Adapted from the FDIC’s Money Smart Program

budg·et /ˈbəjət/
an estimate of income and expenditure for a set period of time.

By definition, a budget is a monthly spending and saving plan to guide you how to use your money. But for a lot of individuals and families, “budget” is not a word they like to use or hear.

 

But if you’ve got financial goals there are a few ways you can use your budget or spending/saving plan throughout the month to keep you on track.

• Daily: Keep a daily record of your saving and spending habits, collect your change.
• Weekly: Check in weekly with yourself on money in vs money out. Implement the envelope system where you only spend what you allocate in an envelope for the week.
• Monthly: At the very least, go over your budget monthly. What did you do well? What could you improve?

In a world of instant gratification, budgeting can seem like a buzzkill. But when it comes down to it, making a monthly budget can be your ticket to living the lifestyle you want. If your goal is to save more money each month, use these three budget tips:

1. Pay Yourself First
   1. When you pay yourself first or put money in your savings account BEFORE spending your paycheck, you establish a habit that your goals are most important to you.
2. Evaluate Your Wants vs. Needs
   1. Sometimes our priorities can get a little out of whack and a monthly examination of what we think we need can go a long way. What can you get cheaper or use less of? What can you renegotiate? What can you eliminate?
3. Consistency Matters
   1. Just like any other skill in life, budgeting takes practice and consistency. There will be months that you can’t seem to stay on track. But keep at it. Soon enough, it’ll become second nature.

Click here to read more about how to create a budget and download our FREE Spending and Saving Plan here.