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6 Tips to Keep Your Budget on Track

August 5, 2013

Lifehack.com recently posted an article, 6 Ways to Prevent Your Budget from Failing, I really enjoyed this article because it seems like a lot of the tips could be applied to both your personal and business budget.

Tip #1 Be as specific as possible- Often smaller purchases aren’t tracked as well and those are the ones that are often ignored and not budgeted. $10.00 may not seem like a lot, but ten $10.00 impulse buys is $100.00.

Tip #2 Set realistic expectations- Normally the goal of a budget is to save money but your budget will fail if the goals aren’t realistic. If your energy bill is consistently $70-$90, don’t budget $50 and hope for the best. Certain costs are fixed. In the event that you are under budget you can save this amount as it is money you weren’t counting on having to spend anyway.

Tip #3  Believe in yourself. If you are in the early stages of budgeting chances are your smart because you saw the need to budget before trouble. Your setting the goals and limits so you should feel confident in the plan. Stick to it or you’re only wasting your own time.

Tip #4 Solicit the assistance of an accountability partner. This can be a coworker also trying to budget or even a financial professional. The goal is to have someone who will hold you accountable for your spending habits.

Tip #5 Prepare for the unexpected. So often people budget with the goal of breaking even. We don’t live in a break even world. Thngs happen that you can’t control or predict, so make sure you have savings in your budget.

Tip #6  Cut yourself some slack. If budgeting was easy, there would be no debit or financial advisors. Reward yourself for staying on track. Instead of just the satisfaction of having kept the budget as a reward, actually plan a reward that you can aim towards.

To view the the Life Hack article:

6 Ways To Prevent Your Budget Failing