Quantitative finance collector
C++ Matlab VBA/Excel Java Mathematica R/Splus Net Code Site Other
Apr 3

5 Ways to Take Control of Your Personal Finances by Keeping Up with Your Budget

Posted by at 22:07 | Default | Comments(0) | Reads(836)

Maintaining and sticking to a budget can be a difficult endeavor if it is your fist time budgeting. Most people give up prematurely because they find it difficult to stick to the budget or because the budget can evoke different feelings or call attention to bad habits that one may want to avoid seeing in themselves.

The good news is that this phenomenon is very natural and most people actually go through it. Most people, however, don’t have the discipline to adjust their behavior to help them succeed with their budgets.

Open in new window

Below are 5 ways that you could use to make the most out of a budget to help you become a financial success.

1.  Don’t leave out periodic or annual expenses

If it is your first time making a budget, it is easy to forget necessary expenses that are not at the top of your mind. If you leave out some expenses, you may end up getting frustrated when you don’t have enough money to settle them and therefore abandon the budget.

For example, if you have an annual charge on your credit card or quarterly insurance payments, you could easily neglect to account for such expenses on a month to month basis.

Once you note this error, you need to adjust your budget and account for the expenses so that it is not a surprise when the time comes.

2.  Adjust yourself mentally to the budget

If you have negative thoughts or feelings towards a budget, you need to be able to reframe your views so that you think of a budget as a tool to help you become a financial success. If you positively adjust your attitude towards your budget, you will be motivated to stick to it rather than avoid it.

3.  Make it simple to stick to

Especially if it is your first time using a budget, it is a good idea to set it up in such a way that you automate most of your bills. Set up automatic transfers for your recurrent bills and put aside only what you need to use on a weekly or daily basis.

4.  Use methods that you can identify with

When you are adopting a new budget, it is best to use methods that make the most sense to you in order to stick to the budget. For example, it may be easier for you to keep track of your money by putting money aside in separate envelopes for specific budget items such as groceries or fuel for your car.

5.  Motivate yourself

As you create your budget, it is a good idea to set up a reward system for when you manage to achieve certain milestones within the month. For example, if you manage to fully stick to your budget, you could reward yourself with $50 at the end of the month, whereas if you stick to your budget by at least 90%, you can reward yourself with $10.

If you want to be able to stick to a budget, it is important that you remain motivated and creative enough to adjust to your particular circumstances. You could get ideas through reading reviews to help you stick to your budget.

Add a comment
Enable HTML
Enable UBB
Enable Emots
Nickname   Password   Optional
Site URI   Email   [Register]