Do you find it hard to stick to your budget every month? Having a budget and not sticking to it can be overwhelming and hard, but the hardest part is starting. Budgeting things get easier once you start.
So what is budgeting: simply put it this way; is the process of creating a plan on how to spend your money.
It is never too late to learn how to manage your money better and to set budgets and goals; the earlier you start putting things in place, the better you will be in the future.
Creating a budget is a challenge, but it doesn’t do any good until you stick with it when you finally do it.
Sticking to a budget is not changing your mind regarding spending or overspending because you made extra cash. Whenever you go over your budget in a month, you are taking money away from your future. Sticking to your budget today will help enhance your future.
The essence of budgeting monthly is to be intentional with your money spending habits. You only spend when it’s necessary and don’t spend unnecessarily. In life, unexpected events happen, and we have to get ready for them. Not having any budget will put you into unexpected debt but at all times, we what to be debt-free or at least have minimal debt.
How do I stick to my monthly budget?
Use financial planning app
Use the envelop method in saving
Pay off all debt ( big and small)
Set up automatic savings
Use cash in daily purchases
Cut down on expensive expenses
Here are the best and clever ways to stick to your budget monthly
Use a Financial Planning App
To get it right on your budget, you need a financial planning app or budgeting app. With these apps, you can keep details about your spending and know what items you are overspending. Good Budget Planner for your iPhone or You Need a Budget (YNAB). You can also print out a hard copy of the ultimate financial planner.
These prepare and help you to stick to your monthly budget. Do you know you can track your progress using a thermometer or manually using paper? Always celebrate when you reach your ultimate goal by paying off some debt or saving towards your future goals.
It’s based on the zero-based budgeting system, and users must make a plan for every dollar they earn.
Cost: $84 a year or $11.99 a month (after a 34-day free trial), free for students for 12 months.
Those who pay this price can benefit from YNAB’s numerous features. You can connect bank accounts, set goals, contribute to savings, and customize spending categories.
Use the Envelope Budget System
The envelope method is an effective and easy way to stick to your prepared budget strictly. It involves setting the amount of money that you are willing to spend in an envelope. You can split it into different amount and put it in different envelopes with a label. It can be labeled as eating out, shopping, grocery, debt, rent, etc.
You only use the amount in the envelope until it is spent before replenishing it for the new budget period. You can get a cash envelope pack from Amazon or any store to start your budgeting journey.
The best part about the envelope budgeting system is that it simply works. If you are only paying for things using cash, and you ran out of cash, you cannot possibly overspend. The envelope system has been around for a long time for good reason.
Use this method if you feel that cash will be safe at your home.
Pay Off All Debts ( Small and Large)
Having so many unpaid debts can destroy you in budgeting and saving for the future. Debts are one of the most things that people cannot budget and save for the future. Debt eats up all significant amounts of your monthly earnings with a high interest in it. Saving the high interest in loans, credits, and other debts can help you save for the future faster.
All you need to do is list all your debt on a piece of paper and know the balances from the smallest to the largest. Start paying up from the smallest to the largest and so on. The list gives you an idea of the debts and gives you more details about them.
Once you pay off that debt, use the same amount of money to add to your savings and plans. You can use the snowball method from Dave Ramsey. It’s a great way to stay motivated to pay off debt and stick to a budget.
Set Up Automatic Saving
To be effective in sticking to your monthly budget, you will need to set up an automatic savings account. One way to do that is by having your employer deduct a certain amount from your paycheck automatically. This amount can be moved to a retirement or savings for future usages. This will help you save money, even before you start spending it. I do this a lot, and it has been one of the best decisions of my life.
Also, you can save money without thinking about it by using the Digit app. Digit is a money-saving app that saves you money by analyzing your spending and automatically saving the perfect amount every day.
With the Digit savings app, they do all the hard work for you. Digit’s algorithms learn how you spend, so you don’t have to change your lifestyle.
Pay for your Daily Expenses with Cash
Paying your daily expenses with cash in your hand will help you in your budgeting journey. Not always swiping your debit or credit card will help you cut down on spending and limit yourself from overspending. You can get some help by checking out the Total Money Makeover book by Dave Ramsey.
For example, if you go grocery shopping with a $100 bill, you know you cannot spend more than that amount in your hand. Using cash in your daily expenses will help you save more money and, in the long run, help you stick to your budget.
People tend to spend more when paying with a credit card instead of cash payment.
Cut Down on Expensive Expenses
The greatest way to stick to your budget and to save for the future is to cut down on expensive expenses a bit. Everyone wants to live in luxury, but if that will make you live below the poverty line in the future, it is to cut down some of the luxuries today.
Identify the expensive expenses and consider going for average once that can still give you the same comfort. For example, you can get a car today instead of making a monthly payment for every car. Or go for an older model of car and pay a lower auto loan.
You can cut down on your monthly expenses by taking lunch to work instead of buying lunch every day. Get groceries in larger quantities to save money and stick to a budget instead of shopping every day. Get a smaller smartphone instead of going for the latest phones and paying higher installments.
Learn how to make your own skin cleansers, dishwasher, and even shampoo on Pinterest. Making these by yourself will cost you only a few dollars. This will save you a lot of money, and you will still catch fun in the process.
Also, instead of going to the theater to watch movies and spend money on tickets and snacks. Wait for the movie to be on Netflix or other digital platforms. You will save money by avoiding the cinema and in turn, it will help you stick to your budget.
To save money for the future and stick to your budget, you have to cut down on unnecessary expenses. These are some of the ways to save money and stick to your budget.
You deserve financial freedom now and in the future, so start your budgeting journey today. Get creative when making your budget to keep you going and keep disciplined with your spending habits.
Always set a budget you can stick with rather than setting a budget over you or something you are not comfortable with. Be sure to create (and stick to) a better budget that fits your lifestyle.
Don’t create a simple and general budget but create a detailed budget that has enough information. You need to get a true grasp on your finance and stick to your budget, so don’t make a general budget. If your budget is too general, you may not stick to it.
Finally, always get creative and customize your budget to fit your need, encouraging you to stick to your budget.
What are you doing to stick to your budget? Share in the comments below!