Effective Stress-free Budgeting Tips For Beginners

Are you currently someone who have been researching on budgeting? Search no more! I have got you covered with these effective and stress-free budgeting tips.

Before you understand the tips, it’s important to understand why it’s necessary to have a budget in the first place.

A recent study by FINRA says a high number of Americans, 56 percent, have a significant fear of running out of money in retirement, yet less than half of those surveyed reported having an emergency fund worth three month’s savings.

This study also reported that just over half of respondents have a household budget. So, 44 percent of people are both living paycheck-to-paycheck and are doing so without a budget!

Have an Effective Budget to Avoid Running Out of Cash

I tell you honestly, the only way to avoid running out of money and to gain financial freedom, especially during old age or after retirement is to start saving, investing and multiplying your money early. Early could be in your 30s, 40s, or even 50s. Whatever age you are now, it’s never too late to do things right. The only way to have spare money to do these things is developing an effective budgeting system.

Have an Effective Budget to Avoid Being a Bad Example

Here’s another bitter truth, many children lacks good management of money and resources as a result of their upbringing. Their parents do not plan their money, they do not have a system for effective budgeting and, “Like begets like” you know?

Therefore, it is fundamentally important that every mom should consider having an  effective  budget. If you don’t want to do it for yourself, at least, do it for your children. Let them learn from you. Let them grow up to be good managers of money and create better life for themselves.

Have an Effective Budget to Take Control of Your Financial Destiny.

Once you know how to create an effective budget, you’ll have what it takes to charge of financial destiny. You wouldn’t be spending recklessly anymore. Additionally, you’ll finally be able to live within your means which 80% of families fail to do.

When you learn how to do it, you’ll have this incredible power to say no impulsive buying. You will only say yes to the things that are really your “needs” and not just “wants”.

The True Power of an “Effective Budget”

When you learn how to make an effective budget using the tips I’ll show you later, you’ll become a role model to your children, your friends and community. You will also be able to accomplish a lot of things.

Having an effective budget will enable you take control of your finances, and live the wealthy lifestyle that you know you deserve. No longer are you going to be at the whims of impulsive buying which have plagued your money in the past.

Not only will it put you on the road to build wealth, but think what it will do for the relationships you have with others. It will be a good example for your children. It will earn you the respect of friends and relatives. Your spouse will value you more. It will inspire others who also want to create a budget.

You can’t settle for staying the same- what message would that be sending to the ones that are close to you?

More Reasons Why You Should Have a Winning Budget

  • Speedy Executive of Family Projects.

When a husband and a wife come together to plan, they easily executes many projects. This is because they already have a structure and a system for money management.

For instance, a family may want to start up a business, or a school, now, because their resources are well managed, they are able to have more money on ground to execute projects faster.

This is why budgeting is important, it helps you to make better financial decisions and stay focused on long term financial goals.

  • Have More Money Available for Saving

When your finance is well planned out, you will be compelled to cut down on unnecessary expenditure. This will enable you have reserve from which you can save.

There was a law coined coined by a man called Cyril Northcote Parkinson in a humorous essay he wrote for the Economist in 1955. It says that work expands to fill the time allotted. Put simply, the amount of work required adjusts to the time available for its completion.

Paraphrasing, in the context of Financial management, it could be said that expenses will always rise to meet income. As your income increases, so will your needs. If you truly desire financial freedom, you must learn to overcome this law.

When you have unexpected income, save it. When your income increase, save it. This is better achieved if you have a budget and stick to it.

  • You Will be Saved from Unnecessary Embarrassment

Because you’re taking your time to plan ahead, no one will come harrassing you because of money you owe them or the bills you haven’t paid.

I remember when I was younger and lived in a rented apartment with my parents, the landlord always come by the end of the month and would practically embarass any tenant who is yet to pay.

When you have budget, you know what comes up when and plan ahead. Nothing takes you unaware except for emergencies or natural disaster which should even be planned for when budgeting.

  • It Will Enable You Get Out of Debt

Many people go into debt because they try to live above their means. One of the principles of good money management is living below your means.

When your income tallies with your expenditure, there will be no need to look for extra money, there will be no need to go into debt.

Though there are exceptional cases of having a mortgage, but I’ll advise that you plan to stay as much as possible from debt.

  • You Will Be Able to Prepare for Emergencies
  • You Will Earn Respect and Admiration From People.
  • Effective Budgeting Helps You Track Expenses.

How To Create a Winning Budget

Understand Your Salary Structure

How much do you earn per month? How much do you earn on a weekly or daily basis? This is what would determine how much you spend. Ensure that your expenditure is less than your income.

I know this is easier said than done. Considering all the benefits we mentioned above, don’t you think a little inconvenience will make things better in the long run?

Think about this!

If you will ever build wealth, you must learn to spend less than you earn. You must be disciplined, you must learn self control.

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Set 20% to 30% as Reserve

By setting 20-30% as Reserve, I mean save this amount of income monthly.

Save from every paycheck. Save unexpected income. Usually, whenever unexpected income comes, unexpected expenditures follow it. It’s called Parkinson’s Law. The Law States that expenses will always rise to meet income.

It’s important that you don’t let this happen to you by ensuring you have a system for savings.

Choose a Tool to Make a Budget

There are many Online tools available for this. I personally use microsoft excel. There budget planning apps you can download from Google play store in order to be able to track your income and expenditure.

YNAB is also an app that can help you to easily track your expenses, gain total control of your money and reach your financial goals easily. It can be downloaded from an app store.

There is a 34-day free trial so you can try out the app before committing to paying for it.

Another app for this is Mint app.Mint is a free budgeting app that syncs users’ bank accounts, credit cards, PayPal.com (PYPL) – Get Report accounts and other accounts to help track incoming and outgoing money. … Mint also tracks users’ bills and is able to provide alerts to ensure they won’t miss a payment.

Do a budget and let the budget control your spending

Don’t Compare Yourself With Others

Life is in phases and men are in sizes, understand your status per time. The same way you’re looking up to someone, there’s another person is looking up to you.

No one can have it all. Gratitude is a virtue for everyone that wants to climb the ladder of success.

Sometimes, I get trapped in the comparison hole. What I do to get out of this rut is gratitude. I look at the things around me at the moment and become thankful. I look at my phone, I look at the laptop, I look at the roof over my head, I look at the ability to read and write and become overwhelmed with gratitude.

Yes, you may not be where you want to be yet, but thank God for where you are today. When you practicing this habit every single day, what you have become magnified and what you don’t have yet become diminished.

There’s hope for the living! As long as you keep working on your goals daily, you will make progress but don’t forget to be thankful for today.

Draw a Budget Plan and Stick to it.

What activities do you want to participate in in the next one year on two years? What projects, personal or family do you want to take on, what places would you want to visit.

These are the things that should come into your intinery.

By planning out your meals each week and taking a good look at what you already have in your pantry before you head to the store, you save money on groceries. Because why would you want to buy more of what you already have? And if you really want to stick to your list—leave the kids at home.

Your first need to have an itinerary.

Buy Things That Suits Your Needs

It’s important to maintain a balance in your spending. Don’t buy things out of impromptu when you don’t really need them.

When you do a budget, you will be surprised to see how much you’re actually spending in the grocery store monthly. From personal experience, I discovered that half of the things we buy without planning are things we don’t actually need.

If you settle down to create a budget and buy the things you really need, you will have money left over to save.

Action Steps to Help You Improve Budget Skills

  • Set a one year goal: Make a rough draft of everything you want to accomplish this year and start from there.
  • Separate your wants from your needs: An economist say human wants are unlimited but the resources for satisfying the are scarce. No matter how much you make today, it will never be enough for your “wants”. This is why you need to separate this two and make a budget for the things you really need.
  • Track where you spend your Money: What are activities that tend to make you spend money impromptu. Cut down on those.
  • Save Your Money From Source. We have something called Providence Find in my office. Your monthly savings is deducted even before it gets to your account. This makes us save compulsorily. You can give a standing order to your bank to pay a certain amount to a fix deposit account before it gets to you. Hence, you will be compelled to save.
  • Get a Financial Coach: This way, you will be accountable for your income and expenditure. A financial coach can also help you discover favourable investment platforms through which you can grow your income.
  • Get your budget on paper: For some people, writing with pen and paper is easier and more measurable to them than software. If this is you, never worry. What matters at the end of the day is having a workable plan to help you control your spending.





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