5 Ways to Budget like a Pro
We get it - making a budget and sticking to it can be intimidating. But it’s totally doable, no matter what your income level is. Follow these five tips to start budgeting like a pro.
1. Take a "Money Minute" every day
Little things can add up. Your morning coffee and muffin might add up to hundreds of dollars over the year. To keep an eye on these expenses, set aside one minute each day to check on your financial transactions. This can help you keep track of your goals, identify problems, and set your spending for the rest of the day.
2. Consider cash envelopes
Going old-school and using cash to pay for part if your daily, weekly, and monthly spending can set good spending habits, or even break overspending habits.
One way to do this is to assign different cash budgets to different envelopes, like a Coffee Budget envelope, a Grocery Budget envelope, or even a Wildcard Budget envelope. And once that envelope is empty, the budget you allotted is gone. To track your spending and adjust accordingly, save receipts in each of their specific budget envelopes and use a spreadsheet to keep tabs on your spending. Plus, it's easy to add cash to yourand you can really track what you spend!
3. Set aside 20% for financial priorities
For long-term goals like emergency saving or paying off debts, you can put a certain amount of money aside each month. Aim for 20% of your monthly income, and if you can’t swing that much, saving anything is still always better than saving nothing.
4. Set aside 30% for "Fun Money"
We can’t all be Scrooges all the time, right? Allow yourself some controlled splurging by allocating 30% of your monthly income to a “Fun Money” budget. Then you can save and splurge at the same time - extra money means extra treats!
5. Budget, Budget, Budget
You unfortunately can’t change your spending habits or save money by just hoping for the best. So roll up your sleeves and let’s get to it! A dash of discipline, some online tools, and a spreadsheet or two can do wonders for your budgeting goals. You’ll learn your spending habits, make great new ones, and achieve financial goals that make you proud. One of the best parts of mobile banking with GO2bank is easily checking on your balance, money in, and money out right from your phone.
Learn more about how you can use GO2bank’s mobile bank account to take control over your financial journey with our incredible features.
The views and opinions expressed here may not represent the views and opinions of Green Dot Corporation or its affiliates. It is presented for general informational purposes only and does not constitute tax, legal or business advice.