Your Best Budget Part 2: 5 practical ways to stay on budget

Welcome to the Fearless Girl Finance ‘Your Best Budget’ series! This is a 4-part series with new content released each week on practical ways to stay on budget, plus lots of challenges and ideas that will help to make your budget feel like fun. This week we are looking at 5 practical ways to stay on budget.  

Last week you reflected on your spending habits, journalled through your emotional spending and learned about the importance of an emergency fund. So now it’s time to put that into practice and start working on the best strategies that can help you stay on budget.  

Get the fundamentals right 

Before we dive into the practical tips that will help you stay on budget, we need to ensure that the fundamental building blocks of budgeting are in place. After all, you can’t expect the ‘how’ to fall into place without first knowing your ‘why’.  

Know your why

Defining your financial goals is the most powerful step towards staying on budget. Whether you are saving for a down payment on your first home, working to clear your debt or aiming to retire early, having a personal goal will be the biggest motivator every time you are tempted to skip out on budgeting.  

Track your expenses

Spend a week or two working out where your money is going. We’ve all stepped outside our door only to come home with a lighter wallet and no idea where that money even went. A few dollars on a coffee, just ‘popping in’ to Sephora and picking up a salad all adds up. Knowing where you are spending mindlessly will help with creating a plan to manage your money.  

Use a budget template you can stick to

Here at Fearless Girl Finance, we love the 50-30-20 method for budgeting as it allows for realistic spending on the things that bring you joy while also setting aside money for your financial future. But the best budget template is the one that’s realistic for you. If you know you have a thriving social life and you plan a budget that doesn’t allow for any nights out, you’re setting yourself up for failure. Overly restrictive budgets always lead to financial bingeing.  

 5 practical ways to stay on budget 

Once you’ve got the fundamentals in place, you’re ready to get started! But whether it’s your first time working with a budget or you’re a budgeting pro, it can be difficult to stay on track. Here are the top 5 Fearless Girl Finance approved practical ways to stay on budget.  

1. Pay your bills on pay day 

This is a quick win. Even if your electricity bill is due in the middle of the month, you can look into paying it early. If this isn’t a possibility, transfer the money into a separate savings pot so that it’s not sitting in your bank account, tempting you to splash out. Revolut, Monzo or even a separate bank account which you use exclusively for bills and rent are all great options for this. Paying your bills on time is peak adulting, helping you to avoid late fees and putting you in control of how you spend the rest of your income.  

2. Keep a wish list with a waiting period.  

When I see something I want, my soul literally yearns for it regardless of how practical it is (ask me why I want a new outfit for every iftar even though I don’t observe Ramadan?) Keeping a wish list is a great way to evaluate if you really want something. Whether on your phone, on Amazon or in a notebook, if you want it, write it down. Let it sit for 7 days. Did you remember the item? Do you still want it or was it an emotional reaction? 

If you still want it and think you will use it multiple times, go ahead and buy it. But if you had forgotten about it or you know it was just something you wanted for a one-off event then you can cross it off your wish list. Delayed gratification is a forgotten life skill in our society, but it’s one of the best tools you can develop for staying on budget.  

3. Know your spending triggers 

If you, like me, are a devil for online shopping, install an ad-blocker so that you aren’t tempted every time you need to Google something. If you know that you are a sucker for a ‘12 class deal’ at a local yoga studio but that you won’t attend them all before the offer expires, look into a Class Pass or Privilee membership. If you love GRWM or Morning Routine videos on social media, but you are finding that your favourites are constantly promoting new products you ‘need’, unfollow them. Simple swaps can help to keep your triggers under control. 

If your spending has gotten a little out of hand, but you don’t know your triggers, try journalling how you feel in that moment, or even making a simple note in your phone when you want to spend money that you haven’t budgeted for. It could be boredom, procrastination or stress. In these cases, there are more productive ways to deal with these emotions than over-spending.  

4. Review your budget regularly 

At the end of each month, look back over your expenses and see how they matched up with your planned budget. Was there anywhere you overspent? If so, why? Was your budget too restrictive or did you not allow yourself enough wiggle room?  

Was there anywhere you had over-allocated? If so, allocate that money to either building your emergency fund or into your long-term financial future. A regular review doesn’t need to take hours and is the best way to ensure that you are keeping your main financial goal at the forefront of your mind.  

5. Find an accountability friend 

There can be a lot of shame around money management, and starting your financial journey can be scary and overwhelming. Tell your friends and family that you are trying to stick to a budget – their support will keep you accountable and they can help you to celebrate in a budget friendly way every time you achieve a milestone. If you feel embarrassed to talk to people you know about money, get in touch with us at info@fearlessgirfinance.com or on Instagram @fearlessgirlfinance_ so that we can encourage you on your journey.  

Staying on budget? Celebrate yourself!

Whether you’ve avoided an online shopping spree by going to a calming yoga class, or paid off your first credit card, celebrate yourself! Learn to be proud of yourself every time you stay on budget! Every time that you make a positive choice for your budget, it’s progress towards your financial freedom – and that’s what Fearless Girl Finance is all about.  

Will you try any of these practical ways to stay on budget? Let us know in the comments or tag us on Instagram @fearlessgirlfinance_ 

Click here for Part 1: Why you aren’t staying on budget

Click here for Part 3: Frugal swaps that you won’t even notice

Click here for Part 4: How a no-spend challenge could lead to financial freedom