With January behind us, this can be the time of year when all our good intentions about going to the gym, budgeting and embracing a healthier lifestyle begin to fall by the wayside. If you’ve noticed that those online impulse purchases are starting to mount up and you’re keen to get your finances back on track, the His & Hers team are here to help with a few of our favourite budgeting tips.
Budgeting doesn’t have to be boring
We’ll admit that it can be hard to get excited about setting a budget. However, why not put the kettle on and take some time to write down a few of your financial dreams – whether that’s buying a house, going on a luxurious holiday or just treating yourself to that designer handbag that keeps catching your eye. Once you have a wish list, give yourself a timeline. For example, work out how much you would need to save each month for a year to afford that holiday you’ve been dreaming of. If you can find the money in your budget, why not set up a linked savings account called ‘Holiday Fund’ and set up an automatic monthly transfer. Not only will you feel super organised, but you’ll also gain the psychological benefits of having something to look forward to.
Find what works for you
For some of us, creating the perfect budget means designing fancy Excel spreadsheets and learning all the lingo – from cashflow based financing to sinking funds. While for others, going back to basics and using cash envelopes for certain day-to-day expenses, such as grocery shopping, can make all the difference. In the end, whether you choose a very high tech or a very low tech, simple system, it really doesn’t matter as long as you find a way to approach budgeting that works for you.
It’s not all about giving things up
The His & Hers team suspect that part of the reason we don’t get more excited about budgeting is that we associate it with giving things up. However, creating a budget will help you to work out how much you can save each month (as we mentioned earlier), which can help you to reach your big financial goals earlier. It can also help you to save for things like Christmas, potentially reducing your stress levels at what can be one of the most expensive times of the year. Also, rather than wondering where all your money’s gone at the end of the month, if you have some disposable income available, the process of budgeting will provide the perfect opportunity to prioritise – enabling you to spend more on the things you really value and cut back on the things you don’t.
We’d love to hear about any budgeting tips that have worked particularly well for you. Please share your tips with other His & Hers readers in the comments section below or via our social media channels.
We’re very proud to bring you this feature in association with Nucleus Commercial Finance. For more features, please pay a visit to our lifestyle page.
