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7 tips to help you stick to your budget
Key takeaways
- Automate and prioritize savings. Set up automatic transfers to savings accounts and pay yourself first before discretionary expenses to build consistent saving habits and avoid spending money meant for goals
- Control impulse spending strategically. Use the 30-day rule for non-essential purchases, budget for predictable expenses in advance, and consider using cash for discretionary spending to maintain better control over your budget
- Review and adjust regularly. Conduct monthly budget check-ins to track progress against your targets and adjust as needed
Sticking to a budget isn't always easy. Life happens, and it's tempting to splurge. If you're looking for practical tips to help you stay on budget and reach your savings goals, read on. We have six strategies that can help you stay on track without feeling deprived.
Remember why you started budgeting
Remember when you first created your budget and everything was exciting and new? Think back to those times and remember why you thought you should have a budget in the first place. That desire to save for something meaningful—like a new house or dream vacation, or even to just feel like you have control of your money—is probably still there.
It’s important to remind yourself that budgeting is something you’ll continuously grow into and get better at over time if you stay patient while working toward your goals.
Just like with any plan, if things aren’t working, it’s alright to pivot. You might need to look at your original budget and make some adjustments. You might learn things about how to budget effectively. Or a different budgeting need might come up. You can always reprioritize because it’s your budget.
Stick with it and automate
A budget is not worth much if you don’t stick to it. One way to make that easier is to take advantage of automation.
Part of your budget planning is identifying a figure for how much you can put into savings each month. If you set up an automatic transfer of money from each paycheck into a savings account, you don’t have to think about sticking to that part of your budget. It’s done. This also helps with avoiding impulse purchases funded by what should have gone into your savings account.
Automation helps improve consistency and builds savings over time, especially if you are working toward big goals like an emergency savings fund or education savings. It might make sticking to your budget less stressful.
Here’s a bonus budgeting tip that involves automation: use autopay for bills that you're certain you’ll have the money to cover. This practice might reduce your household finance chores—fewer bills to keep track of and deadlines to meet. It also could prevent budget-busting late fees.
Beware of unplanned spending
There are different types of unplanned spending, but they all tend to throw off your budget. Unplanned spending often happens because:
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We forget to budget for predictable events. Birthdays, anniversaries, and the start of the school year—events like this should not come as surprises. If you find that unplanned spending for predictable events is getting you off track, revisit your budget. Try to think of any such recurring events in your life and factor them in. Budgeting for them, rather than last-minute spending with no plan, might also help you to spend less and avoid extravagant purchases
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We buy on impulse. One of the best ways to stick to your budget is to avoid impulse buying. You can ease some of the pressure by budgeting a little for impulse buying
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Small expenses that add up. It's easy to remember big ticket expenses like car repairs and broken heaters, but what about the nonessentials you grab for under $10 each month? Tracking the little stuff is a great way to know exactly where your money’s going. And try to get as specific as possible with each budget category. This way, your $6 smoothie won't get lumped in with your regular grocery budget. In fact, you could save on food expenses by making your own smoothies
Slow down on impulse buys
Impulse buying can be a real budget buster. You might be tempted to buy something on a whim because “it’s a deal,” or “I deserve it,” or “it makes me feel better.” This is where determination to stick to your budget comes into play.
If you get the urge to buy a nonessential item that’s not within your budget, you don’t have to say “No” to yourself. Just say “let’s wait 30 days.”
The 30-day rule is a great tip for saving money each month. Instead of buying on the spot, record details about the item, such as location, price, and model. Put a note on your calendar for 30 days later. On that day, think about whether you still want it. If so, see if it can be worked into your budget. Shop around for the best price on the item. If the purchase still seems reasonable, make it. This helps to build your spending discipline and your respect for your budget.
Pay yourself first
Paying yourself first is a basic budgeting concept that recommends putting some of your income into savings before it all goes towards bills and other monthly expenses. By consistently paying yourself first, which could also be looked at as including savings in your budget, you can build up an emergency fund and then a long-term nest egg. Here are some ways to establish a pay yourself first mindset:
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Prioritize savings over spending. Realistically, you must budget for certain expenses, like housing, utilities, food, and healthcare. You should do that before you start budgeting for non-essential items like streaming services, dining out, and the like, budget for savings
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Set up direct deposit. More than 90% of Americans get paid through direct deposit. In addition to having money sent each payday to your checking account, pay yourself first by having some of that money deposited into a separate savings account. This is a great way to automate your savings. If your employer doesn’t allow direct deposit to multiple accounts, see if your bank will allow automated transfers from a checking account to a savings account
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Build a solid savings habit. Using automated deposits and paying yourself first might help you develop the habit of saving money. Even if you're on a very tight budget, it helps to save a little each month to build an emergency fund
Use cash for discretionary spending
Credit and debit cards are very flexible and convenient. But using cards, especially for discretionary spending, can make it easy to lose sight of how much you're spending. If you find that’s happening, you might consider working on a cash budget system. It’s a good way to control spending and stick to your budget.
One way to do this is to set a weekly spending limit and get that amount in cash from your bank. When you’re out of cash, your discretionary spending is done for the week. Some shoppers use a similar method for food. They take cash to the grocery store and spend only that amount. It makes them more disciplined about what they buy.
Institute regular monthly budget check-ins
Establishing routines and measuring your progress can be essential tools for staying on budget.
A budget check-in routine addresses both of these things. A budget loses a great deal of its value if you don’t check to see if you're sticking to it. You might want to do this every week, but if that’s too stressful, review spending and savings monthly.
Your budget sets out the targets for your spending and savings. For your check-in, review all your spending and savings to see if you're hitting your targets. If you find that you're over or under your budget in any categories, adjust accordingly. And keep reviewing the results for the months that follow.