These days, it’s no secret that budgeting is overwhelmingly important. As the United States and the rest of the world wind down for a terrible global recession, the consumers are now left to tackle debts, credit improvement and re-establishing savings and financial stability! Now, that’s no simple task and one that can hardly be done without a budget. So, most of us think about how much we can spend on this and that while putting money away for savings and the repayment of debts. But, for some reason, at the end of each month, we tend to find that our savings has either decreased, stayed the same or, grown very little. Although, we’ve done our best to stick to a budget, it just doesn’t seem to work. All of that being said, here are three things that putting your budget on a spreadsheet can do for you in terms of actually sticking to it!
Create Realistic Goals
When it comes to most people, goals help us to take action in various ways personal or business. However, we rarely take the time to create goals that are within grasp on a personal level as we are often consumed by work, play, life, ect… When it comes to debt and savings goals, not having a simple way to add up our debts on demand, we often come up with unrealistic goals that lose importance as we realize they’re not achievable. However, with a budget spreadsheet, you will be able to easily add up your bills, income, ect… and in doing so, you will be able to create more realistic goals for yourself. As you start achieving your short term goals, you will gain momentum that helps you to reach your long term goals.
Look For Ways To Reduce The Cost Of Debts
A good budget spreadsheet will always include your debts and the interest rates that you pay on them. If you have multiple credit card debts for instance and you notice that one of them has an incredibly high interest rate compared to the rest, you may be able to call and negotiate a lower rate. Also, your spreadsheet should show how much money you earn and how often. Knowing this and the generalized idea of a compound interest rate should help you to make payments within grace periods and avoid added interest by allowing you to allocate available funds to the most important debts at the right times.
Make Budgeting Addictive By Playing The Budget Game
A few months ago, I really got bored with by budget. After a bit of reading online, I realized, I wasn’t the only one that got bored and because of this boredom, many people just stopped budgeting all together. So, I decided I’d try to come up with a new way to make budgeting fun. I created a game that would give me points every time I met my debt and savings goals each month and subtract points when I didn’t. Each dollar counts so, the score board is fun to track. To learn more about the budget game, read my recent article on making budgeting fun.