Business People Club

Search All Topics !

How To Make Sure Your Financial Budget Will Succeed?

0 like 0 dislike
234 views
by SleepyFledgling
How To Make Sure Your Financial Budget Will Succeed?

Please log in or register to reply to this post.

1 Comment

0 like 0 dislike
commented by TrustyKitty
You’ve analyzed your past expenses, put them into spreadsheets, loaded Quicken with all of your data and come up with a budget. Now what? The tough part! You actually have to stick to your budget and put your plans into action. This is easier said than done. In many cases you will have forgotten about your budget and your financial goals 6 months or a year down the road. How do you keep this from happening to you?

Here’s how. Make sure you follow some of these tips below so this doesn’t happen to you.

1. Create a budget with realistic targets – Let’s say one of your budget goals is to not eat out for lunch or dinner on a regular basis. If you are honest with yourself you may find this to be an unrealistic goal. Sometimes it’s a nice break to eat out and have a relaxing rewarding evening. In other words, don’t set the bar too high. Drastic and unrealistic goals are one of the surefire ways your budget will not succeed.

2. Budget for expenses that don’t occur on a routine basis – Make sure you give consideration to expenses that occur once a year, such as holiday presents, birthdays, vacations, weddings, car maintenance costs, etc. These expenses don’t occur every month and they will bust your budget plans wide open. Make a list of these events on a calendar and put a dollar figure to them. Place them in the month they are expected to occur so you can plan in advance how you will pay for them. The regular routine expenses are not the reason your budget will fail. It is these “gotchas” that will wreck havoc on your budget if you don’t plan for them.

3. Put your budget in writing – Take the time to write down your budget plans. Making a mental note of your budget goals is a recipe for failure. Don’t assume that your financial future will take care of itself by making a simple mental note to yourself. If you have your budget goals detailed in writing you can review and remind yourself weekly and monthly of your financial goals.

4. If you have a bad month or week, don’t give up! – Let’s say you have been reaching your budget goals for three months. In the fourth month, for whatever reason, you didn’t reach your budget goals. Maybe you even stopped trying to stick to your budget! If this happens, don’t just throw your hands up in the air and admit to failure. Everyone falls off the wagon sometimes. Your budget is a journey. There will be bumps in the road, so the key is to realize that everyone makes mistakes. This relates to a story I like about a great old time golfer named Walter Hagen. Before each round of golf, he told himself that he would have 4 or 5 bad shots. During the golf round, if he hit his ball into a bunker, he would tell himself, “There is one of my bad shots that I was expecting”, hit the ball out of the bunker and move on. It didn’t phase him one bit because he had knew there would be some bad shots in his round.

5. Adjust your budget over time – This one is a biggie! It can take months or even years to fine tune a personal budget. When you initially made your budget plans, you probably had to guess at some of your figures. They might not have been in touch with the realities of every day life. For example, you may have underestimated your monthly grocery or utility bills. If this happens, analyze all of the underlying money that was spend in this category to see if your initial estimate was unrealistic. If it was, try to come up with a more accurate number and then to stick to that new figure. It is this type of adjustment that is one of the keys to making sure you can stick to your budget.

6. Review your budget every month – This is where you will make any adjustments that are needed. Set aside the first day of each new month to review your income and expenditures and match them to your budget goals. By actively reviewing your finances and comparing it to your budget, you can adjust your spending habits. This gives you a chance to analyze areas that exceeded your budget expectations and make the adjustments in your spending habits or your budget. The goal here is to not forget about your budget. One tip that has worked for me is to put a printout of my basic budget goals on the refrigerator. That way every day, several times a day, I would notice my budget goals sheet. I may not read it every time, but I notice it and it reminds me that I need to stick to my budget. That is why tip number 3 is so important.

7. Set specific short-term goals – Let’s say one of your budget goals is to have all of your credit card bills paid off in two years. If your credit card balances total $20,000 that would be $10,000 a year. Divide that number further into quarterly reductions in your credit card bills, in this case $2,500 every 3 months. Now, this is a more tangible budget goal to shoot for isn’t it? I find that when I divide intermediate and long term goals into short-term tangible stepping stones, I am able to feel a greater sense of accomplishment and am more likely to succeed. This brings us to number eight…

8. Reward yourself – That’s right! Treat yourself when you reach your some of your short-term goals. Since your financial budget is really a journey, take some time to smell the roses on your way. Sticking to your budget should not be a restrictive, unpleasant experience. Not only should you take the time to enjoy your financial accomplishments along the way, but use part of your budget for fun things that you enjoy. Just make sure your rewards don’t end up breaking your budget!

9. Pay yourself first – I’m sure that one of your budget goals is to save and invest a portion of your income. One of the keys to make sure you succeed at this is to do what the IRS does with your paycheck, take it out of your discretionary income immediately. This way, the money is saved away right off the bat. Move the money immediately into a savings or mutual fund account. Many mutual fund companies can setup automatic deductions from your paycheck. Despite your best intentions to save, the hectic, daily demands of life can reduce the amount you are able to save.

10. Attitude is everything – When most people think of a budget, they picture restrictions and pain. Almost like a diet. You know what happens with most diets? They don’t seem work for long! First, if your budget is too strict, too restrictive on your spending, it won’t work either. However, you will need to limit your spending in some areas and this will take some adjustment in your attitude. I found that when I am feeling limited and sorry for myself when I can’t purchase something that I want, I remember my financial goals I set with my budget. I think about the satisfaction I feel when I reach those goals. Over time, you find that you don’t want to disappoint yourself by breaking your spending goals on a spur of the moment purchase. Now, I actually get more pleasure knowing that I am reaching my budget goals when the thought of an impulse purchase crosses my mind.

If you follow these tips, your budget plans are more likely to be a great success. By taking some simple steps you will find that living within a budget is not as tough as you imagined. It can actually be fun and rewarding!

Related posts

0 like 0 dislike
1 Comment 260 views
How To Safeguard Your Financial Life?

How To Safeguard Your Financial Life?

by KeyboardPie
0 like 0 dislike
0 comments 198 views
Five Steps to Create a Budget for your Small Business

How I hate budgets! Every time an accountant told me to put together a budget for my company, my response was - When ... Have systems in place to increase revenue and decrease expenses as necessary.

by UncleRhino
0 like 0 dislike
1 Comment 380 views
How to Find Hidden Money for Your Business Through Revenue Recovery?

How to Find Hidden Money for Your Business Through Revenue Recovery?

by UncleRhino
0 like 0 dislike
1 Comment 940 views
How To Save Money On Your Home Heating Bills?

How To Save Money On Your Home Heating Bills?

by SwiftHeroine
0 like 0 dislike
1 Comment 295 views
How to save money as small business owner?

How to save money as small business owner?

by AmazingKitty
0 like 0 dislike
1 Comment 322 views
How to raise funds?

How to raise funds?

by Cybora
0 like 0 dislike
0 comments 262 views
6 Tips For Saving Money On Your Next Computer Purchase

Buying a Computer does not need to be a budget breaker. A Computer purchase often includes additional components and software ... buying, will keep the salesman commissions from emptying your wallet!

by SnailMail
0 like 0 dislike
1 Comment 298 views
How in the World Do People Save Money?

How in the World Do People Save Money?

by PlushSeal
0 like 0 dislike
1 Comment 234 views
How Do Interest Rates Work?

How Do Interest Rates Work?

by CheeryGrin
0 like 0 dislike
1 Comment 254 views
How Do I Choose A Lender?

How Do I Choose A Lender?

by MammothMoth
0 like 0 dislike
1 Comment 264 views
How Can I Get Out Of Debt?

How Can I Get Out Of Debt?

by Oystrich
0 like 0 dislike
0 comments 157 views
How to create A Trade Show Budget?

How to create A Trade Show Budget?

by Falconjurer
0 like 0 dislike
1 Comment 299 views
How To Make Money Selling Ebooks?

How To Make Money Selling Ebooks?

by HairyFoal
0 like 0 dislike
1 Comment 339 views
How To Make Money Using RSS Feeds?

can you really make money using rss feed?

by HarshThunder
0 like 0 dislike
1 Comment 249 views
0 like 0 dislike
1 Comment 240 views
How to make money on craigslist?

How to make money on craigslist?

by MammothMoth
0 like 0 dislike
0 comments 902 views
Cost-Reducing Tips for the Small-Business Owner

One of the keys to running a successful small business or home office is learning to control costs. Even the smallest expenses can ... a postage meter or get a mail scale to eliminate overpaying.

by HuggingDuck
0 like 0 dislike
0 comments 207 views
Business Funding Sources

When you decide to open a business on your own, often times the excitement will have you ready to launch your idea right away, however ... can start at $20,000 all the way up to around two million.

by TrainedGuy
0 like 0 dislike
1 Comment 244 views
Tips For Better Online Banking?

Tips For Better Online Banking?

by Mosquiche
0 like 0 dislike
1 Comment 290 views
How To Cut Your Household Expenses?

How To Cut Your Household Expenses?

by SwiftHeroine
0 like 0 dislike
1 Comment 219 views
How to Increase Your Credit Card Limit?

How to Increase Your Credit Card Limit?

by Amigod
0 like 0 dislike
1 Comment 205 views
How to repair your credit?

How to repair your credit?

by VirtualAssassin
0 like 0 dislike
0 comments 157 views
How to improve your credit score?

How to improve your credit score?

by SwiftHeroine
0 like 0 dislike
1 Comment 278 views
How to cut your property taxes?

How to cut your property taxes?

by Knighttime
0 like 0 dislike
1 Comment 209 views
How to Rebuild Your Credit after Bankruptcy?

How to Rebuild Your Credit after Bankruptcy?

by FatKomodoDragon
0 like 0 dislike
1 Comment 218 views
How to Choose a Bank That is Right For You and Your Business?

How to Choose a Bank That is Right For You and Your Business?

by GreedyPig
0 like 0 dislike
1 Comment 207 views
How To Reduce Tax Burden For Your Small Business?

How To Reduce Tax Burden For Your Small Business?

by Herogue
0 like 0 dislike
1 Comment 233 views
How To Finance Your Government Contracts?

How To Finance Your Government Contracts?

by HairyFoal
0 like 0 dislike
1 Comment 217 views
How To Save Money On Gas?

How to save money on car’s gasoline?

by KeyboardPie
0 like 0 dislike
1 Comment 253 views
How Much Does Your Personal Loan Cost?

How Much Does Your Personal Loan Cost?

by BouncyOracle
0 like 0 dislike
0 comments 180 views
How A Loan Can Help You Fix Up Your House?

How A Loan Can Help You Fix Up Your House?

by HarmlessRose
0 like 0 dislike
0 comments 319 views
10 Ways To Reduce Tax Burden For Your Small Business

An ideal lawyer will not just have a string of impressive credentials or gold lettering on his door. He or she will ... accounting professional as to which accounting system would be most suitable.

image
by HairyFoal
0 like 0 dislike
1 Comment 221 views
How to Build Financial Freedom with Your Own Home-Based Travel Business ?

How to Build Financial Freedom with Your Own Home-Based Travel Business ?

by BumblingBee
0 like 0 dislike
0 comments 206 views
Top 7 Ways to Make Sure Google Adwords is Making You Money

Most people don't realize that the more money you spend for Google Adwords traffic in comparison to the Google AdWords ads in the ... . SALES CAN GO DOWN and still profits can climb higher!

by AfternoonFay
0 like 0 dislike
1 Comment 295 views
How to attract big investors for Small Cap Companies ?

How to attract big investors for Small Cap Companies ?

by DreamBaby
0 like 0 dislike
1 Comment 261 views
How to get business grants?

How to get business grants?

by Conjursa
0 like 0 dislike
1 Comment 266 views
How to Choose a Credit Card Processing Company?

How to Choose a Credit Card Processing Company?

by ForceSoldier
0 like 0 dislike
1 Comment 325 views
How to buy an airline credit card?

How to buy an airline credit card?

by Sumogre
0 like 0 dislike
1 Comment 277 views
How To Get Approved For A Student Credit Card?

How To Get Approved For A Student Credit Card?

by FoolishJaguar
0 like 0 dislike
0 comments 195 views
How To Apply For Business Loans?

How To Apply For Business Loans?

by Conjursa
0 like 0 dislike
1 Comment 240 views
How to apply for a car loan?

How to apply for a car loan?

by KeyboardPie
0 like 0 dislike
1 Comment 266 views
How To Finance My Small Business?

How To Finance My Small Business?

by Amigod
0 like 0 dislike
1 Comment 230 views
How to Make Your Organization Innovative?

How to Make Your Organization Innovative?

by BouncyOracle
0 like 0 dislike
1 Comment 189 views
How to make your home business automated?

How to make your home business automated?

by Knightmare
0 like 0 dislike
1 Comment 355 views
Connect with us:
...