Simple Budgeting Tips to Make it Easy
Money management doesn’t have to be scary. The truth is, approaching the way you handle money with confidence is the best budgeting tip anyone can give you. But that can be easier said than done. Let’s look at some other simple budgeting tips that can help you feel confident with your bank account.
1) Gain clarity, without judgement.
The most concrete budgeting tip out there is to sit back and notice what you’re spending. Unfortunately, only 30% of American families actually work with a budget. While some people may say that they’re too busy to complete one, others may simply be too scared to encounter their own spending habits.
The truth is, a budget only helps you if you know how to use it. While there’s tons of people trying to sell complicated money management software out there, it’s ok to budget simply in a way that feels best for you. This may mean pen and paper in a notebook or on your own DIY spreadsheet.
Once you have your desired format, set it up so it clearly indicates realistic numbers for expenditures and income. And be honest. Your budget doesn’t need to meet someone else’s approval. If you’d like a $400 line item every month for coffee and can afford it, then go for it. If you have shame over your spending habits, you’re actually more likely to not find success when it’s time to reach your money management goals.
2) Set goals
Once you clearly have your existing finances laid out, it’s time to set some goals! This is the most fun budgeting tip there is. Goal setting can be exciting. Thinking of the ways your money can work for you instead of against you can be thrilling. If you’re stumped, try to ask yourself some of these guiding questions to set some financial goals:
- Where do I want to be in 5/10/20 years?
- What do I wish I had more of in my life right now?
- If someone gave me money right now, what would I do with it?
- How would I like to interact with others financially?
3) Baby Step Your Budget
Good things take time, and your financial goals are no exception. While it may sound odd, patience is a budgeting tip. It would be great to get to your goals quickly, but setting yourself up to move at an uncomfortable pace- well it will make you uncomfortable. Intense grocery cutbacks or a lot of overtime has down sides. You may find you burnout quickly, that you’re more likely to impulse spend, and that you’ll throw in the towel before you get to financial success.
Find an amount that feels comfortable for you on a monthly basis and commit to shifting the balance between your income and expenditures just that much. Remember that you can either earn more or spend less to find budget bliss. Trapping yourself into one or the other can also feel stifling.
4) Celebrate Your Success
All the budgeting tips in the world mean very little if you don’t actually end up enjoying your financial success. When you meet a goal, you deserve to enjoy it. Whether it’s funding a vacation, paying off debt, or purchasing a home. You’ve worked hard on your money management, and you deserve to feel good about the progress you’re making.
Taking a beat to “stop and smell the roses” is more than just for enjoyment. It’ll keep you motivated by fostering a growth mindset. By taking time to enjoy the positive steps forward you’ve taken, you’ll be more likely to continue growing financially. When you celebrate, you’ll create a key moment to check in and reframe your own financial identity. You’ll shift the way you see yourself from “financial failure” to a “growing success”- and that has a real impact. Your mindset about yourself financially makes a direct impact on your future ability to achieve goals.
Hopefully these easy budget tips have given you just enough of an inspirational spark to get started. You deserve financial peace and prosperity. There’s no time better than right this second to work on creating the future you want financially. Explore more to know about management.
