- Get a Fresh Start
Chances are, if you’re reading an article about building a budget, you’re trying to find a system that really works. Make it easier on yourself and clear your mind of whatever budgeting past you’ve had – start from scratch. Rebuild a budget on a strong foundation with a fresh start, and see how far you can go!
- Prioritize
If the word budget makes you cringe, let’s work on reorienting your thought process. Budgeting isn’t a way for you to get rid of all of life’s fun and only eat ramen for the rest of your days. It’s creating a formula to help you prioritize what you truly want in life and make it happen. Saving in smaller areas can help you cut debt in much larger areas, which will free your financial situation long-term.
- Give Each Dollar a Place
This is the part where we encourage you to spend every dollar. Okay, maybe not “spend,” but ensure that every dollar has a purpose. If you’re looking to put 20% of your income into savings each month, mark that down. You’ve now “spent” that money. Continue doing this with every dollar that comes your way, so that every dollar knows where to go.
- Pay it Off
Dave Ramsey has said it a million times, but one of the greatest things you can do for yourself is to get out of debt. Interest rates will only increase over time, and that’s money you’re losing in the long run. Do what you can to pay off your debt early, and quickly.
- Keep Track
It could be anything from paper and pen to the latest app for your iPhone (here’s three we suggest), but the key to making a budget work is keeping track of it. Once you’ve established a budget that works, stick to it! Record your purchases, keep track of your spending, and take control of your finances.
- Be Kind to Yourself
Of course, it’s easy to write about being a budgetary stickler, but acting on it is much harder. It requires the ability to squelch the craving for instant gratification. While this can be done, if ever you slip up, know that it is going to be okay! A budget creates great guidelines for you to follow, but if you go over-budget one week, the world will not end. You spent a little too much, but you’re going to be alright. Just keep budgeting and do your best to fix it for next week!
- Make Adjustments
As we just discussed, sometimes your budget isn’t spot on, and you go over-budget. However, you can also find yourself under-budget. If either of these situations are happening regularly, it might be time to sit down and adjust your budget. Maybe your income increased, maybe you’re spending a little differently. Regardless of what has changed, as long as your situation is fluid, so should be your budget. As life changes and fluctuates, be willing to do so with your budget. Of course, not to an extreme, but little tweaks here or there will help you stay on track and spend your money the best way you can.
- Fall in Love
While you may have once seen budgets in a negative light, using one you’ve created for yourself can be immensely gratifying. Stick to what you’ve planned, use your money wisely, and gain control of your financials! The lasting impact of a budget is seen over a period of time, so the longer you work at it, the greater your reward.
If we at Kemp Harvest Financial Group can help you in any way with regard to your financial planning needs, please feel free to contact us.
For more topics like this, check out our radio show “Retirement Plain and Simple” every Saturday morning at 8 on WNPV 1440 AM and like us on Facebook!
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