5 Simple Hacks for Better Budgeting (Stay on Track!)

A budget is a critical tool for building wealth. Why?

Because it gives parameters and awareness about how you spend your money. By knowing what you are spending, you can make adjustments along the way. Too many people bury their heads in the sand, only to have a bigger problem later.

A budget ensures that your money goes towards your quality of life and investments in your future. (Instead of spending to impress people you don’t really care about.)

Now, that you know what to do, let’s explore how to do it – for the long term. Use the 5 wealthy woman hacks below to help you!

Wealthy woman hacks are about working smarter, not harder. So, these five hacks will help you stick to your budget.

1. Be Very Clear on What Your Budget Is

Get detailed!

• Break down your expenses into needs and wants. Then, understand exactly how much money is coming in each month through income.

• Use a budget rule to separate your spending. This helps you see exactly how much money is being used for needs, wants, and savings. Try the 50 30 20 budget rule >>

• Set Realistic Goals: Ensure your budget reflects realistic spending limits that you can adhere to. You don’t want to be too strict and end up quitting within a few weeks. Think about sustaining this budget long-term.

• Understand Your Why. Why is staying on budget important to you? Maybe you are looking for more flexibility. A beautiful beach vacation. Or college for your kids.

In a journal, sit down and write out your budgeting goals, along with why it’s important for you to stick with it!

”Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.”

― Ayn Rand

2. Track Your Spending

Use Credit Karma, YNAB (You Need a Budget), a spreadsheet, or PocketGuard to monitor your spending.

Money websites and apps also send notifications when you’re nearing your budget limits.

Sit down weekly or monthly to go over all your expenses. I do a once-a-month money review on the first weekend of every month. This is the single most important action. You can’t be aware of what you don’t know!

3. Plug Your Money Leaks

Money leaks will drain your wallet faster than you can keep money in it. The biggest culprit is debt. But sneaky subscriptions, high cost of living, and costly insurance can also keep you broke. As you look at your budget, make sure you address these challenges.

4. Automate Your Money Movement

The easier you can make sticking to your budget the better! Do this through direct deposits. These are automatic transfers to your savings account as soon as your paycheck is deposited.

Cool Automation Idea: Use apps that round up your purchases to the nearest dollar and transfer the difference to your savings.

5. Utilize Strategies to Stay on Track

Try a cash envelope system: Allocate a set amount of cash for discretionary spending each month. Once it’s gone, avoid using credit or debit cards for these expenses.

Wait before buying: Implement a 24-hour rule for non-essential purchases to curb impulse buying.

Meal plan. Having a plan helps with eating out too much and impulse buying at the grocery store.

Avoid people and places that give you too much temptation.

Don’t Forget to Review and Adjust

Life is constantly changing. Your budget will need to tweak and change with it. Just remember: it’s a marathon. Not a sprint!

For now, I leave you with this inspirational quote for budgeting:

“The slightest adjustments to your daily routines can dramatically alter the outcomes in your life.” 

– Darren Hardy

What’s Next?

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