[sc name=”ad_disclosure”][/sc]
The colder months can be a tough time for your finances. With an increased usage of gas and electricity and Christmas just around the corner it can feel like your money is just disappearing before your eyes. But creating and actually sticking to a budget is still possible if you know what you’re doing. Here’s are 3 easy things to do that will guarantee you stick to your budget!
Create good money habits
At the heart of every budget is a strong set of healthy money habits. It takes on average around 66 days for a new behaviour to become automatic. That’s just over two months to get into good money habits. It might be tough to start with but once those money behaviours become automatic they can be life changing for your finances. Here are 3 money habits you should be practising as a basic:
Meal planning and prepping
You might be thinking “what has food got to do with making a budget” but the answer is quite a lot actually. The cost of groceries (like a lot of things) has risen quite sharply and failing to plan out meals could result in costly grocery bills. By creating weekly meal plans you can figure out exactly what you need from the supermarket and avoid filling your trolley with unnecessary items.
Batch cooking is another good habit when it comes to saving money. Cooking up big portions of your favourite dishes then freezing them means your less likely to spend on takeaways or midweek supermarket trips because you’ll always have something in.
Frequently review your bank accounts
If you’re just starting out your journey to better finances then it’s recommended that you check your bank accounts daily. This makes you completely aware of where all your money is going. Frequently tracking where your money is going always you to clearly see any unnecessary spending. Once you’ve got into this habit and made some changes then you can switch to reviewing your accounts weekly rather than daily.
Know your fixed and variable costs
Fixed costs are any payments that don’t change month to month. So things like rent/mortgage, insurance, council tax, utility bills on a direct debit etc. Variable costs do change month to month so this will be things like socialising, grocery shopping, clothes shopping.
Your first job is to make sure your fixed costs are actually the best deal you can get. For example if your current mortgage deal is coming to an end then it’s wise to shop around for a new deal and not just let your current deal run out. Once you’ve got the best deal you can for all of your fixed costs (and hopefully made a saving at the same time) then it’s time to turn your attention to your variable costs.
Since you should be reviewing your bank accounts at least weekly then it’s wise to note down variable costs on a weekly basis. This can be on a spreadsheet or even just on a note on your phone. Once you can see in black and white just how much you’re spending on all your different variable costs it can put you in the mindset to make some cutbacks.
With these 3 healthy money habits, creating and actually sticking to a budget should be off to a flying start. However if you are after more budgeting advice then I have two more important points that will help you stick to that budget. For more budgeting information then check out debtconsolidation.com.
Get your direct debits in order
I’ve spoken before about why it’s super important for your finances to get all your bills in order and going out of your account around the same time. But put simply, I get paid on the 25th of each month. Imagine I have my mortgage payment date set to the 5th of each month, my utility bill to the 15th of each month and my council tax to the 20th of each month. That means my direct debits completely own me, I spend the whole month paying off bills here, there and everywhere and I never truly know how much I’ve got left for emergencies, savings and treats.
Now let’s look at this way. I get paid on the 25th of each month. On the 28th of each month I have all of my direct debits leaving my bank account. I have no bills left to pay for the rest of the month and I can afford to split what’s left between my savings, treating myself and leaving some where it is for an emergency or unexpected cost. Which option sounds better? The second one of course!
Be fluid with your budget
By this I don’t mean you can just forget about the budget as and when you like. I mean that it’s important to recognise that your budget might change and that’s totally OK. If you’re too strict with yourself and try to stick to an unrealistic budget then you’re more likely to give in or blow all your money because you feel like there’s no wiggle room to treat yourself. Treats are OK, having to adjust your budget is OK. Budgeting isn’t about creating one plan and sticking to it forever. It’s designed to change with your finances, to work alongside those months where money is tight and those months where cash is flowing a little better. Budgeting ultimately is giving you control over your finances, making your money work for you and giving you a better relationship with your bank accounts. Don’t be afraid to try out now things and find ways of budgeting that work for you!
This is really helpful! I do have good money habits and check my accounts regularly but I did not thought of planning all me payments in a specific day to have the overall control of how much I have available to spend and/ or save.
Thank you for these tips!
It’s a really useful tip for getting a good grip on your finances.
Excellent read. Reviewing our bank accounts is definitely a job we need to take care of soon!
Yes, it’s a really important tip for getting a true handle on your finances.
So many great tips. I bieve food planning and meal prepping can be a game changer. I will definitely check all my other habits and try to incorporate new healthy budget friendly habits. Thank you for sharing. ♡
It really is a game changer because it’s such an easy thing to do too!
Direct debits are a great way to stay on top of essential payments- and you need to cancel any that you no longer need to pay for. Understanding what’s coming out of your account and into your account is so important. Thanks for sharing Lauren x
Yes definitely. It’s always best to regularly review your direct debits. I know a few older relatives who have had direct debits coming out of their accounts that they didn’t know about so it’s always good to remind people to check these things.
Really great post. I love that your direct debits all come put around pay day so you know what you’re left with for the month. I have a budget that I try to stick to each month, which includes an amount for savings. I try to set aside an amount for those days I want a takeaway or to go to the cinema too so it’s not too strict.
Thanks. The direct debits tip is one I think is super important because it really does get your finances in order.
Meal planning definitely helps me stick to my budget! Love the tips Lauren x
Thank you! Meal planning is just such an easy budgeting tip but it really does help.
Great tips! Batch cooking is a great idea to save time and money. I’ve been tracking my expenses every month, but I guess it’s better to do it more frequently since I haven’t been sticking to my budget lately.
Until you get into a good routine it’s always better to track your money more regularly.
Fab tips! I think being fluid is super important, treating yourself is crucial to maintaining more of a balance. Thanks for sharing x
Yes definitely! Everyone needs a treat, it’s just about moderation!
Meal planning is something be really need to get better at – it would help us so much, I’ll have to take some time and do it properly! X
It’s honestly one of my favourite budgeting tips because it’s just so easy and simple but it really does help!
Reviewing my bank regularly has been a game changer for me. Its not quite the same as handing cash over but it’s not far from it!!
Yes! I think that’s the thing now, so many people don’t use cash regularly (I know I definitely don’t) and it just becomes so easy to lose track of what you’re spending.
These are some helpful tips on how to stick to your budget! I always try to meal plan, it makes a huge difference
Meal planning is honestly one of my favourite budgeting tips.
Meal planning has saved my husband and I so much money as we’re not buying food on a whim (or when we’re hungry). These tips were nice and easy to understand which makes them better to implement — thanks for sharing!
Thanks! I think that’s what a lot of people need though, easy to understand tips that can allow them to succeed!
Such an informative and helpful post just in time for the holidays!
Thank you. I’m glad you found it helpful.
Budgeting is tricky. I find that having a bank account for fixed costs and one for variables helps,
That’s a really great tip!
Good advice that sadly, is not common practice or knowledge anymore.
I think financial education is something that’s really lacking in schools.