We all want to be good at budgets. Reaching all of our financial goals is something we all strive for. But not everyone can do it. There are so many obstacles, both physical and mental, to overcome. We are constantly tripping over ourselves, missing our goals and fitting in just one more shopping spree.Â
It’s a materialistic world and we’re a part of it. The new shoes, a new purse or that one new restaurant everyone is talking about. We want it all and still have enough to save for the future. Setting up priorities and holding yourself accountable are things you need to work on before even starting a budget.
Living a minimalist life sounds like no fun to me. It’s a lifestyle choice, but definitely not one I’d choose. I’m sure many would agree. The good news is you don’t need to live that type of life to truly become financially free and master that budget.
Sometimes all it takes is a little self-control and patience. Learn to stick to the budget and give yourself a break if you make a small mistake or two. I’m sure you know all about how to make a budget, but let’s talk about how to become an all-star at budgeting.
Save For Short Term
Credit card debt is a monster that is easy to accumulate, but so much harder to get rid of. Some may want new things, while others are relying on it to get by month to month. But no matter the reason, consumer debt is a problem. It causes us to fall into dark times, often causing us to question our financial future.
That’s why saving for the short term when you can is so vital to your success. That emergency fund will be the deciding factor when torn between ignoring a serious emergency situation or relying on that credit card. It helps keep you on your track and within your budget.
It’s recommended to save between 3 to 6 months worth of living expenses. That should be enough to cover any emergencies or those unknown factors that always seem to pop up when you expect it least.
Set Goals
Budgeting all-stars are known for setting goals. They are very clear on what they want to achieve and adjust their budget to meet those goals. When you’re living paycheck to paycheck, you’re more focused on getting to see the next month. But with finding a few dollars here and there and being patient, you can save up a little cushion to get yourself out of that stressful cycle. Whether it’s saving goals for retirement, new home down payment or paying down that nasty debt, setting goals is important to know where you’re going and how to get there.
If you want to be a true all-star, set those goals. Look at where you want to be financially in the next year, 5 years, 10 years and beyond. Be realistic with your vision and as clear and detailed as possible. Having those clear goals let’s you find a clear path to succeed.
Save For The Long Term
The main end goal of most people is retirement. Everyone wants to live comfortably after they quit the 9 to 5, but you need to determine how much you need to successfully retire. To accumulate the amount you really need, you have to save for decades.
The younger you start, the less you need to save over time. Starting at 20 vs 30 could mean the difference of having to save several hundred dollars a month to meet the same goal.
Budgeting all-stars understand the sooner you start the better. Whether that means cutting your monthly expenses or finding other ways to bring in more income to make room for that saving for retirement.
Have A System
All-Stars have a system to set themselves up for success. That means either having an app or program to track your finances, including your spending or using a budgeting technique like relying on cash envelopes each month.
Whatever method you choose, be sure to stick with it and know what you spend. Keep your finances truly transparent each month, even if you mess up. Turning your head away from financial problems only causes them to get worse.
Say No
We are constantly tempted to buy new toys, have the biggest house or the nicest car, but we need to learn to say no. Budgeting All-Stars know how to say no to opportunities that fall outside the scope of their budget.
Those temptations are merely distractions that will hinder you from reaching your goals. Every right decision you make now will benefit you in the future.
Give Yourself A Break
While it’s important to say no to things outside your budget, it’s also important to say yes once and awhile. Constantly excluding yourself from opportunities and cutting yourself from the outside world is only setting yourself up for failure.
It’s very hard to focus entirely on 1 goal, like retirement, every single moment and not lose your drive to reach it. Most people need to say to some opportunities to enjoy your life and more importantly, enjoy the journey to reaching your financial goals.
Adding in some money for free spending into your budget opens up opportunities to make some memories and appreciate present-day life, instead of only looking ahead into the future. You’ll thank me later.
Make A List To Shop
We’ve all heard the saying, “Don’t go grocery shopping hungry.” You always end up buying more than what you initially planned to spend. Budgeting All-Stars prepare a list before any shopping is done. From Christmas shopping to grocery shopping, they don’t go into a store without preparing a list of exactly what to buy beforehand.
Comparison Shop
My Mother-In-Law is famous for never buying something full price. She does all her research beforehand to find the best deal. That’s what we should all do. If you need to buy a new piece of furniture or a TV, always compare what you need among several stores to find the best price available. You’d be surprised how much you can really save.
Final Thoughts
Budgeting All-Stars are well prepared and very focused on achieving their financial goals. Everything they do is something everyone can achieve day by day. All it takes is some patience, focus and a little pixie dust.
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