Keeping a budget is not easy, but it is possible! You can do it by making some simple adjustments to how you spend money.
After all, you’ve already done the hard part of creating a written budget plan. You’ve started tracking your monthly income and expenses, set realistic money goals, and know how much you can afford to spend.
Here’s the problem– you’re having a hard time following your plan! You may have had a bad month and lost the motivation to stick to your budget. Or you think you can keep track of your money in your head and now you’ve overspent.
A budget is a valuable tool that you can master. It just involves breaking some bad habits and making new, improved, ones.
We want to give you the tools and tips you need to stick to a tight budget. Here are 12 ways to help you succeed at budgeting so you can reach your goals and relieve money stress.
12 Tips To Help You Stick To A Budget
1. Just Say No
If you want to buy something, sometimes you just have to say “No”.
Think of saying “No” as a gift to your future self…the one with the healthy bank account balance.
And don’t worry about what your friends, or everyone on social media, seems to have. Keeping up with the Jones’ will not bring you fulfillment – and odds are the Jones’ are carrying a mountain-load of debt. Many of the people whose possessions you envy are living a lifestyle they can’t afford.
You want the peace of mind that comes with working hard and enjoying the rewards of your work – all while living within your means.
So, focus on working hard to protect your budget and saying no when a purchase is going to sabotage your money goals.
Read: How To Make A Family Budget
2. Plan For Big Purchases
Hold-off on any big purchases until you are certain it is something you truly need. Take a week to think on it. Is buying this item adding value to your life or will its cost break your budget? If after one week the excitement you felt about purchasing something has worn off, then you didn’t actually need it.
Save up for big purchases so you can pay for them in cash. This is what your short-term savings accounts are for.
If the item is very expensive, like a car or braces for your child, consider how a payment plan will affect your budget? What source of income will you use to make the payments? Is the benefit worth the cost?
3. Never Spend More Than You Have
Getting into debt can be a deep hole that is tough to crawl out of. You end up spending more on interest than if you had saved up.
Plus, the weight of a debt on your shoulders can be soul-crushing and cause you to just give up altogether on your budget plan.
If you can’t afford something you want, remove the temptation to buy it by not going shopping at the mall or online. If you want to go on vacation, plan for it by making regular deposits into your savings account. Promise yourself you won’t book a trip until you can pay for it upfront.
Read: Great Investment Ideas For Women Over 40
4. Lose The Credit Card (Or Lower It’s Limit)
A credit card is often a trigger to spend like crazy with the mentality that you’ll pay it off later. But, fooling yourself into thinking you’ll magically have extra cash next month is a big reason people find it hard to stick to a budget.
If you want your budget to work, don’t borrow money from a credit card company that’s hitched to high interest fees. Use the money that’s in your bank account now.
I get the need for credit cards in some circumstances, especially now during the COVID-19 pandemic. If you need to use your credit card for online orders, keep to a card with a lower credit limit and pay it off weekly so you never get trapped.
Read: How To Invest Money In The Stock Market
5. Share Your Budget Goals
Keep yourself accountable by sharing your budget goals with a budget partner. Find someone who can provide you with the motivation to stick to your budget – and call you out if you slip-up.
Check-in with your budget buddy every month to see how you did and prep for the next month. If you’re married, make time to review your finances together often, since they are probably intertwined.
If you are budgeting alone, try sharing your goals on social media. Update your followers and friends on your progress. Don’t be shy to share any hurdles you face as well. Chances are many of your online friends are facing their own money struggles.
Building online community support can help motivate you to reach your budget goals – and who knows, you may provide the inspiration for others to reach theirs.
6. Become A Minimalist
Minimalism has been a growing trend in the recent years, and whether or not you buy into trends, there is financial value in this one.
Minimalism is the commitment to not spending money on anything that is not a necessity.
Getting started with minimalism is the same as getting started with your budget plan – identifying your needs and wants. Radically reduce the wants and stick only with the necessities.
“The new iPhone is coming out soon? Oh well, your current cellphone is working just fine” – this is the mindset you want to adopt.
Take a close look at any fees you are paying for services you don’t really need. A good place to start is at the bank. How much are you paying in monthly fees and transactions? Most Canadian financial institutions charge an average of $14.95 in bank fees. Consider switching to a free account like Tangerine Bank’s high interest savings account.
Another minimalist savings tip is to cut out monthly subscriptions. Do you really need Netflix, Amazon Prime, Hulu, CraveTV and satellite cable? You are forking over $10 – $15 a month for each one!
7. Plan Your Meals
Planning your meals and sticking to a grocery list is an easy way to save money and eat healthier. By planning for the week ahead, you won’t overbuy items that will go bad in your fridge and end up tossing them into your garbage bin.
Pick fun recipes that share ingredients and will leave you with leftovers for the next day’s lunch.
Read: How To Budget For A New Baby; First Year Checklist
8. Do Your Grocery Shopping Online
Shopping without a list or when you are hungry will have you tossing a lot of non-necessities into your cart. These little extra items can add major dollars to your grocery bill and do serious damage to your budget. To help prevent spontaneous grocery shopping splurges, try doing your grocery shopping online.
In Canada, you can shop online at the following grocery stores. Pick them up when they are ready or have them delivered to you.
You’ll also have the option to save your grocery list for the next time you shop online, helping you save time and stick to a shopping list that fits your budget. Just remember to pay off any credit card bills pronto.
9. Automate Your Savings
When you first set-up your budget plan, you dedicated money each month towards your savings. If you haven’t done so yet, set-up some automatic transfers through your bank. Each payday, or once a month, transfer cash into your emergency savings account, high-interest savings account, TFSA, and RRSP.
Don’t worry if it’s only $25 or $30 a go. Even small amounts will grow into something larger. And you can always increase your amounts when your salary goes up.
Soon you will have enough saved to buy that dream vacation or afford a down payment on a house.
Paying yourself first is a way of recognizing that your future is what’s most important!
If you are looking for ways to start investing money on a low or middle income, read Investment Ideas For Low And Middle Income Earners.
10. Calculate How Many Hours Of Work Things Cost
It takes only minutes to process your purchase and walk out of the store with your new $100 purse. But do you ever stop and think about how long you needed to work to earn that $100? Probably not.
Before you buy, try thinking about the amount of hours of labour an item costs and whether it is really worth that amount of time.
For example, if you get paid $25 per hour, then that $100 purse is worth 4 hours or your time.
Thinking about everything you spend money on this way helps you to find the real value of “things”, and protects your budget plan.
11. Track Your Success
Let’s imagine your saving to buy a family dog. After adoption fees, vet visits, food, and supplies you’ve calculated you need to save $1000 to afford Fido. That might feel like an impossible number when money is tight.
You’re more likely to stay on track if you set mini-milestones along the way. Perhaps when you save your first $100, you and the kids can pick out a name for your future best friend (feel free to use Fido). At $500, start searching for dog breeds that work for your family.
The idea is to track and celebrate little milestones along the way to motivate yourself to reach your goals and stick to your budget.
Need help planning and creating a budget? Fill in the quick form below and we’ll send these free budget planning worksheets to your inbox. We don’t spam!
Get The Family Budget Plan Bundle
Use this printable package to create a budget for you and your family. Includes everything you need to track your income and expenses. The spreadsheet is divided into specific categories used by singles and families – use it to plan and track your budget each month. Celebrate your success throughout the year!
12. Treat Yourself When You Reach Your Goals
Budgeting isn’t meant to be punishment. It’s actually a gift your give yourself so you can live the life you want. Use your budget as a tool to help you reach your goals and feel proud of yourself for making progress.
Make it fun! Reward yourself with a dinner out when your have extra cash at the end of the month or when your retirement savings account hits a big milestone. keep it fun. It will change the way you think about budgeting, from a chore to an activity that makes you feel powerful.
Read: Smart Ways To Save Money On Back To School Expenses
How Do I keep Myself On Budget?
Some Tools I’ve Developed To Help You Stay On A Budget And Get Out Of Debt
If you haven’t yet started a budget or if you are having difficulties organizing your current budget plan, don’t worry, I have a great new resource to help you. I’ve designed The Family Budget Planner to help my family, and yours, build a practical, time-saving budget plan.
No other budgeting planner is specifically designed to help families manage their finances. It will help you set goals for your money, track your income and expenses, pay-off debt, monitor your savings, and, of course, create a workable budget plan.
The Family Budget Planner is created with family living in mind and includes savings and spending trackers just for the kids. I have 4 young daughters, so I wanted to make a budget planner that includes all the kid’s expenses. There is also a mini-budget sheet for children to use – what a great way to teach kids about money!
If you are the kind of person who likes to have a ready-made plan (with all the organizational tools you’ll need) laid out before you, then The Family Budget Planner is designed for you. Get it and get ready for a sunnier financial future.
Conclusion
Sticking to your budget can be difficult for anybody. We start off one month with the best of intentions but overspend and end up feeling dejected. However adopting new habits and changing your thinking can help you stay on budget and keep yourself motivated.
I hope these 12 tips and tricks that will help you to be better at budgeting and living a life you love, and can afford. Please share.
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