By Jacqueline Samaroo
Once the dust has settled on the New Year celebrations, it’s time to reflect on the year just ended, while giving some serious thought to all the possibilities the next twelve months hold. If one of your goals is achieving healthy finances in 2020, we’ve got you! Check out our top 5 budgeting tips to ensure that you secure that bag this year!
- Nip Overspending in The Bud
Overspending is one of the great budget breakers. If you are prone to overspending, the first step to stopping is finding out why and on what. For instance, are extravagant treats after stressful times, or beautiful (and expensive) jewelry your Achilles heel? Look your overspending habit squarely in the eyes, and then start putting measures in place to kick it to the curb.
- Believe in The Budget!
Thinking your income is too low is a common excuse for not budgeting. If you take a minute to reflect on it, however, you will see it’s exactly why you need a budget. Believe that a budget can help you and begin by itemizing your income and expenses. Prioritize your expenses and make necessary adjustments to ensure everything gets taken care of. Limited income or not, you will see that by budgeting, having healthy finances in the future is not just a pipe dream.
- Have A Specific Goal in Mind
Sticking to your budget is much easier when you budget with a purpose. You might have a long-term goal in mind like buying a house or a short term one like starting and maintaining that all-important emergency fund. Whatever it is, write it down along with any steps required to see it to fruition. Celebrate (within reason) each goal’s accomplishment then think about what you would like to achieve next.
- Monitor Your Progress
Budgeting puts you on the road to living your best life and you can keep on track by constantly monitoring your progress. A methodological approach makes it easier to stick with the budgeting habit, so put aside time daily for evaluating your progress. Remember, too, that there are many handy budgeting apps available to help you create and manage your budget.
- Be Realistic
Our budgeting plans usually fall apart because they are simply too difficult to maintain. Reflect on how you currently spend and think of making one or two small changes instead of setting yourself an impossible goal. So, instead of allocating $50 per week to your emergency fund and leaving all your other expenses in a bind, try $20 or even just $10. Once you start seeing the impact of your budgeting, you can consider increasing the amount.