You can always stick to your budget by following three necessary steps. First, you identify where your money goes. Second, evaluate whether your expenses match your financial priorities. Third, track your expenses on a regular basis to meet the financial goal. As Jill Gianola, Springfield, Ohio financial planner said it’s like staying on a crash diet forever, and that is why most find it tedious to stick to a budget. Here are some reasonable plans to make it easy.
Set Realistic Budget
Set a realistic budget. Sticking with the plans closer to reality is easy. To do this, jot down everything you spent in the past month, be it small or large and then set your budget.
Only count cash in hand
Always count the money left in your hand after paying tax and expenses for health insurance and others. Forget about highly variable items like bonuses at the end of the year or tax-refunds if you're not very sure of them.
You need to categorize your expenses under appropriate heads. Track expenses for at least two months to know your actual expenditures. It can be easy by downloading the bank and credit card statements and noting down the cash purchases. The Mint.com or Pennies app can be helpful in tracking and categorizing all your spending.
The picture should be apparent to you that where all your money is going. You must know when and where to spend less. Remember you can expend less than 90% of your income and leave the rest to save for the financial goal. Stop wasting anyhow.
If required do the math again
It is ok to alter if you realize that the specific goal you have set is unrealistic. Plug you “spending leaks” to hit the financial target.
Control your Expenses
Limit your access to credit and debit cards if you find sticking to your budget is difficult. For your variable expenses, resort to cash only.
Budgeting is not easy, but its rewards are great. Motivate yourself that you can stay in your budget. Remember your financial goals are vital to making life smooth and enjoyable.