look at all of your monthly bills, what can you do to trim each one back? Turn off the lights, drop down a tier on the cable packages, eat out one less time each week. How many times a week do you stop at your favorite coffee place? You will give yourself a raise when you look at how you are spending your money!!
The first three months are going to be the most difficult. You will forget about Susie’s birthday party, school pictures or tags for your vehicle. Create a miscellaneous category for these forgotten expenses so that it will not create mayhem in your budget. Plan for the forgotten. Then put it on the calendar for next month or next year. After the third month you will be much more comfortable with your budget and it will become much easier.
The good news is, it can be done!! You will give yourself more freedom when you take control of your money. That is a feeling like no other.