Easy budgeting tips is one of the most searched topics every single month. Have you been struggling to stick to a budget? Well, you are not alone. So many of us struggle at it until we found the best tips to make our budget work for us. Once you find out the best budgeting method that suits you, everything else will fall in place.
So many people don’t have a hold of their money meaning they can’t tell you where there their money goes every week or monthly. This habit end up putting so many people in huge debts and most live above their means.
Everyone can set up a budget regardless of their financial circumstance. If done right, budgeting is an effective way to take control of your finances and helps you achieve your financial objectives way faster.
Budgeting doesn’t have to be scary or hard and these easy budgeting tips for beginners below will show that with the right information it is doable. The idea is to implement budgeting tips that are realistic so you don’t end up depriving yourself.
Below are practical and effective ways that will help you budget your money. Super easy to follow and they will help you save money monthly. Budgeting doesn’t have to complicated. Don’t freak out.
1. Set realistic budget goals
Setting realistic budget goals is one of the easiest budgeting tips for beginners. A budget is a foundation of a healthy financial life. It helps you to track your spending by making you aware of where your money goes before you even spend it. Setting out your goals first will make you focused and you get to prioritize on what is important.
When setting out your goals think of what you want to achieve for instance maybe you want to save toward an emergency fund, for a holiday or to pay debt. Your why will be the biggest motivation. You need to know what you are working towards.Writing down your goals will keep you on motivated to keep on track.
2. Track your spending habits
It’s time to get really honest with your spending. A spending tracker will help you know where you might be overspending and where every dollar goes to. Keep a record of every dollar you spend weekly or monthly. Tracking your spending habits will show you the areas you need to cut back and maximize your savings.
We all know the famous quote that failure to plan is planning to failure, it applies so heavy when it comes to budgeting because without have a solid plan of your money you will end up spending aimlessly which might put you into debt.
3. Implement the cash envelope budgeting systems
Using cash only is one of the most effective easy budgeting tips for beginners. Cash envelope system is when you take out your spending money assigned to each category for the month and keeping it in a specific envelope. You carry those envelopes with you and use that cash for the intended purchases. When the money is gone; it’s gone you wait for next month. These could include categories like groceries, food and entertainment.
Dave Ramsey really advocates for cutting credit cards and sticking to cash. This method gives you discipline as it helps you to avoid any impulse buying and you will end up saving more money. The best part is that you get to make smart spending choices.
Every time you pay for something using cash you tend really think seriously about your spending. Which helps you to stop overspending.
4. Apply the 50/30/20 rule
The most effective way to have a budget that work for you in place and to be financial conscious is to know where your money is going to. The 50/30/20 rule method is perfect when it comes to easy budgeting tips because it removes all the guess work out of budgeting as it show you how much money to put into different financial categories.
This methods divides your monthly income into three separate categories that is essential expense, personal choices and financial priorities. You will know how much to put towards your expenses, choices, and priorities.
50% of your monthly incomes goes towards the things you can’t live without. The needs. This includes things like food, transportation, utilities (electricity and water) and mortgage or rent.
30% of your income goes to personal choices. Your wants. Things such as cable, phone bills, clothing, entertainments and eating out.
20% goes towards your savings. Are you saving towards a vacation, debt off, mortgage, retirement saving whatever it is, it falls in this category.
5. Prioritize needs over wants
In order to come up with a budget that works, you need to separate your wants from needs. For example your electricity bill is a need while your cable subscription is a want. Your priority should be on the needs. Essentials have to come first.
6. Save up an emergency fund
Emergency funds are a life saver and eliminates so much stress and reduces the chances of you getting into debts. Life happens and sometimes situations come up that require us to have money immediately. If we aren’t prepared enough we end up in debts or we end up spending money allocated for other things.
You can have your emergency fund in a saving account, make sure it’s readily available. You have to be disciplined enough not to withdraw money from the account unless it’s an emergency.
7. Get rid of all the extra subscriptions and memberships
Do you have subscriptions and memberships that you no longer make use of? Even though you have a magazine subscription that is only $2 it’s time to let go. $2 might not be a lot of money but overtime it accumulates and its money that can be put into better use. Consider cancelling things like gym memberships, cable and subscription boxes.
Once you have been tracked your spending as mentioned above you are now aware if you are living within or above your means. If you are still confused on how to go about it simply subtract your total expenses from your total income. This should be a big motivator for you to cut down on somethings.
8. Cut down your grocery bill
Groceries takes the biggest chunk of utility bill. There are so many ways you can cut your grocery bill. One of the most effective ways is to have a shopping list with you all the time when going for shopping. A shopping list will help you to buy only the things you need which reduces waste and prevents impulse buying. It’s a good mechanism to help you stick to your budget.
Another tip is to buy in bulk. Buying nonperishable goods in bulk is much cheaper and more convenient. It will not only save you money but also time. Always compare the prices by the unit before making any purchase because sometimes buying in bulk does not always mean that you are saving money.
Meal plan is another great way to cut down your grocery bill. Meal planning is a great way to cut down your grocery bill as you will already know what you need from the grocery store and the exact quantity which means you will only buy the necessity. Meal planning goes such a big way and it’s perfect if you usually struggle with what to eat and cook. It helps you to be stress-free, save time, cut down your grocery bill. $5 meal plan is a budget-friendly service that makes meal planning possible. It enables you to get a fresh meal plan delivered straight to your inbox.
For $5 a month, they will send a meal plan where every meal will cost $2 per person and sometimes even less. No need to get stressed in the evenings trying to figure out what to make for dinner now. It’s time to take the guesswork out. Super easy to follow recipes and you will also get a shopping list to help you organize your grocery trip.
Get a Free 14-Day trial by signing up for $5 Meal Plan today.
9. Earn more money
This is optional but it never hurts to earn extra money, right? If you are looking to pay off some debts then looking for ways to make more money is your best approach. There are so many online jobs you can take up to work from home and make money that will help you reach your financial goals faster. More posts on ways you can make extra money are:
15 High paying work at home jobs that can earn you $1500 each month
10 Passive income ideas you can start today
28 Real side hustles for stay at home moms
10. Save up to 40% on your online purchase
Another easy budgeting hack is looking for small ways you can save up as much money as possible. People who are on a saving mission always earn cashback on their everyday purchases. Wouldn’t you also love to earn cashback on your purchases? There are so many cashback programs and apps that make it possible for customers to earn free money on items they regularly buy. You can earn cashback on almost everything from toiletries to clothing to kitchen staples.
Rakuten formerly known as Ebates is one of my favorite cashback programs. You get up to 40% cashback when you shop through Rakuten. There are over 2500 popular stores to choose from such as Macy’s, Target, Walmart, Amazon, and Kohls the best part is that not only do you earn free money but you get so many offers, free gift offers, flash sales, and amazing discounts.
Rakuten always has so many deals which means you will end up saving so much money from your shopping. They send your cashback rewards in the form of a “Big Fat Check” or money transferred to your PayPal account. I personally use PayPal. Signing up to Rakuten is totally free and takes like a minute.
You just need to download the Rakuten Browser extension and every time you visit an E-Commerce site online that is eligible for cashback you will receive a notification.
Sign to Rakuten (Ebates) today and get a $10 bonus.
11. Buy used
Every time you want to buy something it doesn’t have to be brand new. If you are looking to stretch every dollar then buying used makes more sense. There are so many places you can check out for used items such as consignment shops, eBay, poshmark, yard sales, second-hand stores, Craigslist and Facebook Marketplace.
I hope these 11 realistic and easy budgeting tips for beginners have been helpful to you. They will help you save money and it’s a great way to set yourself up for financial success and reach your financial goals.
It’s time to start spending less and saving more!
