How to make your budget a success

As they say—out with the old in with the new. If you’ve been working on sticking to your New Year’s resolutions and managing your money better is one, don’t forget to create a new budget while you’re at it.

Here are a few tips on how to start a new budget and let the good times roll. Before you know it, you’ll be saving money and tracking your expenses like never before!

Income

Did you experience an increase in your income this year? If so, you will need to calculate how much of an increase you made compared to last year. You never know where you’re going until you know where you’ve been, right? You will want to look at how much money you’re bringing home so you can later determine how much you’re spending and how you’re spending your money.

Maybe you can get rid of your Netflix subscription to save money. If you’re one of those people who craves going to the yoga studio every week–maybe you can keep the yoga sessions in your life, but practice at home.

If you haven’t had an increase, write down your income anyway.

Budget

Next, you’ll want to figure out what expenses you’re paying with your income. Click here for more on how much of your take home pay should be spent on certain monthly expenses.

Make a list of what you want to cut back on. Look at what you spent the last six months and calculate how much you’d be saving if you scaled back. When you see that number, it will influence your decision to make a realistic budget and stick to it. 

Money Tracking Sheet

Create an Excel spreadsheet to help account for every dollar spent. That way, if you go over your budget, you know exactly how it happened and make the proper adjustments.

Stay Motivated

All good things take time. When you want to backslide into your old spending habits – remember why you started! It’s a new year and a new you. 😉