If there ever was a time to budget, that time is now. (Oh, you're saying, "What's a budget?") A budget is simply a plan. It's a plan on how to spend your money and keep from going broke. (Now you're saying, "Why didn't you tell me this earlier?")
Everybody should have a budget. Families should have a budget. Businesses should have a budget. Churches should have a budget. Governments should have a budget. (When it comes to that fourth entity, we can only dream.)
But it goes beyond just having a budget. (Right?) One needs to stick to his budget for a budget to work. It's the "sticking" part where many of us get in trouble.
With this in mind, I've come up with the following quick list. May it add adhesive to your approach to financing (Get it? "Adhesive." Well I tried)...
5 Tips that Will Help You "Stick" to Your Budget:
Tip #1: Generate a list of monthly expenses.
(You have to have a budget to "stick" to one!) At the end of the list write down all your sources of income. Subtract expenses from income. You now have a good idea of how you've been operating to this point. (Negative or positive?)
Tip #2: Get rid of unnecessary expenses (especially if you've been operating negatively).
Do you really need to eat out for lunch every day? Do you really need Cable TV? You'd be surprised at how much you can save for other necessities when you cut out things you really won't miss.
Tip #3: Before each purchase, ask, "Is it in the budget?"
If the answer is "no," don't buy it. "Stick" to your plan.
Tip #4: Include a category for emergencies in your budget.
By adding a small amount to it each month you will find yourself prepared for unforeseen circumstances. (They happen to us all.)
Tip #5: Re-evaluate your budget every six months.
Make appropriate adjustments as needed (up or down).
Comments(0)