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Kiss the Budget Blues Goodbye
Blog Post by Linda Descano CFA®  -  01/06/2011 @ 09:52AM
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In her comment to one of my previous blog posts, Aiysha shared her struggle to stick with a budget. Well, Aiysha isn't alone. The reality is that many of us often start the year with a firm resolve to stick to a plan only to veer off course within a few short months. So, how can one transform from a "money mishap" to a "money maven"? While I may not have a magic wand, what I can offer are some practical tips to help kiss the budget blues goodbye for good:

  • Connect with your money by setting specific goals and putting together a holistic budget that includes buckets for saving, spending and giving.

 

  • Be Conscientious, says my friend and money maven, Barbara Stanny, by "diligently tracking every financial transaction, whether a purchase or withdrawal, large or small, or by cash, check, credit or debit."  Barbara suggests using an empty check register for this, but you could always use spreadsheets and online resources if you want to get fancy. What's important is getting it down in writing.

 

  • Stay Conscious of your progress by taking time daily - or at least weekly - to review your "actuals" against your "plan". Over time, you will see patterns in how and where you use your money, which can help you make even smarter decisions going forward.

 

  • Compare how other people are handling their money by tapping into resources like bundle.com, which offers a free comprehensive collection of spending and saving data. This can help you think more carefully about how you are putting your hard-earned cash to work.

 

  • Create a "virtuous cycle" by rewarding yourself when you reach certain milestones. For example, if you stay on track for 30 days, you will treat yourself to a manicure. Or, when you reach the 90-day mark, you will go for a massage. As with most things, carrots often achieve more than sticks. And, not surprising, a positive outlook can make all the difference.

So, here's to a year of budget bliss!

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About Linda Descano CFA®

President and CEO
Linda is President and CEO of Women & Co., a service of Citi that brings women relevant financial content and thoughtful commentary. She also serves as a Managing Director and Head of Digital Partnerships for North America Marketing at Citi. A recognized expert on the topic of personal finance, Linda is also the featured contributor on womenandco.com and Manilla.com, for which she serves as their women and money expert. Her writing, tips and commentary have appeared in countless publications including: Huffington Post, MORE Magazine, American Banker and MSN Money to name a few. She is the recipient of a 2011 Luminary Award from Womensphere® and was the New York recipient of the 2009 Corporate w2wlink Ascendancy Award.