Sticking to a Budget

Make sure your budget works for you

Be honest about how much money you’re going to spend in each category. Set yourself up for success instead of making a wish list. It’s okay to set goals and push yourself, but be realistic.

Remind yourself of the rewards and benefits of sticking to your plan

Sacrifices today will pay off in the future.

Adopt a saving mindset

Ask yourself if you need it (not want it) or if it’s worth it. It’s easier to stay on track now than to fix spending blunders later.

Make a plan for when you’re faced with spending temptations

Set a limit, leave credit cards at home, and opt-out or ignore notifications and offers that will cause you to spend outside of your plan and goals. It’s not really saving money if you weren’t planning to spend it.

Save for large purchases instead of using credit or special financing offers

It will be satisfying to reward yourself for saving and will avoid an additional monthly payment to manage. Plus, interest charges increase the overall cost of your purchase, but saving for a purchase can result in receiving interest.

Set up automatic transfers

This is an easy way to save money so you don’t accidentally spend it on something tempting. You can use this approach for anything – short and long-term spending like monthly expenses or a down payment for a house.

Pay down your debt

Controlling spending and saving can be extra challenging while paying interest on credit cards or other loans. Freeing up those debt payments will give you more money to work with each month.

Find a budget buddy

Having someone else keep you accountable can be a big help to avoid overspending. Share your budget with them and ask for help to stick to it. You don’t need to give them your wallet (or maybe you do), but they might give you that extra boost to stay on track.

Remember, you’re in control! You’ll know if your budget feels right. If it isn’t working for you, adjust it until it is.

This article is provided for informational and educational purposes only and is intended to be used as a guide for planning. It should not be construed as investment, tax, financial or other advice. Data and other information provided by third parties are believed to be obtained from reliable sources, but we do not guarantee the accuracy of such information. Investing in securities involves the potential for gains and the risk of loss and past performance may not be indicative of future results.