Your Financial Rite of Passage: 5 Super Simple Ways to Stick to Your Budget

By Tiffany Johnson, CFP® 

Now that you know why you need a budget and how to create one, here’s how you stick to it. 

1. Track your expenses. Knowing where your money is going by tracking your expenses is one of the most important things you can do for financial success. By tracking your expenses, you are able to compare your actual spending to your budget. Whether you use a spreadsheet, Quickbooks or mint.com, take some time each month to see how much you spent in each category and notate it. 
2. Compare Actual vs. Budget. After you have analyzed your spending for the month and you know where all of your hard-earned money went, go through your budget line items and see how your actual spending compared to your budget. Did you go $200 over in groceries this month? Did you have one too many lattes this month? The only way to know is to take the time to sit down and do the comparison of actual spending vs. your budgetary goals. 
3. Make additional adjustments. After comparing your actual spending trends to your budget, find areas that need adjustments. If you find that you spent $200 more on household items last month than you budgeted, find some ways to cut in that category. Amazon Prime and Target subscriptions usually offer 5% or more off of subscriptions items. So instead of buying your toilet paper in the store, consider buying it online on a monthly subscription basis for that extra savings. Shop at Target a lot? Consider saving 5% on each purchase by buying all of your items on a Target credit card (making sure you pay the balance in full each month). Perhaps after analyzing your spending, you realize that your original budget for household items wasn’t realistic. Don’t be afraid to make the appropriate adjustments. Add a cushion to a budget line item if you need to. A budget should be realistic so make sure it is. 
4. Find a buddy. It’s always easier to stick to a goal when you have a friend doing it with you. The times in my life when I as most dedicated to exercise almost always involved a buddy going with me to my yoga or spin class. Sticking to a budget is no different. A lot of our discretionary spending happens with friends. If you can find another person in your friend group who wants to give living on a budget a try, you will find it easier to live within your budget. Read a budgeting book together, rent a movie on demand instead of shelling out $18 for the movie theater (yes, that is how much it costs in Los Angeles). Find ways to cut your social spending with a friend and you will both find it very bonding and rewarding. 
5. Embrace it. The process of budgeting is an ongoing journey and you won’t arrive overnight. But don’t lose heart; you will get there in time. My husband and I got married right out of college and we didn’t have much discretionary income. We decided to embrace that time in our lives and found fun things to do that didn’t require a lot of money. We walked the beach, watched sunsets and we binged watched shows at home together. We embraced every moment and now talk about those days with pride. So instead of letting your financial situation get you down, find ways to make it fun and enjoy the journey. Look at it as a rite of passage into a successful financial future.