key Make Your Budget Work with 9 Key Steps

1. Make a budget realistic. Don’t set the bar too high. Drastic and unrealistic goals are one of the surefire ways your budget will not succeed.

2. Budget for the irregular. Make sure you plan for those expenses that occur once a year, such as holiday presents, birthdays, vacations, weddings, car maintenance costs, etc. These expenses don’t occur every month and they can kill your budget if you don't plan adequately. Make a list of these events on a calendar and put a dollar figure to them. I use google documents for this but a simple spreadsheet or notepad would work too. Organize each item into the month they are expected to occur so you can plan in advance how you will pay for them. 

3. Write out your budget. Don’t assume that your financial future will take care of itself by making a simple mental note to yourself. If you have your budget goals detailed in writing you can review and remind yourself weekly and monthly of your financial goals.

4. Don’t give up! Everyone falls off the wagon sometimes. Your budget is a journey. There will be bumps in the road, so the key is to realize that everyone makes mistakes. The key is to try harder next month and remember what you learned. 

5. Make adjustments. It can take months if not years to fine tune a budget. Review your budget and expenses periodically and make changes where you need to. This will ensure that you stay on track in reaching your goals. 

6. Set short-term goals. Some goals may realistically take a year or two or more to reach so breaking them down into milestones helps keep them tangible. If you can celebrate a victory every couple months you're more likely to stay motivated and stick with your original plan. 

7. Reward yourself. Treat yourself when you reach your some of your short-term goals. Sticking to your budget should not be a restrictive, unpleasant experience. Not only should you take the time to enjoy your financial accomplishments along the way, but use part of your budget for fun things that you enjoy. 

8. Always pay yourself first. Make sure you allocate some savings. This could be for a trip, a rainy day, or retirement. Moving your money immediately into a savings account or investment ensures that you save. It is easy to spend that money elsewhere  even if you have the best intentions. If you don't see it you won't miss it. Click here for more savings tips. 

9. Your attitude is key. I found that when I am feeling limited and sorry for myself when I can’t purchase something that I want, I remember my financial goals I set with my budget. I think about the satisfaction I feel when I reach those goals. Yes it can be a challenge at first but over time you find that you don’t want to disappoint yourself by breaking your spending goals on a spur of the moment purchase. 

If you follow these tips, you will succeed. By taking some simple steps you will find that living within a budget is not as tough as you imagined. It can actually be fun and rewarding!

Make Your Budget Work with 9 Key Steps Miss T has written 582 articles on this blog.

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