You have analyzed your past expenses and decided to have a budget plan to increase your savings. And then created a proper expending plan. You may follow this financial budget for several months, but believe me, after some time you may end up in the same routine as previous. This can happen to anyone. How do you avoid this happening to you?
Here are 10 tips to avoid you forgetting your financial budget down the road.
1. Create a budget with realistic targets
Let’s assume one of your goals is not to eat outside. This may feel achievable at first. But if you think practically, it is nice to eat outside sometimes with your friends, family etc. You should not set the bar too high. Your goal should be “not to eat out frequently”.
2. Plan for expenses that do not happen a routine basis
If you plan your budget for monthly expenses, it is for sure you will miss your expenses that occur once a year. For example your car insurance, birthday gifts, vacations, weddings etc. When you come across a month with this unexpected annual expense in a month, your budget will be busted. Make sure you plan beforehand for these expenses as well along the year.
3. Write down your budget
Don’t assume that you can memorize all things. No one is capable of remembering things long term. On the other hand, if you see your budget plan weekly, daily, you can see how things going on with your financial goals. You can adjust whenever necessary to achieve success.
4. Don’t give up on short term failures
Just having a bad month or week on your plan doesn’t mean you should give up your whole plan. Every journey will face bumps along the road. Just imagine your practised your plan for 6 months and then suddenly you failed at your 7th month and give up everything. You may never succeed if you do so. You should adjust yourself whenever there are hard times. Just remember why you started your budget plan in the first place.
5. Adjust your budget along the way
It is hard to guess all your expenses at first. You may have to assume certain things. Once you are on your plan you need to fine-tune. For example, at first, you can’t guess how much will it take for your utilities and groceries. But when you are practising your budgeting you may feel that you need an adjustment. Go ahead and change your budget accordingly. You will improve along the way.
6. Review your budget once in a while
This is where you fine-tune your budget. If you review your budget you will see how fast you reach your goals. Otherwise, after some time you won’t feel you are following a budget. This where you can use your writing.
7. Create specific short term goals
Let’s say you have a loan term goal of saving $100000 within two years. Break it down to small short term goals like every six months I’ll achieve savings of $25000. Then end of each six-month review your goals to check whether you are in the right track.
8. Reward yourself
You should not stress yourself while practising your financial budget. You should reward yourself once in a while. Maybe once you achieve your short term goal. Then only you will feel that you are on a fun full journey towards your goals. But make sure you do not end up breaking your personal finance budget goals.
9. Pay yourself first
Your goal is to save some amount of money for something or for investment. You should consider setting aside your savings before everything else. You should not save whatever remains after spending. It is another way around, spend whatever after savings.
10. Have a can-do attitude
It is difficult to change your mind not to buy something you like. After all, we are humans. We all have feelings. But think about your goals. You are doing things for yourself or for your family. Achieving your goals is your success. Try to stick with your plan. Great way to do is learn how to live below your means.
If you follow these steps you will succeed for sure. You should not stress yourself with your plan. Enjoy the roller coaster along the way. You will feel accomplished at the end.