Creating a financial budget isn’t the hard part, the real challenge is how you execute your budget plan which can affect your financial future. So focus on your financial goals by creating the following five budgeting tips in ten minutes.
1. Budget for a budget
You know the remaining three hundred dollars left in your checking account must last you until your next pay check, so for the next eight days budget how much you need to cover meals, utilities and necessities, then you can budget your daily spending costs.
For example, If you pay $10/day in utilities, then for the next 8 days set aside $80. If you eat an average of $5/meal and eat three times per day, that’s $15/day at $120 in 8 days. And if you add up your necessities (i.e. toilet paper, toothpaste or other necessities) which averages at $50/week, then add that in and of your budget. Now set aside the total you need, $250, and the remaining $50 can be spent at your expense.
2. Understand this whole “budget thing”
Ok, here’s how it works. First, you need to identify how you’re spending money. Are you tossing it away and not noticing your actions? Stop throwing away those half full water bottles and start saving for a rainy day. Second, you need to identify how you’re spending money. Are you spending money on impulse, peer pressure or boredom? Once you determine your true spending habits you can create your budget for such expenses.
3. Track your money-decisions.
Track each expense you make today, tomorrow and in the near future. See where your spending habits are coming from and how you can commit to leaving your emotions out of everyday money decisions. Once you see a trend in these money decisions you can start to eliminate unnecessary expenses and spending habits, and in turn, helping your monthly budget.
4. Create your goals before taking any action.
Write out your goals. Make them specific yet small, measurable, and achievable. Add sensory awareness to each goal. Make them realistic and make sure that they have a time attached to it. We talk more about this in our Dreams with Deadlines key from Unlock Your Wealth Radio Keys To Riches™ Financial Wellness Series.
5. Beware of Lavish Expenses. Whether you’re expecting a promotion at work or have birthday money coming in the mail, don’t go and spend it all at once. You can’t expect this bonus to stick around forever and soon might need that extra dollar, not extra pair of jeans. So instead of spending that extra bonus money on lavish expenses outside your daily budget, treat yourself small as you will be rewarded big later down the financial road.
Now, take out a piece of paper and pen. Write down your budget for the next day, week, month and year. Write in great detail on your goals, expenses and expectations as you take into consideration your financial future.
We want to hear how you did creating a 10 minute budget. Would you like to share your experience on-air with Unlock Your Wealth Radio? Please leave your comment or questions in the space provided below and share this article with your friends and family on Facebook and Twitter. Your comments or question could be chosen as our featured Money Question Monday and a phone call by financial expert Heather Wagenhals could dial your way to be live on the Unlock Your Wealth Radio Show.
Original content courtesy of money.cnn.com.