RichardContents
When you first start living on a budget life can be fairly tough.
For one thing, you have to deny yourself spending opportunities that you would otherwise have taken
In addition constantly tracking and monitoring your spending can soon start to get boring.
If you’re not careful sooner or later you’ll end up blowing your budget either thanks to a lack of attention or simply because you can’t take the pressure any more.
After all, when you’re surrounded by spending opportunities, trying to hold on to every last penny you can is difficult to say the least.
It’s only natural that sooner or later your defences will drop (even just a little bit) and you will start spending like you used to.
So what you do to make living on a budget as easy and painless as possible?
Living On A Budget: Tracking Your Spending
The first key to living on a budget successfully is actually sticking to your spending plan in the first place.
There seems little point in going to the time and effort of creating a budget, only to massively overspend every month.
The key to sticking to your budget is simple; it’s a combination of a realistic budget combined with suitable tracking.
This visibility means you’ll always know how much money you have spent – and how much is still available to spend.
Track Spending With An App
In terms of the practicalities of living on a budget, there are an assortment of simple cell phone apps that one can download.
Rather than having to collect receipts as you go about your daily life, or carefully annotating every expenditure in a notebook, tracking your budget on your phone can make life so much easier.
With the best of these apps you simply set yourself a weekly budget.
Then, whenever you spend money, you simply add it to your budgeting app. The sum of money spent is then subtracted from your weekly spending target.
The simple act of being able to check your “available balance” at any time can make living on a budget much easier; after all you can tell at a glance whether you can “afford” to buy something or not.
Even better, a number of these apps actually record whether you’re ahead or behind on your target. So, for example, if you overspend on Monday the app will let you know that you need to slow down your spending for a few days if you’re going to make your budget last all week.
These hints, while simple, can be very useful for living on a budget without having to carry around a notebook, pen and calculator to help you track your spending.
Go Cash-Only
A second option for living on a budget is going on a “cash-only” budget. In this instance you simply withdraw the total sum of money that you have available to spend that week and once it’s gone, it’s gone.
Having tried this technique in the past I can tell you that it is quite a sobering experience, watching your pockets empty out over the space of a week.
It can also encourage you to budget even more tightly than you do now, in order to retain as many of those coins and notes as possible. After all, if you’ve saved money earlier on in the week then you can afford a few “treats” when the weekend rolls around.
Kick The Cash & Pay With Plastic
An alternative is to go the opposite way; rely only on your debit card. Why? Because when you pay for everything straight from your bank account you don’t need to keep track of your expenses at all. Using a software package like Personal Capital means that your expenses will be suitably tracked and categorized.
What Is The Best Way To Live On A Budget?
Each of these three methods outlined has their benefits. Each person successfully living on a budget has their preference. It would be wrong to say that any of these methods is necessarily better or worse for living on a budget.
It is more a case of testing out each method in turn yourself to see what works for your own unique personality.
As a personal side note, having tested out all three over the years – each with a good degree of success – I personally now use the third option. I find it works well for me, and allows me to live a reasonably “normal” life without having to manually record every penny I spend.
That said, I have had years of living on a budget and carefully reducing my expenses. What works for me may not necessarily work for you.
Remind Yourself Of The “Why”
It’s unlikely that you’re living on a budget for fun; more likely there is a purpose to carefully controlling your spending. Perhaps you’re trying to get out of debt. Perhaps you’re saving for your future. Or maybe you simply want to make sure your money lasts a little longer each month.
Whatever the case may be it is important to keep this reason – your “why” – in mind at all times.
Keeping in mind why you’re putting yourself through this act of budgeting and self-discipline can help you to stick to your budget. It helps you to see the bigger picture and keep your eyes on the prize.
Find Freebies That Thrill
When you’re trying to avoid spending unnecessary money it can be all too easy to find yourself getting bored with life. After all, no new gadgets, toys, treats and so on can quickly start to get dull. Variety, as they say, is the spice of life.
But just because you’re trying not to spend money doesn’t necessarily mean life has to become boring. The key is finding things that cost little or no money yet still give you a thrill.
When you can happily spend a lazy summer afternoon relaxing in your garden with a good book that you borrowed from the local library or bought from a thrift shop for next to nothing living on a budget becomes much easier.
So take the time to consider all the things you enjoy doing that don’t involve spending money – and try filling your free time with these. Your budget will thank you.
Further reading:
Factor In Rewards
If we’re honest, living on a budget is rather like running a marathon. With enough practise you can go on and on, but eventually you’ll still collapse. If you want to keep going for as long as possible you’ll have to stop occasionally for a quick break.
The same can be said for living on a budget. If you never spend anything then sooner or later you’re going to get fed up. Taking the occasional break when budgeting can help to reward you for all your efforts and keep you moving in the right direction long term.
So while I would caution you against “going mad” with your spending, my personal experience is that having something to really look forward to in the future can be a powerful motivator for sticking to your budget between now and then.
Further reading:
Conclusion
Living on a budget isn’t rocket science. You simply need to find ways to avoid overspending in as painless a way as possible. When you can make living on a budget bearable you almost guarantee your results.
So consider how you’re going to track your spending, and make living on a budget as enjoyable as possible then simply commit to get started. The sooner you start, the sooner you will start getting used to our new life, and the more “normal” it will feel.
What tricks and techniques do you use to stick to a budget? Please leave your tips in the comments section below…
I am trying the cash method right now. It can be a little depressing to realize you’ve spent almost all your cash the first day, but it is helping stick to my budget.
Haha I know exactly what you mean Tre. I tried it myself some years ago and it really helps to wake you up to how much you’re spending each week. Scary stuff. Equally, I tried to turn it into a “game” – seeing just how much I could have left at the end of the week. There was nothing more satisfying than having “spare money” at the end!
I only go the supermarket every 10 days. If I do not go I can’t spend any money. We do eat well.
Before I buy anything , I ask myself 2 questions ,”Do I want this? Do I need this?” If it’s a want , I walk away but it’s a need I buy it.