Budgeting often feels like a taboo word in personal finance.
We know we should be doing it, but let’s face it: it’s hard to sit down with the numbers when our day-to-day lives are so busy. Juggling a job, trying to get to the gym, seeing friends and family, and, of course, making time for yourself – all of this can make budgeting seem like a daunting task. It’s intimidating to sit down with the numbers when you’re afraid of what you might discover.
To stick to a budget effectively, we need to change the mindset that sees it as a burden stopping us from living our best lives. Think of a budget as a tool that helps you achieve your financial goals. It puts you in control, allowing you to decide where your money goes, rather than the other way around. A budget also provides a sense of security about your financial future, making sure that your hard work leads to long-term stability. While following a budget can be tough, it’s essential for good financial health and is something we, as South Africans, can no longer ignore. Here are some simple and practical tips to help you stick to your budget and secure your financial future.
Set Up Automated Payments
Make your life easier and automate your monthly payments.
Aside from debit orders for your car, insurance, or cellphone, you can set up automated transfers into your investments or savings so that your future self is prioritised as soon as your money hits your bank account. Many bank accounts allow savings pockets that you can also set up automated transfers into. This will allow you to immediately prioritise the important items in your budget and leave only what you want as cash flow available in your account.
Use a Budget Tracking Tool
Save time by downloading an app that can track your spending in real-time.
Tracking your spending digitally is a good way to become mindful every time you spend. Mindfulness is key to sticking to your budget as it provides a real-time opportunity to make sure you’re spending on what matters to you. Some local examples of budget tracking apps and tools are 22seven, Goodbudget, and Nedbank Money.. This allows you to track on the go and makes your life a little bit easier when you setup a date with your budget.
Have an Accountability Buddy
People perform far better in the gym, in business and in budgeting when they know they need to report back to somebody.
Get a trusted friend, partner, or family member to hold you accountable. Ask them to check in with you from time to time. Knowing someone will ask about your progress can help when your willpower starts to weaken. If you run a household together with your partner, even better! Setup weekly or monthly money dates where you look through the numbers together. Make sure to do it with your favourite beverage in hand.
Allocate a Portion of Your Money to Spontaneous Spending
Give yourself the freedom to have some fun with your hard-earned cash.
It’s important to give yourself leeway to feel free when you need to. Set aside a portion for spontaneous spending so that when you access it, you take the time to consider whether it’s the right moment and context to splurge.
Finally, the most important tip of all is to keep going. Staying true to your vision and consistently working towards it is the highest form of self-respect. Remember, it’s just like perfecting one of your grandmother’s recipes, mastering the art of braaing, or training for a marathon. The first attempts aren’t always the best, but the key is to practice. The more you practice, the more you’ll see the magic happening.