The best and easiest way to build a solid foundation for your personal finances is via good budgeting habits…and the sooner, the better! It may seem like a chore sometimes to stay on task when it comes to money and budgeting, but even small, realistic changes and efforts can go a long way, making it easier to save, cut costs, and reach financial goals faster.
Here are some tips from the team at Members Plus Credit Union to help you get and stay on track with your budget.
Stay on Budget: 5 Budgeting Hacks to Help You Save Time, Money, and Stress
1. Automate to Make Saving Simple
Automation is the key to ensuring all of your bill payments and savings deposits are made on a regular and timely basis. Setting up automatic deposits to your savings account and to pay recurring monthly bills is also a smart money habit because it helps avoid late fees and allows you to build up savings without overthinking it. Consider automatic transfers to an emergency fund or a separate savings account as well as bills to make budgeting simple!
2. Use Budgeting Apps and Templates
Budgeting apps and templates are an excellent way to manage your budget. MPCU offers Money Management™, an easy to use financial management tool that keeps all your account information, even accounts at other financial institutions, at your fingertips, allowing you to track spending, create budgets, see your spending and saving habits, and more:
- See all your accounts in one place
- Connect with other financial institutions, credit cards etc.
- View spending
- Set and manage budgets
- Visualize your financial goals
3. Make Small Changes That Add Up
You might be surprised just how much of a difference making a few small changes to your daily spending habits and monthly household purchases can make. It can really add up and have an impact on your monthly budget. For example, if you skip your daily coffee at the local shop and brew at home instead, you could save around $100 a month, which is $1200 savings over the year that can be used to pay off debt or pad your emergency savings fund! Here are a few simple habit tweaks to help reduce daily expenses:
- Cancel unused subscriptions or memberships
- Meal plan and grocery shop with a list to avoid impulse buys
- Shop sales and use coupons for essentials
- Brew coffee at home instead of buying it every day
4. Use Debit Cards or Cash Instead of Credit
Another budgeting hack that can help save money and keep your budget in check is the use of your debit card or cash versus a credit card. There are a few ways this can help. First, if you only spend the cash you have on hand, you will definitely stay on budget! Your spending is also limited by the amount of money in your checking account when you use your debit card versus a credit card that has a high limit! Not to mention the extra money you will end up spending on interest charges on unpaid balances! You also get a realistic view of your real spending patterns so you can make better day-to-day decisions.
5. Put Rewards to Good Use
A great budgeting hack is to make sure to maximize credit or debit card rewards. Today, there are a variety of different types of reward programs offered by credit card companies and issuers. It is a wise decision to take advantage of offers and perks as often as you can. From reward points that can be cashed in for things like gift cards and items for your home to real cash-back opportunities, these things really add up and can be used to pay for monthly necessities or household items that can save your monthly budget.
- Cash in points for gift cards to cover groceries, gas, or household items
- Use cash-back earnings to pay bills or add to an emergency fund
- Avoid spending just to earn rewards — focus on redeeming rewards for things already in the budget
Keep Budgeting Easy and Consistent
Creating and following a budget is crucial for financial success. The key is to keep it simple and stick with it! Small changes now and taking advantage of the easy-to-use tools from Members Plus CU can mean big savings and financial rewards in the future. Connect with MPCU for assistance with creating your budget and other free resources with the Money Management tool.
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