How to stick to your monthly budget

Budget_insetWhen you move away from home to a new city, sticking to your monthly budget can be a daunting task. But we are here to make things a little easier for you. Here are some tips on how to plan and stick to your monthly budget.

Allocate an appropriate budget

The worst thing you can do is set a budget that is too low or unrealistic. If you do that, you are asking to fail. Make a plan and set out a proper budget that is reasonable and achievable.

Set goals for yourself

Work toward something and reward yourself when you reach a goal. So, if you have saved money and stuck to your budget for the whole month, be sure to treat yourself for doing so.

Find the deals

Deals can really help when you want to save money. From a few dollars off at the grocery market to discount coupons for a meal, be sure to keep an eye out for new deals around town.

Be strict

You need to be serious about your spending habits. Every dollar counts when you are budgeting, and that seemingly cheap meal up-size will actually make a difference in the end.

Find some support

If you are the only one in your group of friends who has to stick to a tight budget, find someone who is in the same boat as you. Work together to save money and plan your finances. When you have a buddy, everything is easier.

Only take cash out

When you have a credit card on-hand, you are bound to feel the pressure of using it. Only take out the money you want to/can spend on a night out or to lunch, and plan from there. This will help you avoid over-spending. Leave the credit card at home if you can!

Evaluate how you are doing

Be sure to regularly check if you’re on track with your budget. If it isn’t working, make a new plan and work from there. Budgeting is all about trial and error.

Keep a note of what you are spending your money on

The best thing you can do for yourself is figure out what you are spending money on. From small packets of chewing gum at the corner shop to filling up the car with fuel or ordering lunch, be sure to note everything you are spending money on. Then at the end of the month, you can see where your money is going, and whether you are spending it on the right things.

For insights into managing your money once you enter the workforce, check out Money tips for savvy young professionals on the Knowledge Blog.