How to Get the Most Out of Your Budget
budget (Photo credit: 401(K) 2013)
A budget can be a great way to keep your family’s finances on track, but it’s not always easy to stick to one. You may go shopping and find an item that you want, but didn’t plan for. The refrigerator may stop working. Your child may bring home a school expense you weren’t expecting, such as a field trip or class gift. The unexpected happens, but that doesn’t have to derail your finances. Here are some tips on getting the most out of your budget.
Stick to Your Budget
Although it’s hard sometimes, you need to stick to your budget. Otherwise, what’s the point? The budget is in place to guide your spending and ensure you’re making smart financial decisions for your family. Don’t compromise your family’s needs for an impulse buy. All of your purchases should be carefully planned. Bills should be paid on time. Shop with a Buyincoins coupon code. Every dollar you bring in should be accounted for in your money plan to ensure there are no budget leaks.
Play Money
One of the best ways to stick to your budget and make it easier on your spouse to do so is to allow for discretionary spending. Most people call this “play money.” The money can be used at that person’s discretion. For example, if your husband wants to go out for drinks with his friends, he must use his allotted play money to pay for it. Once the money is gone, it’s gone, so use it wisely. You can do the same thing with your children, and give them the option to save it or spend it.
Save for Emergencies
An emergency can quickly derail even the most carefully planned budgets, so it’s important to prepare for emergencies in advance. To accomplish this, work on building up an emergency fund. Keep at least $1,000 in your emergency fund at all times to cover car repairs, unexpected medical expenses, purchase or repair of appliances and other types of unexpected expenses that must be taken care of. This will help keep your budget on track and prevent you from taking on credit card debt to cover the expense.
Get Back on Track
Most of us fall off the budget bandwagon sometime or other, but it’s important to pick yourself up, dust yourself off and get back on track. Don’t let a mistake keep you down. You don’t have to give up on your budget just because you bought one item you shouldn’t. You may have to think of creative ways to come up with some extra money to cover your splurge, but count it as a lesson learned and get back to your budget immediately.
By following these tips, you’ll be less likely to bust your budget in the future. By being prepared and allowing a bit of wiggle room for discretionary purchases, you’ll find it’s easier to stick to a tight budget. If you make a mistake, don’t give up! Your finances are a work in progress, so keep plugging away at it.
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Category: Budget
