5 Tips To Keep Your Budget Simple And Functional

 Budgeting comes easily to some people. With heightened organizational skills, abacus-like minds, and a penchant for delayed gratification, these natural planners make penny-pinching, number-crunching, and maxing out one’s 401K look as simple as boiling an egg.

For many, however, budgeting is about as comfortable as a straight-jacket made of angry fire ants. Thankfully, even the naturally disorganized, mathematically challenged, and impulsive shopaholics can become much better at managing money by following a few easy tips.

5 Tips To Keep Your Budget Simple And Functional
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Here are a few simple and pain-free ways to become more fiscally responsible and live within the parameters of a budget.

1. Take Baby Steps

If you’ve ever watched Bill Murray in What About Bob?, you will likely remember that the secret to overcoming his fears was to take baby steps forward. The same is true when it comes to conquering one’s aversion to budgeting.

According to “What’s Your Budget Personality?,” it is best to start small by tracking everything you spend in one week vs. the money that you bring in. This will provide you with valuable insight into your spending habits.

2. Use Paper Money

When you whip out your debit or credit card to make a purchase, it is easy to forget that you are spending actual hard-earned cash. In order to avoid over-spending, it is best to operate with paper money. As you see those dollar bills leaving the palm of your hand, you will be forced to reconsider impulse buys.

3. Go Paperless

Unless you have mastered a strict filing regime, keeping track of dozens of crinkled-up receipts can be a pain in the posterior. Stop searching your pockets, shopping bags, and car console for tiny pieces of paper and opt, instead, for a receipt organizing and archiving app like Shoeboxed.

4. Try 50/20/30

No. This is not the combination to a safe full of money. It is, rather, a financial rule of thumb to live by. According to The Huffington Post, no more than 50 percent of your net pay should go towards necessities such as housing, transportation, utilities, and groceries. 20 percent should go to debt repayment, retirement, and savings. And the final 30 percent should go towards lifestyle choices such as cable, internet, phone plans, charities, entertainment, grooming, and shopping.

As long as you have met your first two obligations, you will not have to feel guilty about splashing out on a big lifestyle expense.

5. Use Visual Aids

If you have difficulties sticking to a savings plan, you may benefit from placing visual incentives in strategic places. For example, putting a photo of the Eiffel Tower in your wallet may prevent you from spending cash that is earmarked for your dream trip to Paris.

Whether it’s an image of your desired retirement life, a new car, or a home, visual incentives can help you stay on track and avoid impulsive financial decisions.

By following a few easy budgeting tips, you can gain control of your finances and make dreams for the future a reality. No fire ants required.

What is your favorite personal budgeting tip?

Kimberley Laws is a freelance writer, avid blogger, and former Personal Banking Account Manager. You can follow her at The Embiggens Project.

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