How to Create a Personal Budget You can Actually Stick to

One easy way you can manage your finances is by creating a budget. Budgets are effective because they directly underline your income versus expenses so that you can establish exactly how much money you are able to spend without over-spending. You are also much more likely to set aside money for saving, which can be extremely beneficial for many reasons. Money set aside in a savings account can not only accrue interest, but can help pay off future expenses such as large purchases like cars or houses, or unexpected life accidents or emergencies. While creating a budget can be helpful, this is only true if you actually stick to the budget. Straying from what you have already planned can have negative consequences on your finances and even cause you to fall into debt.


If you have decided to create a budget, you should:

Evaluate all of your finances— Before you can actually begin creating the budget, you must first have a complete understanding of all income as well as expenses. Your expense list should be as detailed as possible and include things like groceries, bills such as electric, water, and garbage, and any possible credit card, loan, or debt payments. It’s important to remember to tailor your expense list around your income and not the other way around. Make sure your income will be able to cover all of your bills and necessities before planning a budget that includes superfluities and indulgences.

Be realistic— It’s critical to keep a realistic and achievable budget in mind. If you’re sick a lot and spend a significant amount of money on prescriptions and doctor’s visits, be sure to plan for this, even if it forces you to give up or cut back on luxuries you have grown accustomed to. Gym and club memberships, vacations, as well as eating and going out are all examples of things that can be cut back on so that the money can be put to good use elsewhere.

Keep it routine and unchanging— After finding a budget that works for you, stick to it as much as possible and try not to adjust it unless it is required due to a change in your income or expenses. This way, you are better enabled to remember your budget, won’t have to refer back to any documents or records, and will therefore be more likely to stick to what you planned.

Have incentives— While paying off financial obligations and saving your money are both important to keep in mind, rewarding yourself for sticking to your planned budget is also important. When making your monthly budget, set aside some money for fun or relaxing activities like going to the movies. This will motivate you to keep abiding by your predetermined budget and keep you satisfied. For long periods of good financial behavior, reward yourself with even bigger incentives like a road trip or vacation.

Agree and discuss the budget with your partner, or any other individuals involved— One key factor to your budget’s success is making sure everyone who has access to your finances understands the guidelines of the budget, and is able and willing to follow these guidelines. It would be counterintuitive to have one person working to maintain a budget that another person disregards. Working together to make the budget is ideal, but at the very least, be sure to talk things over and reach an understanding.

Utilize personal budget software— Formatting your own budget and keeping track of your bank accounts and expenses can be a difficult task. That is why it’s extremely convenient and easy to install a program like Quicken on your computer and let it do all the hard work for you. You will be relieved of the important chore and guaranteed an error free budget. Look for a program that can link directly to your bank account and offers a mobile app that is compatible with your device of choice.

Seek out professional help— If you still cannot seem to manage a budget and keep your spending under control, you can always seek out professional help, or even research online forums that are dedicated to helping people with budgets and their finances. You’d be surprised with all the great tips and advice you can easily find on your computer at home.

Although the task of budget making may seem daunting at first, it is extremely effective when it comes to managing your finances. After finding a budget that works for you, with a little work and effort, you will be able to stick with it in no time.

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