One tip to help you stick to your budget

Creating a budget may not be many people’s idea of a fun way to spend an afternoon. However, taking time to create a financial plan can help alleviate stress and ultimately be rewarding.

Budgets let you see how the money that is coming in is being spent. Having an overview of your monthly expenses gives you the big picture of your spending patterns, as well as a clear picture of your financial obligations (bills, rent, loan repayments, etc.). With budgeting, you have the opportunity to assess your fixed costs in order to make plans for saving (long and short term) and to get a realistic picture of your discretionary funds (the money for all the fun stuff!).

One of the barriers for many people when it comes to creating a budget is the mindset that it is restrictive. How can I enjoy myself if I am always on a budget?However, a budget lets you evaluate what you are spending your money on in order to start making choices about what you really want to be spending it on.

To help you stick with your budget, try aligning it with your values. Do you value social times with friends? Part of your short term saving strategy could be to set aside money each month to enjoy a special evening out with them. Are you looking for ways to minimize stress in your life? Set aside an amount each month to add to your “rainy day fund” and gain peace of mind.

By keeping your values in mind, you will find it much easier to stick to your budget and reach your financial goals.