Are you the type of person who sucks at budgeting? Well, most of us do. They say we are at the age where consumerism is a trend and the advent of technology (i.e., the internet) makes it easier for us to buy stuff even if we don’t really need it. But if this becomes a habit, it will really take a toll on you financially.
Making a budget is admittedly one of the most difficult thing to do. In fact, it is dreadful for some to address financial issues that may arise relative to your budget. But, with a little practice and a little trick up on your sleeve, you can make budgeting less complicated and a bit fun.
Set a goal. Whether you are simply saving up for a future investment or a dream vacation or just simply wanting to buy new things, having something to look forward to makes it easier for you to let go of some unwanted expenses.
Think of something that you want to have and write it down. Know how much you need to get to your goal so you would initially know how much you need to set aside and for how long.
Make a list. List down all your usual expenses and break it down to two categories: (1) needs (food, rent, utilities, transportation, debt payments,etc) and (2) wants (entertainment, new clothes, gadgets, etc.). Review how much you spend on each category and compare it with how much you are earning. If your expenses are much lower than what you earned, that means you will only need little adjustments on your goal. However, if your expenses is way more than your income, then you need to re-assess.
Carve out. Let’s face it. Deciding to cut on your expenses is a difficult thing. But to be realistic in achieving your goals, you need to learn how to spend less on some things. Cutting your lifestyle spending (i.e, buying trends, gadgets, dining out, etc.) and re-routing it to your savings will make a great impact in your budget.
Celebrate your milestone. Create a savings milestone and celebrate this little success by treating yourself. Aside from the goal you have set, this little tokens will give you the motivation to stick to your budget. This will also prevent the thought that you are depriving yourself.
Keep the faith. Just like any other things, you may encounter set backs in sticking to your budget. Never give up. When you have set back, just reset and go back to your track.
It takes a lot of discipline for you to stick to your budget. But keep on going. Once you completed your goal, enjoy the fruit of the hardship and then start again.