21 Days To Make A Habit: How To Live On A Budget | Refresh Financial
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21 Days To Make A Habit: How To Live On A Budget

How To Live On A Budget

Living on a budget is never fun, and we'd all love to be able to live in a world where we can spend freely without any consequences. But this isn't reality. Life is expensive, and living beyond your means will lead to disaster. If you're wondering how to live on a budget, we've got good news! According to experts, it only takes 21 days to form a habit. So after a while, healthy financial habits will eventually become second nature to you.

Here are some pointers to help you succeed:

1. Choose A Budget That Works For You

- You need a budget that reflects your income and doesn’t ignore the things that are important to you. You’re on a budget and you may not be able to spend on certain things right away, but they can be a goal of saving money. Making a budget doesn’t mean living on the bare necessities, it just means spacing out your purchases and planning them better.

2. Be Realistic

- Don't tell yourself you're going to stop doing costly things you enjoy doing altogether. Instead, cut down on how often you do them.

3. Don't Be Too Strict

- You don't want to be miserable on a budget. Allow yourself a treat from time to time to keep your morale up.

4. Reward Yourself

- Plan rewards for different milestones along the way. It's important to have things to look forward to and motivate you along the way.

5. Set Clear Goals & Keep Them In Your Sights

- Your goals can be anything: a vacation, a new car, renovations, you name it. Use these goals to remind yourself of why you're living on a budget.

6. Share Your Money Boundaries With Friends And Family

- This will help them to understand that outings with you should be affordable or free places. It'll help you avoid awkward situations with the people you care about the most.

7. Categorize Your Money

- For instance, you should have a savings account for the money you save, a chequing account for the bills you have to pay and a chequing account for spending money. This way, you avoid spending money that was earned for something else.

8. Set Up Automatic Payments And Transfers

- Setting up automatic payments and transfers into your savings account on payday will ensure your money goes where it needs to before you even have time to think about spending it. It should be as easy as setting up payees and transfers in your online banking account. Not to mention, it will also prevent you from making late payments on important bills!

Utilizing these tips for just 21 days can make living on a budget a relatively painless habit. So start budgeting, get saving and turn your money around now!

What are some of your tips for living on a budget? Let us know in the comments!

 

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