Easy Budget Tips is one of the most searched topics each month. Have you been struggling to stick to a budget? Well, you are not alone. Many of us struggle until we find the best tips to make our budget work for us. Once you find the best budgeting method that works for you, everything else will fall into place.
Many people don’t have control over their money, which means they can’t tell you where your money is going each week or month. This habit ends up putting many people in deep debt and most are living beyond their means.
Everyone can set a budget regardless of their financial situation. Done right, budgeting is an effective way to take control of your finances and helps you achieve your financial goals much faster.
Budgeting doesn’t have to be scary or difficult, and these simple budgeting tips for beginners below will show you that with the right information it can be done. The idea is to implement budgeting tips that are realistic so you don’t end up depriving yourself.
Below are practical and effective ways to help you manage your money. Super easy to follow and will help you save money on a monthly basis. Budgeting doesn’t have to be complicated. Do not panic.
1. Set realistic budget goals
Setting realistic budget goals is one of the easiest budgeting tips for beginners. A budget is the foundation of a healthy financial life. It helps you keep track of your spending by letting you know where your money is going even before you spend it. Setting your goals first will make you focus and you will be able to prioritize what is important.
When you set your goals, think about what you want to accomplish, such as whether you want to save for an emergency fund, a vacation, or to pay off debt. Your why will be the greatest motivation. You need to know what you are working for. Writing down your goals will keep you motivated to stay on track.
2. Track your spending habits
It’s time to get really honest with your spending. A spending tracker will help you see where you might be overspending and where every dollar is going. Keep track of every dollar you spend on a weekly or monthly basis. Tracking your spending habits will show you the areas you need to reduce and maximize your savings.
We all know the famous quote that failing to plan is planning to fail, it applies a lot when it comes to budgeting because without having a solid plan for your money you will end up spending aimlessly which could put you in debt.
3. Implement cash envelope budgeting systems
Using cash only is one of the most effective simple budgeting tips for beginners. The cash envelope system is when you take out spending money allocated to each category for the month and put it in a specific envelope. You carry those envelopes with you and use that cash for intended purchases. When the money is gone; it’s gone wait next month. These could include categories like groceries, food, and entertainment.
Dave Ramsey really advocates cutting back on credit cards and sticking to cash. This method gives you discipline as it helps you avoid any impulse purchases and you will end up saving more money. The best part is that you can make smart spending decisions.
Any time you pay cash for something, you tend to seriously think about your spending. Which helps you stop overspending.
4. Apply the 50/30/20 rule
The most effective way to budget that works for you and be financially conscious is to know where your money is going. The 50/30/20 rule method is perfect when it comes to simple budgeting tips because it takes all the guesswork out of budgeting by showing you how much money to put into different financial categories.
This method divides your monthly income into three separate categories which are essential expenses, personal choices, and financial priorities. You will know how much to allocate to your expenses, choices and priorities.
50% of your monthly income goes to the things you can’t live without. The needs. This includes things like food, transportation, utilities (electricity and water), and mortgage or rent.
30% of your income goes to personal choices. Your wishes. Things like cable, phone bills, clothes, entertainment, and eating out.
20% goes to your savings. Does saving for a vacation, debt, mortgage, retirement savings, whatever, fall into this category?
5. Prioritize needs over wants
To create a budget that works, you need to separate wants from needs. For example, your electric bill is a need, while your cable subscription is a want. Your priority should be on the needs. The essential has to come first.
6. Save an emergency fund
Emergency funds are a lifesaver and take away so much stress and reduce the chances of you going into debt. Life happens and sometimes situations arise that force us to have money immediately. If we are not prepared enough, we end up in debt or we end up spending the money destined for other things.
You can keep your emergency fund in a savings account, make sure it is readily available. You have to be disciplined enough not to withdraw money from the account unless it is an emergency.
7. Get rid of all subscriptions and extra memberships
Do you have subscriptions and memberships that you no longer use? Even though you have a magazine subscription that’s only $2, it’s time to let it go. $2 may not be a lot of money, but the overtime adds up and your money can be put to better use. Consider canceling things like gym memberships, cable, and subscription boxes.
Once you’ve tracked your spending as mentioned above, you now know if you’re living within or above your means. If you’re still confused about how to do it, just subtract your total expenses from your total income. This should be a great motivator for you to cut back on a few things.
8. Lower your grocery bill
Groceries take the lion’s share of the utility bill. There are so many ways that you can lower your grocery bill. One of the most effective ways is have a shopping list with you at all times when you go shopping. A shopping list will help you buy only the things you need, which reduces waste and prevents impulse purchases. It is a good mechanism to help you stick to your budget.
Another tip is buy in bulk. Buying non-perishable items in bulk is much cheaper and more convenient. It will not only save you money but also time. Always compare unit prices before making any purchases because sometimes buying in bulk doesn’t always mean you’re saving money.
The meal plan is another great way to lower your grocery bill. Meal planning is a great way to lower your grocery bill since you’ll know what you need from the grocery store and the exact amount, which means you’ll only buy what you need. Meal planning is very important and is perfect if you normally struggle with what you eat and cook. Helps you be stress free, save time, reduce your grocery bill. $5 meal plan is an affordable service that makes meal planning possible. It allows you to get a fresh meal plan delivered directly to your inbox.
For $5 a month, they will send out a meal plan where each meal will cost $2 per person, and sometimes even less. No need to stress out late nights trying to figure out what to make for dinner now. It’s time to take the guesswork out. Super easy to follow recipes and you will also get a shopping list to help you organize your shopping trip.
9. Earn more money
This is optional but it never hurts to earn extra money, right? If you are looking to pay off some debt, then looking for ways to earn more money is your best approach. There are so many online jobs you can take to work from home and earn money that will help you reach your financial goals faster. More posts on the ways you can earn extra money are:
15 High Paying Jobs From Home That Can Make You $1500 Every Month
10 passive income ideas you can start today
28 Real Side Hustles For Housewives
10. Save up to 40% on your online purchase
Another easy budgeting trick is to look for small ways to save as much money as possible. People who are on a saving mission always get cash back on their everyday purchases. Wouldn’t you love to earn cash back on your purchases too? There are so many cash back programs and apps that make it possible for customers to earn free money on items they purchase regularly. You can get rebates on just about everything, from toiletries to clothing to kitchen essentials.
Rakuten formerly known as Ebates is one of my favorite cash back programs. You get up to 40% cash back when you buy through Rakuten. There are over 2,500 popular stores to choose from including Macy’s, Target, Walmart, Amazon and Kohls. The best part is that you not only earn money for free, but you get lots of deals, free gift offers, flash sales and amazing discounts. .
Rakuten always has a lot of deals, which means you’ll end up saving a lot of money on your purchases. They send you your cashback rewards in the form of a “Big Fat Check” or money transferred to your PayPal account. I personally use PayPal. sign up Rakuten It’s totally free and takes about a minute.
You just need to download Rakuten browser extension and every time you visit an online e-commerce site that is eligible for rebate, you will receive a notification.
11. Buy used
Every time you want to buy something it doesn’t have to be new. If you’re looking to stretch every dollar, then buying used makes the most sense. There are so many places where you can look for used items such as consignment stores, eBay, poshmark, yard sales, thrift stores, Craigslist, and Facebook Marketplace.
I hope you found these 11 Easy and Realistic Budgeting Tips for Beginners helpful. They will help you save money and are a great way to set yourself up for financial success and reach your financial goals.
It’s time to start spending less and saving more!