If you take managing money seriously, then you know how important it is to continue to learn and grow. You sit down at the end of the month (or however frequently – it’s your choice) to review your budget like a good money manager, then you look for ways to do even better. I love that about budgeting and it’s what I do in my own life.
Every December, I look over my budget and plan for the next year. I look at the progress I’ve made, where I went wrong, and the questions I still have. Then I plan for the next year with this reflection in mind. I always feel confident that I will have a good year because of my planning. I’d like to offer you some of the questions I ask myself when I review my own budget. Give these a shot if you want to take your money management to the next level.
Would my problems be solved with more money?
Obviously everyone wants more money. Sometimes, however, making more money isn’t necessary. Before you go for a second job that steals your precious free time, see if you can squeeze more money out of your existing budget. If you can find a way to meet your needs without that second job (or a raise with more responsibility), you’ll keep your free time to yourself. And if you have no choice but to make moves to make more money, you’ll know that it’s the best move to make in your situation.
Have I eliminated all my wasteful spending?
You can improve your budget (and save money) by getting rid of expenses for items that you don’t really need. The most obvious would be for purchases of things you don’t use anymore, such as memberships or subscriptions that you used to use but stopped enjoying a long time ago.
Keep in mind that you can resubscribe in the future if you ever decide you want to access it again. But for now, let it go. Your budget will thank you.
What else can I adjust to reach my goals faster?
If you really had to push yourself to find an extra $50 in your budget to put toward your goal, could you do it? Think deeply about how hard you’re working to accomplish your goals. I’m sure you’re doing just fine where you’re at, BUT if you want to turbocharge your efforts, dig deeper. Doing so may allow you to pay off a debt a few months faster, which means you get to move on with your life. So think about how you can move more quickly.
This is also a great way to test yourself. You’ll realize you’re capable of doing more than you thought when you meet that goal faster, and you may be encouraged to re-evaluate all your goals.
Is it doing everything I need it to do? Am I getting the most out of my life right now?
If you’re not pushing yourself to reach a goal, you’re most likely maintaining a nice status quo with your budget. How are you doing with that? Is your budget helping you to do everything you need it to do to allow you to lead the kind of life you want to live?
Sometimes we get so caught up in managing money that we manage to squeeze our life out of it. Take a step back and make sure that you’re setting yourself up for success and enjoyment. You can readjust as needed. It’s your budget after all – you need to make sure you can be happy with it. By the way, it can be natural to have these challenges in budgeting. If you ever need help, I’m here for you.
There you have it – four questions to help you improve your budgeting. This is by no means the complete list of things to think about but if you ask yourself these questions, you will see things change. Budgeting works for those who work at it. Trust in the process, keep up the good work, and you’ll see the progress you desire.