Managing Your Money with a Budget – Are you tired of not having enough money? Are your bills piling up and making you anxious?Managing your money with a budget can help alleviate these feelings, by allowing you to plan out where your money goes and how much money you’ll have left over for fun things at the end of the month.
Take a look at these nine tips on how to manage your money with a budget, so you can finally get your finances under control and start living the life you want.
Managing Your Money with a Budget – 9 Tips to Get You Started
1) Track your expenses
1) Create a spreadsheet or word document that you can use for your budget. This should include columns for things like date and category, such as groceries or bills. Make sure to include the amount of money spent in each category.
2) Set up an account on Mint or another free online service, which will allow you to track all of your finances in one place. Then, log into this account every day and update it with your purchases.
Check this information against what you have recorded in your spreadsheet to make sure they match up. Keep tabs on how much money is coming in and going out. If there are any problems, check out personal finance blogs to get more ideas about how to manage them.
We recommend using YNAB (You Need A Budget), which helps you save money by sticking closely to what is left over at the end of the month.
2) Create Goals and Strive For Them
The second step in managing your money is setting goals. What do you want to accomplish? When do you want to accomplish it? What are the steps that will get you there?
These questions should be answered before you start writing up your budget. Once your goals are set, calculate what you need for each goal. For example, if one of your goals is to save $5000 by the end of this year, divide that number by 12 and write down what you need for each month on a piece of paper.
Now all you have to do is set aside that amount on top of everything else. Finally, figure out how much money goes toward each goal and then distribute it evenly throughout the month (or week). The end result will be an easy-to-read budget!
3) Start Saving Today
Start saving today and you’ll be thankful tomorrow. If you want to start saving money, there are some tips that can make it easier. Start by keeping track of what you’re spending money on, so you know where your money is going.
Next, determine how much disposable income you have each month and decide how much of it you’d like to save. As your savings goal grows, set up an automatic transfer into your savings account so that the amount goes straight from your checking account into savings each month.
Finally, once you’ve been saving for a while, use your savings as an emergency fund in case anything unexpected should happen!
4) Review your progress on a regular basis
- Set aside at least 15 minutes of time every week to review your budget and any changes that may need to be made.
- Keep track of what you spend by using receipts or services like Mint or Quicken that automatically track your spending.
- Know how much money you have coming in and where it’s coming from (e.g., salary, side jobs) so you can better plan for the future.
- Create a list of all your current assets and liabilities, as well as one for goals you want to achieve (e.g., save for retirement).
- Make sure each month, you are working towards paying off debt and building up savings accounts so that they balance out each other in the long run
5) Don’t Let Self-Control Become an Excuse
It’s easy to say that you don’t have the discipline or self-control when you’re trying to manage your finances. It’s an excuse, but it doesn’t mean that it’s true. If you find yourself saying I don’t have the self-control, ask yourself what you’re doing now that is not self-controlled. Is it smoking, eating unhealthy food, spending too much on clothes?
It could be anything. Once you’ve identified what it is, stop doing it or limit how often you do it and see if your lifestyle becomes more controlled over time.
6) Stick To The Plan, No Matter What
A budget is the best way to help you manage your money. It’s not an easy task, but it is an important one. The best thing that you can do for yourself when it comes to managing your money is to make sure that you are taking care of yourself first.
This means doing things like paying your bills on time and making sure you’re getting enough sleep and eating well so that you are feeling good about life in general. If you don’t take care of yourself, then how can you be there for anyone else?
7) Put Some Cash Away Beforehand
You may be tempted to just spend your money as you earn it. The problem is, because of the time value of money, every dollar you spend today is worth more than a dollar tomorrow.
One way to combat this temptation is by setting aside cash before you start spending. This means that you should try and set aside some money in an emergency fund, in case something happens and you need cash on short notice, or for future investments like buying a house or starting your own business.
If anything does happen, being able to access the funds quickly will help ensure that life goes on as normal.
8) Do The Right Thing For Yourself First
It’s important to take care of yourself before you can take care of anyone else. When you’re in the position of supporting your family, it’s easy to put their needs first and forget about your own. But it’s important that you do the right thing for yourself first, so you’re strong enough to be there for them when they need you most.
Start by taking some time every day just for yourself, whether that means cooking dinner at home or going out on a date night once a month.
Remember the little things: go shopping and pick up some new clothes, get your hair cut, buy flowers or chocolate. In order to be there for others, sometimes we have to take care of ourselves first!
9) Live within your means, no matter what
- Live within your means, no matter what. It is possible to live without debt and without being broke. There are always ways to cut costs and save money: you just have to be willing or ready for the lifestyle changes that come with it.
- Don’t use your credit card for anything other than emergencies or when you’ve saved up the cash for something important. The interest rates on credit cards are so high, it’s ridiculous!
Use them only in dire situations–and pay them off as soon as possible. I know people who go into their accounts every month and spend whatever they want from there, but then don’t get paid again until the next month starts.
They’re never saving any money because they’re spending it all before they can even put it away for later. A lot of people also use their credit card as a safety net–in case of emergency or if they can’t afford groceries this week.
But unless you are disciplined enough not to spend any more money than what’s in your account right now (even if you don’t get paid until next week), then using your credit card like this is just going to end up hurting you more in the long run.