Many Americans live just one paycheck away from total disaster. Most of them would tell you that they just need more money and their finances would turn around significantly. Many of them don’t know that if they started using a budgeting system, many of their issues would be solved. Money has a tendency to migrate to people that pay attention to it and manage it well. They’re like employees that enjoy micromanagers. On the other hand, they run away from people that don’t give them much attention. By the time you finish reading this document you will learn some great tips on how to stick to a budget.
First of all, you will need to learn how to create and maintain a budget. This topic goes beyond the scope of this article, so we won’t go into too much detail. You can find many sources available to do this. Simply, check your favorite search engine for “budgeting,” to find the right system that will suit you. Personally, I use Dave Ramsey’s system for budgeting and it’s worked out pretty well for me.
Get your spouse or significant other on board.Â
One of the most important ways to stay on budget in your household is to get the all monetary contributing members involved. If your husband or wife disagrees with your budget, you will find a hard time sticking to it.
A great way to get your spouse or significant other involved is to schedule a monthly meeting to discuss the budget. Just pick a date during the month that you both can work on it. The budget doesn’t go into effect unless both parties agree to it. One member can write up the budget and another can approve the numbers.  That way, neither of you can argue on the budget being unfair.
This also turns into a great relationship builder for you. It increases the amount of communication and honesty between couples. Studies found that money issues center at the root of the majority of divorces. By adding honest and responsible communication about finances to the relationship, you could save yourself from being a part of that statistic.
Be old fashioned, use cash.
I’m a big fan of the envelope system. Here’s how you do it. Get a few envelopes and label them, “groceries, transportation, entertainment, etc…” fill enough cash in each of those categories, to last the month.  Use only that cash for those expenses. For example; when you go grocery shopping, you take the grocery envelope, and only spend from that envelope. No cheating either. You cannot use gas money to buy that extra loaf of bread. When you run out of cash for that category, that’s it. It’s a great way to keep you from overspending.
Reconcile your checkbook daily.
If you always know what your money does, you’ll never get surprised or caught off guard. Many people will go into overdraft and without knowing how they got there. Then end up taking massive fees and a damaged credit score. Keeping your checkbook up to date will help you paint a realistic picture of what’s going on in your financial life. Many people dread it, but once you start making it a habit of making edits daily, it gets a whole lot easier.
It helps if you signed up for internet banking and know how to use a spreadsheet program like “Microsoft Excel” or the free software “Star Office Calc.” When you set these up, reconciling your checkbook takes no more than a couple of minutes per day. I highly recommend internet banking, because most banks offer a “bill pay” feature, free of charge. This makes paying your bills on time, incredibly efficient and easy.
Quit Smoking & Drinking.
This seems like a no-brainer, but I needed to throw it in there. Cigarette prices keep climbing and the prices for alcoholic drinks at bars get outrageous. The average beer at a Las Vegas nightclub can run close to $10! If you can’t quit indulging in these vices just yet, I highly suggest you create a “blow” fund set up in a cash envelope for each month. Use that money to spend on it. If you run out of cash, then you cannot buy those items for the rest of the month.
Use the debt snowball to smash debt.
The debt snowball is one of my favorite methods for eliminating debt. You start by organizing your debt from smallest principal balance to the largest. You then pay off the smallest as fast as possible, while paying the minimum monthly payments on the rest. Once you paid off the smallest balance, you then apply that payment to the next debt on the list. You keep working your way up this ladder until you eliminate all your debt. By the time you pay off the last debt, your monthly payments will be massive and it’ll get paid off in now time.
Bring home lunch to work.
Let’s make a conservative estimate on what you can save by not eating out during your work lunch hour. You buy a meal for $5. Doesn’t seem like much right? Or does it? At 5 days a week, that’s $25 per week. $100 per month. $1200 per year.  In 5 years you will spend $6,000! That’s a lot to spend on burgers and fries, if you ask me. Instead, if you were to invest that money in a mutual fund for 5 years, at 10% compounding interest, you would come out with $8,058.73. Your wallet gets fatter and your waist thinner. A diet plan I can live with!
Once you start tracking your wealth religiously and your expenses stay relatively low; staying on budget gets quite easy. Remember to plan your budget so that you spend all your money on paper before you actually get it. Any “overages” could just lead you astray. A good idea, would include an investment fund put in your budget planning, and treat it as you would any other bill. This way you aren’t only saving money, you’re making it as well!
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