Want to start budgeting but don’t know how? Here are 10 tips to help get you started.
Are you paying off debt? Do you have student loans? Are you planning to buy a house? Write down your goals so you can visually see what you are working towards. Your “WHY” will help keep you on track.
Budget before the the month begins
Make a plan before the month starts. Figure out what you NEED to spend your money and assign every dollar a category.
Start with the most important categories first
Budget your groceries, rent, utilities, and transportation first. Once you have budgeted your monthly income into these 4 categories, you can now introduce other categories into your budget.
Pay off your debt
If you have any kind of debt, this should be on top of your priority list. You can use the Snowball Method to help combat your debt.
Make a schedule
You can set your bills to auto draft out of your account each month instead of physically mailing in a check or logging in online to pay it manually. While you’re at it, you can also schedule a set day to grocery shop; this way, you know exactly what to budget and when to budget for.
Track your progress
Make sure you are keeping track of your progress over time. Review your spending and purchases to keep your end goal in sight. Compare your earlier budgets to your current budgets and celebrate your wins. No win is ever too small to celebrate.
Cut up your credit cards
If you are really serious about sticking to a budget and cutting out debt, toss our those credit cards. No more interest rates eating away at your bank account.
Use a cash envelope system
Create an envelope system for yourself. Go to the bank, pull out the cash that you have budgeted for your categories and ONLY use the cash in the envelope for spending. Once you are out of cash, you are out of spending money.
Create a miscellaneous category
Set aside a small amount each month into your miscellaneous category. This will be your emergency money incase something comes up, you won’t have to pull cash from any of your other budgeted categories.
Be patient with yourself
Don’t be hard on yourself when you start budgeting. It’s no easy feat and will take some adjusting.