How I Budget (Budget tips 2021)

“A simple fact that is hard to learn is that the time to save money is when you have some”- Joe Moore

Is it just me who overspend money for food each month and messing up the budget plan? It is time to get my budget in check and stick to them. My wife and I share the monthly bills and household budget. However, when she got redundant at work, I now pay for most of the bills. Since we moved and rented our flat, we tried to be organised on our expenses and save even a little. We both love to dine-out/eat out, but since we been on a lockdown for quite some time now, whenever we crave something, we try to make our own version at home. And most of the time, we overspend our money on food/ingredients (food shopping/grocery) which is not a big deal. But I want us to stick to our monthly budget.

I came up with some ways how to create, manage and stick to a household budget and allow me to take control but not to feel deprived of impossible goals.

1. GET ORGANISED AND DO NOT GUESSWORK: Review your outgoings and monthly bills. We normally have the same expenses and bills every month. Some of the bills are already set up through direct debit and we know when they are taken out of our bank accounts. Unnecessary outgoings and purchases can be avoided if you have a budget plan.
2. BE REALISTIC AND DO NOT OVER-DO: Write it down. Every Sunday evening I sit down and plan our meal for the coming week and also write down a shopping list. At the end of the month, I write down my monthly budget. Check out my blog about BUDGET 101 ⬅️ click this link to read.
3. KEEP IT SIMPLE AND DONT CONFUSE YOURSELF: Create a spreadsheet or use excel. I create and plan my budget for the following month at every end of the month. I prefer writing it in my journal and compare it every month if there were any changes and if I mess up the budget. Check out my blog about BUDGET 101 ⬅️ click this link to read.
4. ROUND IT UP AND DO NOT LOSE A PENNY: I don’t usually write the exact amount in my budget plan. For example, my monthly electricity bill is £24.50, I round it up to £25 on my budget plan. In this way, when you check your bank balance there will be some excess £££.
5. GIVE YOURSELF SOME BREATHING SPACE AND DO NOT WORRY: Put a buffer in your budget each month for unexpected costs and allow yourself little purchase as long as it won’t break the bank.
6. SET YOURSELF LIMITS AND DO NOT GO OVERBOARD: Withdraw cash for non-direct debit bills. Do not overspend your cash on hand. I give myself a certain amount of weekly allowance that I can spend on anything. If I spend it all up, then I stop buying anything.
7. REWARD YOURSELF AND DO NOT FEEL GUILTY FOR DOING SO: My wife and I reward ourselves in meals that we crave or some cheeky purchases on amazon if we need it or want it. But normally, if we think we don’t need it and it can wait then we discuss it and decide.
8. MESSED UP? DO NOT GIVE UP: I am very guilty, I do mess up every month with our household budget. However, I look forward to the coming month to try to stick and improve my budget. It is normal to mess up, as long as you learn from it and try not to do the same mistakes again.
9. STICK TO THE HOUSEHOLD BUDGET AND DO NOT GET TEMPTED: My mindset is if I have a budget or some extra money for something, then I am allowed to be tempted. Otherwise, I ask my wife her opinion about it and we both decide if we can buy it.
10. ADAPT YOUR HABITS, DO NOT CUT THEM OUT: I admit, that I am struggling to keep this habit but I will be doing this for the rest of my life until I perfect it. I got used to spending money when I have it and when I want something, which is a very bad habit that I should quit.

I am happy that I have my wife who is better at handling money, who help me manage my finances. I told her that I want to be frugal and be wiser with my money. She advised me that you can be wiser with your money without being frugal, you only need to have a goal. This goal is going to be your inspiration for why you are on a budget and saving some money. So find a BUDGET BUDDY with who you can be accountable in budgeting. They can be a partner, a friend or a family member, make sure you have a monthly check-in of your budget.

And that is how I stick to my budget- we budget with a goal. We work hard to achieve our goals while we don’t feel deprived and still living in the real world. Just remember the key to a successful budget is to be
REALISTIC AND DON’T EXAGGERATE IT. We can all do this!!!

Thanks a bunch for taking the time to read my blog. Until the next one.

Lots of Love,

Rainne