Budgeting can be easier said than done. It\u2019s one thing to create a budget, but it\u2019s a whole other thing to stick to it. <\/p>\n\n\n\n
Whether you\u2019re saving for a vacation<\/a>, retirement, or trying to pay off your never ending pile of debt, budgeting can help in all aspects of your life. However, who really has time to sit there with a calculator, save all your receipts, or invest endless hours on tracking their spending?<\/p>\n\n\n\n The truth is, we all like to think we\u2019re good with money, but, we can all be better. In this article we\u2019re going to breakdown the basics of budgeting, how to stay on top of it, and most importantly, our favourite tools to make it easier to keep track of your budget.<\/p>\n\n\n\n It\u2019s never too early or too late to start your budget<\/a>, and that\u2019s one of the biggest misconceptions. Whether you\u2019re budgeting during your very first part-time job, while in college, or even if you are making a six figure salary, keeping track of your money and spending habits is important. Just as important as saving. Here are some of our tips for laying out your budget for the first time…<\/p>\n\n\n\n Know your <\/strong>cash flow<\/strong><\/a><\/p>\n\n\n\n It\u2019s not about knowing how much you regularly have coming in, but also how much money you have coming out. This will serve as a good starting point for your expenses, and your savings, when creating your budget. If you\u2019re on a salary, this should be easy, all you need to do is look at your pay stubs. If you\u2019re not salaried, and have inconsistent hours, take a look at multiple pay stubs and form an average. Also account for times of the year you may acquire more hours than normal. <\/p>\n\n\n\n Budget for your savings <\/strong><\/p>\n\n\n\n With your cash flow laid out, now you can have a good idea of where your money is coming and going from. Your next steps will be to see where you can save more. Evaluate what you\u2019re spending the most of your money on that isn\u2019t an actual need but more so a want. It\u2019s common to feel like you don\u2019t have enough money to actually save when you eliminate all your bills and expenses, but even saving a little bit makes a difference. Making your savings<\/a> a financial priority will help prepare you for what\u2019s to come in your life, plus, give you a bit of a cushion.<\/p>\n\n\n\n Stick to it <\/strong> With technology being at the forefront of everything these days, it\u2019s no surprise that there are a ton of tools out there that help you keep on top of your finances easily. Here are some of our favourite tools<\/a> to help you manage your dollars. <\/p>\n\n\n\n Wally<\/strong><\/a><\/p>\n\n\n\n Available for all smartphones, Wally is like walking around with an expense sheet. Whether it\u2019s for a business trip or your personal day to day spending, Wally lets you log your expenses by manually entering or by take a photo of your receipt. You can also turn on the location services so Wally can see where you are spending and to help log an expense. If you\u2019re looking to monitor your spending habits Wally is the app for you.<\/p>\n\n\n\n Spendee<\/strong><\/a><\/p>\n\n\n\n If you\u2019re looking for a traditional budget app, then Spendee many not be for you. Available in both the App and Google Play stores, Spendee is a great app to give you a visual as to where you are spending your money. By tracking all your finances, this app gives you the options to create different wallets for different expenses and create budgets within those wallets to track spending. Creating this visual of where your money is going helps to see where you can cut back and start saving.<\/p>\n\n\n\n Pocket Guard<\/strong><\/a><\/p>\n\n\n\n Saving for something specific? Pocket Guard helps you track and lower your bills. Anything from a vacation, a new gadget or paying down debt, Pocket Guard lets you see your spending categorically, uncover opportunities to save and get notifications about what you have available to spend. This is a fun and motivating way to start saving and get in the habit for the future.<\/p>\n\n\n\n Mint<\/strong><\/a><\/p>\n\n\n\n One of the most popular and reputable budget apps is Mint. Mint works by gathering all your financial information, everything from regular bank accounts to investments and bills. It takes what your income and your spending patterns and automatically updates in real time. Mint also has the ability to send you regular notifications about your spending patterns by customizing accounts and setting limits to track your expenses.<\/p>\n\n\n\n Outside of the apps, there are some good old fashioned alternatives to tracking your budget as well. One of our favourites is the envelope method. Once you\u2019ve built out your budget, you\u2019ve found a tool that helps you track the money you have coming in and out, how do you buckle down and stick to it? Here are our tips for not just setting your budget<\/a>, but following it. <\/p>\n\n\n\n Be okay with change<\/strong><\/p>\n\n\n\n The biggest thing you can remember is that it\u2019s okay for your budget to change. Once you set it, and start sticking to it, you\u2019ll learn what\u2019s not practical, and may need adjusting. Remember though to ask yourself if the areas where you\u2019re having issues is a need<\/em> or a want.<\/em> You\u2019ll also want to evaluate how you\u2019re tracking everything. For example, you may think one of the apps mentioned above will work great for you, and then realize it\u2019s hard to keep up with. Adjust where necessary and don\u2019t be so hard on yourself. <\/p>\n\n\n\n Know where your money is<\/strong><\/p>\n\n\n\n Knowing how much you regularly have coming in is one thing, but also knowing how much you have coming out is another. This is the biggest starting point for creating your budget, along with listing out all your expenses and categorizing them. There shouldn\u2019t be any other expenses when you\u2019re in a financial bind<\/a>, and by understanding this, you\u2019ll be less stressed with a plan of attack, aka your budget. <\/p>\n\n\n\n Budget your savings<\/strong><\/p>\n\n\n\n Treat your savings like any other bill that needs to be paid. Having savings is important. Whether it\u2019s your emergency fund<\/a>, your retirement<\/a> savings, or if you\u2019re saving for a house or bigger expense. It\u2019s common to feel like you\u2019re in too much of a bind to make saving a financial priority, but even saving a little can go a long way. Plus, if you get in the habit of regularly putting dollars into your savings, it\u2019ll be second nature to you and you\u2019ll learn to live with less. <\/p>\n\n\n\n Stay committed <\/strong><\/p>\n\n\n\n If you\u2019re putting in the effort to budget, you need to have a follow through<\/a>. If you want to prioritize your finances and get yourself in a comfortable position with your money, stick to it! When you make your budget, and set your goals, make sure you are setting yourself up for success, and if you realize you\u2019ve underestimated some aspect of the budget, or are struggling, readjust to make it manageable. By having a budget in place and analyzing where you are blowing it, you\u2019ll hold yourself more accountable and head towards financial security. <\/p>\n\n\n\nBudgeting for the first time<\/strong><\/h3>\n\n\n\n
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It\u2019s one thing to make a budget, but it\u2019s another to actually stick with it. By sticking to your budget, you\u2019re working on creating financial stability. Keep your end goals in mind, and also the things you would love<\/em> to have money for. Remember, it takes about two months to build a habit<\/a>, and once you get through the first two months, it\u2019ll be second nature to you.
Don\u2019t forget to have fun<\/strong>
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<\/strong>When you\u2019re constantly worried about staying on track financially and sticking to a budget, you can forget to treat yourself and have fun. Don\u2019t feel guilty about this! No matter how tight your budget is, you need to have a little wiggle room for treating yourself<\/a>. Just be creative on what you\u2019re doing for fun. It\u2019s amazing how many free or inexpensive things are available that we never think to look into. Having fun doesn\u2019t need to cost an arm and a leg. Opt for a pot luck with your friends versus going out for dinner, have a picnic in a park versus going for a fancy brunch, look at local events happening in your area, the list goes on. <\/p>\n\n\n\nThe best free budget apps<\/strong><\/h3>\n\n\n\n
This is the old school way of tracking your budget without having to worry about technology. Once you figure out your budget, get envelopes for each aspect of your budget and take out the budgeted amount of cash to put in each envelope. All your spending needs to be done from these envelopes. This not only is an easy way to keep track of spending, but it also eliminates the use of plastic cards that can cause you to impulse purchase or overspend. <\/p>\n\n\n\nBuckling down on your budget<\/strong><\/h3>\n\n\n\n