When it comes to winning with money, you can’t make any progress without a plan. But when you’re drowning in debt, it can feel impossible to know where to start.
But you don’t have to stay stuck! Here are four sure-fire ways to help set your budget up for success every month.
1. Update your budget
First, outline what your take-home pay is anticipated to be for the upcoming month. Then, calculate your expenses for the month, and subtract the expenses from the income. This final number is what you’ll be working with in step two!
2. Balance your budget.
Now, it’s time to take a look at your final number from step one. If that number is positive – great job! You can allocate that money towards growing your emergency fund to $1,000, or you can use it towards paying off one of your smaller debts.
If your previous number is negative, don’t sweat it – just head back to your list of expenses and see what can be cut. Maybe you can eat out at restaurants less or cut back on your daily trip to Starbucks. It’s okay to get creative – remember, your goal is to get out of debt as soon as possible!
3. Actually follow your budget
Now that you’ve made the plan, it’s time to stick to it! While it’s hard to say no to fun opportunities in the moment, remember that saying “no” now will help you say “yes” later! If unexpected expenses come up, see if there’s anything you can do to plan ahead and budget for those things in advance the next time.
And if you’ve had past struggles sticking to a budget, consider enlisting a financial coach to hold you accountable. Think of it as a personal trainer for your money habits!
4. Repeat this process every month
After a few months of doing this, budgeting can become second nature to you. It shouldn’t take you more than 15 or 20 minutes per month – that’s less than 1 percent of your waking hours every month. By devoting just a little time to your budget, you can make a big impact on your finances and progress in your journey to financial freedom.
Need help setting up your budget?
Strong Tower Consulting can help!
Book your free 30-minute session today, and find out how you can get out of debt and pursue financial freedom!