Are you ready? This budgeting list will give you everything you need to start saving big.
- Budget To Zero.
For one, you want to look to give a purpose for every dollar you spend. This is referred to as ‘zero-based budget.’ It means that you are starting off with your take-home income and subtracting all of the expenses to zero. This way, you will be able to account for every dollar that is spent. You will be able to easily track the money that you are spending on a monthly basis.
- Budget Together.
If you are with a life partner or you are married, you will want to look to budget together. Have yourself a day or night set aside for budgeting. You can even make your budget planning fun by getting a bunch of your favourite snacks and by making it a rewarding activity.
Being on the same page with your budgeting is crucial to being able to succeed. You want to set goals together and look to come up with future plans. If you are married, you should do all of your financial planning together because your entire shift in philosophy should switch from ‘my money’ to ‘our money.’ Read more about budgeting on Familymoney – they provide excellent information on finances.
- Each Month Will Be Different.
Because every month presents its own financial challenges, you are going to want to ensure that you are planning for it. One month you might have to pay for back to school supplies and the other you might have to pay for routine vehicle maintenance. You might even be saving for your anniversary or a well-deserved holiday. No matter what, you want to prepare for these types of deviations within your budget. You don’t want to allow the changes in your budget requirements to catch you off guard. You should be planning for these changes ahead of time and always give yourself a cushion to work with.
You can adjust your budget appropriately on a month by month basis as things change. You also want to have a savings fund that you will be able to stash away for these events or circumstances throughout the year.
- Prioritize.
When you are budgeting, you want to be certain that you are prioritizing. You want to put the most important categories at the top of your list. For instance, you want to ensure that saving and giving are prioritized. Then, you want to ensure that you have all of your home and living expenses in your budget including home costs, utilities, food, clothing, and transportation. Once you have factored in your most basic living expenses and necessities, you will be able to continue on with your budget to ensure that you incorporate everything.
- Get Rid Of Debt.
Debt should be one of the things that you prioritize. You want to really pay off your debt as quickly as possible. You should be utilizing the debt snowball method combined with the Baby Steps in order to minimize the debt that you have as quickly as possible. You want to attack your debt head-on. The more debt you accumulate and let fester, the less money you will be able to save.
- Be Willing And Able To Trim Your Budget.
The fact is, things happen in your life. If you lost your job or you have unexpected expenses creep into your life, you will need to be willing and able to trim your budget. There are easy ways to trim your budget and to save a lot of money. Some of the quickest things that you can get rid of to save money are cutting the cord, reducing your subscriptions, eating out less, changing your shopping patterns, and using coupons at the grocery store. Cutting your budget is something that should be used as a temporary measure and you can always adjust if circumstances change.
- Plan For It.
When you are looking to make budgeting a regular part of your daily life, you will want to try to plan for everything according to a schedule. You can pick and choose different dates for all of your expenses including your utility bills, rent payment, credit card bills, and more. You can also set out a specific day to go and purchase groceries. That way, you will know by which date you will have expenses and it is going to minimize the stress of not knowing how much cash is coming in or going out.
- Track Everything.
When it comes to budgeting, you want to track everything. Tracking your progress regularly is key. If you are married, you want to do this together. That way, you can both identify your budget and adhere to it while simultaneously working towards a common financial goal. You can look back at previous budgets to get the motivation to continue. This will help you identify areas you might have been failing in the past which can show you how far you have come.
- Cut Up Your Cards.
If you are looking to stick to a budget and minimize your debt, one of the best things that you can do is completely stop using your credit cards. By cutting or shredding them, you won’t have the temptation to spend what you don’t have.
- Create A Buffer.
When you are looking to make a budget, you want to give yourself a buffer that you will be able to use to deal with unexpected costs that you incur throughout each month. Having a buffer can really take the stress out of things.
Overall, there are plenty of things that you can do to ensure that you are able to create and sustain a good budgeting plan. By following the tips above, you should be able to do just that.
