You’ve finally made a budget. Great! Now you might be wondering how to actually stick to it. No worries, I got you. A budget is a fantastic way to manage your money, to not overspend, to allocate money towards saving and investing, and is a great way overall to work towards your financial goals. Here are my top 5 tips for sticking to a budget:
1. Minimalism
In an overly consumeristic world where buying more and more things everyday on Amazon Prime has become the norm, it can be refreshing to step back and to evaluate what you really need. Not what you want, but need. Once you’ve evaluated what those things are for you, you can see what things you can actually fit into your budget. With big purchases, make sure that it is something that is worth its value for you and something that you will actually use and will bring value to your life. Being more pragmatic about your purchases in this way can really help you stick to your budget.
2. Live below your means
You’ve probably heard of this saying before: live as though you are actually making less money than you are. This will not only help you reach your financial goals much quicker, but will make following your budget a lot easier as well. This mentality will also help you reduce those unnecessary purchases that are cutting into your budget every month. Living below your means will also automatically save you more money, because all the money that you don’t spend can go to savings, repaying debt, or investments.
3. Pay yourself first
You’ve probably heard of this saying before as well, but how does this apply to your budgeting? It’s not so much a matter of sticking to a budget plan as it is being responsible with your money. All of the money that you set aside to save every month will mean that you cut down your spending, and it will really add up over the months and years that you are diligent with it, which means that you will be able to afford that vacation, car or down payment much sooner, just by being more financially responsible.
4. Be realistic
You’re never going to stick to something extreme, that just doesn’t work for you or your lifestyle. If you are being too strict, you are bound to go over budget. If you’re finding your budget really hard to stick to, it might be that you aren’t being realistic with how much money you’re spending or saving each month. Instead of being hard on yourself, reevaluate your budget plan and your financial goals to make it work. Remember, this isn’t a sprint, this is more of a life-long marathon.
5. Eyes on the prize
You can do this. It might be hard watching all your friends going out while you’re trying to save money, but in times like those, you just need to buckle down and remind yourself why you are doing this. Is it to afford that car you’ve been dreaming about? Is it to pay off student loans? Or to finally buy a house? Whatever your long-term or short-term financial goals are, budgeting is 100% the right way to get there. I know that you can do it. You’ve got this!