Are you one who does impulsive spending and finds it really difficult to stay within your budget? We will provide you with the most basic tips to get started.
Keeping up with a budget is always not very easy especially if you’re a newbie. However, as time progresses; it becomes part of you.
If there has ever been a time when you get broke to the point where you have nothing left of you even before your paycheck is signed is enough reason to worry about sticking to a budget.
To fix you up, we’ll give you the 10 steps to make your budget process easy.
Table of Contents Hide
- What is Budgeting?
- Why is Budgeting Difficult?
- What are the Steps to a Budget Made Easy?
- Final Thoughts
What is Budgeting?
Budgeting according to Investopedia means the act of estimating both income and expenses over a period of time.
Overtime, it is something you bring to re-access and rule off things you feel are unnecessary from the list.
The ability to live a judicious life is so underrated and that is why it is almost impossible to fix that part of life.
However, with adequate budgeting; you’ll know where your money goes and give you control over your money.
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Why is Budgeting Difficult?
So many times, you failed to commit to a particular budget you prepared. Not because you couldn’t down on your expenses but simply because it is TOUGH!
Here are common reasons why budgeting is difficult.
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#1. You Set Unrealistic Budgets
When you set a very ridiculous budget, you may have no option but to falter it every time.
But, you can avoid this by reducing your spending ability to only what you can afford and not what is unrealistic.
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#2. Being around Peple who aren’t Interested in Saving
Being around people who have no interest in cutting down costs can be really difficult.
So, you can avoid this by getting someone else to budget too. it has a way of making you keep up with your budget.
#3. Setting Rigid Budget
Staying on a budget doesn’t mean you have to deny yourself some leisure activities. Give yourself some breather and have some fun.
Including them in your budget gives you hindsight on how much you can set aside for hangouts.
What are the Steps to a Budget Made Easy?
Below is a few steps on how you can go about keeping an easy-to-stick budget.
#1. Set Achieveable Goals
It will be difficult to tackle a problem if the cause isn’t known. So, you need to know what’s important to you in their order and decide what to do with your money.
Remember, it is within your jurisdiction to go for what’s important to you than what’s got no value. This way, you won’t have to spend randomly.
Setting your goals also involves building up savings to take some time off work, paying off credit cards, saving enough to apply for a business loan, etc.
#2. Keep Track of your Expenses daily
A part of keeping your budget list that you must not ignore is the part where you have to keep track of how much money you spend.
Ensure that no day passes by without you making an attempt to reconcile your budget. Else, it will become really difficult.
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#3. Prioritize Your Needs
There is a part of keeping the budget simple that only discipline can help put in place.
It is necessary that you know what comes first on your list and attends to them rather than just spend your money on everything and anything.
#4. Design your Budget
If you intend to have an easy experience with your list, ensure you design your expenses to come from just one account.
The more you have to spend from multiple accounts, the more difficult your budget becomes.
If you design your list this way, you won’t have issues with financial clarity.
#5. Save before you Spend
This step seem to be the paramount tip. set aside money for savings and then, spend money on things you have on your budget list.
This act aids you to not spend beyond what you already planned.
#6. Prepare for Emergencies
These things have a way of eating deep into one’s finances if proper measure isn’t taken.
So, make provisions for an emergency.
#7. Choose a good Budgeting Method
It will be nice if you choose what method works for you and stick to it.
A lot of variations abound from the handwritten budget down to spreadsheets, and then, dozens of apps that you can get.
Just choose what works best for your person and stay true to it.
#8. Increase your Sources of Income
When you have increased sources of income, sticking to your budget will be a thing of the past.
So, look for more possible ways to increase your earnings and have an easy budgeting life.
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#9. Be Aware of Your Fixed Expenses
It is important to have a greater knowledge of your fixed expenses down to the latter. If you are wondering what your fixed expenses are; they are things like your rent, internet subscription, and other monthly expenses that have remained consistent over time.
Being aware of them saves you the chance of spending on less important things.
#10. Stick to your Budget
Believe me, the first few months into your budgeting journey are the hardest but it gets a lot easier as the days go by.
Sticking to your budget only makes you become a better person at it.
If you have always found it difficult to stick to your budget, here are the simple ways to keep one.
I hope they do the magic that you seek.