Budgeting can be daunting but with some effective budgeting tips, it can be a smooth process that you can incorporate into your daily life.

Budgeting Tips:

1. Keep it Simple:  Budgeting doesn’t have to be complicated, start with a simple and realistic goal. Have a clear goal when budgeting and stick to that goal. Build a budget that you can realistically achieve.

2. Use the right software: There is a lot of choice regarding software when it comes to budgeting. Excel is the most common and simple choice. It has tremendous functionality and provides an easy option to building a budget. There is other software on the market and the key is to find the software that fits your needs.

3. Be Creative: Don’t look at the obvious expenses to cut, be creative. Don’t get hung up on finding savings from little items, think big. Find the savings from big items.

4. Use a Credit Card: Credit cards can be a powerful tool in identifying your expenses, building credit, and earning rewards. Credit cards are helpful as long as you are not falling in debt.

5. Automate Your Savings: Set-up an automatic transfer for a portion of your paycheck to your savings account every month. Choose the percentage that you are comfortable with, it doesn’t have to be a lot, the exercise is to get in the habit of saving. This will ensure you don’t use all of your paycheck and part of it is saved every month. This method will make saving every month easier.

6. Track your expenses: Make tracking your expenses a habit. Track every expense. Know where your money is spent every day, every month. Knowing your spending habits will help you build an effective budget.

7. Budget to pay off debt: Budget for debt payments. Always try to pay off as much debt as possible every month.

8. Review your budget: Review your budget on a regular basis. A budget that was relevant a few months ago may not be relevant today. Situations change and your budget needs to reflect changing circumstances. This especially important if you are starting with your first budget. It will take time for your new budget to get all the relevant information in place.

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