Budgeting may seem like a difficult or stressful task to take on, but it doesn’t have to be. Below I am going to walk you through 5 steps for beginner budgeters.
The key to having a budget, is being able to figure out what works for you. Everyone’s life circumstances are different so there is no such thing as a one-size fits all for a budget. Yes you will need to make changes and cut back on spending, but it doesn’t mean you have to sacrifice everything.
I like to focus on finding a budget that fits your lifestyle. It becomes a part of your routine and daily life without feeling like it’s ‘work.’
If you are completely new to budgeting, click here to read through this guide to get you started.
5 Steps for Beginner Budgeters
This may sound extremely easy, but all you have to do is get started. Most people wait and wait and wait for the perfect time to get started with a budget. The more you wait the more money you could be wasting.
The perfect time is now. Commit to creating a budget and get started today. I know it may seem like a lot of work, but once you get started you will figure out how to work a budget into your normal finances without making huge sacrifices.
If you are ready to take the leap then I recommend my Budget Makeover Workshop to help you create a budget that fits into your lifestyle.
#2 – Make a plan
You need to know what your financial goals are so that you can figure out a budget for you and your family. Take the time to set financial goals now.
What do you want? Do you want to get out of debt? Do you want to save for college? Don’t worry about what everyone else is doing. Think about your family and your situation. What would make you happy? What would make you feel financially secure?
Once you create your financial plan you can start fitting those bigger goals into your everyday budget so that you are putting money away to accomplish each one. It is important to know what your goals are so that you can make progress and stay motivated throughout the process.
#3 – Start Tracking
The only way that you can start to make changes and create a budget is by starting to track all of your income and expenses. You won’t know what changes need to be made if you don’t know where your money is going.
Take some time to start tracking all of your income and expenses. If you want to stay organized, you can print out my free monthly budget template here to help you stay on track.
#4 – Be realistic
Like anything else, we all want instant gratification. When it comes to budgeting you need to be realistic and not only set realistic goals but be realistic with your progress. You can’t expect to get out of debt over night.
Finding a budget that works for you and your lifestyle takes time. You need to focus on your financial journey and not overnight success.
#5 – Adjusting
Budgeting is a constant work in progress. As you start to save more money and pay off debt, your budget will begin to change. You’ll need to allow yourself the time to learn from your income and expenses and make adjustments to your budget.
What works for you today, might not work for you in a few months. It’s all about setting aside time to make necessary changes to your budget.
Again if you are just getting started you can checkout this practical budgeting guide to walk you through the steps you need to create your own budget.
Are you a beginner budgeter?