If saving more money is your New Year’s resolution, you can reach your goals with a simple solution: a monthly budget. Creating a monthly budget that you can stick with has proven to be one of the most effective ways to not only save money but get your finances in order. Making a monthly budget doesn’t have to be difficult either. Here are a few tips and tricks to help you create one.
Figure out Your Budget Formula
The first step to creating a monthly budget is to figure out where all of your money is going and start from there. Once you’ve got that done, start determining how much percentage of your money you need to adjust. According to CNN Money, here are the reasonable percentage amounts for your monthly household income:
- 30 Percent: Housing and Debt
- 26 Percent: Living Expenses
- 25 Percent: Taxes
- 15 Percent: Savings and Retirement
- 4 Percent: Insurance
Keep Budget Reminders
Like any new lifestyle habit, it’s easy to get off track. If you want to stick to a monthly budget, using reminders can be a great way to do just that. Put your monthly budget in a place where you can see it on a daily basis. Tape it to the fridge or a kitchen cabinet. You can even set up reminders on your phone.