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Monday, April 5, 2021

How to make a monthly budget and stick to it?

 




Budgeting is not easy. Do you have a bad month and you are discouraged and want to give up? Do you think you can keep your budget in your head and that’s good enough? You might, and it might be, but for most people, that’s not the case.

Budgeting is essential because it helps you reach your goals. It’s an incredibly valuable tool that anybody can master. It just has a steep learning curve for some.

If you want don’t know how to make a monthly budget and then stick on it, then this blog is for you!

Go For a Lower Credit Card Limit

Usually, credit cards with high limits are easy to rack up and hard to pay down. But if you want to make your monthly budget then you have to reduce this temptation! Go for a lower credit limit and pay it off more frequently so you never get trapped.

A good rule of thumb is to stick to a limit that you can pay off at one time (eg. using an emergency fund). That way, you can cover your purchases with minimal or no interest while building your credit in a healthy way.

Budgeting To Zero

Budgeting to zero rule means that while creating your budget, your income minus your expenses add up to zero.

Income - expenses = $0

When you budget to zero, you give every dollar you earn a job, even if that job is savings or an extra loan payment. You don’t give yourself a buffer or extra padding. This is a radical way to take complete control over your finances.

Budgeting to zero doesn’t mean you spend every dollar you earn. Neither does it mean that you’re stuck with your categories for the month. On the contrary, it is a great method to start a savings program by working your savings into your budget and to keep that budget flexible so it can change with the curve balls life throws at you.

Go minimal

Minimalism has been a growing trend in the last couple of years. As such, it has collected a good deal of both praise and cynicism. But, aside from the hype, there is value to it from a financial perspective.

Here's how you can get started with minimalism: identify your needs and wants. Reduce the wants and stick with the necessities. This will reduce your spending right away and it’ll be much easier to keep yourself on track. New pair of Nikes are out now? Good thing your pair from last year are still intact. $100 Saved!

Buy Wholefoods

There are some foods like brown rice and oats that are cheaper in less processed form. Make sure to buy whole foods as they are often sold in large quantities.

For example, you will find whole grains cheaper than processed ones.

Say no to Junk Food

Junk food is easily accessible everywhere. Their availability has made it difficult to avoid. However, if you want a healthy diet on a budget then you have to say no to junk food.

Meanwhile, junk food is unhealthy as well as it is expensive too. If you will get to know how much you are spending on sodas, cookies, and other processed foods you might be surprised.

Try to buy in Bulk

This is a tremendous way to eat healthy on a budget because buying money in bulk can save a lot of money. Many unprocessed foods such as grains, millet, barley, oats, and brown rice are available in bulk.

These staples food are relatively inexpensive and help in a variety of healthy meals.

Replacing Meat with other proteins

Replacing meat with other proteins could be helpful to save money. However, you could replace the meat with other proteins like eggs, legumes, or canned fish. These all the products are cheap while gives a rich amount of proteins needed for your healthy meal. 

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