Living on a Budget

Living on a budget is a fantastic way to take control of your life and start making your dreams a reality. Sound too good to be true? Well, actually, there is some truth in it.

Most people think living on a budget is about scrimping and saving, nights in and no fun.

To save money, there clearly has to be some adjustment in what you were doing previously in order to meet your goal, and most people think that their lives are going to be dull and boring. In fact, their lives will just be different.

Instead of getting pleasure from spending money, you'll actually get pleasure in saving money.

You're working to a goal, so for every pound you save, you're closer to that goal. You'll also find your priorities will change.

Budgeting plan notebook

Some savers even see it as a challenge to really cut back and for others, they suddenly hate the idea of spending money. It's important not to go to the extreme, but somewhere in the middle ground is a really good place to be and can indeed be life changing.

The key is to focus on small achievements on a daily or weekly basis whilst keeping in mind your end goal. It's easy to forget the reason why you're living on a budget and that's to achieve something. Most people focus on what they're missing out on, rather than what they've achieved and what they're aiming for.

So to keep your budget and spending on track, keep those achievements front of mind:

• Place a picture or photo that reminds you of your end goal in a prominent place within your house. It should be somewhere where you'll see it everyday such as on the bathroom mirror or on the fridge door. It'll be a daily reminder of what you're working towards
• Set yourself small goals that are easy to reach, rather than large, difficult to achieve goals. Consider monthly goals in one particular area such as the grocery shop or going out. After all, little acorns and all that...
• Give yourself rewards when you achieve a milestone; perhaps a night out, a bottle of wine, a shopping trip; all of which should be worked into your budget of course!
• Ask yourself the following question when tempted to spend outside of your budget: an extra night out or a debt free life? Obviously, you'll need to tailor the question to your individual circumstance, but I guarantee if you ask your conscious what you'd really like to do, the latter option will always win!

It's easy to underestimate how setting small goals and achieving them can build your confidence and give you back control of your life.

You know where you are, you know where you want to be and you know how to get there.

These small steps will get you there in the end and ultimately, will change your life.