8 Budgeting Tips for Success in 2019
Updated: Aug 28, 2019
What is the ideal amount of cash that you need to earn per month to feel validated? In answering that question, you probably came up with an elaborate figure. The follow-up question is, how long do you think the validation will last? We can't tell what the future will be like but here's one thing that I can guess quite confidently-the validation will not last very long. The hard truth is, if we cannot manage a small income, it's highly unlikely that we are able manage a large one. What is the solution? Create a budget, otherwise, you're just going with the flow.
Remember, every dollar counts so here are 8 budgeting tips for success:
Budgeting Tip 1.
Pay Yourself First-
Before you do anything else with your income, put aside 10% for your growth. In doing so, you will be creating a pattern or habit for yourself. Your budget must account for YOU long before any expenses come into play as it is crucial to your growth. Remember that the ultimate goal is financial freedom. Use this reason to stay motivated.
Budgeting Tip 2.
Along with paying yourself first, your budget should also have room to facilitate savings and investments. A budget that is unable to cater to these two important principles, might fail quickly. If you generally struggle with saving you may need to do some research on ways to save money.
Budgeting Tip 3
Set aside money for miscellaneous activities-
One of the major causes of financial self-sabotage is the lack of planning. READ CAREFULLY-Spontaneity is welcomed but only in small controlled doses. To effectively manage your finances, you must account for ad-hoc activities that cause you to spend more and tag them under miscellaneous expenses in your budget.
Budgeting Tip 4.
Put aside money for health-
Health insurance can cover the cost of minor health problems, but is it enough? Unfortunately, most people are heavily reliant on their company health cards to take care of their health. Here's my advice put at least 10% of your salary aside each month towards health and wellness. It will give you peace of mind and will also reduce the need to redirect funds in your budget.
Budgeting Tip 5.
Create a food budget-
Your food budget will include not only the food purchased at supermarkets or grocers but also your restaurant runs. If you're not careful your food budget is quite capable of taking over your entire life. Set a figure that you will spend on food and stick to it!
Budgeting Tip 6.
Have a section for Charity or money that you give away to family/friends-
To avoid spending that is unaccounted for, consider who you normally send money to on a monthly basis. Allocate the funds accordingly and stick to the agreed upon figures. To effectively do this, you must exercise some level of restraint or self-control.
Budgeting Tip 7.
Reduce your expenses where possible.-
By far, one of the greatest challenges that we face when budgeting is controlling our expenses. There are too many people walking around with the burden of skyrocketing expenses. If you are able to keep your expenses low and increase your earnings this is a win-win situation. Furthermore this will also help you to avoid debt. If you are currently struggling with any kind of debt, you can use this article to help you with your get out of debt strategy
Budgeting Tip 8.
8. Track your progress daily.-
Get into the habit of tracking money! Budgeting requires focus, dedication, and attention. To budget effectively, you must account for all the money spent on bills, food etc etc. In other words, even the slightest expense must be accounted for in your budget calculations. Furthermore tracking every dollar will also teach you how to save money fast.
I hope these simple budgeting tips were helpful and informative. I would love to hear your thoughts on how to create a budget that is fit for success.
"I cannot give you the formula for success, but I can give you the formula for failure--It is: Try to please everybody."- Herbert Bayard Swope