Creating a monthly budget is easy. Anyone can do that. The problem is keeping to it.
While you can use a budget planner or calculator to drive your savings, keeping a budget demands more from you.
- How do you ensure that you don’t spend above the set limits?
- How do you keep to your savings goals?
Below are Some Tips that Will Help You Keep to Your Budget.
Have a Miscellaneous Fund
There is always the tendency to spend above your limit if your monthly budget is too tight.
It is very difficult to spend exactly what you planned, even if you use a monthly budget planner or budget calculator app.
This is because you can’t absolutely capture every expense in your budget.
There is also the issue of price fluctuations and another minor spending which may come up.
You need to make provision for all these unexpected expenses, so you won’t run out of cash before the end of the month.
Have a section in your variable budget for unspecified expenses.
So you can use the money from there to cover any unexpected spending.
Stop Moving Around With Excess Cash
Budgeting is all about discipline, and you have to build that discipline over time.
It is hard to control your spending when you move around with huge sums of cash you don’t need.
For instance, it will require more self-control to stop yourself from ordering more bottles of beer or around for everyone, when you have your pocket full of cash.
This would be easier to do if you only left your home with enough money for the 2 bottles you planned to take.
This also applies when you are shopping or even having a stroll.
Do Away With Debit Cards
Debits and credit cards make you spend more.
A recent survey suggested that shoppers who used cards were more likely to buy more items they didn’t plan for than those who paid with cash.
Since debit cards increase the possibility of spending above your monthly budget, it only makes sense to keep them at home.
Pay with cash for items you buy and, as highlighted above, regulate the amount of cash you move with.
Use your monthly planner or budget calculator to determine the amount you need and have it in cash.
Automate Your Savings
The whole essence of having a budget is to ensure you are able to save a part of your income. But it isn’t easy to save.
You can automate your savings so that the amount you wish to save is automatically transferred to your savings account immediately after your paycheck arrives.
Speak to your bank or employees about how to achieve this.
Have An Emergency Fund
As the name suggests, an emergency fund is a fund set aside for emergencies.
There are several unexpected expenses that may pop up that are unplanned, including medical emergencies, auto repair, and others.
These expenses cost so much money, in case you are wondering why they couldn’t be covered by the miscellaneous expenses.
The emergency fund is part of your savings.
In the monthly budget preparation guide, remember I pointed out that you should divide your saving budget into three parts; emergency fund, investment saving, and retirement.
This is done so that you wouldn’t use the money to save up for an emergency.
While there is pleasure in spending, you will find more satisfaction in the long run by living according to a budget and saving up part of your earnings.
A monthly budget planner and budget calculators are two tools that can help you keep to your budget.
I hope I didn’t miss anything. Let me know what you think in the comment box below.