Home / Business / Ballerific Finances : 3 Ways To Improve Your Ability To Stick To Your Budget – blogged by @niksofly

Ballerific Finances : 3 Ways To Improve Your Ability To Stick To Your Budget – blogged by @niksofly

Many people are in the adult struggle. You know, the momentary feeling of balling when Chase pushes your direct deposit through in the wee hours of the morning. You wake up invincible, but by mid morning, after you have sent payments out,  you realize that you can’t curse your boss out and quit.  90% of your income is gone and you haven’t even had  your measely lunch.

If you have never experienced the struggle, consider yourself blessed. I felt like Oprah multiple times, “You get a fade”, “You get a fade”, “You get  a fade” , “Everybody gets a faaaaaade”, but by the time I finished paying bills, I was eating that slice of  humble pie. I made great money, but my living expenses were just as high. No matter how I wanted to quit, I couldn’t because I didn’t have a nest egg to cover my expenses. It wasn’t until I learned the art of budgeting that I was able to save aggressively and buy my peace of mind. It’s not an overnight process. You’ve created bad spending habits throughout your life; it will take some time. The more you do it, the better you become at it. It’s a continual learning process. Once you get the knack of it, you will challenge yourself to do more. A great friend of mine and I literally find ways to save more aggressively. It’s like a huge thing for us. We converse, come up with number and see which one of us will succeed. I thought it would be cool if I shared three tips that I use to stay within my budget and meet my saving goals.

1)   Don’t keep up with the Jones’…nor the Lyons, Wests, Carters, Smiths or your co-workers. A common mistake I notice that people do is  pocket-watch. These individual assume that because Person A works the same job he or she does, Person A is at the same income level.  When Person A makes a purchase, so does the individual. You should never compete with anyone nor watch their pockets. Just because  you work with a person on the same job doesn’t mean that your income is the same.  Some individuals are better negotiators thus receiving a better base pay. Others might have tenure or scholastic achievements that warrant a different pay grade. Some people even have multiple streams of income ranging from a governmental allotment or spousal support to inheritance or a viable side business.  Purchasing a brand new car every three years might be a tax write off for them through their business whereas for you, it’s a debt that keeps on growing because you rollover your previous loans into your new ones. Person A may only be spending 5% of her total income for that new purse, but you just wiped out 35% of your total income trying to keep up. This type of thinking leaves you over budget and miserable.  Don’t take part in it.

2) Separate your money.  I have several bank accounts that I use for specific things. I have a few savings accounts that range from general savings to  event specific things such as birthdays, Christmas or travel. I have 2 checking accounts. One is for my bills only. Any part of the direct deposit that hits this account goes directly to my fixed expenses.  My second account is what I proclaim as the “throw away money”. This is the money that I budget to use for my personal grooming and the things that I want to purchase on the day-to-day basis. Once money has been used, that is it. I do not opt in the overdraft feature for this account because there is no need to spend money that I don’t have and accrue a $35 fee for each transaction.  That is wasting money. Another thing I do is leave my main checking account debit card at home so I’m not tempted to spend additional money. Sometimes I withdraw my  “throw away” budget in cash, leaving all debit cards at home. A quick way to check your spending is to have cash. I use to swipe without consciously thinking. However, when cash leaves my hand I pay more attention to it, especially if it is all I have for the pay period.

3) Download a digital check ledger.  Long gone are the days of writing daily transactions in your checkbook and then balancing it. I absolutely love CHECKBOOK app. I set up my accounts with the initial balances and type in each purchase I make. This particular app allows me to categorize my purchases by type, create reoccurring purchases and transfer money on the ledger. I input everything including my cash. I call the account my wallet. When I’m using cash and change is included, I round up to the nearest whole dollar. Say for instance something is $3.24. When I input it into my ledger, I write $4.00. This makes it easier for me to keep an account of the remaining physical dollar bills. (Save the loose change you accrue. Don’t touch it  until the end of the year.)  Another great feature of a the ledger is that it creates a chart showing where I’m spending my money and exactly how much money I am spending. When I see the final numbers, I usually cut my budget once again. I take the excess and save. I log onto mobile banking regularly comparing ledgers. If I see that there is a discrepancy with my account, I compare my ledger’s detail to the bank’s ledger. I’ve caught several mistakes the bank has made that would of cost me close to a stack.

I have to be financially aware at all times. I suggest you become financially aware as well.The more conscious you become with your finances, the better you will be at budgeting and saving. Remember the goal is financial longevity. It’s the true BALLER way.

-Niko Rose

About niksofly

I don't have anything fly to say except...You might see a typo or two. Playas mess up!!!

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