A lot of people write out a budget, but just like a diet, not many stick to it. The reason that a lot of us find both budgets and diets hard to follow perhaps comes back to feeling restricted and like all the fun has been taken away. However, there are changes you can make to ease the pain of the budgeting process.
Here are 5 simple ways you can revamp your budget, and stick to your plan this time around:
1. Make it MORE realistic
A budget is only worthwhile if it works in reality. Before you re-start your budget, do a test week or two and see how much you spend on entertainment. By all means, reduce your social spending, but if you tell yourself you’ll cut back drastically or all together, you may have failed before you even begun.
2. Allow for luxuries
Keeping in mind the point of this exercise, it’s likely you’ll want to cut back in this area. However, the idea is that by allowing yourself the nice bottle of red or a massage every now and again, you will feel less restricted, and more able to stick to your financial plan.
3. Life doesn’t always go as planned
In order to account for these expenses, setting aside a small sum each month to cover unexpected costs is one way to ensure you’re not caught by surprise. Additionally, by accounting for unexpected expenses, you’re less likely to be rattled and derailed when these costs come your way.
4. One size doesn’t fit all
The bottom line is to fess up to your habits, and be open to trying a few different budgeting systems before settling on the one that you find works best.
5. It’s out of date
If you cancelled the Foxtel and changed mobile plans 6 months ago, why is it still on your budget? Our lifestyle and financial circumstances are constantly changing, so you will need to keep updating your budget to reflect these changes. As soon as you can, if your circumstances change, be sure to revisit your financial plan. After all, you may find you have a little extra to throw at your ‘luxury’ spending!
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