Why set a monthly budget?
Do you find yourself struggling to make ends meet? Most people do when they don’t have a plan. Some are able to keep track; a spreadsheet of bills, due dates and amounts. Still struggling…. worrying you will have to resort to credit cards for day-to-day purchases because money slips through your fingers too fast.
I’ve been there. I used to spend way more than I should. Not on purpose of course, I just didn’t have a plan. A budget is so important each month. Your needs change each month and so should your budget.
The hardest part about establishing a budget is sitting down and analyzing your bills and expenses. It’s overwhelming and often eye-opening and terrifying. Where is my money going? Why can’t I save?
If you are feeling this fear each month it’s time. Time to change your spending and reflect on where your money is going. Stay in control, resist temptation to buy unnecessary items. Nowadays we look for immediate gratification, we see a deal and we just impulsively buy. You bring the item home and feel buyers remorse, check your bank account and realize it wasn’t a good buy or it wasn’t the right time.
You can change!
You can go from an unorganized overspender to a simplified saver by just changing your mindset. Be aware of each and every purchase. Ask yourself will this item bring joy to my life? Or regret, shame, fear? Is it worth it….
We’ve been following Dave Ramsey this year and it’s been a huge motivation for us to get our finances in order. The 50/30/20 Budget is a good rule to follow, making sure your money is going where it should.
Establish your budget before the month begins.
Keep track of all purchases for the month.
If you find something you want, write it down. If you still want that item in 30 days add it in the budget.
Utilize every dollar you earn. Pay off debt, start your emergency fund, bulk up your savings or save for a vacation!
Use cash envelopes or sub savings accounts to organize your budgeted items. I love my cash organizing wallet!
I challenge you to sit down and establish a budget for May. Calculate everything, to the last cent, before you even start spending.
Sign up for a free budgeting tool, we love EveryDollar.com! It offers a free monthly budget utilizing every dollar you bring in.
Does your spending fall in the 50/30/20 Budget guidelines?
Are there areas you can cut back?
Be on the lookout for the rest of my series, Simplify Your Budget!