Focus on your CANs, not your CAN'Ts
Budgeting gets a bad rap. For the longest time, I saw my budget as the buzzkill that prevented me from doing anything enjoyable with my money. Budgeting doesn't have to be about limits and restrictions. Done right, it can help you afford the things you love most.
I love treating myself to takeout every week. I know making food at home is cheaper, but it's a splurge I look forward to. My budget helps me free up funds for this habit by showing me where I can cut costs on things I care less about, like clothing and streaming services.
Find a strategy that isn’t overwhelming
Different experts promote different budgeting approaches. In the end, the one that's best for you is the one that makes the most sense for your situation -- and the one you're most likely to stick with…
Play around with several strategies to see which one works best for you. I initially thought zero-based budgeting would help me be more disciplined, but I quickly realized its painstaking, dollar-by-dollar approach made me want to never look at my budget again. So I've landed on the envelope method, which helps me control my spending without overwhelming me.
Keep it simple
A budget should challenge you to be smarter with your spending, but it shouldn't feel like torture. Getting too aggressive, especially at the start, only sets you up for failure. Be honest with yourself about how achievable the goals are that you set for yourself.
For example, If you're struggling to save, a large goal like saving $500 each month might be too big a 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 tweak your budget later to challenge yourself more. First, you need to establish a workable baseline so you don’t burn out before you've even picked up speed.
Let your phone do the heavy lifting
I'm old enough that I remember the days of checkbook balancing and Excel spreadsheet budgets. If an old-school approach works best for you, have at it. For most people, the fewer steps they need to take, the more likely they are to keep on top of their budget.
Budgeting apps do the tedious 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 tons to choose from. I use Rocket Money because I like its user-friendly interface and $6 per month price tag.
Include your savings goals
A budget isn't just a way to keep your spending on track. It's also a way to ensure you're putting aside enough money to reach your goals. Don't forget to include a line in your budget for monthly contributions to your emergency fund and any specific savings goals, like your vacation fund or retirement.
Check in regularly
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're still meeting your needs.
For example, if you consistently go over in a category you've already trimmed as much as you can, you could cut costs in another category or find a way to earn some more income. Your budget is never set in stone.
Give yourself some grace
No one -- or at least, no one I've ever met -- manages to stick to their budget 100% of the time. Life happens, and you're only human. Instead of throwing in the towel when you have a less-than-stellar month, consider next month a fresh 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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The good news is, one you find your budgeting style, and begin to see the results of your hard work, it’s all worth it. It feels great to be able to tame your finances. Stay on track. Even put away some money in savings! Regardless of your financial situation, you CAN budget. Just follow these tips, and you’ll be on your way!