I know, I know—taking the time to create a budget isn’t exactly high on most people’s to-do lists. The word “budget” often feels restrictive, even boring. And many people shy away from budgeting because they’re afraid they won’t be able to stick to it.

I get it—money can be complicated and sometimes overwhelming. But here’s the key: you have to show yourself grace. Be kind to yourself!

Money is at the centre of our lives, yet many of us haven’t been taught how to manage it, understand it, or even talk about it. In fact, for many cultures, money is a taboo subject, and a lot of people feel embarrassed to admit they don’t know how to handle their finances.

The truth is, it’s not that you’re bad with money—it’s that no one’s ever taught you how to manage it properly. So, be kind and compassionate with yourself when it comes to your financial journey. It’s not your fault that you feel this way, but moving forward, it’s important to take responsibility and develop self-awareness.

Imagine being able to talk about money without feeling stressed. Picture yourself managing your finances in a way that allows you to pay for the things you love most. Sounds great, right? Well, you’re in the right place!

In this blog, my goal is to help you replace that dread around money with confidence. Who knows, you might even find talking about money… fun!

Create a Budget That You Can Stick To

Creating a budget is the foundation of your financial journey. It’s the first step toward achieving financial freedom. The concept is simple: spend less than you earn. But here’s the thing—having a clear budget makes that goal a whole lot more achievable. A budget helps you track your income, plan your spending, and ensure you’re saving for what truly matters to you.

Step 1: Track Your Income and Expenses

Before you create a budget that you can stick to, you need to understand where your money is going. Start by tracking your income—look at your payslips, bank deposits, or any other sources of money coming in.

Next, review your expenses. Go through your bank statements, credit card bills, and other financial records to identify your spending patterns. Are there any subscriptions or services you no longer use? Can you cut back on dining out or impulse shopping?

Step 2: Categorise Your Expenses

Once you have a clear picture of your spending, divide your expenses into two categories:

• Fixed expenses: These are necessary and predictable costs like rent/mortgage, utilities, insurance, and loan repayments.
• Variable expenses: These change from month to month, such as groceries, entertainment, dining out, and shopping.

Step 3: Set Your Budget

Now, it’s time to create a realistic budget. Allocate a portion of your income to each category, ensuring that your essential needs are covered first. Make sure to include savings and debt repayments as priorities. If your expenses exceed your income, look for areas to cut back.

Step 4: Use the Right Tools

Having a budgeting tool can make the process much easier. Whether it’s a simple spreadsheet, an app, or even a pen-and-paper budget, find a method that works best for you. If you need a ready-made template, click here to download a simple budget spreadsheet. It’s the exact copy that my husband and I used to get a handle on our finances!

Step 5: Build Flexibility Into Your Budget

A budget isn’t set in stone. Life happens, and unexpected expenses pop up. That’s why it’s crucial to have an emergency fund—a financial cushion that helps you cover unforeseen costs like car repairs or medical bills without derailing your budget.

Read more: Emergency Funds and why you need one

Step 6: Pay Yourself First

One of the best habits you can develop is paying yourself first. This means setting aside money for savings or debt repayments before you spend on anything else. Don’t wait until the end of the month to see what’s left over—prioritise your financial goals from the start.

Step 7: Review and Adjust Regularly

A budget isn’t something you create once and forget about. Make it a habit to review your budget weekly or monthly to ensure you’re staying on track. If you overspend in one area, adjust your spending in another to balance it out.

Step 8: Use Cash for Discretionary Spending

If you struggle with overspending, try using cash for categories like groceries, dining out, or entertainment. Studies have shown that people tend to spend less when they use cash instead of cards. I find that using cash makes you more mindful of your purchases and helps you stick to your budget.

Step 9: Set Financial Goals

I used to think that having a budget meant that you couldn’t have any money! But I now know that a budget isn’t just about restricting spending—it’s about working towards something meaningful. Set SMART financial goals (Specific, Measurable, Achievable, Relevant, Time-bound) and use your budget to track your progress. Whether it’s paying off debt, saving for a holiday, or buying a home, having clear goals will keep you motivated.

Read more: Setting Financial Goals

Step 10: Stay Consistent and Be Patient

Budgeting is a skill that takes time to master. The more you practise it, the easier it becomes. If you slip up, don’t be discouraged—just adjust and keep going. The key is to create a budget that you can stick to, not one that feels impossible to maintain.

Take Action Today

Now that you know what to do, it’s time to take action! What can you do in the next 24 hours to start your budgeting journey? Whether it’s downloading a simple spreadsheet, reviewing your bank statements, or deciding to pay off one small debt, take a small step today towards a more intentional financial future.

Start now, and watch how budgeting transforms your financial life.

Take Control of Your Money 

Complementary Call:  Join me for a personalised, one-on-one consultation is designed to help you gain clarity on your financial goals, identify obstacles, and create a budget tailored to your unique needs. Whether you’re looking to eliminate debt, build savings, or plan for a prosperous future, I will provide you with actionable insights and practical advice to set you on the path to success. Don’t miss this opportunity to take the first step towards financial freedom – click HERE to schedule your 30 minute Complimentary Call today!