It is not easy to do a budget and stick to it. So, let’s take a look at Basson Debt Counsellors Top 20 Budgeting Tips that will help you stick to your budget.
1. Cut yourself some slack
It can take a couple of months (3-4 months, sometimes 6) to master this budgeting thing. Cut yourself some slack and keep trying. In no time at all, you will be the budgeting guru you were meant to be.
2. Have goals
Whether it is an overseas holiday or paying off your car faster, it makes no difference what your goals are, just focus on the WHY. The WHY is the reason you are prepared to make sacrifices and keep focusing on that.
3. Do it together
If you are married or living with your partner, sit down once a month and do your budget together. Have a blast, grab some snacks and put on some tunes. Whatever makes it easier for you to focus on the job at hand.
4. Remember, no two months are the same
One month you may need to budget for your car to be serviced or school uniforms. No matter what it is, there will always be something that crops up.
Make sure that you make provisions for them. Your budget is a living thing that changes as your needs change. It is only when you do not have a plan that you get overwhelmed.
5. Pay off your debt
Paying off debt has to be one of your top priorities. Attack it! Scream at it! Do whatever gets you to get rid of it as fast as possible.
6. Don’t be scared to trim your budget
Grab onto the nearest sturdy fixture! Yes, it may be time to enact some budget cuts. Let’s face it, some months are tighter than others and if you find yourself in one of those months, change the script. There are ways that you can save money – fast. Eat out less or shop for groceries at a more economical grocery store, do whatever it takes to get back on track. Remember, it is not forever.
7. Track your progress
Make sure that you track your progress every now and again. If you are in a relationship, talk to your partner about your goals and make sure that you are both on the same page. You may notice that you have to tighten your belts a bit more or get a side-hustle going to reach those goals faster. Perhaps you would like to get someone you trust to go over your budget with you. Do whatever it takes to make sure that you are on track and not veering off course.
8. Schedule it, baby!
You have made doing your budget part of your monthly routine so, why not schedule your planned spending? Do your groceries on a specific day every week or twice a month. Arrange for debit orders where possible. If you know what is coming, or for that matter what is going out, it eliminates a lot of stress or potential problems.
9. Have a buffer account
There are always unexpected expenses that pop up. Our suggestion would be that you label this as “Buffer” on your budget and put it away. Forget about it, until you need it. You will be happy you have it when something unexpected comes up and you do not have to take away the money you have already allocated somewhere else.
10. Use cash if you keep overspending
If you keep overspending on groceries, leave your cards at home and only take the cash you have budgeted to spend. Ever heard of the envelope system? No? Well, let me tell you how it changed my life. Let’s say you have budgeted R4000 for groceries for the month. Go to the bank at the start of the month and draw the R4000, put it in an envelope labelled ‘Groceries’ and only use that cash for buying groceries.
Once the money is gone, it is gone. It is a way to hold yourself accountable and think about what you are spending money on when you shop. Let’s face it, we could all do with a bit of help in that department.
11. Don’t quit, adapt
If you get to a point where you want to quit budgeting, give yourself a bit more ‘fun’ money. See if that helps you to stick it through. Nothing worth doing is going to be easy and it is no different when it comes to your financial freedom.
12. Don’t be afraid of change
You can’t get out of debt if you keep doing the same thing. It is very easy to become over-indebted and the only way to get out of this destructive pattern is to make a change! Remember, the quickest way to double your money is to fold it over and put it back in your pocket.
13. Choose wisely when it comes to savings accounts
Financial freedom is the goal, right? Okay, then be smart. Make sure that you are saving your money in a bank and account type that is going to give you the best interest rate. It is shameful that we will shop around for the best prices when it comes to material things, but not for our own hard-earned money.
14. Stop looking for shortcuts to financial freedom
Yes, I said it and I will say it again – Stop looking for shortcuts to financial freedom. Acknowledge that you have to work hard at it and plan to be successful. If you are unable to get through a month on what you earn, and going under Debt Review is the answer, so be it. Far too many people are too proud to get the help they need and use the resources that are available to them. All that gets them is stress, which can and often is deadly, and financial ruin.
15. Accept that you are in control of whether you succeed or fail
In order to create the change you need, you must realise that you are the one that is in control.
Ask yourself how you got to where you are now, but focus on how to get out of it. Budgeting is a wonderful first step in this process.
16. Live within your means
I would love a Louie Vittone bag or a pair of Manolos. However, you will not see me rocking them unless I somehow acquire a fairy godmother who would like to gift them to me. Trying to keep up with the Joneses is a sure-fire way to ensure that you will end up in financial ruin. Buy what you can afford and if you can’t afford to pay for it cash, you don’t need it. This leads us to budgeting tip number 17.
17. Stop shopping on credit
Yes, a store card is convenient and anyone who says any different is lying. BUT if you buy on credit you are paying back the cost of the item PLUS interest. Stop throwing good money after bad by cutting out this practice. If you insist on using store cards, make sure that you choose the zero interest payback option or refer to budgeting tip number 16 above.
18. You don’t have to own it
If you need, let’s say, a tool for a once-off task such as a high-pressure cleaner, consider borrowing from a friend instead of buying it. Yes, yes, I can see myself high-pressure cleaning the hell out of everything if I had one of those too, but do I really need to own it?
19. Warren Buffet knows what he is talking about
This tip is one that everyone should live by, not just us budgeting gurus. “Don’t save what is left after spending; spend what is left after saving” – Warren Buffet
20. Keep it simple
It is so easy to become overwhelmed with the financial choices and goals you have. Remember to always keep it simple. The main thing is to save more and spend less as this is the only way you will be able to accumulate more wealth. Yes, you have to get rid of your debt, but not at the expense of saving. It is at those times when things are the hardest that we have to force ourselves to do better than we did before.
There you have it, BDC’s first Top 20 Budgeting tips. Remember, no matter how much money you make, you need a budget as it is a plan for your future.
Still not able to make ends meet after budgeting?
The sad reality is that even when we try to do everything right, we still can’t make our budgets work. This is when you have to do the right thing by you and your family and get the help you need. If you find yourself in this position, complete the Call Back form below and one of our dedicated Debt Counsellors will call you back. You are not alone. Let BDC walk the road to financial freedom with you.