Budgeting does not have to be as hard as we all make it out to be. Some don’t budget because they think they’re setting themselves up to fail or that they take too much time and attention to detail or that they aren’t ready to live according to the budget they need. But budgeting is important, especially if you have debt or are saving toward something big. Here are a few tips to simplify the budgeting process:
1. Start with a clear and reasonable goal. Decide what you really want and “figure out exactly how much you’ll need to save each week or month to get there and make that your goal.”
2. Simplify the budget. Rather than allocating your money into 30 different categories, try limiting it to a few basics like household, debt and savings.
3. Try out a budget site that tracks your spending automatically once you link it to your accounts. *This is definitely an objective way to allocate where your spending is.
4. If budgeting for the month is too difficult (maybe you come up short at the end), try making a budget for 2-weeks instead.
5. Be realistic and try not to lie to yourself. Don’t try to cut something out entirely especially if you’re not likely to stick to it, like the occasional night out to dinner. Instead budget for it and use restaurant coupons, so you don’t go over the amount you’ve allocated.
6. Set aside some reward money to congratulate yourself when you stick to your budget for a few months in a row. Know that sticking to a budget can be really difficult, but it is worth it when you can treat yourself periodically.
To read further, visit Mint.com.