Top 14 Budgeting Tips

top 14 budgeting tips

Top 14 Budgeting Tips

Just Start

Taking the first single step and initial action brings you that much closer to your ultimate goal. To build financial wealth you must take action and certain proven steps. Step 1 is usually the hardest. However, the first step will take you to your second step. 

Track your spending

Tracking your spending, sitting down and taking off all of the blinders to your current financial situation is scary. Trust me, the first time I looked at my checking account I mean really looked at it. I was shocked. 

Review and identify your income and expenses

Review and identify your income and expenses. This step will tell you without a shadow of a doubt where you currently stand financially. When you finally identify and accept your current reality you can now go about changing that reality over time.

Think strategically about your revenue

Think strategically about your revenue stream. Usually you will need multiple sources of income and or multi people contributing to the revenue. Think of your skills and develop ideas around how you can be of service to others. What is obvious to you is amazing to others.

Budget towards realistic goals

Goals are important but realistic, detailed goals accompanied by a plan to action are better. Your goals are going to add a purpose to your budget. If you have a spouse or partner, work with them on your budget. Everyone has to be committed to your goals and budget for it to be a success. 

Budget needs only

Budget needs vs. budget wants. You need a place to live, you need food, depending where you live you need a vehicle which needs insurance which needs gas to move around. Some needs are easy to define. Within food needs you want name brand foods but you really just need healthy food. Search for coupons and buy what you need, not what you want. 

Analyze your budget

Analyze your budget, what is currently a need and what is currently a want. Do you need the premium cable tv package or can you live with less? Can you find a less expensive yet similar alternative? 

Budget to pay down or eliminate debt

Priorities are very important. And paying down debt should be high on your budget priority list. For most it´s top of the list but this too should be intentional. Within your budget should be your needs followed by your debt.

Debt elimination should be an integral part of any budget. You have many strategies to eliminate your debt with or without assistance. If you are dedicated and responsible enough to do it alone start with the highest interest credit cards.

Do your best to consolidate high interest credit cards into as many zero interest credit cards. However, for many reading this that won´t be an option. If your credit score is less than perfect no bank is going to extend more credit to you. So we have to tackle this strategically.

Stop using your credit cards is step 1. Usually easier said than done. I don’t recommend closing credit cards. Used properly, credit cards can pay you money! But we will discuss that after your house is in order.

Today I want you to be intentional about sticking to a budget which will allow you to pay-down all of your credit cards in a short amount of time. Debt pay down an important part of your top 14 budgeting tips.

Put the plan in action

Budget is set time to put the plan into action. I attached a simple spreadsheet you can use but feel free to use your own. I check my budget almost on a daily basis. I like to know where I was and where I´m going. And as I move money around I want to document that movement. I recommend you do the same. Each dollar which goes out should be accounted for. Don’t let it accumulate days or weeks. That’s how budgets get out of whack.

Evolve with your budget

I like to constantly look at my budget to play around with it and to make adjustments to it. To me it’s a living document which is constantly evolving. Make changes to it, adjust it for lifes ever changing events. 

Improve your budget

Every month is different hence your budget should not be static each month. Find small ways to save from month to month. A little saving will go a long way. Analyze your banking situation. Most banks wave fees under certain circumstances. Understand your individual bank and how they make money. Learn how to not pay a single bank fee again.    

Always think budget

Be accountable to yourself and your family. Your budget should be the first thing you think about before making a purchase. Be honest with yourself.              

Keep your eyes on the road

Stop looking at others. Everyone posts the best parts of their lives online. However, we never know the struggles and challenges our friends and families face on a daily basis. Don’t create goals to impress others. And don’t feel less than others. 

Give yourself a break

Don’t beat yourself up when things don’t go well or you bust your budget. It will happen and we are human and at Budget Build Buy we are here for you when that time comes.

It took me 2 years to lower my debt usage from 80% to below 10%. Some months I was mentally drained, other times I just wanted to treat myself or my family to something nice or I didn’t have the courage to just say no. It happens to get back on track.  

After 2 years of budgeting I achieved my first goal of purchasing a home. I used the same top 14 budgeting tips and tools I´m giving you today to achieve those goals.

Top 14 Budgeting Tips

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