After becoming a single mother in my early twenties, I had to get good at budgeting fast. It took a little bit of trial and error because I worked in a job that had a small bonus system, which meant I couldn’t count on an exact amount each month, and what was there one month might be missing the next.
This meant that I had to keep my costs low, and stick to a strict budget for when my money fluctuated.
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Making a Budget
Creating a sensible budget is the first step to getting budgeting right. Too many people set unrealistic spending goals when they first start making budgets and it just sets you up for failure. This is a common theme amongst budgeting beginners, and can leave you disheartened when you can’t stick to it. You need to look at ways to help you stick to your budget, such as using a budget calculator.
Failure in the beginning can put you off trying to work to a budget again, which can mean you spend more money in the long run.
If you create a realistic budget, you’re far more likely to keep within your planned spending, which will be great for your spending. Click to learn more about how to make a successful budget.
Sticking to a Budget
Once you’ve made a budget, the next step is to stick to it. There are a few ways to encourage yourself to spend within your given limits. These are my favourite ways:
Take cash shopping
If you don’t find it easy to keep in with your intended spending limits when you’re out shopping, it might be time to change how you pay. It’s too easy to pick up impulse items in the supermarket, telling yourself you’ll stick to your budget another time. Generally, another time doesn’t come and and reckless spending will continue.
If you only take the amount you want to spend out with you in cash, it’s impossible to go over budget. By leaving other payment methods at home leaves you with no choice but stick to your budget.
Learn how to do ‘no spend’ weeks
‘No spend’ weeks are popular in the money savvy community. In fact, the ‘no spend’ concept is so popular, there are even people who try to do it for a month or a year!
The ‘no spend’ doesn’t literally mean you can’t spend a thing, instead it means you can’t spend your money on anything that isn’t essential. So once your bills are paid, the only thing you can spend on is your budgeted money for groceries and fuel/transport.
This method is pretty full-on, but a great way to go cold turkey on impulse spending if you notice that’s where most of your money goes. Try it for a week to see how you get on.
Budget separately for leisure and special occasions
Whether it’s your children’s birthday, a friend’s hen do, or a romantic weekend away, all special occasions and leisure need their own tailored budget.
Ideally, you’ll put some money aside every month for these things, whether you have much planned or not. That way, you won’t suddenly find you have to spend more than you can afford to join in or get a gift.
If you have nothing planned, still allocate that money and separate it from your main account. Some months will be busier than others, so you’ll be glad of a small fun fund when wedding season hits.
Related: Looking after your finances when you have a family.