Tips for a Successful Budget
Tip 1
Be flexible
At some point, you are likely to overspend. Try to compensate by spending less on other things. For example, if you overspend on your groceries, reduce the amount you spend on eating out that month.
Tip 2
Direct deposit
If your employer allows automatic transfers to savings, set aside a predetermined amount each month to help grow your savings.
Tip 3
Avoid impulse buys
Impulse purchases add up quickly and prevent you from saving. If you have a hard time resisting certain purchases, avoid putting yourself in tempting situations. For example, if clothing is your budgeting weakness, avoid going to the mall. If you need to make a purchase, keep it within your budget or set aside a certain amount each month until you have enough to pay for it.
Tip 4
Include your family
In order for a budget to work, all family members must be included. Maintain a dialogue with your spouse on financial issues and introduce your children to the costs of running a household by talking through financial goals together. Try to discuss financial issues honestly and openly.
Tip 5
Avoid using credit to make ends meet
Don’t use credit cards to pay for items you can’t afford. Remember, when you use a credit card, you are borrowing to make that purchase—and borrowing comes at a cost. Unless you are able to pay off the balance each month, frequent and excessive use of credit and credit cards for normal living expenses like gas and groceries is a sign that your income is not enough to cover your expenses.
Tip 6
Record every purchase
Whether you use a pen and paper or your smartphone, make a habit of tracking every purchase. If you go off track, take a moment to own up to it. See Tip 1 and budget accordingly next month.
Tip 7
Don’t deprive yourself too much
Budgeting is like dieting. If you deprive yourself too much, it becomes more likely you'll binge later. Instead, compromise. For example, if you regularly meet friends for dinner on weekends, consider breakfast instead. Or better yet, meet for ice cream. You can maintain the friendship without the added cost.
Tip 8
You will go outside your budget
If you spend beyond your means, don’t give up! Can you spend less in a different category for that month? Be honest in your spending and plan accordingly.
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