6 weeks into the new year and one of the first things being forgotten is the budget you drew up when the year started. In the beginning, it is no fun, and I could think of a million other things to do instead of working on my budget and checking in weekly, but I quickly learned that the absolute quickest way to wealth is through a well-planned budget.
In our previous blog post, “Budget your way to wealth in 2021 https://prospearatree.wordpress.com/2021/01/20/budget-your-way-to-wealth-in-2021/” we shared seven steps to guide you when you start a budget. Checking in on a regular basis was step 7 and a few extra tips on this step follows below:
- Set a weekly reminder to do your budget and stick to it. Add any expenses you made to your budget and ensure you covered all purchases, even the tip to the car guard.
Tip: Doing it with your partner helps as it gives an idea of how much you are earning and spending together.
- Estimate how much you will still be spending for the month and ensure you do not overspend. In the beginning you may not always be correct in your estimations, but it gets better the longer you do it.
- When things break. Let us be honest here, things break, some needs immediate fixing some do not- but if this happens you are more than often forced to use money you do not have. To prevent this from happening, save 3-6 months of savings for emergency’s situations. This way you stay clear from using money you do not have, and your stress will be less.
Tip: When you need something big, sleep it over before you buy it, do research to ensure you need or want it and that it is good quality. After all, there is no point buying something you will not use, nor if it breaks down 3 months in.
- Review and change your budget until you feel comfortable with the system you are using. It took me six months to finalise my budget layout, you figure it out as you use it.
- Keeping track of your money can be scary, but it is only scary if you let money control you instead of you controlling your money- so if you notice that there is not enough left for the rest of the month, see where you can trim to avoid using money you do not have. This is just one of the benefits of keeping track of your money weekly. Regularly checking in with your budget shows you what is still left, and if not enough you can plan accordingly.
Tip: You can put a small amount of money aside for unexpected expenses, such as a school trip for your youngest, a baby shower, etc. This way when something comes up you have the bit extra to use. Label this as miscellaneous in your budget.
- Set your budget to zero every month, and know that not every month will be the exact same, and that is okay.
Understand and know your why, and the processing of drawing up a budget and sticking to it will be so much easier. Getting a hang of your budget takes time, but over time it will grow into your most powerful financial tool. Once you are familiar and comfortable with your money, you can revert to a monthly check-in.
Prospearatree 