Our lives are filled with habits and patterns. Recently, I learned that there’s no such thing as breaking a bad habit; rather, you can only replace a habit with another habit. When it comes to budgeting, you might not be able to break your bad habits. However, you can replace a bad habit with a good habit. Instead of running from how you much you’re spending, replace that habit with an intentional daily practice of evaluation. Read a budget tip or two that helped us pay off $127K.
Check First Thing in the Morning
Reach for your computer alongside your favorite cup of coffee. The longer you wait, the more you avoid, the less likely you are to do the things that are difficult. As you grow more adept at budgeting, it will take less time. You’ll be finished before you even reach the bottom of your cup.
Get Acquainted with Your Bank’s Website
Banking has come a long way in the last decade. Luckily, many banks offer apps and interactive platforms that can help you be a better manager of your money. Spend some time learning your way around the website so that you can more quickly navigate the best features.
Categorize Until the Cows Come Home
For every expense, you should have an overarching category. For every category, you should have at least one tag or subcategory. Programs like Quicken and even Mint allow you to drill down expenses into more than one specific area of expense. It takes only a few extra minutes of your day; however, when you get ready to analyze your budget and decide how much you should spend in each area, this little bit of work will help you carefully tabulate the proper amounts. Use consistent categories over time. Think about tagging with family members’ names. Be as specific as possible.
Reconcile Your Heart Away
It’s a good idea to budget expenses (I like to use the word forecast because it’s friendlier) at least a month ahead (I prefer six months to catch irregular, quarterly bills or birthdays). Then, when the transaction clears, reconcile or check off the amount. You can easily estimate how much money you’ll have months down the road.
Interested in reading another Budget Tip or two? Read:
- 4 Fantastic Budgeting Apps
- Three Signs You Are About to Make a Horrible Financial Decision
- Budget Tip Tuesday: Manage Your Money in Small Parts
- Budget Tip Tuesday: The Power of Just One Thing
- Budget Tip Tuesday: Don’t Beat Yourself Up or Repeat Your Crazy
- Budget Tip Tuesday: The Temptation to Make Too Much Change
Gain inspiration to pay off debt! Check out Inspiration to Pay Off Debt: 30 Days of Encouragement from the Queen of Free
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