Setting a budget is the key to properly manage your finances. It serves as your roadmap to how you could possibly reach your goal in a timely manner. But contrary to popular belief, creating a budget won’t limit the amount of money you get to spend.
Instead, it provides you a direction based on what you tell it to do. Despite that, sticking to a budget can still be a difficult feat for some. With that in mind, we listed down some effective ways on how you could hold yourself accountable to your finances.
Set Some Affirmations
Creating affirmations can
be a great way to achieve any goal. They remind you of what is important and
transport those ideas into your subconscious. You can put them in your phone as
an alarm in the morning so you’re immediately reminded of your goal as soon as
you wake up. For instance, if you have a financial goal of saving S$10,000 this
year to invest. Your affirmation could be, “I’m happy that I was able to save
S$10,000. I’ll use this money wisely so I could grow my net worth.”
Limit Your Access to Your Money
A lot of people waver on
their stand to stick with budgets because they have easy access on all of their
hard-earned cash. The easiest way to keep that from happening is to separate
your bill account, spending account and savings account. Automate your savings
to your savings account, your bills to your bill account, and whatever is left
can go to your spending account. Managing your finances in this manner will
remove any temptation of using your money for any other purposes.
Monitor Your Expenses
Most people who fail to
stick with their budget are not really aware where they went wrong. When you
regularly monitor your spending, you create a mechanism that’ll hold you
accountable on your finances. As you make purchases and subsequently track your
expenses, you get to evaluate where you’re unnecessarily spending and stop as
soon as possible.
Recreate Your Budget
You’re in complete control
of your budget; so for you to hold yourself accountable, you need to create a
budget that perfectly fits your lifestyle. Whether it’s increasing your income
or decreasing your expenses, focus on how you could recreate a budget that’s
suitable to the lifestyle you want. Never assume that you’ll fail at something
you have the power to change.
With the right tricks and
discipline, holding yourself accountable to your finances – specifically your
budget – won’t be as difficult as you first imagined it to be. In fact, simply
putting the aforementioned tricks to work is already enough to make yourself
stick with the budget you created.