There are many people that have tried budgeting and have found that it has not worked for them. This is something which can be a stumbling black and may even put some people off trying to budget at all. However, it can work for many people but there are things that you can do to make sure that it is an effective technique for you.
Set a Budget That is Realistic for you
When you are setting a budget you need to be realistic. You obviously need to make sure that you allow enough money to pay for the necessities you need as well as any financial commitments such as loans etc. However, you may also want to allow some money to pay for a few luxury items as well. You might be very motivated at the start and be happy to just cope with the basics, but if you are sticking to the budget for a long time, you could find that you will start to want a few treats. It could therefore help to allow a bit of money for this so that you do not feel completely deprived all of the time. Of course, if you are only budgeting for a short while, it could be easier to manage, but if this is a long term plan then you need to allow for a few bits and pieces.
Find a Budgeting Method that Works
There are different ways that you can budget. It is a good idea to learn about some of the different ways that you can do it and then choose one that you think you like the look of the best. There are methods where you just set a spending amount for certain things and find a way to just spend that much or you can set up different accounts and allocate money into different accounts for different things etc. Consider what might be the easiest for you to manage and to cope with.
Find Methods to Stay Motivated
One of the most important things is to stay motivated. You want to make sure that you stick with whichever method you have chosen so that you are able to make sure that it works well for you. This is not always easy, especially once you have been doing it for a while. You might start to lose sight of your goal and start to be tempted to buy things that you should not be. Therefore, it is good to have a think about what might help you to stay focussed. One thing that you can try is to have your goal written down and stuck up somewhere prominent. See it and read every day and it will remind you of where you are heading. It might be that you want to pay off debt, increase your savings or just make it easier to manage each month. Whatever it is, make sure that you keep reminding yourself of it and imagining how good it will feel to achieve that goal to help you feel motivated to keep going with it. Another way to stay motivated is to get someone to help you, perhaps a friend or family member who checks your bank statements to see what you are buying and whether you have been sticking to your budget or not. This might help you to stick to it better as you know that someone will be checking up on you. You might need to make it someone scary and strict though, as if they are too kind on you then you may not worry too much about sticking to the budget.