November 9, 2023

Have you ever wanted to start a budget but were not sure how to go about doing it. I mean it’s easier said than done, right? After years of trying to figure this budgeting thing out, I finally found some tips that helped.

First, I had to track my expenses. Every single penny had to be accounted for. I realized that to build a budget, I had to know where my money was going. I started by keeping track of all my expenses, both big and small, down to the penny. This gave me a clear understanding of where my money was going and helped me to identify areas that I could cut back on. When I put it all down on paper, it became blatantly evident that I was spending way too much on my favorite coffee shop. Yikes!

The next step in the process was trying to determine short-term and long-term goals. This took a little effort to figure out what my priorities were. What was the point of my budgeting? For me, I wanted to get out of debt. Having that specific goal in mind helped to motivate me to stay on track, especially once I saw my debt reduce.

I also had to keep my income in mind. Even though the goal was to pay off debt, I still had to align my budget with my income which included allocating money for essentials like groceries, rent, and utilities while also prioritizing saving and allowing some funds for discretionary spending like going to the movies. It’s important to be realistic and flexible when budgeting to avoid feeling deprived.

I also had to make savings a priority in my budget. Although my goal was to pay off debt, I set aside a portion of my income for emergencies, so I won’t have to lapse back into using credit if an unexpected situation or emergency arose. Automating my savings made it easier to stay on track. I set up recurring automatic transfers from checking to savings that are posted every payday. When the funds move automatically, I didn’t have to trust myself to manually move them. This makes it so easy!

Finally, I regularly review my budget to see if it’s still working for me. Sometimes I must adjust my budget as my financial situation changes. It’s okay to make tweaks along the way to ensure that my budget remains effective, but overall, this process has helped me on my financial journey. Hopefully, these tips will help you as well!

To recap, here are the steps…

To recap, here are the steps…

1. Track Your Expenses
2. Set Financial Goals
3. Create a Realistic Budget
4. Prioritize Saving
5. Review and Adjust

Remember, budgeting is a continuous process that requires discipline and patience. By following these tips, you’ll be on your way to achieving your financial goals.