Many people struggle when it comes to writing a budget. However, we have talked with a few people who are successful with budgeting. They have given us give tips that they are confident can help others.
#1 – Decide what your long-term financial goal is. For example, this could be saving up for a new car, furniture, home, or other large purchase. Typically this type of goal should have a timeline of one year or more.
#2 – Be sure to put your budget in writing. Whether it’s on a piece of paper, notebook, a spreadsheet app like Excel, or an app like Mint or You Need a Budget – Whichever method works best for you is the one you will be more apt to stick with.
#3 – When you’re making your budget, be sure to build a cushion. The cushion you build serves two purposes. It will take pressure off you from trying to be exact each month, and it will also give you room to start an emergency fund. The emergency fund will, in the long run, also help as part of your cushion.
#4 – It’s important to spread out large expenses. Rather than taking your entire mortgage payment out of one paycheck, try splitting it up into two payments out of each paycheck – It’s easier to handle all the other expenses you have – day to day – and it makes it less likely that you will run into a shortfall.
#5 – Two heads are better than one when it comes to budgeting. If you share your financial goals with a significant other, trusted friend, or a financial advisor – that other person can be your accountability partner in making sure that you stick with your goals.
If you have any questions, send us an email at [email protected]