Sticking to a budget can feel a lot like sticking to a diet.
First, tally up your monthly take-home pay.
This is the total amount of calories you have available to spend.
List all your fixed monthly expenses like rent, car payments, insurance, etc.
These are the essentials you cant cut from your diet.
Whats left is your budget calorie allowance.
This is your monthly limit for variable costs like dining, entertainment, shopping, etc.
Meal plan your expenses
Plan out how youll spend your budget calories for the month.
Just like meal prepping, decide ahead of time how much to allocate to each spending category.
Build your budget around needs before wants.
Allow some wiggle room for unexpected treats, but limit them.
Automate savings transfers and bill payments so the money isnt tempting to spend.
Use those bank statements to inform what items make your official to-buy list.
When you shop with a list, youll find it easier to resist impulse purchases.
Avoid browsing aisles aimlessly like youre hungry at the grocery store.
Focus on needs over wants.
Transfer that $10 to savings or your next weeks dining budget.
Allow yourself to splurge
Eliminating all treats can lead to bingeing when willpower runs out.
Similarly, allowing a small budget splurge now and then prevents you from rebelling and overspending.
For restriction to really work, it’s crucial that you be flexible and gentle with yourself, too.
Otherwise, you risk financial bingeingoverspending or avoiding budgets altogether).
Forming ahealthy relationship with moneymeans indulgingthoughtfully.
Ask yourself, How do I expect this purchase will make me feel?
What do I want it to make me feel?
What feelings am I trying toavoidby buying it?
If youve let your compensatory spending go overboard,heres moreon how to fight against so-called revenge spending.
Be flexible and adjust as needed
Re-evaluate your budget needs monthly.
Make adjustments based on changing financial circumstances, goals, or overspending triggers youve identified.
Just like with dieting for weight loss, a solid budget leads to financial fitness.
The key is give yourselfsomekind of structure, but allow yourself the wiggle room necessary to have sustainable results.
