If you’re anything like me, you were thrown to the wolves when it came to money and finances. You’ve made mistakes (ones you had to pay for) and you’re probably still learning. One thing I’ve learned about budgeting is that in order to stick to it, you have to plan to. You’re only as successful as you plan to be. Here are 5 budgeting tips to get you started and help you stick to it!
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The whole point of budgeting is to know where your money is going. We’ve all had a time where we were living paycheck to paycheck (some of us still are).
We’ve all had a time where we winced when we opened our banking app.
We’re breaking that generational curse (in Jesus’ Name!) today by implementing these 5 easy budgeting tips.
Budgeting Tips: How to Create and Stick to a Budget
Tip #1: Start
This is key! How are you going to keep up with the numbers? In your head?
If you want to control your money, you have to see it big picture. Not after the fact, but before.
Start by creating a budget. I use theSimpleBudgetspreadsheet. It outlines money in, money out, and discretionary cash. It’s pretty simple, nothing extra fancy, just the basic adding and subtracting, but the spreadsheet does it for you. So no need to count on your fingers or in your head.
⇒Tip: Download the numbers app to use theSimple Budget spreadsheet. Instead of carrying around a piece of paper, see realtime data using the Numbers app. It’s a free application for IOS and Android users and pretty simple to use.
Tip #2: Don’t not do it.
Budgeting doesn’t mean not having fun!
It just means you’re controlling every dollar that comes in and every dollar that goes out.
If you’re planning to take a trip, no problem, just make sure it’s in the budget. If you know date night is a must, cool, just make sure it’s in the budget. The worse thing you can do for a budget is to throw in impromptu trips and activities (unless you’ve budgeted them). If it’s not on your budget spreadsheet, it’s a no, don’t do it (for now)! Re-evaluate your next budget to include activities. Live by that spreadsheet!
⇒Tip: Don’t be afraid to say “It’s not in the budget, what about next time?”. Your friends will try to spring unplanned activities on you. It’s okay to sit one or two out if it’s not in the budget. Or suggest an alternative that is within the budget.
Tip #3: Use cash.
Your budgeting spreadsheet should outline your discretionary cash. This is how much money you have leftover for discretionary items like coffee, lunch, dates, etc.
I highly encourage you to use cash!
Hear me out, unless you’re balancing a checkbook, you’re depending on your mobile banking app to let you know how much you’ve spent and how much you have leftover. That doesn’t account for the lag of processing items.
And not knowing exactly how much money you have makes it easy to overspend. So instead, opt for spending cash. You can see exactly what you have right there in your hands.
⇒Tip: In your Budget spreadsheet, divide your money left after all bills are paid by four. This is called your weekly discretionary cash budget. Every Friday (or whatever day you choose), pay yourself this spending amount. I get excited on Fridays, not because it’s a payday, but because it’s the day I pay myself. I’ve spread my spending money out over 4 weeks (or 2 weeks if you get paid biweekly).
Tip #4: Save.
Even if it’s a few dollars, make sure you’re saving!Rainy days will come! Include saving in your budget. No extra cash to save? Take a look at your budget; look for something that you can live without. For example, Netflix and Hulu collectively cost $15, cut the chord – get rid of your $80+ cable. Use that money to save!
Call your mobile company and utility company to see if there’s a cheaper alternative. You’d be shocked. Whatever you can salvage, save it! Block off a day to call your “bills” and have an honest conversation – “I need this to be cheaper, what can I do? What can I do without?” They want to keep you as a customer and will find a solution for you.
⇒Tip: Autodraft your savings to a secret savings account. Your bank has the option to make your savings account not accessible online or by ATM. If you’re a spender, this may be a good idea to not have ready access to your savings. Just ask the bank “can you hide access to this account?”. The only way to access it is by going into the bank lobby and speaking with a teller.
Tip #5: Plan ahead.
Budgeting doesn’t mean broke!
It just means that you’re controlling every dollar that comes in and every dollar that goes out.
If you know your oil change is due, put it in the budget. If you know your spouse’s birthday is in March, put it in the budget. You’re only as successful as youplan to be. I’m not saying the Law of Murphy doesn’t exist – sh*t will happen, I’m just saying be prepared for everything you can prepare for.
⇒Tip: Add reoccurring expenses to your calendar. When you sit down to do your budget for the upcoming month, reference the calendar. This way you can foresee upcoming expenses before they blindside you.
You can do it!
As you become more aware of your finances, you’ll find a rhythm that works for you. It does take a little effort to figure it out and then even more effort to stick to it, but if I can do it, so can you!
In Jesus’ name, we are breaking the generational curse of living paycheck-t0-paycheck. We are breaking the curse of not having any money saved up for rainy days (like job loss due to a world pandemic – sounds crazy – but it happens). It starts with you. What better time than now to get a handle on your finances. Use these budgeting tips and this Simple Budget to jumpstart your budget routine.
Budgeting Tips: How to Create and Stick To a Budget
