Taking control of your money and budgeting it wisely is a big part of adult life. It can be hard work, but once you’ve turned it into a habit it will get easier.
The status quo
The first step to creating a budget that works is understanding your current financial situation. Figure out what comes in and what goes out.
The safest option here is to over-estimate your expenses by adding small costs like birthday gifts, Friday drinks and your weekly coffee. Once you’ve got all expenses together and know what you’re actually spending your money on, you’re one step closer to having a fully functioning budget.
This first step will help you understand where you’re at financially, before taking your budgeting any further.
Sometimes less is more
This may quite possibly be the oldest trick in the book, but if you give yourself less to work with you will end up spending less.
So once you’ve figured out how much you’re spending, the next step is to think about any costs you could be cutting. Or maybe you’re spending your money on items or services that also exist in a more affordable way.
However, we don’t want you live off water and dry bread. It is more about finding the perfect middle ground between enjoying life and making sure your cushion is big enough to get through a rainy day.
Be your own finance minister
The one thing that might help you more than anything else, is thinking of your finances as a proper job that you’re accountable for. So make sure you get all the help you possibly can.
The internet itself is a gold mine when it comes to looking for advice and some of your friends and family may have some great ideas or tips on how they’re saving. Ask them and find out what they’re doing, then pick and choose what works best for you.
The most important part of putting together a budget is making sure it will work for you in the long run. So make sure you don’t limit yourself too much or fool yourself into thinking you don’t actually buy coffee out.
Be honest and strategic and you’ll start saving in no time.