Setup Your Budget

This step-by-step guide can be accomplished in 15 days. You only need to set aside about five to ten minutes of your time each day and see for yourself how it dramatically changes your finance.

Day 1 – Start gathering your expenses for the entire year so far. Take advantage of apps, Excel, or any tool you are comfortable to use. Yearly accounting is more accurate since you get to see expenses that are recurring and those that are irregular.

Day 2 – Gathering your annual expenses can be a big task. Save this day to continue consolidating all your expenses and income.

Day 3 – Create a spending plan based on the data you have gathered from days 1 and 2. Consider whether the way you spend money is in line with where you want your finances to be in the coming year. Pick a specific area where you can reduce your spending.

Day 4 – Focus on the areas you want to reduce spending from and plan ways to effectively cut back.

Day 5 – The best way to win in budgeting is to check your recurring expenses and decide ways to cut back without affecting your quality of life. You can reduce your fixed expenses by doing a research on alternatives such as changing to a cheaper cell phone provider, for example.

Day 6 – Shop around and compare rates especially when it comes to insurance and other expenses you have the power to adjust.

Day 7 – Contact your cable or Internet Company and other related services to investigate packages where you can unite both services into one.

Day 8 – Make sure you have accounted for all the pending payments that you have yet to pay.

Day 9 – Communicate and negotiate with the agencies that need to be contacted for your particular financial concern.

Day 10 – Take advantage of auto transfers. If there are enough funds based on your income and expense assessment, you may want to push it further by adding funds into your retirement or savings plan.

Day 11 – Organize and de-clutter. You can turn this into an income generating project by selling some stuff that you no longer need.

Day 12 – Earn extra income from de-cluttering. You can either donate or sell things you no longer need. This will make you feel less stressed about a clutter-free home, while earning extra money at the same time.

Day 13 – Reassess your relationships and take time to catch up with friends or take your partner out on a date. Many people do not think about relationships when it comes to finances. Little do they know that the health of your relationships affect all other aspects of your life including your finances. One very good example is the fact that divorce can be financially draining to both partners. See to it that you are growing your relationships while you are growing your finances as well.

Day 14 – Revisit your hobbies and things that you are passionate about. Invest on a skill that you have always wanted to learn. This strategy helps you not to only to relax, but also have a potential additional source of income. For example, if you have always been interested in baking, you can learn this skill and eventually earn from it.

Day 15 – Review what you have accomplished in the last 15 days and start a journal to remind you of your goals. At the same time, this helps you keep up with where you are in your financial journey for the coming year.