<\/p>\n
Another great thing is that you will be able to track and limit your expenses, so you can watch your savings tick on up. As an added bonus, as you make your monthly budget it will get easier to do, like a workout for your brain!<\/p>\n
The following are tips you can use when making a budget you want to stick to for 2020. You don\u2019t have to follow every piece of advice here. Even just picking a handful of tips you like can help you live a more fulfilling financial lifestyle.<\/p>\n
It can be overwhelming to get your whole financial life in order. If it helps, try to section off everything you need into smaller digestible parts.<\/p>\n
Before you start a budget, there are some things you should have readily available to look at.<\/p>\n
For your expenses, you need to know your monthly bills, rent, subscription services, and any debt payments you have to make.<\/p>\n
To get your net income, add the total of your income together. Then, add up the total of your expenses. Subtract those from each other.<\/p>\n
This is whatever money you have leftover that can go toward the final section of your budget.<\/p>\n
Your savings goals can be whatever you want them to be. Some suggestions I have are:<\/p>\n
This doesn\u2019t have to be a work of art or a literary masterpiece. Even using something like an excel sheet can help you make a budget without getting distracted.<\/p>\n
Sometimes people forget to add in expenses that don\u2019t occur every month. This can end up leaving you feeling surprised when you suddenly have a payment you didn\u2019t expect.<\/p>\n
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Join Point Club<\/a><\/p>\n<\/div>\n Let\u2019s say an unexpected cost occurs that you didn\u2019t plan for. If you know that it\u2019s going to happen again in a few months or the next year, leave a note on your phone for yourself.<\/p>\n Then, at the end of the month go through your notes and make sure you adjust your budget for whatever you need. This will save you a lot of pain in the long run.<\/p>\n Before every season starts, sit down and think about what you know you\u2019ll need due to the weather changes. Winter clothes? House adjustments? Auto care before the cold hits? Plan a time in your budget where you prepare for these changes.<\/p>\n Some people like printable budgets. Others like excel spreadsheets. Some don\u2019t want to work on a computer and prefer an old fashioned notebook. Many young people prefer doing it all on their phones!<\/p>\n Test the waters and figure out how you want to approach budgeting.<\/p>\n If you are interested in printable budgets, check out a Pinterest board like this one<\/a>. Just remember, if you are new to budgeting you\u2019ll want to start off with something simple.<\/p>\n When adding stuff to your list, you want to make sure you have all the info you need for each item. I suggest you start with a format like this for expenses:<\/p>\n (Item name<\/strong>), (due date<\/strong>) \u2014 (amount cost<\/strong>)<\/p>\n This tells you everything you need to know and helps you remember due dates. No more late fees!<\/p>\n Set your fixed bills to be on auto-pay so that you don\u2019t get any late fees.<\/p>\n When you are deciding which bills to pay, consider when they are due and how important they are.<\/p>\n For instance, you\u2019re going to want to pay for electricity bills<\/a> before any subscription services. Rent should come before any of your extras too.<\/p>\n Let\u2019s say you can\u2019t afford a bill. It\u2019s okay. It happens to everyone. Just don\u2019t ignore it. Call the company you owe too and make an arrangement for when you can pay for it.<\/p>\n If you show you are willing to pay when you can, the company will be more likely to work with you and less likely to turn your debt over to a collection agency.<\/p>\n File your receipts. Keep all your paperwork on medical bills, charitable donations, and so on. Keep track of what you paid for your bills every month.<\/p>\n You want to make sure you have an in-depth record of exactly how your money is being spent so when tax season comes, you\u2019ll be ready.<\/p>\n Doing adult things like living on a budget is hard. It can often feel as if there\u2019s no allowance for relaxation.<\/p>\n It\u2019s important to remember that you can still have parties, spend time with your family, and basically do anything you did before. It\u2019s just a matter of planning and finding ways to save while you do all of that.<\/p>\n It\u2019s also might help to rank your upcoming events in order of how much you want to do them, so you can cut back as needed.<\/p>\n It\u2019s important to keep your goals at the front of your mind. There will always be times when you see something that you want, but that you don\u2019t really need.<\/p>\n This even extends to things that are on sale, but that you won\u2019t end up using. Saving money is good, but unnecessary purchases can be a drain on the wallet.<\/p>\n This applies to people budgeting with someone. Budgeting shouldn\u2019t just be for one person in the family. In order for it to be successful, you all have to be on the same page.<\/p>\n Every week, sit down together and check how well you did. See if there are places the budget needs to be changed. Trust me, it actually feels a lot better when you are working together as a team anyway.<\/p>\n The average cost of raising a child estimates to roughly $233,610, according to the U.S. Department of Agriculture<\/a>. If you are planning on kids, you might want to take a careful look at that number.<\/p>\n Remember that budgeting doesn\u2019t just stop you from spending. It can help you save money too, especially for long-term future goals. If you want to prevent yourself from spending two hundred thousand dollars, you\u2019re going to need a budget and plan financially for a child.<\/p>\n This is especially important when you are evaluating your monthly bills. Do you need a subscription to Netflix, Hulu, AND Shutter? Do you even have time to watch all of those movies in the first place?<\/p>\n Cut down on expenses<\/a> you don\u2019t need. You don\u2019t need to eat out three times a week. Your life doesn\u2019t depend on having a dozen subscription services.<\/p>\n Before you freak out, this doesn\u2019t mean eliminate all <\/em>the things you love. Just narrow down the list to the things you really love and actually use.<\/p>\n It goes without saying that not sticking to your budget isn\u2019t the way to go. Making a budget and then not following it is like buying a cake mix and not looking at the recipe: you\u2019re going to end up with a mess on your hands.<\/p>\n It\u2019s important to have some money set aside for emergencies. Getting caught in the rain with a sudden medical emergency, automotive damage, or an unexpected bill can be a gut-sinking feeling.<\/p>\n In just 52 weeks, you can save up $4100 to set aside for such an event. This extreme \u2018challenge\u2019 can help you get the distance ahead that you need to prepare for the future.<\/p>\n To learn more, click here<\/a>.<\/p>\n This challenge is a simple and easy way to build up your savings with a twist: you start by setting aside $10 from your first paycheck and increase it from there.<\/p>\n Over the course of four weeks, you\u2019ll ramp up your savings until you\u2019re reserving $110 every paycheck, then hold there.<\/p>\n Up to the task? Find out more by clicking here<\/a>.<\/p>\n One of the most effective means of making a budget is zero-based budgeting<\/a>. The goal of it is to make your income exactly equal to your expenses, so the difference between the two is zero.<\/p>\n Basically, it means that every dollar that comes in is accounted for and goes somewhere, so it can\u2019t be wasted. This counts money put into savings, investments, et cetera. This way you never end up with money floating around in a drawer or a wallet, waiting to be spent on things you don\u2019t need.<\/p>\n Since we live in the modern, digital age, it\u2019s helpful to know that there are many apps out there that can help with the sometimes difficult task of making a budget.<\/p>\n They can help you keep track of your bills\u2019 due dates, track your expenses, and create budget plans based on your financial situation. Many even allow you to change the currency used if you plan on going outside the United States.<\/p>\n If you want to learn more about budgeting apps, check out our article here<\/a>.<\/p>\n A sound monthly budget is all well and good, but if all it does is get you to the next month, what good is it? That\u2019s where the five-year plan comes in.<\/p>\n A five-year plan allows you to figure out where you want to be once that half-decade is finished.<\/p>\n It can include paying off debts, saving for retirement, switching jobs, or anything else you could feasibly do.<\/p>\n Click here<\/a> to read more about the plan.<\/p>\n Lately, people have been skipping the idea of having an emergency fund, thinking they can just use a credit card when the time comes.<\/p>\n Here\u2019s why that\u2019s a bad idea\u2026<\/p>\n What if you get into a situation where no one in your family can work? Just one bad car accident can keep you from working due to bad injuries.<\/p>\n If you put all the medical and auto costs on your credit card, you aren\u2019t going to have any income to pay off the monthly payments. Compound interest will make the debt even worse as time goes on.<\/p>\n It\u2019s much better to save for emergencies instead. Don\u2019t give yourself debt when you\u2019re already going to be struggling!<\/p>\n Unexpected problems can occur. Emergencies, unfortunately, just happen. A situation may come up where you need money as soon as possible. You want to make sure you have a fund put away that you only touch when you absolutely need it.<\/p>\n Think about it this way, an emergency fund is basically an insurance policy you are putting together for yourself. You want to be prepared for whatever may happen so that, if the time ever comes, you won\u2019t need to be stressed about money on top of everything else.<\/p>\n When you live on a budget, every penny counts. To make your life a little easier, financially, spend 10-15 minutes a day using various apps and websites to earn a little extra cash.<\/p>\n Here are a few posts with big lists of money making sites and apps to get you started.<\/p>\n They are all free to use and can easily earn you a little extra cash. This also makes saving money on a budget<\/a> much easier and realistic, especially for those of us living on a low income.<\/p>\n Changing your financial habits isn\u2019t going to be easy, but you can do it if you make a good plan. Budgeting in 2020 is a fantastic New Year resolution and I strongly encourage you to keep at it!<\/p>\n If you have any tips that you\u2019d like to share, feel free too in the comments below. We and our readers would love to hear them! Also, consider checking out many of our other money-saving articles<\/a> to give you more inspiration for financial changes.<\/p>\n<\/div>\n\n\n
5. Leave yourself notes<\/span><\/h3>\n
6. Seasonal adjustments<\/span><\/h3>\n
7. Figure out the best format for you<\/span><\/h3>\n
8. Printables<\/span><\/h3>\n
9. Formatting a budget<\/span><\/h3>\n
10. Auto-pay<\/span><\/h3>\n
11. Order of importance<\/span><\/h3>\n
12. Don\u2019t ignore what you can\u2019t pay<\/span><\/h3>\n
13. Create a filing system<\/span><\/h3>\n
14. Remember to have fun!<\/span><\/h3>\n
15. Eyes on the prize<\/span><\/h3>\n
16. Check-in weekly with your partner<\/span><\/h3>\n
17. Budget if you plan on having kids<\/span><\/h3>\n
18. Need vs Don\u2019t Need<\/span><\/h3>\n
19. Stick to it<\/span><\/h3>\n
20. The 52-week money saving challenge<\/span><\/h3>\n
21. The 26 Paycheck Savings Challenge<\/span><\/h3>\n
22. Zero Based Budgeting<\/span><\/h3>\n
23. Budgeting Apps<\/span><\/h3>\n
24. 5 Year Plan<\/span><\/h3>\n
25. Credit cards aren\u2019t emergency funds<\/span><\/h3>\n
26. Be prepared for anything<\/span><\/h3>\n
27. Make some extra cash<\/span><\/h3>\n
Final Thoughts<\/span><\/h2>\n