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5 things to remember when creating a budget

KNOW YOUR NUMBERS

Knowing your numbers is one of the most overlooked, and yet most powerful ways to find money that is hidden in your bank account and drive it towards achieving your goals.

BUDGETS FAIL BECAUSE THEY AREN’T TRUTHFUL

The best way to keep your budget truthful is to think about it in two halves-the first is your true budget column, or what I call “What I think I will spend” completed at the beginning of the month, and the second half is your “What I actually spent column” completed at the end of the month so you can spot trends and make adjustments.

YOUR BUDGET NEEDS TO BE FLEXIBLE

Taking into account our second tip, your budget also needs to be flexible to bend and flex given whatever month you’re in. If you’re too rigid, budgeting becomes a chore.

SCHEDULE MONEY HAPPY HOURS

Schedule regular money happy hours on your calendar where you spend under 30 minutes a week looking at where your money has gone during the week and planning for what’s to come.

SET SOME GOALS

Goal setting is a critical piece of your budget. Your goals give your budget a job whether it’s saving money, paying off debt, or putting a percentage away for investing. Your goals dictate where you’ll put excess money. Remember every successful business follows a budget, and every financially savvy individual does as well.

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About

The Finance Bar is a personal finance suite helping women and couples achieve financial wellness through coaching, education, and an innovative learning hub on wheels. Creator Marsha Barnes is a Certified Financial Social Worker, Official FICO Brand Ambassador, and was named the 2018 Best Money Expert in the Net-Worth Category.

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