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We have all heard the saying, you can’t track what you don’t measure, so how do we know how well we are doing on our budgeting goals if we aren’t tracking it well?? Here are 4 tips to level up your budget!
It’s not enough to just set a budget at the beginning of the month and hope you stick to it. You will be left wondering where all the money went at the end of the month and why you seem to be always going over budget!
In order to level up your budget, you need to track, measure and adjust to ensure the plan is working.
Follow these easy steps to level up your budgeting.
I think if you are following me, by now you know how to create a basic budget which I spoke about in this post – Budgeting for Beginners. But just creating the budget is not enough. You actually have to take a few more steps in the process to ensure you are actually sticking to the plan you made.
Taking the first step to making a budget is a great start! You may also want to write our your financial goals before you create the budget.
Let’s talk about what comes next!
Unfortunately, to ensure you are following the budget well, you actually need to track everything you spend at least for a couple months at a minimum to ensure you are actually spending what you planned and not going over. So keep all receipts, or take a notebook and write it all down, or use an app that tracks your accounts. Whatever you do, record every penny and give it a category as well.
Assigning a category to your spending will help you identify the bigger picture trends in your spending habits.
Balance Your Budget
At the end of the month, tally up all your spending by category. You will then compare the results against your budget estimate from the beginning of the month. Did you overspend, underspend or are just on track?
What insights can you gain from reviewing your spending habits vs your budget.
Adjust your budget categories for the next month
By reviewing your spending and seeing how you did – you can know whether you need to make adjustments in your next months budget. A budget should be changeable and be able to suit your needs as they change.
With these steps you will level up your budgeting skill and really ensure you are living up to your goals you set for yourself.
Find more posts like this one in the Budgeting Section of our blog