Do you find that no matter your pay schedule or salary, you’re always down to a ramen noodle budget by the time payday rolls around? If so, chances are, you don’t have a budget – or your budget isn’t working for you. Want to be better at budgeting? These tips can help you keep your spending in check!
Start by Setting Goals
It’s hard to save money if you don’t have a savings goal. So the first step is to determine what you are budgeting for. A vacation? A new car? A house? Think about what you want, then figure out how much it will cost you. Next, decide on a timeframe for your goal achievement and how much you need to save from each paycheck to make it happen. The key is to write down your goals and track your progress. Nothing helps you save money like the promise of a reward!
Track Your Spending
To get an accurate picture of your financial situation, you need to understand where your money comes from – and where it is going. An easy way to do this is via a budget tracking app like PocketGuard, Mint, or YNAB, though you can also track expenses yourself in a spreadsheet. You can use any budgeting method you want. The key is to keep a close eye on your bills and spending to set a realistic budget.
Explore Your Subscriptions
Subscriptions can quickly eat up a big chunk of your spendable income. So as you are tracking your spending, you may want to reconsider your Ipsy boxes, streaming services, and gym memberships. If the value they bring isn’t worth the impact on your budget, then it’s time to let go.
Moreover, did you know that approximately 35% of Americans have been enrolled in an automatic payment plan without even realizing it? This is just one reason it’s important to look at your bank statements and identify recurring charges. Not only should you look for forgotten-about or unused subscriptions, but you should also pay attention to the subscriptions you do know about! It’s not uncommon for billing plans to change or prices to increase. When a bill goes up, you can try negotiating with your provider to bring it back down.
What are some ways that you keep your budget in check? Share your tips with us in the comments below!