STAYING ON BUDGET!!

Setting a budget is the first step towards good management of money, but what is more crucial is being prepared to adhere to it. If you are struggling to remain on budget and still find yourself financially short at the end of every month, here are five tips for you to improve.

• Create a realistic estimate.

When you're creating a budget, make sure it's something you can do, not just something that looks good on paper. It's difficult to live on a budget that's too rigid. You need to learn how to be flexible. Remember that some of the expenses appear surprisingly, and your budget should have enough room to wobble when they happen.

In the same way, allocate the amount of discretionary expenditure so that you don't feel deprived of it. It doesn't have to be a huge amount of money. It could be a couple of dollars just to make you enjoy a treat every once in a while.

If you've swerved a little from your budget in a month, don't be too hard on yourself. In the next payroll season, just commit to be better and see if you can make changes to make your budget more relaxed following.

• Shop along with a list.

Shopping with a list avoids impulse spending and hitting the target. So if you're buying food, shopping for clothes or going to the hardware store, carry with you a list. This practice will not only save you bucks but also save you time.

• Keep track of your day to day expenses.

Any time you buy something for a specific service, or pay out cash, make it your habit to log out your expenses. This will help you to assess your spending patterns and recognise which areas need to be changed. You lower your risk of overspending when you do this, and increasing the ability to save more than you expected.

Tracking your expenses can be accomplished regularly but if you check it every day, it's easier to keep on top of your records. Moreover, keeping receipts or using one debit card for all of your expenses will make tabling and tracking easier.

• Use cash.

Even though it seems more convenient to shop with a debit card, shopping with cash is a smart decision if you want to be more mindful of how you spend. When you purchase using cards, you don't see money exchange physically. This leads to a greater propensity to go overboard with your purchases.

• Make it an effort of a team

Staying on budget is better if you are accountable to others and are aware of your spending. Involve your partner and family, and put together a schedule. You should sit down at the end of each week and determine your expenses. Here are some important questions you should be addressing:

Did you overspend?

Were you able to save?

Was it more than the amount you expected?

What adjustments can you make to help you achieve your financial goals faster?

Are there any new expenses that we should include in our regular budget? What areas can we slash?

Staying On Budget Builds your Business Faster!!