How to stick to a budget
How I did it: I tracked all my income and expenses and after two months set a budget. I did not alter my spending when I was collecting my data so the figures I based my budget on were accurate. I recorded everything and then did the analysis.
I decided what I wanted to spend my money on and set out my target for each category on paper. Every evening I recorded my spending for that day. I also recorded any standing orders or bills that went out of my account.
It became easier after a while, and I began to enjoy the numbers. It was great to become aware of what I are spending money on and especially when I paid with cash.
Lessons & tips:
- Patience: To mange your money you must give it time, I am now into my second year of tracknig my expenses and still changing my budget.
- Climbing a Mountain: You can't get on top of everything in a short period, so you have to accept this is about you creating a new habit and a good life skill. One step at a time.
- Enjoy Small Windfalls: Take one item and see can you change it. In January I took my home insurance and managed to save 50%. In March I claimed back tax for 4 years - got €300 but it was great buzz.
- Seek Advice: Ask people questions about financial matters - tell someone you are looking for car insurace. Take an interest in financial articles in papers and magazines. And find good websites where the adivce is sound eg finacial regulators.
- Smart Enough: If you are clever enough to know you need to stick to a budget, then you are clever enoght to manage it.
- Remember: The things you enjoy the most cost the least - so you stop feeling guilty. Buy a coffee and paper and start worrying about how much your pension is worth!!!
- And Finally: Try not be become mean. It is ok to enjoy your money and splurge on yourself and others. You can even allow for this in your budget.
Resources: Initially I used MS Excel whcih will work but it is time consuming unless you get a template. Now I use MS Money, you need patience/time when setting everything up, but you can add bank accounts and check taxes
Check out information on good websites eg www.askaboutmoneny.ie and www.itsyourmoney.ie
