Congratulations. You have done the very first step for the road to financial independence and economic success: establishing a budget. Now, it is time for the hardest part, which will be sure to cause you some headaches: making sure you are within your budgetary realm.
After creating the fun process of implementing a budget, you must be asking yourself: how will I make sure that I stick with my budget?
First, you have to be honest with yourself at all costs. You have to plan ahead, you have to expect the worst and you have to always keep track of your budget.
With that said, there are a few measures and steps to take to ensure you are sticking to your budget.
Are you going out today? Have a nice time outside, but be sure to carry either a daily planner with you or a piece of paper so you know what you are spending your money on and how much.
At the end of the week, add everything up and see if you are meeting the needs of your budget. If you’re not, then you will now know what you can cut so you do accomplish your goals at the end of your month, quarter or year.
Leave the Plastic
Studies have shown that if you have cash in your hand, you have a better chance of spending less. On the other hand, if you have money in your chequings/savings account and/or use the credit card, then you have an even greater chance of spending more because you don’t see that hard earned money that you have labored for.
When you get paid, take out money necessary for the upcoming week. Or, if you must, carry a daily budget with you and make sure that you only spend that certain amount.
Review (Plus One)
If you know someone who is also trying to budget, sit down, have a cheap cup of coffee and review yours and your peer’s budget. This is important because in case you are lying to yourself, you have someone to convince you to spend less or to stay on track.
Heck, you can even make it a game. The person who saves the most wins.
In an episode of “The Simpsons,” Homer Simpson set up a “swear jar.” Every time he swore, he deposited loose change in the jar.
You can do something quite similar to save even more. For instance, let’s say your budget for Thursday was $3.50, but you only spent $2.75. As a way to congratulate yourself, put the extra 75 cents in a jar.
These are only a few steps that will ensure you have financial success with your budget.