5 steps of creating a budget and sticking to it
Sticking to your budget once it’s made is key to reaching your financial goals. What’s the point of making a budget if you can’t use it? A well planned budget can help you set aside some money, reduce your debts and plan for the future. Try it yourself with these steps:
- Start by balancing your income against your expenses. Look back a couple of weeks and find out where your money goes. Compare money in with money out to see if it’s sustainable. Maybe you’ve already found places where you want to cut down.
- Set saving goals. Whether you are saving towards something, pay of your credits, or put aside some as a buffer, your goals will be the motivation for saving. Specific saving goals is a good way of seeing the big picture, refrain now and reward yourself later.
- Make your budget. When you know where your money is going and how much you actually have, you can set a budget that will get you to your goal. Don’t forget the smaller expenses such as streaming services and the occasional piece of snack.
- Stick to your budget! It’s always tempting to overspend a little but if you don’t actually stick to your budget, all the planning goes to waste. Stay disciplined and avoid the purchases you don’t want to make.
- Look after and make adjustments when you can. It’s hard to get it right on your first try. Keep in mind that over time, your income and expenses might change. Remember to look at your budget and see if it’s still realistic.
Start with these steps and learn as you go. Find out what works best on your way. This might work well or at least gives you some inspiration. Hopefully you will reach your goals in the end.
