Learn How to Budget-with Love

Picture yourself on the beach. If you're like most people, you've got a little smile on your face because you can't think of a place you'd rather be—especially in November! Now, think about your finances. Where'd your smile go? Not a fan of cutting back to save money and worrying about paying your bills? Get ready to love your budget as much as you love the beach!

Budgeting often sounds like a chore you’d rather avoid than something you “get” to do. But, the only way to take charge of your money is to know where it comes from and where it’s going. If you like the idea of a budget but have never been able to stick to one, change the way you approach money management to stay on track.

 

The following steps may even get you saying, “I love my budget!”

 

Identify your roadblocks—Before you can begin to love your budget, start by uncovering why it hasn’t worked in the past. Are you a compulsive shopper? Someone who is constantly treating your friends? Trying to keep up with someone else’s spending habits? Or, maybe you’re overextended on your financial commitments.

 

Take some time to reflect on what’s happening in your life right now and come up with healthier ways to deal with what’s at the root. A morning run to alleviate stress during the day or a low- or no-expense activity with your friends (like hiking!) may be just the thing to change your mindset.

 

Start with baby steps—A budget isn’t made just by telling yourself to spend less. You must make a plan. And, that plan should include small, attainable steps that will lead to your ultimate goal. Decide what you want to accomplish by creating a budget.

 

Now, take an inventory of ALL your spending. Be honest with yourself and don’t omit anything. It’s important to know where you are right now. A simple way to start is to divide your spending into four buckets: fixed costs, financial goals, non-monthly expenses and flexible spending. Now, determine where you can cut costs.

 

Don’t try to do it all at once! Make one cut and live with it for a while. Then, make another cut and live with that.

 

Leave room for some fun—Successful budgeting doesn’t mean sacrificing all things good and fun. Planning for a monthly massage or occasional night out is perfectly fine, as long as it doesn’t put you in danger of meeting all your necessary expenses.

 

Make a habit of tracking—Creating and implementing your budget is not the end of the process. If you want to stay on budget, check in on your progress—once or twice a week should do it. Not only does this make you more familiar with what’s happening to your money, but it’s a great way to spot mistaken or fraudulent charges early. That means fewer headaches for you.

 

Watching your budget work also lets you see the little victories. It’s important to celebrate those small wins along the path to your end goal. That may mean a latte (since you cut out your daily fix to save money) or a movie in an actual theater instead of at home.

 

Use online budgeting tools (or create some of your own) to help you stay on track.

 

Get a budget buddy—If you need a little extra motivation and support, have a friend join you to achieve your budgeting goals. Cheer each other on, celebrate milestones and support each other when commitment wavers. A little accountability goes a long way!

 

With these tips, there’s no reason not to fall in love with developing a plan for your money. Your wallet and future self will thank you for it!