Sticking to a budget can be hard to do but we all know it’s one of the best ways to save money. The heart wants what the heart wants … and it’s easy to give in to impulse purchases that can get you off track.
Now is the best time to improve on your financial wellbeing. Whether that is paying down debt or trying to find ways to reduce your monthly expenses, read on for tips about sticking to a budget.
Open a separate banking account solely for paying your bills. This is an easy and effective way to stay on budget, and possibly save a little extra money every month. Having a separate account dedicated to essential expenses makes it easier to be sure you don’t use that money for any other purpose. Use another account to keep track of how much you have to spend on extras like dinner out or new shoes.
Determine which monthly expenses are essential. Obligatory expenses are ones you cannot get out of without losing something such as rent/mortgages, utilities, cell phone, car, and debt and loan repayments. This should also include day-to-day living costs such as childcare.
Once you’ve identified your essential monthly expenses, set up direct deposits into your designated account to cover the total amount. It’s also useful to keep a slight cushion in the account at all times, to avoid accidentally over drafting the account.
Review nonessential spending every month. When nonessential expenses come out of their own account it’s easier to see where your money is going and decide if it’s worth it.
By sticking with these simple tricks, you can stick to a budget and begin to save money.
Source: https://www.apartmenttherapy.com/checking-account-utilities-36877780