Tips On How To Make A Budget That Actually Works For You Part 2

» Posted by on Apr 2, 2014 in Blog, Financial | 0 comments

Tips On How To Make A Budget That Actually Works For You Part 2

 Tips On How To Make A Budget That Actually Works For You: Let’s Get Started Again

As we have gone over in part 1, I have supplied tips on how to make a budget that actually works for you. If you have not read part 1, then you will need to click here to read the first set of tips on how to make a budget that actually works for you.

Tips On How To Make A Budget That Actually Works For You: The Next Round Of Tips

Tips On How To Make A Budget That Actually Works For You

Tips On How To Make A Budget That Actually Works For You: Review your budget every month 

This is where you will make any adjustments that are needed. Set aside the first day of each new month to review your income and expenditures and match them to your budget goals. By actively reviewing your finances and comparing it to your budget, you can adjust your spending habits.

This gives you a chance to analyze areas that exceeded your budget expectations and make the adjustments in your spending habits or your budget.

The goal here is to not forget about your budget. One tip that has worked for me is to put a printout of my basic budget goals on the refrigerator. That way every day, several times a day, I would notice my budget goals sheet.

I may not read it every time, but I notice it and it reminds me that I need to stick to my budget. That is why tip number 3 in part 1 is so important.

Tips On How To Make A Budget That Actually Works For You: Set specific short-term goals

Let’s say one of your budget goals is to have all of your credit card bills paid off in two years. If your credit card balances total $20,000 that would be $10,000 a year. Divide that number further into quarterly reductions in your credit card bills, in this case $2,500 every 3 months.

Now, this is a more tangible budget goal to shoot for isn’t it? I find that when I divide intermediate and long term goals into short-term tangible stepping stones, I am able to feel a greater sense of accomplishment and am more likely to succeed. This brings us to number eight…

Tips On How To Make A Budget That Actually Works For You: Reward yourself

That’s right! Treat yourself when you reach your some of your short-term goals. Since your financial budget is really a journey, take some time to smell the roses on your way. Sticking to your budget should not be a restrictive, unpleasant experience.

Not only should you take the time to enjoy your financial accomplishments along the way, but use part of your budget for fun things that you enjoy. Just make sure your rewards don’t end up breaking your budget!

Tips On How To Make A Budget That Actually Works For You: Pay yourself first 

I’m sure that one of your budget goals is to save and invest a portion of your income. One of the keys to make sure you succeed at this is to do what the IRS does with your paycheck, take it out of your discretionary income immediately.

This way, the money is saved away right off the bat. Move the money immediately into a savings or mutual fund account. Many mutual fund companies can setup automatic deductions from your paycheck.

Despite your best intentions to save, the hectic, daily demands of life can reduce the amount you are able to save.

Tips On How To Make A Budget That Actually Works For You: Attitude is everything

When most people think of a budget, they picture restrictions and pain. Almost like a diet. You know what happens with most diets? They don’t seem work for long! First, if your budget is too strict, too restrictive on your spending, it won’t work either. However, you will need to limit your spending in some areas and this will take some adjustment in your attitude.

I found that when I am feeling limited and sorry for myself when I can’t purchase something that I want, I remember my financial goals I set with my budget. I think about the satisfaction I feel when I reach those goals.

Over time, you find that you don’t want to disappoint yourself by breaking your spending goals on a spur of the moment purchase. Now, I actually get more pleasure knowing that I am reaching my budget goals when the thought of an impulse purchase crosses my mind.

Tips On How To Make A Budget That Actually Works For You

Tips On How To Make A Budget That Actually Works For You:

If you follow these tips on how to make a budget that actually works for you, your budget plans are more likely to be a great success. By taking some simple steps you will find that living within a budget is not as tough as you imagined. It can actually be fun and rewarding!

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Tips On How To Make A Budget That Actually Works For You


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