Become a budget boss. (Or at least start & eventually become a boss)
Budgeting. It’s vital at the moment more than ever! There’s no disputing that.
Unfortunately, a lot of people skip budgeting either because they think it’s difficult or they don’t know how to do it. But budgeting doesn’t have to be hard! All you need is a list of your expenses, your monthly income, and some motivation to stick to the plan.
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So here’s some motivation:
5 reasons you need to start budgeting today:
Reason #1: It ensures you don’t go into debt
By keeping track of your expenses, you can avoid spending money you don’t have. A budget helps you track all of the money that comes in and all of the money that goes out. This way you know exactly how much you have left over for food, entertainment, travel, or other enjoyments without overspending and going into debt.
Reason #2: It helps you reach your goals
Got leftover money at the end of the month? Throw it into a savings account. This can help you save up for bigger things like a new car, a down payment on a house, or your dream holiday.
Reason #3: It helps you pay off debt
Budgeting can not only help you prevent debt, but it can also help you to get out of it. Include your debt as part of your budgeting expenses each month, and it won’t be long before you have your debts paid down!
Reason #4: It helps with an Emergency Fund
Emergencies happen when we least expect them, and it’s important that we have a fund set aside just in case. Don’t break your bank for your emergency fund but set aside what you can. Even £10 - £20 a week can add up over time.
Reason #5: It prevents poor spending habits
Do you know how much you spend on coffee each month? Or how much you spend on eating out? Chances are, your bad habits are costing you more than you think they are! When you actually sit down and calculate how much you are spending on these things, you’ll probably be surprised at what it adds up to.
Your budget can help to highlight your bad spending habits so that you can start cutting down and spending your money more wisely.
What should be on your budgeting list?
- Other bill payments (cell phone, credit card, etc.)
- Car payments and/or transportation costs (gas, bus, taxi, etc.)
- Insurance payments
- Child care expenses
- Savings and debt repayment
- Food Shop
- Entertainment, travel, and other “wants”.
5 Quick Budgeting Tips to Take with You:
Tip #1: Write it down. Don’t try to keep track of a budget in your mind - it will never work. Get a budget pad and write it down.
Tip #2: Do it together. If you have a partner or are married, it’s important that you both work on the budget together. Having one person on board without the other will set you up for failure.
Tip #3: Make your debt a priority. According to experts, at least 20% of your income should be put towards paying off debt. The interest on debt can add up quickly, so it’s important that you pay it off as quickly as possible to avoid unnecessary expenses.
Tip #4: Get rid of the credit cards
As soon as you pay them off, cut up your credit cards. Once they’re gone, you won’t have to worry about any more fees or minimum payments.
Tip #5: Be gentle on yourself. Learning to budget and stick to it can take time, so don’t be too hard on yourself. Budgeting should feel like an accomplishment and help you reach your goals, and it doesn’t have to stress you out in the process.