You might think simple budgeting is an oxymoron. Just look at how many people are forced to fall back on credit cards, or make late payments. But it’s not. By starting with the right mindset, you can be successful. Dozens of apps will tell you how much you have to spend at any given time. And they are fine. But talk to anyone with a lot of money, and they will not tell you that the secret to their success was doing what the app told them. An app is a tool at your disposal, not a one-stop solution. We believe being financially successful is a hands-on endeavor. That’s why we are generally against moving your money for you. Best that you do that important task yourself.
Get on the Right Path
Make sure you’re on the path to success, that’s step one. Figure out which of your expenses are fixed, how much you want to save, and then how much you have left over to spend. Unsuccessful savers tend to do the opposite: figure out what their fixed expenses are, try to control spending depending on their particular mood, and hope that what you have left over at the end lines up with what you actually need to be saving. We call this “paying everyone else first, and it rarely works. Successful savers make saving a priority, pay themselves first, and can then guiltlessly spend the rest. That is the path to successful saving. Be on that path.
Take Some Easy Wins
When you’re first starting out, you should keep two things in mind. 1) Go for easy wins. For example, start with eliminating your unused subscriptions. This keeps you motivated. 2) Focus on the big categories like housing, auto, and eating out – that’s where you’ll really move the needle. Take a look at the largest categories, which we’ve included to get you started. Once you’ve started your budget, let WeVest help you grow your net worth. Simple budgeting is an important first step.