So you spent hours finetuning your budget, only for one thing to knock you off.
Budget in enough overspend
Firstly, I think it’s important to be realistic about spending habits. Shopping increases in price all the time. We may have two or three birthdays on one particular month and none on others. Its a constant struggle to stay ahead.
Bills change all the time – gas and electricity bills or an internet service provider (ISP) go up without much notice and we are forced into a position where we have to prioritise paying those bills over others. However, we can combat this.
One tip is to round up your bill when making your budget. If your ISP charges you £43 per month – round it up to £45 or even £50. If you budget the shopping to be £70 per week – try rounding it up to £100.
Don’t carry any cards/cash with you
We’ve all been guilty of buying of overspending and feeling guilty about it, or throwing the budget out and having to spend time un-picking all that has gone wrong. Remove the temptation by removing how easily accessible money is. ApplePay and AndroidPay are great tools to removing the need for a wallet. However, they can also make it too easy to spend money.
Keep bills in a separate account from your general spending
Another tactic to eliminate overspending is to simply open another current account within the same bank or different bank and use that account purely for shopping. You will have a separate debit card. Then keep your main account open for your regular bills. This way you cannot over spend as you will only have a certain budget within that account.
In conclusion, this is arguably one of the most effect ways of staying in control.
Remove the emotion out of spending/budgeting
Don’t beat yourself up if you over spend. It happens. Life gets in the way, your tire has a puncture, you have some distressing news and you buy that McDonalds on the way home! However, you don’t need to feel guilty about it. We’re human
Save anything spare at the end of the month to give you a safety net
Lastly, another great tool to give you breathing space within your budget is to round up any money left over from last month and roll it over to the next month by leaving it in your current account, or by moving it to your separate spending account.
Do you have any tips you want to share? Please use the comments below.