10 Easy Tips

Budgeting can be tedious and it makes sense that not a lot of people are very good at it. However, being broke is worse. It spikes up your anxiety levels that may also lead to problems in your health and relationships. Here are easy tips to help avoid getting broke without the arduous process.

Take it one step at a time

Do not try to do everything at once. Take time and understand that a good financial plan is one that is based on months of observing spending patterns. At the same time, serious budgeting can be overwhelming at times so tackling one step each day is more effective.

Put your mind into it

Acknowledge the reason why you need a financial intervention. Whether it’s saving for retirement or catching up on payments, you need to set your mind into it. Consider the fact that you have a financial problem and you need to do something about it.

Write down your goals

These goals should include the three F’s (Family, Fun, and Finance). Classify these goals as achievable in certain amount of years. For example, for Finance, you may consider setting up goals to save at least $10,000 worth of savings in one year.

Keep your receipts and organize them at the proper time

If you are not good at keeping receipts, you can still have a printout of your expenses through your monthly statement of account. This way you can trace where your money goes.

Categorize your expenses

Once you have gathered your expenses, you can then categorize them according to the essentials, extras, and savings. Of these three, the essential takes the biggest percentage. Extras and savings can be divided into half.

Treat yourself with tiny things

Finding the fun and beauty in simple and tiny things will make you feel like you are not being deprived of anything. For example, treating yourself to morning coffee will help you feel ready for the day. At the same time, you are more likely to feel valued that you do not find expensive gadgets as a must in your life.

Have your own little budget diary

The best thing about having an accurate list of expenses is you can pinpoint exactly where you can cut off expenses and for how much. This way you can create a more detailed budget plan where you can put a little wiggle room of fun. Use this as a motivation instead of a task you have to fulfill.

Set auto-payments

Bills that are staying for good are best paid automatically. This way you save time as well as risk missing important payments that may have repercussions in the long run.

Calculate how much money you make

The difference between your assets and liabilities is your net worth. You need to know how much you are worth so that you can grow it.

Do not forget rewarding yourself

Most financial advice is short to saying you have to be frugal and eliminate rewarding yourself. This may work for some time, but this is not a sustainable means of saving money. If you want to save for long term, look for ways of rewarding yourself.

However, choose rewards that have long-term benefits as well. For example, if you like reading, you might want to reward yourself by buying a book about a topic that will help expand your horizon. Small investments like these will help make you feel less stressed and constrained about saving money. Eventually, you will be able to eliminate the stigma and find enjoyable ways to save.