5 Tips for Updating Your Budget

5 Tips for Updating Your Budget

How often to you update your budget? Weekly? Monthly? Quarterly? Depending on your circumstances, your list of expenses and income could always be evolving, just as life is always changing.
Here are 5 ways to keep your budget updated regularly:
1. Set A Reminder
Reminding yourself to do this can be done in multiple ways if you are a semi-organized person.
If you keep a daily check list of all you need to accomplish throughout the day, or maybe for the week, just jot down a note about revising your budget. You can even set a weekly alarm or add a note on your phone!
Budgets are easy to forget about, but if you write down a reminder and keep it with your daily to-do’s, you won’t have an excuse!
2. Alter Your Mindset
When it comes to getting a handle on your finances this year, make an effort to consciously think about your money management and if it could use some improvement.
Many people start off the new year motivated to earn a better living, save more, spend less, invest wiser, etc. but that motivation may slowly wear off as time goes by.
By staying more conscious, you are reminded of the fact that you only have X amount of money to spend on certain expenditures, and you might be less likely to overspend.
3. Track Your Monthly Spending
If this isn’t your first time budgeting, take a look at the past year. Where did you go wrong? When did you spend the most? How much do you have saved?
Make a list of all your recurring expenses for the projected next few months. For instance, necessities like rent, mortgage, utilities, child care, insurance, car payments, etc.
Add them all up to make sure the money coming in is more than what is going out each month. Be sure to alter your budget if your income changes.
4. Don’t Forget the Little Things
After examining all your major bills, it is time to take a look at the little things that are hard to group into a large monthly bucket.
Tracking how you spend money on a day-to-day basis is important to analyze. To track your money effectively, you could keep a small journal of expenses for the next three months.
Knowing where each and every bit of your money is going will give you financial peace of mind in the long term.
5. Make A Plan
Make a plan, but also be prepared for the unexpected. Do you have an emergency fund? Less than half of Americans have $1,000 in savings for emergencies.
Chances are, you are part of a vast majority of the United States that have debt from credit cards, college, grad school, etc. Paying off your debt should be the first priority on your list for 2018. This will release a huge burden off your shoulders, and you will thank yourself in the end.
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