1. Make a plan and stick to it!
The first step to having a functional budget is actually making a plan and sticking to the plan. This is a habit that sounds so easy but extremely difficult to cultivate. While you make your plan, set up dates and deadlines for example, if your part of your plan is to buy groceries every
2 weeks make it a point and set a grocery day. When you know what to expect and when to expect it, you take a lot of stress and potential failure out of the picture.
2. work with what you have
Let your spendings be within reason. Never spend more than what you have available. If married, be inclusive. Tell your spouse about the budget plan as this will keep them cognisant of the expected home expenditures. Have the budget talk at least once a month and modify your budget for the next period accordingly.
3. plan for the unexpected
Make accomodations in your budget for unexpected expenses. It is quite common for unplanned issues like a flat tire, medical bill, etc. to pop up unplanned. Understand that the larger your family, the higher the chances of unexpected expense. Therefore it is important to create a buffer by setting aside sma;; amounts of money throughout the month. by doing this you are able to cover unexpected expenses without hair pulling. It is also very important to track your unexpected expenses and identify those that pop up frequently. Eventually, you might want to add them onto the standard budget so they are now anticipated.
4. Get rid of your credit cards
Credit cards are nothing but borrowed money. but as we all know we borrow and pay back at a higher return and in some cases much higher. When you spend borrowed cash it reduces your actual available cash at a rate of 1+the interest rate. When you spend your own cash you avoid paying interest rates which tends to accumulate and expanciate over time.
5. Stay organized
Maybe you have a stack of receipts you've been meaning to track to your budget all month.
Be intentional about scheduling a few minutes at the end of each day to record your transactions in excel so they don't pile up. Or make it even easier on yourself by switching to quickbooks app or desktop application. With quickbooks, you can stream transactions from your bank so you don't even need to keep your receipts!
In all don't forget to include self care in your budget. A healthy self is a fully functional being.