Budget: 3 Accountability Measures To Help You Stick To The Plan

Creating a budget is the first step toward fiscal stability now and financial security in the long-term. However, you also have to be willing to stick the budget that you have created. What are some steps that you can to make sure that you are accountable for sticking to whatever financial plan you have made for yourself?

Work With A Financial Adviser

It’s easy to stick to a budget when it doesn’t require too many sacrifices to your current lifestyle. For instance, instead of going out for a salad at lunch with your coworkers, you could just make a salad and eat it with coworkers in the company cafeteria. This allows you to save money on food without fundamentally changing your routine. Instead of ordering a pizza every Friday night, you could learn how to make your own pizza. This gives you the chance to save money while also helping you to control what goes into your body.

A financial adviser will go over your budget and help you find ways to save money without altering your lifestyle too much. In addition to saving by cutting costs, you will also learn how compound interest can help you grow your money exponentially over time, which may provide the motivation needed to stick to your plan.

Split Your Paycheck Between Accounts

If possible, ask to have your paycheck split between multiple accounts. One account will be the one that you pay bills from while another can be used as a dedicated savings account. You should make it a point to never touch the account earmarked for saving money except for emergencies. That way, you only access the money when you truly need it or when you intend to use it for a dedicated purpose such as making an extra mortgage or student loan payment.

The Consequences Of Failure May Be Punishment Enough

If you fail to meet your savings target, you may not have enough money to go on vacation with your friends this summer. It may also be impossible to take that extra day off from work if you don’t get paid vacation days. Therefore, that may provide you with the accountability that you need to refrain from making frivolous purchases.

Failing to pay down your credit card debt could result in extra interest payments, which may limit how much you can afford to put down on a home. The thought of renting for another year or not being able to afford the apartment that you really want may be enough to help you stick with your plan.

The ultimate consequence of failing to stick to a budget could be the need to file for bankruptcy. This may reduce your credit score for up to a year or more, and it could disqualify you from getting a home loan for up to three years. While sticking to a budget can be hard, it is easier to forego a dinner out than it is to spend years overcoming bankruptcy.

Creating a budget is easy. However learning how to stop spending money can be difficult, and the first month or two is generally the hardest as you adapt to new spending and saving habits. However, there are resources and tools available to help you remain accountable to yourself and make sure that you meet your financial goals.