Planning Monthly Budget – 5 Tips To Create The Best Budget
Planning monthly budget? Here are the 5 best strategies to help you create a budget that WORKS with fun and ease.
Let’s chat about planning a monthly budget.
Most people seem to think that the word budget is a dirty word but I promise you, it isn’t!
In fact, even when you have a good cash flow or when the economy is good and you’re living comfortably on the money you’re making, it’s STILL ALWAYS a good idea to stick to a budget.
Many people cringe when they hear that word BUDGET, because they think it means you can’t have any fun or spend any money. But that’s far from the truth.
Even a tight budget leaves room for fun and a little extra spending from time to time.
In fact, the reason you have a budget is so that you have more many to spend on the things you truly value in the future.
PLANNING MONTHLY BUDGET
1 – BE HONEST
First things first:
When you plan a budget, you absolutely must be realistic about what you’re spending and saving.
Don’t say you spend $10 per week on lunches if you know you really spend $40.
You need to be honest with where your money is going so that you can create a budget that will support you moving forward.
Remember: you can change the amounts later and cut back, if necessary, but the first step is to BE REALLY HONEST and get everything down on paper.
No lying, no tweaking, no overinflating or underinflating – just tell it like it is.
That way, you can see what you’re really spending.
PLANNING MONTHLY BUDGET
2 – You Might Be Really Surprised
This is where I have to warn you that you might be really surprised to see where your money has been going until now.
Usually, people who create an honest budget by tracking their spending each month and writing everything down find that they’re shocked at how much they’re paying out.
What?
I spend that much on soft drinks every month!?!?
And that much on takeaway, no way!
Usually it’s not just the bills, but often the little things like lunches and dinners out, coffee in the morning, and small purchases that add up (like really add up).
PLANNING MONTHLY BUDGET
3 – For one month, keep track of every cent you spend.
Yep, for a full 30 days.
Avoid hiding anything or sweeping it under the rug.
I mean, you would only be kidding yourself and why would you want to do that?
Save all of your receipts and write those numbers down.
That means every single bill, all the spending money you withdrew from the bank, and anything else that was paid out in that time frame.
At the end of the month, you’ll have an accurate picture of what it’s costing you to live for 30 days.
PLANNING MONTHLY BUDGET
4 – Now It’s Time To Lower Your Costs
After you get over the initial shock of your tracking experiment, you’ll likely want to find ways to spend less.
I mean, that is the goal of having a budget right?
Spending less so you can have more cashola in the bank.
Of course, there are many ways to lower your expenses, and they can depend somewhat on how you currently spend your income.
If you run a tight ship, it might be harder to find money to save.
If you are wasting money left, right and center you might find it easier to save money in that first month (because hey, you have so many money-wasting options to choose from!)
Everyone is different, and not every idea will apply to each person.
PLANNING MONTHLY BUDGET
5 – Sometimes it’s the little things you need to watch out for.
Consider these ideas in order to decrease how much you spend each month:
- You can adjust the thermostat by a few degrees to save on electricity or gas.
- Skip going out for lunch and coffee by bringing these things from home (massive money to be saved here!).
- Change to a less expensive cable TV, Internet, or cell phone plan.
- Have a yard sale to get rid of unwanted items and make some quick cash (this also works to curb your spending when you realize how much unnecessary clutter you have accumulated at home).
- Carpool or use public transit, and sell that second car.
- Buy groceries only during sales and stock up on often-used items.
- Put simply STOP BUYING THINGS YOU DON’T REALLY NEED! Repeat after me: I will no longer buy something if I don’t really need it!
Of course, there are plenty of other ways to save money and what works for one family might not work for another.
However, in all likelihood, there’s a good chance you can find new ways to save money each much.
After all, you really don’t need the latest gadgets, newest car, or brand-name clothing.
You may want them, but that’s not the same thing.
You can save money by resisting this temptation to constantly upgrade everything inside your home, technology included.
In the end, you need to ask yourself: How much are unnecessary things really costing you?
Is it worth it?
When you really think deeply about those questions, you’ll likely find that some of this stuff IS NOT REALLY WORTH IT.
More importantly, living a little more frugally would ultimately give you a better quality of life and freedom to do more things, like travel.
All in all, budgeting doesn’t have to be depressing and minimalist.
You can make it fun – after all, having more money in your pocket IS FUN, isn’t it?
Creating budget will give you an accurate picture of what you’re currently spending your precious money on.
FYI: money is indeed precious.
Then, you can decide how to spend less – or if you even want to spend less – and make changes to your budget that will benefit you in the long run.
I promise you, it is worth it!
Before You Go…
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I’m Frances Vidakovic – a mindset & action coach for quietly ambitious women who want to stop overthinking and finally take aligned action. I help women achieve their goals and follow through on what matters, without sacrificing their sanity or soul.