The longer you stick with it, the better you get.
Whatever your goals are, know that any sound financial foundation starts with an emergency fund.
Decide where you want to be financially next year and the year after.
Tina Russell/The Penny Hoarder
Is Your Paycheck Not Going As Far As It Used To?
We get it.Everythingis more expensive than it used to be, but your paycheck hasnt kept up.
When money is tight,these resourceswill help nearly everyone.
Theres No One-Size-Fits-All Budget.
But ultimately you have to choose the one that works for you.
If youve got an ambitious goal, we recommend trying azero-based budgetfirst.
To make a zero-based budget, start by prioritizing your expenses from essential to nonessential.
Then, assign every dollar in your paycheck a job on the list until you run out of money.
Zero-based budgeting is great for jot down A planners.
If you prefer to be a little more loosey-goosey, a50/20/30 budgetis a great option.
With this approach, you dont have to think too much about your expenses.
There are many out there, whether you like to enter each transaction manually or see everything updated automatically.
(We likeQuicken Simplifi,CleoandEmpower.)
Once an envelope is empty, youre done spending in that category.
you might keep receipts in the envelope and examine your purchases later.
Envelopes are best for categories youre prone to overspending on.
For most people, popular categories for envelopes are restaurants, groceries, clothes and entertainment.
Salaried employees will have it easy when they calculate their incomes.
If you have a variable income or side hustles, youll need to do some additional accounting.
Then, find your average monthly income and the average amount of each paycheck.
Expenses like utilities can be unpredictable.
One is when its Dec. 23 and youre still not done with your holiday shopping.
Who couldve predicted Christmas would be on Dec.
25,AGAIN!?
Open a separate checking account or savings account where you put money every month to cover these infrequent expenses.
We dont mean you gotta find better sales and clip more coupons.
Some of our favorite tips to cut spending are:
There are countlessways to save money.
Do everything you might to resist the temptation to make impulse purchases or spend beyond your budget.
By contacting your providers tonegotiate your bills, you could lower your bills once or twice every year.
Stop when you feel youve reached a good deal.
Oh, and be prepared to be on the phone for a while.
Things will change and go wrong.
Impulse purchases will be made, and budgets will get obliterated by lifes little surprises.
The most important tip for budgeting is to not give up.
When things go wrong, alter your budget to compensate.
When you have an inconsistent income, you’re free to follow all the budgeting tips above.
Budgeting Tips With a Partner
Another challenge is budgeting with a partner.
Whoever enjoys budgeting more can make the budget, but the other partner still has to contribute something.
Whether they change one line or many, we repeat: They must contribute.
Feeling included is important to working as a team on your finances.
So, she turned to money-saving guru Dave Ramseys podcast.
Hours of Dave Ramsey helped change his mindset.
Both people need to be flexible with the others priorities and supportive of their goals when budgeting.
Budgeting together wont be easy at first but itll lead to a lifetime of financial strength and happiness.
Jen Smith is a former staff writer at The Penny Hoarder.
