5 Ways to Set a Budget and Stick with it

Let’s face it, no one likes to set a budget. It’s a hassle to try to keep track of your spending every single day and it’s no fun to feel like you’re restricted financially. But if you want to get, and stay, out of debt than setting a budget is a necessary evil.

The good news is that setting a budget and sticking with it doesn’t have to be hard. In fact, it’s a lot easier and rewarding than you may think. The key is to set big goals and continue to enjoy small rewards over time.

1. Create your budget. This is your vital first step and entails taking a close look at where your money is going. Start by writing down each of your expenses. If you have a record of the exact amount of your spending be sure to include it, if not then just provide an estimate. Then compare it to your income and see the difference. If there’s some left over, add it to the savings category, if not then find ways to make cutbacks in each area so you can either pay off debt, grow your savings, or both.
2. Set a big goal. The ultimate goal of setting a budget is to find ways to get out of debt. Therefore, decide when you want that to happen – whether it’s two months or two years away. By having that goal hanging over your head, you’ll be more likely to stick to your savings plan. Already debt-free? Then make sure you’re saving enough in your emergency fund – and then find other goals to save for, like a new car, family vacation or a rainy day.
3. Leave your credit cards at home. Impulse buying can be a real problem if your credit cards are with you. For some people, the temptation of that new outfit or gadget is just too much to avoid when you have a line of credit at your disposal. Sticking with your budget is easy when your credit cards are at home and you have no access to them.
4. Budget for fun. Make sure you take the time to budget for the fun things in life. You’ll feel less deprived and sticking to your budget will feel worthwhile when you know there’s a reward coming up.
5. Be realistic. If you’ve set goals that just aren’t doable then your budget isn’t any good at all. For example, if you usually spend $150 a week on groceries, trying to shave it down to $50 is impossible. By creating a realistic spending plan, you’ll be able to stick with it.

Finally, make sure you keep checking in with your budget and make adjustments, if needed. For example, if you’ve paid off a credit card after a few months, put that amount to the next card and start to tackle that. You’ll be amazed at how easy and rewarding budgeting can be when you’re achieving those financial goals!

Bio: Maria Rainier is a freelance writer and blog junkie. She is currently a resident blogger at First in Education, researching areas of online kinesiology degrees. In her spare time, she enjoys square-foot gardening, swimming, and avoiding her laptop.


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