Budgeting is only as good as the person’s willingness to follow their plan. Some people can write down a specific budget and stick to it completely. Others find themselves scrounging for money at the end of the month. Dedication is key in managing finances and paying bills. Although it can be tricky, you can become good with money. Regardless of how much money you make, this skill is essential to have a stable future. Here are some tips on how to create a budget that you will stick to and follow.
Bind Up The Money
Willpower is not imperative; however, it’s not okay to prepare for impulse spending. Always leave essential bill money in a safe location, which has been designated for rent, electric, and cell phone. This will help keep impulse buying under control. Nothing will stop you from taking the money, but spending it while you are out is impossible if you don’t have it with you. Some people have great intentions, and then decide they want to spend cell phone money on a Sidney Crosby jersey. However, this list isn’t about my hockey obsession. It’s about keeping money at home, so you don’t buy whatever your “Sidney Crosby jersey” is.
This Week’s Magic Number
My fiancee is the responsible one. She makes sure we don’t live in the dark, or get our phones shut off. This may be a little exaggerated, but she has a much stronger system. She writes down the magic number that will exit the checking account for the week. She can balance her weekly pay with what is coming out and can prepare if one week is greater than the next. Seeing the number written down makes it real, and it forces you to keep yourself above that number. It’s easy to wonder how you overdraw, but it isn’t when everything is kept in order.
Sleep On It
A similar article of mine had the same section. This is very important when keeping a strict budget. If you are thinking about buying something, always sleep on it. Don’t buy something because it is in front of you and you feel the need to leave the store with something. Most impulse purchases are regretted almost immediately, even if we don’t admit it to ourselves. If the purchase is worthwhile, you will still feel the need to make it after a good nights sleep.
Parents Know Best
This was a tricky one, but I will stand by it. Parents will always be straight with you and help prioritize your life. This is because they want what is best for you. Even parents who aren’t good with money will give you good advice on how to make your life easier. ‘Do as I say, not as I do’ is the great parent trademark. This doesn’t have to be a parent necessarily, but an elder family member or close friend who will not pull punches with you.
Everyone must budget to some extent. Even Bill Gates has a limit on the number of companies he will buy. Make sure you write it down and have some will power, and then you will be just fine.
Let us know what you do to keep on budget below!