6 Budgeting Tips to Include in Your Everyday Life

Creating and sticking to a budget can be stressful. It’s important to separate wants from needs, while ensuring you have enough income to cover all of your expenses. 

It’s also easy to overspend or lose track of your spending, so implementing these budgeting tips can help you feel more intentional and reduce financial stress. 

1. Automate your finances 

Managing your finances can be a stressful and time-consuming task. From remembering to pay bills on time to tracking your spending, it can be easy to get off track. 

Automation can help you stay on track and reach your financial goals. By setting up automatic payments for your bills and savings account, you can automate your finances and put your money on autopilot. 

When setting up automatic payments, make sure you consider your budget and the timing of when you are paid. You don’t want to accidentally overdraw your account! A little planning can ensure that your bills are paid on time, and that you’re still putting money into savings. To be able to increase your savings, invest in energy efficient appliances to cut costs. Then invest in a home warranty to protect your investment. People often ask, “Are home warranties worth it?” only to find themselves in a situation where they wish they did have it. 

2. Set a no-spend day 

A no-spend day is exactly what it sounds like – one day that you do not spend money. This can be a great way to learn how to use what you already have and find fun, free things to do. 

Consider trying a no-spend challenge by yourself or with a partner. You can even set a goal to see how many no-spend days you can do in a month! 

It is also helpful to track your spending by using apps or even a physical budgeting method such as envelopes. Doing this can help you see how your spending is going each month so that you can make necessary changes. 

3. Track your spending 

Whether you use a spreadsheet program, a budget app or simply a notebook and pen, it’s important to track every time money leaves your wallet. Consider recording the amount spent, item (or store name) and date. You can also use a digital budget calendar to keep track of bill due dates. 

Start by listing your fixed expenses such as rent, utilities and car payments. Then, list variable spending such as groceries, gas and entertainment. Consider using a separate bank account for discretionary spending. This will help you avoid overspending and make it easier to save for goals. Make sure to review your record keeping system on a regular basis, like once a month or bi-weekly.

4. Set a budget that works for you 

Creating a budget is essential for anyone who wants to be more in control of their spending and save money toward short- and long-term financial goals. Budgeting plans can vary, but they should include all of your necessary expenses (fixed costs) as well as some of your wants and savings for emergencies and the future. 

Once you’ve established your budget, commit to tracking it regularly. This could mean checking in once a day or at the end of each month. If you spend more than expected in one area, make a note and adjust your budget for the following month. Also consider any recurring charges that occur quarterly or annually, like holiday spending and car payments. 

5. Have a buffer for unexpected expenses 

We all run into unexpected expenses at some point in our lives. Whether it’s a sudden car repair bill, Rover’s emergency trip to the vet or an annual expense like your professional association membership fees, these expenses can be financially debilitating. 

Having a savings buffer can help protect you from these unexpected expenses. A buffer is different from an emergency fund, which supports bigger ticket items or life stage milestones such as losing a job or buying a home. A savings buffer is for smaller incidental expenses that may arise, such as a parking ticket or dry-cleaning bill. This helps prevent you from dipping into your emergency fund or going into debt to cover these expenses. 

6. Don’t be restrictive 

It’s easy to get caught up in the idea that budgeting has to be restrictive. While living frugally is a great way to buffer your savings and build financial stability, doing so at the expense of your joy will only drain your energy and likely make you want to give up on your budget entirely. 

To avoid this, try to focus on what’s motivating you to create your budget. Whether it’s paying off debt, saving for something new or simply feeling more in control of your spending, reminding yourself why you are doing this can help you stick with it. Then, celebrate your wins!