We know that budgeting isn’t easy, why do you think there are so many blogs, books and articles about it?!
Creating a budget is one thing, but actually sticking to it is another, right? Some tips work well for some and not so well for others. The right tips and budgeting plan for you will depend on your age, situation, and personality, as well as your attitude towards money. Which is why, we have compiled 5 of the top budgeting tips, especially for young singles. So, if you’re young, single and ready to take control of your budget, read on!
Remember that a budget is only a planning tool
It is important to remember that whilst a budget most definitely has its place, it is essentially a planning tool and should be used alongside other tips and methods too.
When used correctly, a budget allows you to decide how you’re going to save your money, pay your bills and reduce that looming credit card debt. However, your budget doesn’t do it all for you – the rest, well, is up to you! Don’t have a budget yet? Check out our budget planner here.
Keep track of your expenses
Do you ever get to the end of the month, find that all your money has gone and have absolutely no idea where it went? – You’re not alone. This is why, in conjunction with a budget, you need to keep track of your expenses.
Tracking your expenses is by far the easiest way to determine where all your money is going and where you may need to cut back. And we mean all your expenses, not just the substantial ones (yes, even your smashed avocado). TrackmySpend, by ASIC Money Smart is an extremely helpful tracking tool.
Set some goals
As with anything you want to achieve, setting goals is the first place to start. It’s important to ensure they’re S.M.A.R.T. goals too!
Setting goals (smart ones), creates additional motivation to get moving! They also remind you of the reason behind your goal and why you really want to achieve it. Whether your dream is to save a deposit for a home, pay off your credit card, or something more exciting like going to Europe or purchasing a new car, smart goals can help you achieve them.
Self-awareness is really important. So, if you’re not self-aware already, you need to become that way.
Why? Because if you don’t know where you’re at, how do you know where you need to go? And if you don’t know what your concerns, strengths and weaknesses are, how do you know what you need to do and what you need to change?
Becoming more self-aware may lead you to realise you’re spending more on certain items than you realised. or something deeper like purchasing a certain item for more than just the obvious surface reason. Either way, becoming more self-aware is likely to help you in more ways than one.
Focus on what you’re doing
In this day and age, particularly with social media and technology forever in our faces, we are spending more time than ever focusing on what others are doing. Let’s change that shall we? Focus on what you’re doing! What does this have to do with money and budgeting, you might ask?
Well, when it comes to money, particularly when we’re young, sometimes we spend more money than we have or can afford just to fit in with our friends, the latest trends or because we’re simply too shy to say no. We purchase a new outfit we know we can’t afford, because we don’t want to be the only one at the party recycling the clothes in their wardrobe. Or we say yes to a group dinner at the new expensive restaurant, because we don’t want to be left out, even though we know it will really break the bank.
As hard as it can be to feel left out or embarrassed, it’s not worth putting yourself in debt (or further debt). And what you don’t realise is that your friend who is always going out to expensive restaurants and purchasing new outfits, may actually be drowning in credit card debt themselves.
With a budget and these tips combined, you will be well on your way to achieving your financial dreams.
Need a little more help or are finding it difficult to get debt free? Contact us today to receive honest and sympathetic advice, without judgement.