Many people start every month with the best intentions in the world of following through with their budgets, and making good financial decisions. Despite this, however, temptations arise and they almost always overspend.
Making the same mistake this many times means that it eventually becomes a choice. In order to take control of your choices and make the best decisions which will positively impact your financial future, you’ll need to stay within your budget. Here are the best ways how.
Enter Every Transaction
Writing down every transaction will ensure that you don’t overspend by thinking that you still have more money left in your account than you do. That means every time that you eat in a restaurant or buy something at the store you should write it in your check register. Every transaction as small as a pack of gum.
Even though you’re often able to see your transactions in real time on your online banking account, this doesn’t account for cash transactions, pending charges, auto-pay, or checks. Therefore, making it a habit to enter everything you spend on your register and what category it fits into in your budget is crucial.
Stop Using Your Credit Cards
It would be easy to avoid overspending if we didn’t have access to credit. Often the temptation of being able to have something immediately as opposed to saving for it can be all too much for us to turn away from.
If you put your credit cards completely off limits and refuse to use them then you’ll find that staying within your budget becomes much easier to do. Some people go the extremes of putting their credit cards in cubes of ice in the freezer. Hey, whatever it takes to stop you from using them.
Pay Your Bills First
Making sure that your basic needs are taken care of before paying for luxuries or extras will make sure that you stay within your budget on the necessities.
If you run out of money for your eating out budget or clothing budget, then at least you’ll still know you have somewhere to live with electricity and hot water.
Practice Self-Discipline In All Areas Of Your Life
If you can’t seem to follow through with the boundaries that you set for yourself in your budget, then this signals a bigger problem outside of just your finances.
Practicing self-discipline with yourself for all areas of your life will encourage you to make it habit to follow through.
You can start with things as small as making yourself get up 15 minutes earlier in the morning. Or staying 10 more minutes on the treadmill. Pushing your limits every day will start to train your mind to stay committed to your self-discipline.