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For a long time, I found it challenging to adhere to a budget. I often experimented with different methods, but quickly abandoned them.
However, everything changed after a talk with a friend, and now I am saving more than ever. She showed me how to create a budget that realistically reflects my lifestyle and helps me reach my financial goals.
Most of my life, I struggled with the concept of maintaining a budget. Initially, I would sketch out my monthly expenditures, but these plans would quickly be forgotten.
This year, one of my main objectives was to seriously focus on budgeting. I looked into numerous strategies like using a budget worksheet, allocating cash in envelopes, and paying only in cash.
Despite this, I remained skeptical about these methods until I discussed my challenges with a friend—a mother of three who adeptly manages her budget. She coached me on her techniques, and equipped me with five key strategies that have since allowed me to stay within my budget each month and save an additional $1,000.
Here are the strategies that worked for me, based on my friend’s invaluable advice:
1. **Be Realistic**: Previously, I often planned to spend significantly less than what I actually did, which was unrealistic.
My friend advised focusing on one goal at a time and starting with a budget that matches current spending, making it more manageable and organized. Once habituated, I could tweak my spending in specific areas to save more.
2. **Update Regularly**: Creating a budget isn’t just time-consuming; it needs regular adjustments and spending reviews to truly reflect personal needs.
I began making daily updates to my budget, recording expenses each night on an Excel spreadsheet. This routine helped me stay informed about my financial status without any surprises.
3. **Flexibility to Adjust Funds**: Contrary to my original belief that budgeting required strict adherence, my friend suggested flexibility. Evaluating weekly expenses allowed for adjustments between budget categories if necessary, fostering more controlled and mindful spending.
4. **Plan for Unexpected Expenses**: Previously, unforeseen costs would derail my budgeting efforts. Now, I allocate a portion of my budget for emergencies, which reduces stress and keeps me on track even when unexpected expenses arise.
5. **Learn to Say No**: With a clear budget, I know ahead of time what expenditures can be accommodated, allowing me to decline non-essential spending. This not only prevents financial strain but also enhances savings throughout the year.
In addition to these tips, utilizing the best budgeting apps can greatly improve financial management and monthly spending tracking. Recommended apps include Rocket Money and Simplifi by Quicken.
This article was initially published in September 2021.
Read the original article on Business Insider.