How to Make a Budget and Stick With It

Making a budget is one of the most important things that can be done to live within your means. It requires discipline and organization, but once you get used to the process of figuring out exactly how the money is distributed each month, chances are good that you will begin to see a positive difference in the bottom line. Here are some tips on how to make and keep to a budget.

Be Realistic

Don’t base your budget on an ideal that will be hard to achieve. Designate the set amount you pay for bills first, and then figure out a reasonable amount you can expect to spend on such things as food, gas and savings. Don’t forget to set a little aside for entertainment. By the same token, if your income is flexible, only count on an amount you know you can make. Anything you earn above that can go toward savings or entertainment.
 

Stick With Cash for Daily Expenses

One method that works for a lot of people is divvying money up into envelopes. You can take money out of the bank at the beginning of every week or month and put the designated amount of cash in each envelope. Instead of using a credit card, use only the money in these envelopes for these expenses. When you run out, you should stop spending money on that, unless it’s an emergency situation. Using cash ensures that you see how the money is going down and are more intentional about your purchases.
 

Call a Family Meeting

Unless you live alone, a budget is something that involves multiple people. Whoever you live with needs to be involved in the decision-making process. It’s important to come to an agreement about how money should be spent. If you have kids, they may not be involved in the big expenses, but it is helpful for them to understand the value of money and the work that must go into acquiring it. You can help them develop good habits by asking them to budget their own money by putting a portion of everything they earn or receive into a savings account.
 

Get Some Help

If you don’t know what you’re doing, don’t fret. There are many resources you can explore, and you can also seek the advice of a credit counselor from Keith G Collins Ltd. This person will be well equipped to help you figure out how to make a budget work with your specific circumstances.
 
Living on a budget might seem a little intimidating at first, but it’s something that everyone should attempt, especially those whose expenses are fairly high and whose income is low. With a little practice, you will find this a very useful tool.