Budgets are getting super popular among the under-30s. In fact, 74% of millennial Americans say they have a budget.
But if you are not meeting your financial goals, is your budget working? Could some budgeting tips and tricks help you reassess your current budgeting system?
The answer is yes! If you are a young person in need of some fresh budgeting ideas, here are some tips on how to create a budget that works for you.
Figure Out Your Money Goals
It is much more difficult to figure out how to stick to a budget when you do not know what you are budgeting for.
There are lots of great reasons to budget your income to save money. Some of these are:
- Emergency fund (3-6 months worth of expenses)
- Pay off debt
- Mortgage/house
- Retirement
- Vacations
- Education
You could be saving for one of these or none. Or, you might be living paycheck to paycheck at the moment and want to keep your account in the black.
Whatever it is, know the amount to the cent that you want to save. It will help you stay motivated.
Take Note of Your Spending Habits
One of the best budgeting tips is to learn exactly how you spend your money. A lot of banking apps have pie charts that display where you spend most of your money e.g. bills, groceries, shopping, and entertainment.
If not, go through your last three bank statements. The result may surprise and shock you into realizing where you need to cut back.
One thing under-30s are guilty of overspending on are electronic upgrades. New phones, new watches, and new TVs. If you have overspent and need to sell your possessions, you could make a decent amount by selling an apple watch or second-hand iPhone.
Create Your Budget at the Start of the Month
Mark your calendar for the first of the month and budget for that month’s expenses. Planning regular budget sessions is one of the best budgeting tips and tricks that will help you stay on track.
But do not forget to look ahead! For example, you might need to buy tons of Christmas presents in December. And you might be going on vacation in June.
Plan your budget around monthly expenses.
Choose the Right Budget for You
Aside from budgeting tricks, there are different types of budgets you could use.
Some people need a strict budget and will plan their month’s budget down to zero so they can account for every cent.
Others will never keep track of everything so they will work better with an “un-budget.” This is where you set up a standing order every month for the amount you want to save into your savings account as soon as you receive your payslip. Anything leftover is yours to spend!
Choose the best type of budget for your money mindset and savings goals.
Make Your Budget Realistic
It is great that you have high expectations, but do not be unrealistic. As you already know, money does not grow on trees.
You can only save the money you earn.
Take Note of These Budgeting Tips and Tricks
It is never too early to get serious about your finances. By learning some budgeting tips and tricks now, you are making life a lot easier (and more lucrative) for yourself later.
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