Why is it so difficult to stick to a budget? This is one of the most frequent questions I get asked, and the biggest problem we all have with starting the process of managing our finances.
Before we start honing in on the resources we have, we’re managing our finances without a purpose, and while we’re getting by on a monthly basis, there is no traction toward bigger financial milestones like: paying off debt, building wealth, giving, or saving regularly.
The solution lies in the keys below and requires regular routine maintenance of our focus, and discipline. Over time we begin to develop bigger budgeting muscles that help us stay on track. The five keys to sticking to a budget will help you win with your money and achieve your goals.
1. Define Goals
Before we decide to start budgeting, it’s helpful to spend a bit of time soul searching. Asking “why” we really want to get a handle on our finances, why do we want to pay off debt, why do we want to build wealth, why do we want to give, why do we want to save money?
These questions help us understand our deep motivations. Keep asking why until you really know the answer. At that point, our dreams can be pulled from the clouds and turned into goals. Put some time restraints and numbers behind goals, because a vague goal is one that is hard to achieve.
Once we know our why, it’s much easier to do the following steps.