The Secret to A Successful Budget
Last year we made a big change in how we budget.
If you watch some of my older Youtube videos, you know that we used the free version EveryDollar for years. It's my favorite budgeting software due to how easy it is to use. We just hit 1 year of using EveryDollar Plus.
What's the difference? The main difference is how we track our spending. With the free version we logged all of our spending manually as we went. With Plus, it syncs with our bank so we can drag all of our spending into their categories.
The truth is, regardless of how you write your budget, the key to success is how you track your spending.
Like most things, building in a routine will create a strong budgeting habit. If you're using a software where you manually enter spending, it's best to log your transactions as they happen. When the waiter brings you the check, open your phone and log it into your budget.
If you have a software that links to your bank account, it's best to log in daily and organize your spending. Softwares like EveryDollar Plus require you to choose which categories the bank transactions should go to. Getting into a daily routine of tracking expenses keeps the task small and gives you a fresh memory (it's hard enough remembering what all you bought a Target).
Other softwares, like Mint and YNAB, automatically put transactions into categories for you. It's still important to log in daily to check your budget. Often times transactions will be misplaced, so you'll need to move a few thing around. Plus, you'll need to know where your budget stands and if you need to pull your foot off the spending pedal.
Most business owners struggle with managing their money, resulting in smaller paychecks for themselves. At Craig Dacy Financial Coaching, we help make managing your money simple. That way you can easily run a business that pays you more. Schedule your free coaching session now.