Tips for making budgeting less painful
Budgeting involves tracking and can show you exactly where your money goes to give you a
savings plan for the things that are important. A budget can put your money to work
for you, but even millionaires often struggle with the challenge. Here are some ways to avoid
budgeting failure:
Keep a positive attitude
Have you ever tried to budget and given up because you felt overwhelmed?
One of the reasons people give up on budgeting is the way that they look at it. If you
look at budgeting as penny-pinching, then you’re not likely to stick with it. Instead,
think of budgeting as a way to reach your financial dreams. That way you're tracking your
progress instead of your finances.
Record where your money goes
Many people think they can keep track of their money without keeping actual records.
However, most of these people would be shocked by how the little things really can add up.
Think about it. Buying a cup of coffee every day costs about $2. Not bad.
But after a year, you've spent $730 on coffee. That's more than most people make in a
week.
Budgeting lets you know exactly where your income goes each month. It also shows
you where you can afford to make spending cuts. Customize your budget to fit your
goals and needs, and it will keep you on track and committed to your plan.
Don't delay
Get started as soon as possible. You don't need fancy software to do a budget, but a
good program will make it a little easier. Northwest Community offers its members
free 24-hour On-Line Banking, which
allows you to check your account status any time. On-Line Banking also lets
you download account information for use with
MS Money or Quicken. These two
personal finance programs are excellent budgeting tools.
Best of all, you can use free Bill
Pay to help track your expenses.
Or, download our Acrobat file with a rough
budget. Her are our instructions for creating your very own
budget.
Whether you use computer software or a couple of pieces of paper and a pencil, the
important thing is that you get on the right track by starting a budget. If you jump
into budgeting with a negative attitude, you'll probably get frustrated and give up
before you've had a chance to see the difference a spending plan can make in your life.
Look at this as an opportunity to go where you want to in life.
Consider these five benefits of budgeting
- A budget tells you whether you're going in the right financial direction—it also
tells you whether you're living within your means
- A budget lets you control your money instead of your money controlling you
- A budget can keep you out of debt or get you out of debt
- A budget can help you meet savings goals; once you start budgeting, you can see
where you're spending too much and where you could afford to make some cuts
- A budget helps you sleep better at night because you don't lie awake worrying about
how you're going to make ends meet