As the month draws to a close, it is time to once again prepare your monthly budget! I’m passionate about preparing a budget every single month because it is a huge reason that my family is no longer broke. I want to help you get your budget working well for you and your family so you too can live a fully funded life.
5 Budgeting Tips To Remember
- Prepare the budget BEFORE the month begins. It is nearly impossible to budget “in reverse” after money has already been spent. Planning your money before you’ve received it will allow you to maximize every single dollar.
- Be realistic. Don’t lie to yourself. Many people reduce or eliminate spending categories that they know they won’t be able to follow. For example, don’t eliminate all of your “dining out” money when you have three children involved in three different traveling sports teams.
- If married, work together. It’s extremely difficult to make a budget work when both spouses aren’t on the same page.
- Use cash envelopes for “impulsive” spending categories. For my family, these categories include: Groceries, Restaurants, Clothing, Spending Money, and Entertainment. Cash prevents overspending the budgeted amounts.
- Save for Known, Upcoming Non-Monthly Expenses. If you choose not to save for Christmas, vacations, special days (like birthdays and anniversaries), property taxes, car repairs, and insurance deductibles, you are ignoring reality. Which means you should refer to #2.
BONUS TIP: Use our FREE budgeting tools located HERE.
What other budgeting tips have helped you make your budget work well?