Sticking to a Budget

[Suraya Yasmen]

Sticking to a Budget

Now you understand the finer points of budgeting. You've accomplished all of the above, even put together a nice spreadsheet that lays out your budget for the next 15 years. The only problem is that sticking to that budget isn't as easy you thought. That credit card still calls your name, and your "clothes" category seems awfully small and you feel deprived. Budgets, you decide, are no fun.

The good news is you don't have to throw it all out the window, just because you've messed up once or twice. Here are some mental and physical tricks to ensure that the budget sticks.

Remember the Big Picture
The point of the budget is to keep you out of overwhelming debt and help you build a financial future that will give you more freedom, not less. So think about how you want your future to be and remember that keeping to your budget will help you get there. Adding to your debt load, on the other hand, will mean that your future could be even tighter.

Remove the Options That Allow You to Cheat on Your Budget
Make it more difficult on yourself to make impulse purchases; in other words, set up barriers so you have time to stop and think: "Is this purchase necessary?" Take yourself off retailer email lists. Remove your stored payment information on your favorite online shops so you can't just click to order.

Find Some Support
If you feel like you're the only one in your group who is on a budget, search and find some like-minded folks. It could be an online forum, a monthly meeting or even just a couple of friends who are traveling the same budgetary road. You need to know you're not the only person setting sane financial limits for yourself. You can also have accountability with your frugal buddies, talking things over and each other out of temptation.

Go Old School
There's something powerful about handing over a stack of $20 bills for a purchase: It causes you to really think about the amount of money you're about to spend. Swiping a debit card, on the other hand, doesn't feel nearly as real. Similarly, paying bills by writing checks and promptly entering the sums into your register keeps you up-to-date on how your account is affected in a way that autopay doesn't. You don't have to use cash exclusively or completely forgo online payments, but handling transactions in old-fashioned ways can make you realize how much you're spending and enhance the power of self-regulation.

Reward Yourself
If you are constantly looking at what you have to cut and give up, the very act of budgeting will become distasteful. A mixture of long- and short-term gifts to yourself will help keep you motivated. When you've been faithful to your budget for a month, give yourself a reward. Even small ones can help, such as a night out with friends, a concert or a little extra cash for spending. Keep visual reminders of these rewards or the things you're saving up for. Start building associations in your brain – that sticking to your budget has a pleasurable result.

Schedule a Periodic Budget Evaluation
It's difficult to predict how much money you'll need in every category of life; a new job may necessitate a wardrobe change and your clothing budget may not cut it. That's why it's important to have a regular check on how you've created your budget. If it isn't working, then tweak it. It is your budget, after all; just make sure you keep your long-term financial goals in the picture.

Educate Yourself
Instead of taking the more common road of instant gratification, which leads so easily to overspending and endless debt, learn all you can about finances, money management and how you can best invest in yourself. Talk to your financially savvy friends and get real-world tips and advice from people who are doing well with their money. The more you learn about handling money wisely and its rewards, the more concrete the reasons for budgeting will be, and the better you will be at not only creating a budget that works for you, but also sticking to it.

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