Charles Dickens was right when he said \u201cAnnual income twenty pounds, annual expenditure nineteen pounds \u2013 result happiness. Annual income twenty pounds, annual expenditure twenty-one pounds \u2013 result misery.\u201d Spending money can be fun, but if you end up spending more than you earn, it can be misery making.<\/p>\n The good news is that life doesn\u2019t have to be this way. Like driving a car or playing a musical instrument, managing money is a learned skill, and it\u2019s never too late to start! With the help of a budget calculator spreadsheet<\/strong><\/a> and some money management tips<\/a>, you\u2019ll be well on your way to learning how to budget your money and save.<\/p>\n The foundation of sound money management<\/strong><\/a> is the budget, which is essentially a plan for your money based on the choices you make and the priorities you identify. Once complete, your budget is the\u00a0foundation with which you can manage your current income and plan for future possibilities. And it all starts with taking these seven steps:<\/p>\n Having a goal for your money will help you make smart spending choices. So before you start creating a budget, take a moment to ask yourself what your financial goals<\/strong><\/a> are, and what you want your finances to look like in one year. Once you decide what\u2019s important to you, you\u2019re ready to start.<\/p>\n You likely know how much you earn each month, but do you also know where you spend your paycheque? The easiest way to find out is to track your spending. Spend as you normally would, and for a few weeks or even a month make a record of everything you spend with a spending tracker<\/a>.<\/p>\n Each time you spend, ask yourself: Do I want this, or do I need it? Can I live without it, or is this necessary for my day-to-day-living? If you set clear priorities for yourself, the decision becomes easier to make.<\/p>\n Make it a point to spend less than what you earn. Decide ahead of time what you\u2019ll use each paycheque for, and try to balance your budget to accommodate all your needs and necessities. Using a paycheque planner<\/strong><\/a> can make learning how to live on a budget a breeze.<\/p>\n Match your spending to your payday cycle. Determine ahead of time what you\u2019ll use each paycheque for, making sure you allocate enough money for necessities like housing and food, as well as savings and paying debts. It\u2019s also important to squirrel away some money for emergencies and \u201cfun.\u201d This will protect you from going into debt further, because you won\u2019t turn to credit in order to pay for your living expenses.<\/p>\n When we budget, we often forget to plan for expenses that come up only once a year, such as back-to-school<\/a>, Christmas<\/a>, birthdays and anniversaries. Remember to set aside money to pay for irregular, seasonal and emergency expenses, so that when the time comes, you\u2019ll be able to afford them without going into debt.<\/p>\n Related:<\/strong>\u00a0How to Use a Budget to Prepare for Unexpected Expenses<\/a><\/p>\n Getting into the swing of things can take a month or two, so go easy on yourself. You\u2019ve lived all this time without a spending plan, so it can take time to adjust to this new lifestyle.<\/p>\n If things aren\u2019t falling into place as quickly as you\u2019d like, don\u2019t get discouraged. We’d be happy to help you learn\u00a0how to budget your money. Contact us by phone<\/a>, email <\/a>or anonymous online chat<\/a> to ask us some questions or to\u00a0make a free appointment to speak with one of our professional Credit Counsellors<\/a>.<\/p>\n Once you\u2019ve created your budget, map out your spending for six months to one year down the road. By doing some budget forecasting<\/strong>, you can see ahead of time which months your finances may be tight and which months may offer some leeway. You can then look for ways to even out the highs and lows in your finances to make your budget more manageable.<\/p>\n Extending your budget into the future can also help you forecast how much money you can save for important things like your vacation<\/a>, home renovations<\/a>, your retirement, or an emergency savings account.<\/p>\n Related<\/strong>: Tips for How to Save Money Each Month<\/a><\/p>\n Using your budget to forecast your spending can really help with your long term financial planning. You\u2019ll be armed with enough information to make realistic assumptions about your annual income and plan for long term financial goals like buying a home<\/a>, starting your own business, buying an investment or recreational property or retiring.<\/p>\n![\"Man](\"https:\/\/nomoredebts.org\/wp-content\/uploads\/2020\/11\/getting-organized-with-money-and-finances_feature_blog.jpg\" "\\"Man")
When it comes to knowing how to budget your money<\/strong>, it\u2019s all about creating a realistic spending plan with budgeting tips to help you save<\/strong> and\u00a0manage money better.<\/p>\nBudgeting Tips to Help You Learn How to Budget Better<\/h2>\n
Step 1: Set Realistic Financial Goals<\/h3>\n
Step 2: Identify Your Income and Expenses – Track Your Spending<\/h3>\n
Step 3: Separate Your Needs and Wants – Determine Your Priorities<\/h3>\n
Step 4: Design Your Budget – Write it Out or Use a Spreadsheet to Balance What You Earn with What You Spend<\/h3>\n
Step 5: Put Your Budget Into Action – Plan Your Spending Around Your Paycheques<\/h3>\n
Step 6: Plan for Irregular, Seasonal and Emergency Expenses<\/h3>\n
Step 7: Look Ahead – Learn How to Live with a Budget & Ask for Help if You Need It<\/h3>\n
Budget Forecasting Can Help You Save Money\u00a0 <\/strong><\/h2>\n
Beyond Budgeting: Learn How to Budget Better with a Non-Profit Credit Counselling Agency<\/h2>\n