I’m a budget nerd. These are the seven tips I should know

Budgeting has been my jam for over a decade. As a personal finance writer and editor—and a frugal person by nature—I’ve spent hundreds of hours exploring budgeting strategies, trying budgeting apps, and getting my spending in check. I find the challenge exhilarating. Even I was frustrated by the sheer volume of budgeting advice available.

If you’re not a money management freak like me, budgeting may seem like a completely daunting and painful process, but it doesn’t have to be that way. I’ve distilled over 10 years of experience into the top tips you need to know to better control your budget – and save yourself a ton of stress.

Read more: Do you hate your budget? Try this instead

7 tips you should know about budgeting

Whether you are Create a budget If you’re a first-timer or have had trouble sticking to a budget in the past, these tips can help you manage your money like a pro.

✅A budget is about what you can do, not what you can’t do

Budgeting gets a bad reputation. For the longest time, I… I saw my budget as a buzz Which kept me from doing anything fun with my money. Budgeting doesn’t have to be about boundaries and restrictions. If done right, it can help you Carry the things you love most.

I like to reward myself by eating out every week. I know it’s cheaper to make food at home, but that’s the waste I’m looking forward to. My budget helps me save money for this habit by showing me where I can cut costs on things I don’t care much about, like clothes and clothing. Streaming services.

📋There is no “correct” strategy.

Different experts promote different budgeting methods. Ultimately, the best option for you is the one that makes the most sense for your situation — and the one you’re most likely to stick with.

Common budgeting strategies to consider:

• The 50/30/20 method: Using this approach, you can allocate 50% of your income to needs (such as housing and groceries), 30% to wants (such as dining out and entertainment), and 20% to savings and/or paying down debt.
• Zero-based budgeting: This strategy It forces you to allocate every dollar you earn to a specific category. If you have any left over, you can use it for whatever you want.
• Envelope method: Using this method, you can set a spending limit for each category in your budget. Once you reach the limit, you will not be able to spend more in this category.

Try several strategies to see which one works best for you. I initially thought that zero-based budgeting would help me be more disciplined, but I quickly realized that its painstaking, dollar-for-dollar approach made me want to never look at my budget again. So I came up with the envelope method, which helps me control my spending without overwhelming me.

🎯Be realistic

A budget should challenge you to be smarter with your spending, but it shouldn’t feel like torture. Excessive aggressiveness, especially in the beginning, will only lead to failure. Be honest with yourself about whether you can achieve the goals you set for yourself.

For example, if you have a hard time saving, achieving a big goal like saving $500 a month may be out of reach. Instead, aim for a smaller goal like $50 or $100 per paycheck, and once you get into the habit, grow it from there.

You can always adjust your budget later to challenge yourself more. First, you need to establish a workable baseline to get through Don’t burn Even before you pick up speed.

📱There is an app for that

I’m old enough to remember the days of checkbook balancing and Excel spreadsheet budgets. If the old school approach works better for you, go for it. For most people, the fewer steps they have to take, the more likely they are to stick to their budget.

Budget applications Do the hard work for you. They can automatically track and sort your income and spending, monitor your progress and identify ways to save. Many are free or low-cost, and there are plenty to choose from. I use Rocket Money because I like its easy-to-use interface and its $6 per month price.

💰Don’t forget to save

A budget is not just a way to keep your spending on track. It’s also a way to make sure you’re saving enough money to achieve your goals. Don’t forget to include a line in your budget for monthly contributions to your account Emergency fund And any specific savings goals, such as a vacation or retirement fund.

👩🏽‍💻Don’t just set it and forget it

Your life and financial situation change over time, and your budget should change with them. Re-evaluate your spending categories from time to time to make sure they still meet your needs.

For example, if you are constantly moving into a category that you have already downsized as much as you can, you can cut costs in another category or find a way to earn more income. Your budget is never set.

💵 Take it easy on yourself

No one – or at least, I’ve never met anyone – manages to stick to their budget 100% of the time. Life happens, and you’re just human. Instead of giving up when your month is less than stellar, look at next month as a new opportunity to do better. Budgeting is a work in progress. Just making the effort is a step in the right direction.

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