Carolina Money Minder’s 10 Tips for Creating a Budget and Sticking with It

Budgeting money doesn’t have to be as hard as we make it. The truth is that budgets are easy but we have a hard time staying disciplined and only spending what we have outlined. If you find yourself making a budget and then breaking up with it before the week is over, it’s time to take some tips from the pros. Sticking with a budget teaches work ethic, places value on savings, and helps you stay disciplined. Here are Carolina Money Minder’s 10 tips for creating a budget and sticking with it.

Prioritize your life

This includes things that you absolutely must pay each month-- housing, food, car payments, insurance, debts. Make sure that all these bases are covered first and then move on to the other things. Making sure your bills and debts are being paid first will help you stay on top of debt and can even help your credit score.

Find out where all your cash is going

Enter your bank account into a website that will put things in categories for you, like www.mint.com or find another way to add up where your money is going. You might notice some trends-- like you spend more on coffee from the gas station each day than you thought. Once you know where your money is going, you can have a plan to re-direct it and save.

Set a budget for the entire year

It can be hard to budget on a strictly month-to-month basis, because there are many expenditures that only come up once a year, like your car registration or Christmas presents. So, doing a basic budget for the whole year and factor in additional money to months with other things going on.

Have some entertainment and leisure money

It’s important to enjoy life! We know many of us might be guilty for spending too much on vacations, but it will improve your performance overall. If you can, set aside a little bit each month for a fun day out or special dinner.

How are things going?

Periodically glance back at the past few weeks and decide what went well and what did not. Decide how you’re going to do better this time around and set goals now for future improvement.

Take away temptations

If you have glossy magazines that end up in your mail or email, with pretty pictures of things you’ll want to buy, get rid of them! The temptation to buy isn’t doing anything but making you feel bad.

Make a spending journal

If you’re the type of person who likes writing things down, think about keeping a spending diary and write down every single thing you spend money on and how much it cost. You might be surprised by some of your unnecessary purchases and decide not to buy things.

Reward yourself

It’s important to reward yourself every now and then! You work hard for your money and you deserve it. Don’t beat yourself up over small purchases that bring a smile to your face.

Differentiate needs and wants

If needed, you may want to create a list of needs (things you must have each month in order to survive) and wants (things you want, but do NOT need). If your wants are taking over your needs, you might want to reassess your goals.

Share your goals

Finally, sharing your goals with someone else, like your spouse, a friend or parent will help you feel better. Studies show that people who share their goals are much more likely to achieve them.

Budgeting is a skill that takes time to master. If you are struggling to maintain your budget or need help in making your debt payments each month, talk to an adviser at Carolina Money Minders. We’d love to help you move forward financially.