How do you Budget?| Part 2

As a follow up to yesterday’s overwhelmingly positive post (Thank you!!), I wanted to share some general approaches that may make budgeting easier. The following work for our household and perhaps they will work for you as well:

Always review the household budget with your partner. One person can put it together, but it is essential to be on the same page with all financial goals.

Revisit your budget every 6 months to a year. A lot can change year-over-year and your budget should grow with you. Our budget has looked about a million different ways in the last few years because our circumstances have changed, so it was important to make amendments to account for those changes.

Be flexible. There will be months where your actual spending will not match what you have budgeted. That is okay. It is important to maintain a levelheaded perspective and get back on track next month!

Always have an emergency fund. I know I have preached about this in previous posts (seen here), but I cannot stress this enough. If your budget does not allow for the 3% rule of thumb, put aside what you can afford. It is better than nothing at all.

Have realistic goals. It is fantastic to want a bigger home, new vehicles, trips, clothes, etc. The reality is that your income may not support all those things. If you want to achieve a financial goal, sacrifices need to be made. Ask yourself: Do you really need the latest phone? High end clothing? 2 brand new cars with payments? Probably not.

marissa7

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