What are the common traits a successful budget? What are the characteristic cause some budgets to succeed and others to fail?
Your budget must reflect your priorities:
- My top priority is to have enough money for my retirement, so I won’t be financial burden to my daughter in my golden years.
- My second priority is to have enough money to send my daughter to college.
- My third priority is to feel the relief of having my mortgage fully paid.
Make small, infrequent lifestyle changes:
It is easy to give up on goals that are too ambitious, too fast. “Go for the gym every day!” might be too ambitious for someone who does not exercise at all, but “go for the gym twice a week” is reasonable goal. Similarly, drastically chopping you’re spending or dramatically re directing your money might be too large of lifestyle change.
Track your results:
Nothing compares to feeling a sense of accomplishment, build milestones into your budget so that you can have satisfaction of hitting your goals. These milestones can be symbolic.