Have you ever found yourself complaining that the lifestyle you want isn’t possible because of your budget? Perhaps you dream of owning a home, moving to a city center, dining out more often, shopping for higher-end items, and taking regular vacations. It’s the kind of thing many people want, but wants don’t always translate into affordability.
Your first impulse may be to throw caution to the wind and not let your budget dictate your lifestyle, but this can be a slippery and dangerous slope. Spending money without any care in the world can lead to massive debt that you may never be able to get out of. Before you become too stressed about the budget, let’s take a look at some basic ways you can adjust your lifestyle to fit your budget. Yes, it can be done, and you will be thrilled with the results. It’s just going to take commitment!
You Can’t Go About Things in Reverse
If you’re trying to make your budget fit your lifestyle, it’s time to stop what you’re doing and rethink your actions. This is the reverse way to look at things, which means it’s unrealistic and likely not productive at all. Instead, it’s about making your lifestyle fit your budget. This means you may need to cut some things, such as gambling on websites like casinos.com and ordering takeout, from your routine. This is called discretionary spending.
When making adjustments to your lifestyle so that it fits within your budget, there’s a good chance you’ll need to cut out a lot of discretionary spending, possibly all of it, at least in the short term.
Make a Realistic Budget
Perhaps the most important adjustment you can make is to create and then stick to a budget. If you have never used a budget before, now is the time to start. It’s hard to know if you’re overspending or if you have a surplus, without a budget to refer to.
There are plenty of free budget spreadsheets you can find online; these will give you the basics to get started. A budget needs to include all sources of income and all expenses. Typically, people create a monthly budget since many of their bills will be paid monthly. Remember, it needs to be realistic. When you are entering numbers such as the cost of groceries, fuel for your car, and utilities, make sure you’re being honest about what you need to spend.
Track Your Spending
Once your budget is made, it’s time to track your spending. Since this can be a real hassle if you do it manually, try checking out the best budget apps available for your smartphone instead. You can easily and quickly record expenses at the moment they occur so that you don’t forget about them. The app will then keep a rolling tally of what’s been spent, and you can also enter your income to see if you are on track to break even, have a surplus, or a deficit.
A few budgeting apps you may want to try include MoneyPro, YNAB, EveryDollar, PocketGuard, Goodbudget, and Honeydue (ideal if you have a partner that you are sharing a budget with). You may need to try a few out before you find the one you like best.
Start Saving (Even If It’s Small Amounts)
Another way to adjust your lifestyle to fit your budget is to start saving. Think of it as a rainy-day fund. The idea is that the money you save can be used for unexpected emergencies, so they do not disrupt your budget. And don’t worry about how much you can afford to save; even if it’s just $5 to $10 per week, it still adds up over a year. Save more whenever you can afford to.
A good way to remember to save money is to set up automatic withdrawals from your regular account to your savings account.
Set Some Financial Goals to Work Towards
This tip ties in with the savings. While the main reason you have savings may be to cover unexpected expenses, it can also be for financial goals. Identify your savings goals, set a timeline, and determine how much you need to save. Once you’ve got a solid goal and a savings plan, it makes achieving it more doable.
Find Ways to “Treat Yourself” That Are Free or Cost Less
Here is another important adjustment: find ways to treat yourself that are free or at least more cost-effective. If you’re in the habit of buying a new designer handbag, treating yourself to a meal at a high-end restaurant, or splurging on electronic gadgets, it’s time to make new habits.
You don’t want to take away all those little joys; rather it’s about finding new things that make you happy. Why not tackle those fancy meals at home and follow some online cooking tutorials? Try shopping at consignment stores and second-hand stores to find hidden designer treasures for a bargain. Instead of buying the latest electronics when they are released, take your time, read reviews, and wait for a good sale.
Over time, you’ll start to see that you almost get more joy from saving money and making smart purchases than by blowing money without a second thought.
It Is Possible to Make Adjustments and Not Feel Like You’re Missing Out
The good news is that it’s possible to make lifestyle adjustments that won’t blow your budget and, at the same time, not feel like you’re missing out. A budget shouldn’t dictate your happiness or lifestyle. It’s about more than just how much money and stuff you have. Staying within budget will fill you with relief and a real sense of accomplishment.