Setting time aside for your money doesn’t have to be boring or scary. Light some candles, grab a snack, take some deep breaths, and think of it as self-care; changing your approach to budgeting is important to make the whole thing more routine. Here are some expert tips that will have you budgeting like a pro in no time. “A lot of people think that you have to have these complicated budgets, these complicated spreadsheets—and you grow to that,” says Tonya Rapley, millennial money expert and founder of the financial education and lifestyle blog My Fab Finance. Rapley recommends simply writing down your expenses: purchases in the last month (plus annual or quarterly charges) and subtracting your income from your expenses. This will give you a good picture of how much you’re saving versus spending, and allow you to identify areas where you can possibly cut back. A simple structure like the 50-30-20 budget can help you track your spending without having to maintain a bunch of categories, recommends Colleen McCreary, chief people officer and financial advocate at Credit Karma. Split your expenses into three categories—50% for needs, 30% for wants, and 20% for savings or paying down debt. “You can always change the percentages based on your lifestyle. Your budget has to work for you,” says McCreary. You can also download a budget app for an even easier way to keep track of your budget and spending. Feel free to try out different formats and ways of organizing your budget until you find one that best fits your lifestyle and money goals. Also, observe how frequently you’re spending money. “If you’re pulling out your credit card on a daily basis, you may want to set a weekly budget,” says McCreary. “A weekly budget may help you keep a closer eye on your day-to-day spending.” McCreary recommends opening a separate checking account specifically to keep track of your spending and keep it in check. Put some money on a debit card weekly or monthly based on your budget, and see how much of it you spend—or, ideally, save. Another tip is to set aside one day a week or a few days month where you don’t spend any money—cook meals at home or find free activities instead. “You may be surprised how many seemingly small purchases add up over the course of a month, and how much you end up saving if you find certain days to avoid spending,” says McCreary. Check in on your spending every few weeks (or whatever deadline makes sense for you) to see how you’re doing and if you need to adjust anything in your budget. Set realistic spending goals for yourself; being too rigid can have the opposite effect and can lead to impulse buying. To stay on track with your budgeting goals, Rapley recommends using a flexible payment tool like Affirm, which allows you to spread out the cost of purchases at retailers like Target and Walmart without any late fees. Budgeting will help you identify your spending habits—good and bad—so you can figure out any expenses you can do without and have a true picture of your cash flow in and out. Knowing your finances in this way will prepare you for unexpected expenses or financial setbacks. Don’t be afraid to try different types of budgets until you find the right one (or a combination of methods). Your budget doesn’t have to be perfect—it just has to be right for you.
