To succeed financially, you need to  make your budget work for you. 

Your goal is to manage your budget instead of your budget managing you!

Try these tips to make your budget work:

Make your budget work by naming every dollar coming in and going out.

If you don’t know where your money is coming from and where it is going, how can you make your budget work?

Naming the money coming in is generally easy – it’s income. The money going out can be a different story. This is where making and keeping a budget comes into play.

A budget can be very simple.  It does not have to be complicated to make your budget work. Record how much money you have coming in, subtract what you have going out, then if you have any left, determine what you are going to do with what is left over.

Make your budget workMake your budget work by cutting back.

Even if you have extra money left over every month, there are still areas in which you can make cutbacks. The more income that you need means the more you need to cut back on.

Your financial situation is going to determine your course of action. Here are some areas to look at to make your budget work:

  • Auto Insurance

When was the last time you got an auto insurance quote? Often times, changing auto insurance companies can cut a significant amount out of your budget. Take the time to call around to get quotes to see if making a change is right for you and your budget.

  • “Extras”

Things like cable, movie/game rental subscriptions, gym memberships, or anything else that you do not need in order to live may be things to cut back on or cut out completely. Examine each and every “extra” expense in your budget to determine if it is truly a need or simply a want.

  • Food

First off, eating out is expensive. If you enjoy eating out, cut back significantly, pack your lunches and try to eat at home more. You can also examine what food you have in your home to see if there are less expensive alternatives (generic brands) or if you can cut out some things.

To make your budget work you may need to research cooking meals on a budget and make enough for leftovers for those times you don’t want to cook as well as to pack for lunches.

Make your budget work by paying off debt.

The first step in paying off your debt is to know what your debt is and this is done by obtaining your credit report. Once you know what you owe and to whom you owe it, you can start on your plan to make your budget work.

Remember that this plan will not work unless you are diligent.

There are a few ways in which to pay off your debt. One of the simplest ways is to pay off the smallest debt first, while paying minimum payments on the rest of your debt. Once the smallest debt is paid off, the money being paid to that then rolls over to the next smallest debt.

This continues until all debt is paid off. This way in which to pay off debt does not always apply to each and every situation. There are situations where you may have a debt that requires an exorbitant minimum payment, not including a mortgage, that it may be more beneficial to pay that debt off first in order to better utilize that payment toward other debts upon paying it off.

To make your budget work, find a way in which to organize your debts so as to make the most of the money you have going toward debt payoff.

Take control of your money. Do not let your money or others dictate what you do with your money.

Know what you have and where it is going, make the necessary changes, and do what you can to make it so that you can keep as much money as you are able.

Look for ways to make your budget work and be diligent in working your plan. 

Amie Sitter-Jones

Amie Sitter-Jones is a writer and consultant who offers advice on how to find the best auto insurance to meet the needs of those looking for texas auto insurance rates and coverage.

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