How to Create the Perfect Budget
Are you trying to create the perfect budget? Keep in mind there is no perfect budget, but there is the perfect budget for you! Budgeting takes hard work and determination. Budgeting helps you determine where your money will go.. Whether you’ve had a budget for years or need to start from scratch, here is how to get it done. Budgeting has helped my husband and I pay off over $8,000 and counting in debt. So, the first step I always recommend when someone wants to get out of debt and stop living paycheck to paycheck is to start with a budget.
Make a Budget for Every Dollar
Every single dollar in your paycheck should go somewhere. This may be hard to understand because without a budget you can spend whatever you want, whenever you want. However, a budget puts your money to work for you and makes you put every single dollar somewhere.
Needs Over Wants – Everyday
We live in a society where people just run out and buy what they want. Saving up to purchase something isn’t always an option anymore. In fact, a lot of people use credit to purchase what they want, when they want it. Just remember, budgeting requires you to focus on your needs over wants. Experts agree that taking care of your basic four walls is more important! In my opinion this is the hardest thing to stick to when starting a budget. We are so used to going out and just spending when we want something that it’s a hard habit to break. But, breaking this habit is the only way that you will be able to stick to your budget.
Work on paying off your debt
If you have no debt, GREAT. However, if you do have debt, you need to include this in your budget. The most effective way to tackle debt is with the snowball method. This is where you pay off the smallest debt first. When that debt is paid off you put your snow ball amount towards another debt.
Use a Budgeting App
In order to have the perfect budget for yourself, you need to have a budgeting app. An app like this allows you to track every dollar you have. We personally use the Every Dollar app, but I wanted to list others for you to choose from. Here are some of the top budgeting apps available:
Track Your Spending
One way to track your spending is to save all of your receipts from your spending. This is an essential part of knowing what you spend on what. If you don’t know what you spend, it can be hard to create a budget. Tracking your spending is a great part of creating the perfect budget! I always recommend that you track what you spent the same day that you spent it. When you delay tracking it, it’s easy to forget to come back and track it. So, make it a habit to track your expenses every time you spend something.
And there you have it, creating a budget isn’t easy, but it’s worth it. Knowing your money goes where it’s supposed to go is a great feeling. Most people have to revise their budget weekly or monthly, but this is all part of creating that perfect budget for Y-O-U.