Simple budgeting tips that actually work

I actually consider myself a thrifty guy but my "saving" system has weaknesses and limitations. Of course, I slowly discovered them one after another through different personal experiences and I would be glad to share them here where hopefully many would relate and learn from. The idea of budgeting is quite simple but the hard part happens when the implementation begins.

savings

But before anything else, I just would like to bring up that we do have different reasons why we budget. I know people who budget in order to save to buy a specific something, save for an emergency fund, save for a dream business, or simply just save without any current plan for it. Even though whatever reasons will those be, I think one of the best takeaways here are the learnings along the progress which we'll tackle as we go deep into the article.

Though there are short-term solutions when unplanned expenses occur like doing online loans for those with poor credit or even using those credit cards to solve those bills, still, making the most out of your wealth and income should be prioritized. And this is where budgeting comes in..

Tip no. 1 - Smart and Precise allocation

Make sure to allocate specific things that are reasonable and attainable. Of course, basic needs should be the first ones to be addressed here. Just make that you don't sacrifice the quality over the price when it comes to saving on this aspect as a reminder. Include a separate allocation for emergencies, future investments, and something for yourself.

Usually, we just generally save and use it when something comes up. We do it recklessly as long as the budget is enough. Well, it's not wrong to do it but having a specific allocation for things is like a 2nd barrier (aside from the general savings) to thinking it through if it's really, really worth it.

Key point: When you allocate, you immediately separate it from your income the minute you receive it. Most saving do not happen because many do it after spending. As a self-proclaimed frugal person, even I have a hard time fighting this. I don't want to have the money on my hand because it's tempting to do plans that are not on the budget. And most of the time, when I start spending, I go all the way because I don't want to keep those changes in my pocket. My perfectionist mind tells me to just spend it so I can contribute to the economy in some ways by purchasing stuff. Well, again the idea is not wrong but the habit being created is not healthy.

Feel free to check Chinkee Tan's site for more financial tips and advice who happens to be a popular wealth coach/advisor here in PH.

P.S. Do not forget your tithes people

budgeting 101

Tip no. 2 - Create a system or a habit that will enhance the consistency of your budgeting 

I started budgeting when I was still a kid. It actually came naturally for me to sacrifice my meal allowance for school to save for the things I wanted then. It even came to a point where I don't eat during breaks just to be able to save. Well, it equipped me with the discipline to budget things easier and not feel so burdened to do it. So IF rewarding yourself from time to time matters, allocate a separate reasonable budget for that. The saving value of your budgeting increases when you do it longer, correct? 


Something that matters: The allocation of something for yourself. This would have been considered selfish if this article would have been published a decade ago. Self-care has been marketed by this generation as a priority and points are being raised well enough. Aside from that it prevents you from burning out and feeling so neglected of things, I think rewarding yourself is a great rest to re-energize and re-focus yourself to continue and be inspired budgeting.

online money wallet (G-CASH)

Tip no. 3 - Don't be afraid to do adjustments from time to time

Times change and as well as our living. Though sticking to the budget is an ideal condition, making changes is not a bad thing to consider. Missing a mark on the budget is normal so don't stop doing it just because you think it is not being followed. Adjust it accordingly as to where you think it is doable and slowly try attaining it next time.

The perspective: You will be surprised one day that you now have a working budget perfectly tailored for you and by you. But then at the same time, it is the mark to improving it more where you might have initially found it impossible to do in the first place but now it's not because of the improvements you've made. Congratulations!