8 Budget Tricks to Help Reach Your Goals Faster

Budgeting tips: 8 budget tricks to reach your financial goals faster

What are your financial goals? Maybe you dream about cruising off the lot in a new vehicle or living completely free of credit card debt. Building a budget isn’t about cutting out everything fun. It’s a plan that helps you decide where each dollar should go — bills, savings and the fun stuff — so you can cover today’s needs and still make progress on your financial goals.

If you’re learning how to make a budget for the first time, the eight budget tricks below can help you track spending, save more consistently and stay on course when life gets expensive.

Start with your goals and your “why”

Understand why you decided to start a budget. Keep yourself accountable by writing your reasons in a notes app or on a slip of paper to keep in your wallet. This will remind you of the importance of your goals when tempted by impulse purchases.

Track your spending to build a realistic budget

How much do you really spend each month? What about those days when you didn’t have time to pack a lunch, or the impulse decisions to pick up coffee on your way to work? These small, unexpected expenses can derail your progress. Track your spending habits carefully and honestly to create a budget that works for your lifestyle and your goals.

Automate saving: Pay yourself first

Before you cover necessities, move money into a savings account each time you get paid. Many banks allow you to automate this process. Paying yourself first will help you see saving as a priority and ensure you’re working toward your goal. Some experts recommend saving 20% of your take-home pay.

Plan for surprises with savings and an emergency fund

In addition to savings, aim to build an emergency fund that fits your financial situation. Try to keep six to eight months of living expenses on hand. This fund can help you afford urgent, unavoidable expenses, such as medical issues or job loss, without going into debt.

Cut impulse spending

Avoid impulse splurges, like costly meals or unplanned trips, until you have fully considered them. Learn to say “no” or “not right now.” Delaying gratification can help encourage more thoughtful financial planning in the long run.

But don’t deprive yourself

As you build your budget, make room for things you enjoy, like dinner at a new farm-to-table restaurant or a concert by a band you love. You’re far more likely to stick to a budget that fits your lifestyle and doesn’t make you feel deprived.

Make it a team effort

Budgeting is easier when everyone is on the same page. Sit down with your partner to align on your goals and figure out budgeting plans as a family. You can even download a finance management app that syncs across devices to keep everyone accountable.

Stay consistent and adjust your budget over time

Life happens, and your personal finances can be impacted. You’ll probably slip up on your budget here and there, but don’t quit or be too hard on yourself. Be prepared for unexpected expenses, stay consistent and keep tweaking your budget to find what works best for you.

Answers to common budget questions

• What’s the best way to start a budget?
  Start by listing your monthly take-home pay, then write down your fixed bills (rent, car payment, insurance) and estimate variable costs (groceries, gas, dining out). Track your spending for two to four weeks so your budget reflects real life, not just good intentions.
• How much should I save each paycheck?
  A common starting point is to save a small, consistent percentage and increase it over time. If you can, automate saving so it happens before you spend.
• How do I stop impulse spending?
  Use a 24-hour rule for nonessential purchases, remove saved-card info from shopping apps and set a weekly “fun money” amount so you can still say yes to what you enjoy without blowing your budget.
• How big should my emergency fund be?
  Many people aim for enough to cover several months of essential expenses, but any amount is progress. Start with a small goal, like one month of essentials, and build from there.
• What if I mess up my budget?
  That’s normal. Review what happened, adjust one category and keep going. The goal is a budget you can stick to — not a perfect spreadsheet.

Ready to build your budget and make your goals happen? KEYS^® Online has free financial courses to help you get started.

By Brooke Howell, GM Financial

Brooke Howell is a storyteller who loves digging up ways to improve money management and help others make smart financial decisions. She has three American Staffordshire terriers, one curmudgeonly Chihuahua and doesn’t do anything by halves (except marathons).