Budgeting is something that seems to have a bad vibe around it, and over the years it hasnโt exactly gotten the best reputation. Itโs often thought of as something designed to keep you from doing what you want and to tie you down to a way of spending.
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But at the end of the day, itโs simply making a plan for your money and it actually gives you more freedom rather than limiting it. Itโs about knowing where your money goes to give your spending a purpose.
How budgeting helps
As we said above, budgetingโs about making a plan โ especially if youโre setting money goals such as getting out of debt, saving or just trying to curb your spending.
By creating a budget and sticking to it, you could actually find that you have extra money that you werenโt aware of before. Youโll no longer have to feel guilty about certain spending – because itโs been accounted for!
The tips
Without further ado, letโs get to it. Here are our top budgeting tips to make your life a little easier.
1. Prioritise whatโs important
The best kinds of budget start with the most important categories first. We suggest starting with โthe four wallsโ: food, shelter and utilities, transportation and basic clothing.
Your savings should also come at the top of this list. Once youโve accounted for all these things, it should then be easier to fill in everything else.
2. Create a cushion
Life is unpredictable, and things happen โ so make sure you create a cushion for these situations by putting money aside specifically for it. That way should something ever pop up youโve got it covered without having to dip into other parts of your budget.
Itโs also an idea to keep a record of the things that cause you to use the cushion so you can move them into the regular budget if you need to.
3. Be open to change
Itโs important to understand that your budget may not be the same each month. Things such as holidays, birthdays, school uniforms or yearly car maintenance such as your MOT etc. will need to be considered.
As such, make sure you account for these when they are due and adjust your budget accordingly. You could even put money aside for these things in the lead up, so you arenโt caught short when it comes around.
4. Donโt do it alone
If youโre married or live with a partner, make sure you make a joint or family budget to include everyoneโs income and expenses are included. Itโs important to be on the same page when it comes to money, and even more so to set your goals together.
This can help you plan for the future and become closer as a couple. Think of it as our money, not your money.
5. Donโt be afraid to cut it down
If you find that your budget isnโt working out, it might be time to cut back on some things. Thereโs no point in struggling your way through each month if thereโs a possibility to free up some money in certain areas.
These donโt have to be permanent. If your struggles are temporary, then your cuts can be temporary too, and you can readjust it at a later date.
6. Say goodbye to your credit card
This one is for those who are really committed to budgeting or trying to get out of debt. Get rid of your credit cards!
If you stop using them, it means you can clear the balance and then be free from the minimum payments, interest rates and fees. You donโt need that stress in your life, so dump them like your teenage crush and stick to using your debit card.
7. Pay off your debt
If you have debt, paying it off should be at the top of your list. This is even more important if youโre struggling with debt.
Stop letting it rob you of your hard-earned money, pay it off as quickly as you can and give yourself that freedom. If youโre struggling to pay it back, there are options out there for you to do so in a way thatโs affordable to you, you can find out more about them HERE.
8. Make it a routine
If you make budgeting part of your monthly routine, then itโll become second nature to you. Itโs can also be a great opportunity to set exact dates for your bills to essentially make a scheduled budget for the month. This is a great time to start meal planning to save money and reduce food waste too.
To add to this, itโs also an idea to set a day/date to do your food shop, whether this is weekly or monthly. That way, you can know whatโs expected each month, you can avoid being caught short and make it a lot less stressful.
9. Donโt be hard on yourself
No one master’s budgeting in a day. It can take a few months to get the hang of it but donโt worry, youโll get there.ย Do what works and whatโs right for you/your family, donโt compare yourself to others as it will only cause you more stress.
If youโre unsure how to create a budget, thereโs plenty of online tools out there to help you. It doesnโt have to be complicated, and once you get into the swing of it, itโll become second nature.
Hopefully, you will find these tips helpful and would be really good if you start budgeting today and find your way to a better money mindset. Remember, budgeting isnโt about restricting your freedom, it is about giving it back to you.
Do you create a budget? Do you plan ahead? What do you think of these tips? Can you add more tips to this list?ย
*Disclosure: Paid Collaboration With Creditfix.
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Very interesting, we were always told to save for a rainy day. Meaning whenever you need to pay for something, you will always have the money there to pay for it.
I definitely could do with following a few of these rules, even though I’ve worked hard to make my money go further in the last six months or so. And I could really do with putting money aside for those emergencies that always seem to crop up every now and then. It’s good to have money in the pot to fall back on which is something I need to work on.
Good tips. We use our credit card more as cashless cash. We pay it off each month, and use it instead of cash but not for credit (if you get what I mean). You do need to be vigilant tho. #KCACOLS
I got into a bit of debt and I am trying to sort them out. The best thing I did was get rid of my credit cards #KCACOLS
Do you know I’ve never owned a personal credit card, I’m quite proud but it’s now a nightmare getting a mobile phone contract! #KCACOLS
Fab tips and taking time to plan can help. X #KCACOLS
Some fantastic tips. I especially like the final tip to not be too hard on yourself. We all make mistakes as we learn a new skill. #KCACOLS
Some great tips here. It is a useful skill is knowing how to budget #KCACOLS
This is a really useful post; I really need to start budgeting and implement some of these tips. #kcacols
Some good tips thanks
i could really use the advice to get rid of credit cards unfortunately they are something to fall back on for me x
Lots of really good tips! thanks for the effort!
I’m good at saving over long periods of time but not great at budgeting for the everyday stuff. Some great tips here! #KCACOLS
Great tips, im pleased to say i dont use credit cards so dont have debts
I do, do meal planning and when i order my groceries online i only get what i need for the weeks meal, if i go into a supermarket i always end up spending alot more, i try to budget, not very good but i do try