How to Practice Good Budgeting Habits: Part 2 

Previously, in Part 1 of this blog post, we wrote about finding a role model, changing your outlook, and cultivating discipline to practice good budgeting habits. Read on to find out how setting goals, developing a system and living below your means are key in being financially successful.

Plan your Spending and Know Where Your Money Goes

Once you have cultivated discipline, the next step is to set some goals and prioritize the things you want. This is an opportunity to start setting aside money for things you may not need yet, but will need in the future. For example, you may start budgeting for long term care after retirement. If you plan ahead and keep track of your spending, patterns start to emerge that tell you where problems areas exist.

How to Practice Good Budgeting Habits: Part 1 

Some subjects seem easy to discuss openly, but shouldn’t be, such as talking about one’s sex life. Conversely, when it comes to speaking up about one’s ability to practice good budgeting habits, why does it seem such a taboo topic? Finding ways to better manage your money is the key to financial freedom.

According to a recent study by the University of Kentucky, people who win only $10,000 are just as likely to file for bankruptcy in five years as those who win $150,000*. Statistics say that a whopping 44% of winners spend their entire earnings within the first 5 years**. As the saying goes, if you can’t learn to manage a little money, you won’t be able to manage a lot. The first in a 2-part series (see Part 2 here), here are some tips to get you started practicing good budgeting habits to ensure a prosperous future for you and your loved ones.