If you’ve always wanted to start a budget but never knew how to get motivated, we’re sharing tons of tips today that will get you excited and energized about getting financially fit.
Now, the first thing you have to realize is that budgets are fun. I know you probably don’t believe me, but it’s true! Budgets have gotten a bad name over the past few decades, and many associate them with being boring or being too stringent. That, of course, couldn’t be further from the truth! A budget is truly what you make of it.
In my humble opinion, budgets are great because they allow you to have fun stress free! When you have a budget, you know exactly what you can and can’t spend. You know how far you money will go. You’ll have the confidence to turn down things you can’t afford, and you’ll feel great knowing you finally have control over your financial future.
Here’s how to get started:
Know Your Take Home Income
A lot of people know how much money they make every year, but they aren’t so sure of their take home income. Your take home income is what you actually have to live on after taxes and other things have been taken out of your paycheck. You definitely want to account for retirement and general savings as well. After all of that has been taken into consideration, you should have “the number.” The number is what you have to work with for your monthly budget.
Divide the Number
Once you know the number, then you can divide it to take care of your bills and other extras. It’s definitely okay to have an entertainment budget. Heck, you can even have a party section of your budget or a going out section of your budget. Whatever you like to do, go ahead and put it in there. The trick is that you have to have enough money to go around! You should ensure you have enough to save and pay your bills before you add any money to your entertainment budget. The more organized you are, the easier it is to stay on track.
Decide How To Manage It
There are so many ways to mange your budget. You can write it down with a pen on paper. You can keep it in an excel spreadsheet. You can use online software to keep pictures of your receipts and records. However you decide to do it, just make sure that it’s sustainable. If you think you might lose a piece of paper, keep your budget in your phone. If you aren’t the best with technology, then keep you budget on a piece of paper. The whole point is to make the process painless so that eventually staying organized and on track with your finances becomes fun.
Have you always wanted to start a budget? What’s holding you back? Hopefully this post gives you the motivation to start!