Budgeting is normally considered to be quite a difficult, slow, and restrictive process. For this reason, budgeting can be difficult for many. However, if we think of budget planning as a way to spend money with purpose, it could make this process much easier to understand.
A budget will help you to achieve your financial goals you’ve been working towards. It will give you a greater understanding of how long it will take to reach these goals, and where your money is going.
Getting used to the budgeting process can take a couple of months. However, once you get the hang of it, you will see the worth in budgeting, and your goals won’t seem so unreachable!
Here are some budgeting tips. And remember Keylend is here to help you to find the best way to achieve your goals.
Fixed Expenses:
Making a list of all the expenses you expect to have within a month could help you prioritize your basic needs and which of these expenses can be eliminated if you find some of these are unused, cancel them. For those that are fixed (insurance, mortgage, etc.), see if you are paying a reasonable amount.
This list could include
- Rent or Mortgage Repayments
- Car Loan Repayments
- Insurances
- Groceries
- Subscriptions (Netflix/Stan/Magazines)
- Student Loans
- Car expenses
- Phone Bill + Utilities
Determine Fixed or Discretionary Expenses
Are those expenses that will change every month and are within your control. Such as:
- Food – Eating out
- Entertainment
- Petrol
- Smoking
- Alcohol
Monthly Fixed savings Goal
If your intention is to save money, nominate an amount of savings to be part of your fixed monthly expenses.
Budget for Fun.
A Budget that is too restrictive can make you find this process an unhappy way to live. For this reason, it is necessary to include in your expenses a budget to carry out those activities that bring you joy such as going out to dinner or a vacation.
By including these activities in your budget, you will feel less guilty about spending your money on the things that make you happy.
Set Financial Goals
If you want to stick to a budget, you need to establish a set of short and long-term goals. These goals need to be tangible and will help you stay motivated.
A budget with clear goals should be revisited once every few months to alter if necessary and keep you accountable.
Every Month is Different
The months are different, and just like we have different activities each month, our expenses are also different each month.
Some months are more expensive than others, due to Birthdays, Christmas, or school expenses, etc. For example, the months where we will take the holidays, or Christmas will impact your spending. Budgeting according to the month and the activities related to it, will mean no additional expenses will surprise you.
Do the budget Together
If you are married or even de-facto, share the budgeting process with your partner. The budget should be a mutual purpose as well as the goals or projects for which you are saving. Mutually motivating each other with a shared goal will help you stick to your budget!
Review your Budget Regularly
It is important to review your budget goals on a semi-regular basis. If you are having difficulty covering expenses or completing your savings goals, it may be necessary to readjust these goals to align with your current situation.
Be Kind to Yourself
If you have an expensive weekend or a bad month don’t beat yourself up about it, you are allowed to have fun! Just get back on track as quickly as you can
