Change the way you think about budgeting

In reality, budgeting is about creating a habit. When you think of budgeting as a verb, a regular activity, rather than a one time act of creating a budget, you'll set yourself on a track toward creating a healthy relationship with your finances.

Jokes and memes about not checking your bank account are commonplace now because there is a level of truth to them for many people. Most people do avoid checking their bank accounts out of fear for what they will see. That said, keeping close track of your spending and bank account balance is what helps you stay on your budget. It takes practice and discipline, but it is doable.

Finances as part of your well-being

Maintaining a healthy financial balance is an essential part of your financial well-being. In a stress survey from the American Psychological Association, 66% of adults said money was a significant cause of stress.³ Stress can stem beyond your mental well being to your physical well being, with Americans with high stress levels being more likely to experience headaches, lack of sleep, or experience depression or sadness.

A few key recommendations from the article for what you can do to negate your stress that apply specifically to budgeting and personal finance are:

Don't judge yourself against others.

• Especially when it comes to finances, a lot of us feel the need to compare ourselves to our peers. This is an extra layer of stress that you can avoid when you decide to focus on your journey alone.

Take your own advice.

• If a friend were in your situation and asked you what to do, what would you tell them to do? Odds are you already know the answer to what the best next step is, you just need to take your own advice!

Take control where you can

• Stress around your finances is frequently caused by feeling a lack of control around your spending. One way you can start to take control is by creating a budget and following it.  

Small steps to take to start budgeting

Subtract your required expenses from your monthly income. This is how much you have left over to spend on other expenses like groceries, eating out, gym memberships, and so on. These expenses should not exceed what you have left over to spend.

The last number is what you need to keep track of throughout the month. As you spend money, subtract each expense from your working total. An example is below:

Take Home Pay	$2,000
Required Bills
Rent	$700
Utilities	$180
Auto Loan Payment	$150
Total	$1,030
Take Home Pay	$2,000
Required Bills	$1,030
Left Over Spending Money	$970
Week 1 beginning balance	$970
Grocery Trip	$150
Coffee	$6
Online Shopping	$28
Supermarket	$49
Week 1 Spending Total	$233
Week 1 Ending Balance	$737

This is a very simple way to budget but it is a great way to get started. Once you feel comfortable with maintaining your budget this way, you can start dividing your budget even further into smaller spending categories, deciding how much would be appropriate to spend on your groceries, entertainment, fitness, or other categories that fit your needs.

The above example is an outline for your budget. One way you can keep track is by using a spreadsheet or pen and paper.

Each week, put charges from your card or save receipts from cash purchases, add them up, and put them in the categories they belong to. Regularly tracking your expenses is how you will stay on budget. We suggest checking in at least weekly to make sure you're staying on track or adjusting as needed. Plus, it makes keeping track of what you spend less overwhelming.

After a month or two of breaking your budget up like this, try setting a portion of your budget aside for your savings or toward debt repayment. If you're not sure what you should prioritize with your finances, check out our blog that goes over what goal you should tackle first.