By Michelle Wanjiku
With tough economic times, it’s important to know how to make sure that you put to good use the money you have. This is where budgeting comes in.
Some people excel at working with a budget while others have trouble even sticking to one for a week. If you are one of these people, you should know that the reason could be that you are using a budgeting style that does not suit you.
There are different styles of budgeting and unless you choose one that suits your needs and style, you will never be able to stick to the budget you set.
What are these budgeting styles?
1. The Bucket List
As the name suggests, this is budgeting with the intent to meet a certain goal. For example, you might be looking to buy a house, a car, new clothes or even travel. No matter your motivation, this style of budgeting ensures you are able to do it.
Some people are motivated to either save or stick to their budget when they are working towards something.
This a great budgeting style for you if you are one of these people who is willing to spend within your means if it means you are going to reward yourself in the long run.
With this type of budget, you need to come up with a great savings plan that will enable you to reach your goal.
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2. Back to Boot Camp
Let’s face it; one of the reasons why a lot of people are hesitant to live on a budget is because they feel like they will have to give up very many things. This is not usually the case because with proper budgeting you will still be able to enjoy your hard-earned cash.
Yes, you will need to cut down on your spending but it won’t mean that you have to stay away from having fun or treating yourself.
This style of budgeting though is one that requires you to let go of some of the things you spend your money on.
It involves going through your expenses and seeing what you can remove from the list, such as, that gym membership you rarely use, the pay-tv subscription if you never watch TV and more.
As painful as it might be, letting go of certain expenses that you don’t need will help you save a lot more money and better your financial situation in the long run.
So if you are the kind of person who is spending your money on unnecessary things, you can use this budgeting style and make sure you don’t have to reduce the amount of money you spend on things you do need.3.
3. Stick It to Yourself
There are some people who won’t do something unless they know there will be a consequence if they fail to do it.
This style of budgeting uses punishment to make sure you actually stick to your budget.
Take, for example, if you fail to pay your bills, your water and electricity will be cut off which is why most of us pay them.
With this method, you will need to get an accountability partner who will hold you accountable if you go over your budget.
You also need to make sure you subject yourself to a penalty, such as, if you go above your budget, your accountability partner has to make you give a certain amount of your next salary to a cause or person you don’t like.
When you have a negative outcome because you didn’t stay within your budget, you will be more motivated to actually stick to it.
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In order for you to actually be able to stick to a budget, you need to figure out what budgeting style works for you and then use it. You will need to put in a lot of effort to make sure you are actually following your set budget.
But at the end of it all, having a style that works for you is not enough. You need to be willing to make the sacrifices your method requires.
The writer is a Communication Officer/Digital marketer at Career Point Kenya. Email: email@example.com
3 Budgeting Styles You Should Adopt If You Are To Be Financially Stable
By Michelle Wanjiku