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The Dos and Don’ts of Budgeting 

Home Blog The Dos and Don’ts of Budgeting 

The Dos and Don’ts of Budgeting 

When it comes to budgeting, you might not even know where to begin. The truth is, there are a million ways to budget and it’s not a one-size-fits-all process. You should try some different methods to decide what works best for your specific situation. Here are some general rules of thumb when it comes to knowing how to properly budget:   

DON’T stress yourself out about debt. DO take the first step in creating a budget.  

One of the biggest mistakes people make is over-stressing about the idea of a budget which prevents them from budgeting at all. Instead of stressing yourself out over creating the “perfect” budget, just start small. Over time you’ll learn what works and what doesn’t work for you individually.  

DON’T set an unrealistic budget. DO create a sustainable and effective budget.  

If you’re super motivated to save lots of money this year, you may get in over your head about how strict your budget should be. While budgeting should involve discipline, there are ways to create one that’s sustainable in the long run and that still allows you to enjoy life. It’s all about balance, so find a good mix between a budget that challenges you but is realistic.   

DON’T spend impulsively and carelessly. DO align your budget with your priorities.  

What are your main priorities in life? If you enjoy cooking extravagant meals, keeping your car in tip-top shape or going to classes at your gym every week, make room in your budget for that. On the other hand, the money you do have to spare should be used wisely. You should always include what you spend on hobbies in your budget, so you don’t end up spending impulsively.  

DON’T give up after a few difficult weeks. DO follow through and trust the process.  

Just like most good things in life, saving money and budgeting properly takes time. You might become discouraged when you realize you can’t always go buy your morning coffee or you must limit the number of times you go out to eat. It’s not always an easy change but stay motivated. Over time you’ll look back and be thankful for the financial sacrifices you made.  

DON’T try to manage your finances by yourself. DO talk to a financial advisor or have an accountability partner.

If you have a trusted friend or family member who is also wise with money, you can confide in them for advice as well as accountability. Having someone to keep you in check will be another source of motivation for you. You can also rely on a financial advisor for assistance if that sounds like the right step for you.  


Now that you know how to and how not to budget, you can feel confident going into the process. Take the first step and create a simple budget – we believe in you!  


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