When it comes to saving money whilst juggling everyday expenses, we understand it can be overwhelming and almost seem impossible. Whether you are trying to save for a particular event or just wanting to create a buffer zone in your accounts, implementing a budget is a great way to get started. In simple terms, a budget is basically an action plan for your money based around your income and expenses.
Whether you are looking at creating a budget for the first time or are wanting to improve an existing budget that doesn’t seem to be working, we have the right tips for you. Below we have listed six helpful budget tips that will ensure you not only start out on the right track but maintain a steady saving pace month to month.
1) Review your Income and Expenses
The first step when writing out a budget is to review your weekly or month income and all the expenses that needed to covered using this money. The more detailed and accurate information that you can provide about your current financial situation the better. Keep it simple when documenting your expenses by using categories such as utilities, car repayments, insurance etc.
2) Set Achievable Goals
Like anything that you are trying to achieve, it is important to set goals and to ensure that they are realistic. Rome wasn’t built in a day and neither was your savings account. After you have reviewed your income and expenses sit down and assess what left over money you will have and what you could potential save every month. Start small and reassess this amount at the end of each month.
3) Get a Budgeting App
Technology is a great tool and when it comes to budgeting it can also be your best friend. There are several free apps that let you enter all your expenses and income, track your spending and will automatically generate a monthly statement of your finances. Implementing a budgeting app will also save you time and effort with paper receipts and ensure you don’t miss any purchases when doing your monthly financial review.
4) Seek Advice from an Expert
If you are trying to save money, seek advice from an expert. They understand that everyone has a different financial situation and are able to provide advice tailored to your particular money goals.
5) Keep it Simple with Cash
Using cash only to pay for everyday items is a great way to cut back on overspending and also helps you track your weekly spending. Set aside an amount for each week and withdraw it from your bank and save your credit and debit cards for emergencies.
6) Adjust your Budget if it’s not Working
Like any system, it is important to review your budget regularly and assess where you may be able to improve it. Doing a review of your budget every month is a good idea because there will be months throughout the year where you have to spend more such as the Christmas season.
Budgeting is something that we have all had to experience at least once in our lives. But when it comes to saving money successfully, we believe it is all about tailoring it to your life and your current financial situation. If you are determined to reach a monetary goal and implement some of our helpful budget tips listed above, you’ll be on your way to achieving a healthier and fuller savings account.