Budgets are for everyone, no matter how much or how little money you have. If you’re not using a budget, you’re setting yourself up for financial failure again and again. A budget is a phenomenal way for you to see where your money goes, how you can allocate it a bit better and how you can ensure that you are not going to end up without enough savings to live your life. We love a good budget, and we believe everyone should have one. It doesn’t matter how you budget or which of the limitless budgeting methods you use, just so long as you do use one. If you already have one and you’re not sure it’s working out all too well for you, we have some budget tweaks so simple and so effective you can make right now that you will be amazed.
Contribute to an Emergency Fund First
If you haven’t an emergency fund and you’re saving for something else, you’re doing it all wrong. You need to have an emergency fund with at least $1000 in it. Get one and get it now. Then you may start saving or splurging.
If you aren’t sure what a particular bill is when you’re paying yours, go ahead and over-estimate. It’s always better to have extra money at the end of the month than it is to find out you haven’t enough money at the end of the month. For example, you don’t know how much your utility bill is each month, so you should go ahead and look back on the last 12 months and use the highest amount you paid as an estimate.
Change the Budget
Did your circumstances change at any point recently? If so, go ahead and change your budget. Even if your expenses haven’t change but your income has, adjust that budget. For example, if you got a raise, go ahead and allot an addition 10% of your raise to your savings and put it in the budget.
Change your Expectations
Are yours too high or too low? Do you feel that your budget is a failure because your expectations are too out of whack? If so, change them. Do you think that you can save $1000 a month but you’re finding it difficult to do just that? If so, make a change to help you relax and calm down.
If you’re not contributing to you, you’re not budgeting correctly. You are your most important monthly expense and you should live as if this is the honest truth. For example, if you don’t have a savings account, start one. Even if you only have room to add $10 to your budget each month, add it.
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