Tips and tricks to help you keep to a budget
Sticking to a budget is hard. Whether you’re trying to save up for a big purchase like a house or car, or just trying to put aside a little bit every month for a rainy day, even with all the motivation in the world, it’s often easier said than done. So to help you out, here are some top tips that will make it more likely that you stick to your budget and achieve your financial goals.
Keep a close eye on your finances
First things first. You want to pay attention to exactly where your money is going every month, as this will help you to figure out the most effective way to save your dollars. Set up a free checking account if you don’t already have one, and examine your transactions every day to see how much you’re spending and what on. To make this step even more helpful, keep a note of every single item or service that you buy. Yes, every single one. That way you’ll know exactly what your hard-earned money is going towards – and if you don’t like what you see, it will be that much easier to change your behavior!
Steer clear of credit cards
Credit cards can be a nightmare when you’re trying to stick to a budget because they make it very easy for you to overspend. Keep it for big purchases or emergencies, and instead, make do with a debit card. Cash can be even more effective because when you spend physical money instead of digital money, it feels more ‘real’ to your brain. Plus, when you run out, there’s nothing left to spend! Another way to challenge your spending is to work out how many hours of work it took you to earn the money to cover a particular purchase, then decide whether you think it’s worth it or not.
Stick to your shopping list
Impulse purchases can be the death of a budget! So when you go to the grocery store, make a list in advance and stick to it rigidly. To help with this, it’s best to never go food shopping when you’re hungry. It’s not just groceries either. Before making any large purchase, take some time to think about whether you genuinely need or want that item or service. If you can sleep on it, all the better – you may find you wake up with a new perspective.
Look for simple changes that make a big difference
Sometimes what feels like little changes can add up to big savings over time. For example:
- Make coffee at home instead of stopping at Starbucks on the way to work
- Make your lunch at home instead of buying it out
- Browse second-hand clothes shops and book stores instead of always buying items new
- Turn off lights and taps to save on electric and water bills
- Exercise outside or at home rather than paying for a gym membership
- Put a certain amount of your paycheck into savings as soon as you get paid, rather than waiting to see what’s left at the end of the month
