Sticking to a plan is hard for me. I don’t like to be boxed in or have limited options. But one thing I’ve successfully stuck to in the last three and a half years is a budget. Three years isn’t exactly a “long haul” but in terms of budgeting, that’s just shy of an eternity.
Last year I highlighted my favorite app for budgeting, YNAB. I can’t imagine not using it, and I wouldn’t dream of switching to anything else at this point. It’s a perfect blend of ease, features, and delight. I still whole-heartedly recommend it as the hands-down-best-budgeting app.
But a fancy app does not a budget make. You can have the best app in the world, but if you don’t have the desire and discipline to take control of your cash, it’s not going to happen.
Here are my five keys to sticking with a budget over the long haul.
1. You Have to Plan
Broad, general strokes can’t paint a good budget. You have to get specific. You need to look over bank statements and credit card records to get an idea of how much you’re spending on fuel, utilities, food, entertainment, giving, etc. so you have a good place to start.
You don’t have to be a hardcore budgeting nerd like me to plan well, and with 10 or so categories you could put together what you need for a monthly budget. But, you have to do it. It’s easier to plan and follow your plan than it is to “go with the flow”–which is a code word for not having a budget but pretending you do.
Here are some major categories to get you started:
- Charitable Giving
- Entertainment
- Food
- Gifts
- Housing + Utilities
- Insurance
- Medical
- Personal Allowance
- Saving / Debt
- Transportation
- Unexpected
2. Adjust Accordingly
When you are figuring out your budget, you want to plan with the year in mind, but without trying to tackle the whole year all at once.
Here’s what that looks like practically. We save a bit of money every month for Christmas gifts. Saving a some each month is a lot easier than trying to find a few hundred extra dollars all in one month.
At the same time, each month is different. We save for our car insurance all year round, even though we only pay once a year. But for other things, like vacations, we save some each month and then adjust as we get closer to the vacation and take money from other categories.
So, think about the major things that happen throughout the year (car insurance, vacation, Christmas) and then adjust each month when different things come up. You’ll have the base of cash in place when those big purchases happen, but you won’t need to think of every single thing at the beginning of the year.
3. It Takes Time
It takes time to budget in two senses.
First, you have to take the time to plan your budget and then follow the necessary steps of keeping track of transactions or taking out cash for your envelopes.
Second, it takes time to get things right. Your first month will be tough. You’ll potentially overspend, get frustrated, and feel like giving up.
Anything you want to do well takes a hefty investment of your time. Budgeting takes more time than not budgeting, like exercising takes more time than not exercising and being married takes more time than not being married. That’s a pretty obvious rule that we love to overlook.
Your finances touch every area of your life, and neglecting them is going to lead to more time worrying, arguing, crying, and yelling than if you take a couple of minutes each day to make sure you’re staying on track.
Over time you’ll be able to add or subtract categories, factoring in things like saving for kids or furniture or a house or whatever your priorities are. You don’t have to know on day one what you’ll need a few years down the road.
4. Accountability is Critical
Having my wife as a partner in our financial management process is one of the greatest factors allowing us to successfully allocate our money. If it was up to me, I’d have a (nearly) limitless personal allowance so I could buy whatever I want on a whim. We have a monthly budget meeting to discuss how we’re doing, what we need to be aware of, and to evaluate our financial priorities.
I feel for people who are budgeting on their own. It’s a lot easier to click the “Buy Now” button when there’s no one asking you what’s in that package that just showed up from Amazon.
If you’re married, get on the same page with your spouse, talk clearly about your finances, and hold each other accountable. Normally when one person is feeling a bit lethargic on the budgeting front, the other person can help pick up the slack.
If you’re single, ask a trusted friend or family member to help hold you accountable (and maybe they’ll be inspired to do the same). This is probably going to be uncomfortable. You’ll be talking nickels and dimes and income and purchases, but if you’re serious about getting on track financially, you simply can’t do it alone.
5. Stick It Out
Discouragement will come. Our budget is at a point now where I know that it’s going to be tough to adjust things because I have it all finely tuned. There are still days when I get frustrated with it and want to go on an Amazon rampage.
But it gets easier too! Now, our budget meetings last only five or ten minutes, and there is no yelling or crying, which feels like a mini-success all on its own. The hardest part is starting. It’s not all down hill from there, but it’s at least a gradual decline.
You don’t have to save every penny for retirement today. You don’t have to do things perfectly. You’ll make mistakes and budget poorly at times. Take heart–Lord willing, more dollars will flow in next month and you can keep going and adjusting.
A half-budget is better than a non-budget. If it takes 3 months before you’re actually spending less than you earn, it’s better than figuring that out 20 years from now by ignoring the process all together.
Wrapping Up
I’ve tooted the budgeting horn here more times than I can count, but outside of Jesus, it’s been the single best thing for our marriage and for pursuing a life pleasing to God and enjoyable for us. It’s not easy, but it’s worth it, and I can’t overemphasize what a massive impact it will make on your life.
If you want to use the magical software we do called You Need a Budget, download a free trial here. When you’re ready to purchase it, use this link, and you’ll save $6 off the price tag once your trial is up.
Here are a few budgeting posts from the last few years if you want more info on getting started: