Top 6 Tips For Creating And Sticking To A Budget

If you are working on better money management, the first step should be creating a budget. But while it is important, that doesn’t mean making—and sticking to—a budget is easy. In fact, learning how to create a budget and how to stick to it is the first half of the battle. Finding the right method is something many of us struggle with.

However, there are plenty of useful budget tips out there that can help you not only form your budget, but stick to it. So, if you've struggled with budgeting before, don't worry—you're not alone. In this guide, we'll walk through six practical tips to help you create and stick to a budget successfully.

6 Tips On How To Create A Budget You Can Stick To

1. Keep Count Of Your Income

Before you do any budgeting, you need to know how much money you have coming in. Whether your income comes just from work or you have multiple sources of income, you need to know how much money you have to budget so you can determine how to stick to a budget once it has been set into place.

This means you will include money from side gigs, freelance gigs, money gifted to you, and so on. And when it comes to your paycheck, make sure you count it after tax has been taken out so you don’t think you have more money than you have.

Now that you’ve tracked your income, let’s move on to the next crucial step: understanding and tracking your expenses.

2. Start Tracking Your Expenses

Once you’ve counted your income, you have to look at your expenses. This means you need to track your expenses in a given month and write them down. This allows you to pinpoint your spending habits and see where your money is going. When you do this, you will include expenses that are the same each month and expenses that don’t always stay the same. You will also include money you use for fun.

Once you’ve been able to write down all of your expenses, it is time to categorize them. Categorizing your expenses allows you to prioritize them and allows you to stay organized, and know where your money is going. There are many ways you can categorize your expenses, so just find the way that best works for you. One example of categorizing your expenses could be your necessary expenses, your recreational expenses, and what you set aside for savings.

3. Set Up Automatic Payments

The next thing you need to do is set up automatic payments at your bank to make sure to make your necessary expenses on time. After setting up automatic bank drafts, you wouldn’t have to actively think about paying for your rent or insurance. This will help make sure that you are not tempted to spend that money on something else and that you don't have to deal with late payment fees. This also helps you give any money you have coming in from a specific job to do. 

4. Keep Money Goals Realistic

Budgeting is about pushing yourself to meet your goals, but those goals have to be realistic. If your first goal is to set aside a thousand dollars every month, but you’re still struggling to make ends meet between paychecks, you will most likely fail and lose all motivation. By creating realistic goals, you’ll increase your chances of actually reaching your goals, and that, in turn, will inspire you to keep up the good work. 

If you have never set aside a penny in your life, make your first goal to set aside at least $20 per week or a few dollars every time you go a day without buying a coffee, for example. And remember, to keep yourself motivated, make sure the goals you set are SMART goals. SMART stands for goals that are specific, measurable, achievable, relevant, and time-bound, and it is recommended that your goals fall into each category. And setting a SMART goal that is attainable would look something like this; I will save $100 per month by reducing dining-out expenses and putting the money into a high-yield savings account.

5. Create A Weekly Budget

Most people think of a budget as something you do monthly. However, though you should have a monthly budget, adding a separate weekly budget might make sense if you don’t like to plan way ahead of time. If your grocery budget for the month is $600, but you go to the store every week, divide the total into four to account for each week of the month, and make sure that you don’t spend more than $150 on groceries in a week, for example. 

6. Make Sure To Check Your Budget Regularly And Make Changes

Now that you’ve tracked your expenses, assigned your money a job, and even created a weekly budget, you might feel like you are done creating your budget. This is now the budget you will follow from here on out, right? Well, that isn’t entirely true. While the budget you come up with will work for now, it won’t be permanent. This is because your budget should be flexible so you can make changes to accommodate changes in prices or either an increase or decrease in your income.

How To Deal With Financial Emergencies?

If you have just created a budget and one of your goals is to build a financial cushion, it might take you over a year to set up a big enough saving accounts for an emergency fund. However, we all know big emergencies won’t wait until you have the funds ready. Things happen when we least expect them, so if you find yourself struggling with an urgent bill, you can come to Utah Title Loans, Inc. for one of our title loans, payday loans, or signature installment loans.

Any of our personal loan services can get you quick money if you are approved, and the process of finding out if you qualify is simple. Although a payday loan, or even a signature installment loan, may work best for small, urgent expenses or debt before your next paycheck, a title loan could be ideal if you need a larger sum with a flexible repayment plan.

We don’t require several items for approval of any of our loans, and we welcome all to apply, even those with a good or bad credit score or a nonexistent credit history. If you want to find out more, we have loan representatives who can help you get through every step of the process. And all you have to do to begin is pick the type of loan you want, gather the requirements, and quickly fill out the online form from the comfort of your home on our website right now!

Payday Loan Requirements:

• Driver’s License or State-Issued ID
• Your Most Recent Pay Stub
• A Blank Check from an Active Checking Account in Your Name

Title Loan Requirements:

• Driver's License or State-Issued ID
• Lien-Free Title to Your Vehicle
• Your Vehicle for Inspection

Signature Installment Loan Requirements:

• Your Driver’s License (or a valid state ID)
• A Checking Account Statement That’s Open in Your Name
• Proof of Income (your most recent pay stub)

Get Started Today!

While creating a budget can be difficult, you shouldn’t have to struggle alone! If you manage to follow all six budgeting tips above, you won’t have to worry about managing your money correctly, which means learning how to create a budget and how to stick to a budget, will no longer plague your mind.

And when things don’t go as planned, you always have the option of contacting lenders like us at Utah Title Loans Inc. for one of our financial resources. Get a step closer to the urgent cash you need and your financial goals by filling out our short online form today! 

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.