All You Need to Know About Sticking to Your Budget

budget-tipsDo you always fail at keeping your daily budget? Well, don’t fret. You’re not the only who experiences that. However, you must take this at a serious problem  which you need to solve in order to free yourself from the painful consequences of budget failure.

Underscore your reason for budgeting – A personal reason for budgeting will make you motivated to stick with your budget no matter what. Budgeting won’t work for your advantage if you’re simply following outlined steps in a self-help book about finances.

Have a specific goal –  While short-term goals are permissible, it is better if you have long-term goals in mind. An example of a long-term goal is  buying a house or having a college fund for your children. Such kind of a goal will push you to make daily sacrifices just to stay on track with your budget.

Consider how much money you earn – How much is the paycheck you bring home? That is minus all taxes and other deductions and insurance contributions. From there, you will be able to budget your money effectively – how many percent will cover basic expenses, monthly bills, savings, etc.

Make your budget realistic – Can you really save 50% of your monthly income? Can the remaining 50% cover all your family’s expenses? You might end up scrimping on your basic needs – food, water, shelter – just to save a lot of money. But, where will this bring you? To the hospital as you might get sick due to malnutrition. Hospitalization will cost more than shopping for healthy foods and vitamins. So, budget your money correctly.





Beat Overspending By Having A List

Did you know that the habit of overspending can be easily eliminated by keeping a list?

Before going to the grocery store, spend ten minutes or so to write down the things you need. As you write each item down, try to recall their individual price tags. Bring money that is just enough to pay for all the items you have in your list. It is safe and wise, however, to bring extra dollars should there be an unexpected increase in the prices. Use cash and not your credit card as much as possible. This will keep you from giving into impulse buying.

When you’re able to overcome unplanned purchases, you could cut your expenses on the groceries. Another good thing about this is that there is less possibility for food to spoil in your cupboard or refrigerator. Remember that spoiled food means wasted cash. Just think of the many people in other parts of the world who are dying because of hunger.

Having a list also reinforces healthy eating in your family. By taking time to think things over, you can direct your focus on healthier food like fruits and veggies. You would also save time if you have a list. It will tell you to which stall to go after purchasing one item after the other.