Better Budget in 3 Steps

Budgeting is probably not at the top of my list of favorite past times. I'm willing to bet that it's not yours either. Yet everyone should have one. No matter the income bracket or financial situation, you need to have a budget in place in order to make smart financial decisions.

So, since we have to make and track our budgets regularly, it would probably be a good idea to automate this process as much as possible. We want to work smarter not harder. We want to work less while getting more done. It is possible and that's probably exactly what you, the reader needs!

Let's jump right into the tips to create a better budget.

1. Create a monthly budget that includes estimates all yearly expenses that you are aware of.

There's nothing worse than creating a budget and realizing that you don't have a category to deduct an expense. There are yearly expenses that we all can expect to pay, whether it's income and mortgage taxes, license plate renewals or another yearly expense. You want to break the figures down into bite sized pieces. Most people make monthly budgets, in this case you'd divide these amounts by 12.

2. Round your numbers up so small increases don't eat into your cushion.

You always want to have some margin of error for unexpected increases. When you are pinching pennies, every cent counts so create some wiggle room beforehand. Rather be safe than sorry!

3. Give yourself a small stipend.

You deserve to buy yourself something nice. It's okay to spend a little money every now and then. Even if you have debt, don't feel guilty for not hoarding every penny.

Give yourself permission to enjoy life in the moment,

while you are striving to create a better tomorrow.

If you feel deprived and unhappy, you'll lose motivation along the way. That's not what I want for you! Instead give yourself a set amount to spend every month. Our family budgets "spends" for each member of the house, and we also have a "going out budget". You don't have to do this but it's an idea of what's worked for us going on 7+ years.

So, there you have it, those are my top 3 tips for building a better budget.

Which was your favorite?