How To Create A Budget And Stick To It. Learn How To Create Your Own Budget As Well As How To Stick To It. Check This Post Now.
Are you struggling with sticking to your budget? Does it look like it is impossible? Well, it isn’t. Want to find out how? then, you are in the right platform for this information. In this article, i am going to show you how to make your own budget as well as how to stick to it. Let’s get started!
What Is A Budget?
A budget is a financial statement that tells how much a people wants to spend for a specific period of time.
The Problem!
The actual problem people have most times is sticking to the budget they have created and not creating it itself. Not sticking to your budget can make you financially drained if you are not careful.
How Can I Create A Budget?
- Calculate Your Total Income
- Make A List Of All The Things You Need For A Period Of Time
- Highlight The Most Important Ones
- Allocate An Amount To Each Of These Things
- Create Room For Miscellaneous
- Make Sure Your Budget Goals Are Realistic
How To Create A Budget
1. Calculate Your Total Income
When creating a budget, it is important to note that a budget should be created from your income. This means that you cannot spend more than what your earn or more than what you want to spend. So first, you would need to calculate your income. If you are trying to make a monthly budget, then you would need to calculate how much you make on monthly basis.
2. Make A List Of All The Things You Need For A Period Of Time
Next, you would need to make a list of all the things you would be needing. No matter how irrelevant or little you think they are, if you want to make a good budget, you would need to still put them in there. Do not restrict yourself, just make that list.
It is important that you write down the list and not just make a list in your head for proper accountability.
3. Highlight The Most Important Ones
We have learnt that human wants are unlimited while the resources used to satisfy them are quite limited. After making your list, you would notice that they are so much that your income may not be able to cater for them all or even if it does, you won’t have much spare cash for savings or emergencies. For this reason, you need to highlight the most important ones that you probably cannot do without. Also, if you choose to satisfy all your needs, you do not then need a budget because having a budget is a way to discipline your spendings.
4. Allocate An Amount To Each Of These Things
You would also need to allocate an amount to each of these things you have written down so that you have an idea of what exactly you would be spending at the end of the day and so you do not do beyond it.
5. Create Room For Miscellaneous
I cannot overemphasize the need for miscellaneous on a budget. Creating a budget without having miscellaneous on it can actually make you go beyond your budget most times. So, miscellaneous covers for both emergency cash as well as things you probably did not remember you need.
With this, you almost certain that you do not have to touch your savings.
6. Make Sure Your Budget Goals Are Realistic
Again, do not forget that your budget goals have to be ones that are realistic. For instance, you know you spend about NGN5,000 on data monthly, having NGN2,000 allocated to data on your budget screams unrealistic! Having unrealistic goals would only make you go beyond your budget and this can make you disorganized financially.
How Do I Stick To A Budget?
- Track Your Spending
- Leave Your Debit Cards At Home
- Place A Monthly Or Daily Limit On Your Bank Account
- Plan Ahead For Your Events
- Plan Your Meals
- Do Not Entertain Big Spendings
- Avoid Going Out Unplanned
How To Stick To A Budget
1. Track Your Spending
A good way to stick to a budget is by track your spending. This would help you know when you are doing too much and going beyond your budget. You can do this by taking record of everything you buy.
2. Leave Your Debit Cards At Home
Another great way to stick to a budget is leaving your debit cards at home. Most people find it difficult being disciplined with their spendings when they have their debit cards with them. At least, you may see things you like without being able to buy them when your debit cards are at home.
3. Place A Monthly Or Daily Limit On Your Bank Account
Placing a daily or monthly limit or restriction on your account can also help you stick to a budget. Different bank accounts have this feature. You can take advantage of it.
4. Plan Ahead For Your Events
I always tell people that planning your events ahead helps you get away from unnecessary spendings. If you have an event, you can add it to your budget so that you do not spend beyond your budget.
5. Plan Your Meals
A lot of people do not know that meals are one of the things that make us spend more than we should. Hence, to avoid spending more than you should, your meals should be planned.
6. Do Not Entertain Big Spendings
Bug spendings can ruin your budget if care is not taken. Make sure you look out for things that make you spend so much.
7. Avoid Going Out Unplanned
Going out unplanned with friends and family can ruin your budget if you are not careful. Therefore, it is advisable that you do not make this a habit. If you want to stick to a budget, make your outings planned.
Conclusion
Overall, making a budget is a good way to develop self discipline and achieve financial freedom.
Frequently Asked Questions
1. Can I Make A Budget On My Own?
Yes, budgets are best created personally.
2. Why Can’t I Stick To Make Budget?
Lack of self control
3. Why Do I Struggle Financially?
This can be caused because you do not stick to a budget.
4. What Is the Best Budget Rule?
50, 30, 20
5. What Makes A Strong Budget?
Your Budget should be realistic to be considered strong.
