Do you struggle to maintain your budget? That’s okay. A lot of people do. I’d like to help you learn how to budget better. Budgeting is an important part of managing money effectively. It helps you plan for the future and keep track of your spending habits. This guide will teach you how to start budgeting and how to keep budgeting, even when you don’t want to.

Know Where You Spend Money

Start by looking at where you spend your money. Are there any areas that you would like to cut back on? If so, what do you need to do to make those changes? Once you have identified these areas, start tracking your expenses. Make sure you are recording everything you spend money on. You can either start a budget and focus on tracking your expenses, or you can do this retroactively by looking over your bank statements for the last couple of months.

If you’d like to start a budget, I recommend looking at our Resources category for information on budget sheets. There are budget posts for a variety of difference pay schedules including weekly, biweekly, semi-monthly, and monthly. They each include a budget spreadsheet and explain how to use it.

Set Goals to Budget Better

It’s essential to set goals when you are trying to save money. You should set short-term and long-term goals because setting both types of goals can help you be more involved in your own financial success. An example of a short-term goal can include saving $100 per month or paying off an old debt. A long-term goal could be saving up for a $2,000 vacation or buying a new car with a down payment of $1,500. When you set goals, you are much more likely to achieve your desired outcome. You can learn more about goal-setting in this article.

Create an Action Plan

Once you have identified your goals, you need to develop an action plan to achieve them. This means creating a detailed schedule with dates and times for each task. If you have multiple tasks, break them down into smaller steps. Then, write out what you will do every day to accomplish those tasks. I recommend creating SMART goals. This stands for Specific, Measurable, Achievable, Relevant, and Time-bound.

SMART Goal Budget Example

Fran sets a goal to save money so she can move out. She decides that she wants to move out in two months, and the rent she can pay at her new apartment is $750. She will also need to come up with one month’s rent for the deposit, which means she will need to save a total of $1,500 before the two months are up. Fran can break this amount up between her paychecks, which she receives bi-weekly. $1,500 / 4 = $375 per paycheck for the next 4 paychecks.

Specific: She will save $375 per paycheck for the next four paychecks.

Measurable: She will save $1,500 in the time she needs it.

Achievable: Fran will save two months’ rent in two months.

Relevant: She needs to move into her own place.

Time-bound: Fran will complete this goal in two months.

Stick to it!

You should also make sure that you stick to your budget. It’s easy to spend more than you planned when you are excited about something new. However, if you find yourself spending more money than you expected, take some time to think about why you are doing so. Is there anything else you could cut back on? Are you using credit cards too much? Are you spending on things that you need, or things that can wait?

Regularly checking on and updating your budget can help keep you on track. I recommend budgeting for each paycheck, while also keeping the long-term in mind. The reason I like budgeting for every paycheck is that budgeting for every paycheck helps you see better what you are making, what you are spending, and when things are happening in your financial picture.

Don’t Be Afraid to Ask For Help

If you feel like you are struggling with your finances, talk to your friends and family members. They might not be able to help you directly, but they can give you advice and support. Getting support from your friends and family can increase your motivation to complete your goal and your chances of doing so.

I know it can be scary to ask for help or to let people know you are struggling, but my advice to you is to know the reason you are close to the people that you are close to. Would you expect them to judge you for any other reason? Have they helped you with other personal matters? If your answers to those questions are no, and yes, respectively, then I do believe that they would be more than happy to at least be someone you can lean on. Remember, you will get through this and you will learn how to manage your finances!

Struggling to stick to your financial goals? My Financial Goals Workbook can help—learn more here.