Change how you view and spend money
If we earn more than we need for the necessities we should be saving consistently. This is sometimes a struggle for some people because of the relationship they have fostered with their money.
It’s not enough to pay all the bills then spend what is left. Organising what is left after the bills are paid is a apart of living a financially healthy life. This is why having a budget and following it is important.
We are never too young to start saving for retirement.
We are never too healthy to save for illnesses.
We are never too securely employed to plan for rainy days.
Catch my drift? It often takes a mind shift to start budgeting, sticking to it and putting away money for the future (near and far). The money we earn is not merely to pay our bills and feed our temporary wants.
See what you earn as a necessary ingredient to help you attain different goals – debt free.
Organise your Budget in a way that gives you Freedom
Find what works for you.
Having a lean budget where all wants are not catered to does not work for many of us. It isn’t realistic.
Adjust savings targets for different goals as time passes or just because you want to.
Budget in your treats, the things that help you to live and enjoy yourself. A budget is not something to cause stress. For example, I budget for recreation every month because that is important to me. This may look like going out to eat with friends, doing so alone, going to an event and things of that nature.
Also put away something in the miscellaneous category because stuff comes up.
Reconcile your Budget as you Spend
Keep track of payments, all of them. Everything from gum to rent/mortgage. Line up all the items and check that what you plan for is what you are spending. This becomes habitual with time. I like to do this after paying each bill. I also use cash for things like groceries, lunch and utilities. I keep them in their own envelopes and return whatever is left after each transaction.
Using cash for some purchases may help to keep you on track. Some people use credit cards to get points I know. The goal should be to use it within the confines of what is budgeted and pay the sum off each month.
Develop the Habit of Saving
You truly pay yourself from what you earn by putting aside some money into savings. Each amount you add to your savings, helps you to develop this healthy habit of saving. This habit contributes to a financially healthy life. As I said in the opening, if you earn more money than you need to cover the necessities, savings should be a priority. Budget for savings.
At first it might be frustrating and if you are a spender you may be tempted to just use it all. A good way to motivate yourself is to have a list of short term and long term goals. Write down a desired amount to save over a period of time. Make it something like a challenge for yourself. You can put this on a poster or app and have countdown each pay period. I believe that once you start meeting different gaols you will become addicted to this practice.
Budgeting is something to talk about with families, friends and others. Share the value of this habit and help others to live financially healthy lives.