It’s 2025, Stop Budgeting Wrong. Try This Instead | Global News Avenue

It’s officially New Year’s Day. Now that the holidays are over, it’s time to start thinking about your financial goals for the year. Maybe it’s saving to buy a house, or replenishing savings from last month’s expenses. Once you set a goal, reality often sets in: You have no idea how much money you’re going to be taking in and out each month. or how you Really plan to achieve your goals on time. You need a budget.

I get it: traditional budgeting can be frustrating and scary. It might even make you not want to budget at all.

Consider adding up your monthly bills and expenses budget app Or a spreadsheet you’re afraid to open. You might spend time regretting last month’s purchases, or start questioning whether your goals are achievable. It’s frustrating and exhausting. This technique doesn’t work for most people – myself included.

Budgeting isn’t bad per se. In fact, this is how I got out of debt. Here’s how I pay all my essential bills while still working toward my goals long term money goals No boring budget.

Why you’re afraid of boring budgets

I have several budgeting techniquesincluding mine all-out strategy. I’ve found that traditional budgeting is rooted in tracking past expenses and beating yourself up for spending money you shouldn’t. Then, if you don’t feel completely hopeless, you make a plan not to spend that money next time. This approach doesn’t work and is harmful to your mental health.

Here are the top five red flags why your budgeting routine isn’t working.

🚩 Deprive yourself of life: You always feel restricted and unable to enjoy yourself.

🚩 Guilt caused by consumption: You feel ashamed when you spend money, even when the money is on planned expenditure.

🚩 A small change can be nerve-wracking: You obsessively track every expense or pay attention to tiny details.

🚩 Debt and spending issues: your Debt is rising Instead of cutting back on your budget, or you go over your budget more than 3 times a year.

🚩 Financial discussions are daunting: You’re afraid to talk about money, even with close friends or family.

CNET Editors’ Choice Award Winners for Best Budgeting App

Treat your budget as your best friend

I view my budget as a living, breathing friend—I look forward to seeing her every month as she supports me in achieving my dreams.

This approach helped my husband and I retire early after paying off $300,000 in debt and investing over $1 million in three years. We did this without inheriting money or receiving financial guidance from our parents. I created a simple budget with three categories to make money management easy and stress-free each month. Here’s how I break it down:

I don’t waste time thinking about last month’s expenses. Instead, I focus on the things I have planned in these three categories and get excited about planning a vacation. Here’s how you can use this method to make your budget less boring and more motivating.

Read more: More couples should let money speak for themselves. Here’s why (and how to do it)

Seriously put your effort category first

When creating a budget, most people first allocate funds for all daily expenses and then use the remaining funds for savings, debt repayment, or investments. Life happens and often there is no money left. Why not put this goal at the top of the “effort” category?

For example, if you want to save $1,000 this year, your first goal is to transfer $100 to your high-yield savings account. This helps your budget be more motivating because you prioritize and accomplish your goals. It’s nice to start with a high five instead of a slap on the wrist.

You need a cash buffer to make it work

To be able to easily prioritize your goals over your necessities, you need to cash flow buffer. Think of it as a buffer in your checking account so you can pay your bills with peace of mind. The exact amount will vary, but is usually equivalent to one month’s worth of expenses. this is not a emergency fund (Although this is also important to set up).

For example, if you typically spend $3,000 a month, make sure your checking account never drops below this number. Having this money in your account can help you stop worrying about your next one payday And help you get past the idea that budgeting is a limitation.

Your Revival Category Helps You Live a Fulfilled Life

Your “Revival” category should help you build hobbies and happiness into your budget. Instead of looking rich, focus on feeling rich and content. Here are some examples:

• Instead of booking a vacation that would drain me rather than rejuvenate me, I put the money towards a monthly membership to a yoga studio.
• When I’m stressed, I don’t default to buying clothes or gadgets for retail therapy, I pay for therapy.
• I don’t eat out for convenience because I know the food is not nutritious, I eat out to connect with close friends or experience a new culture.

The revitalization category is often overlooked or avoided when it comes to budgeting. The revival category is the most important part of your budget. You should spend at least 25% of your net income on non-essential expenses to enrich your work week.

Set your survival category to automatic payments

Setting up automatic payments for your monthly bills can significantly improve your relationship with your budget. Consider investing in your cell phone, insurance, and energy bill. There are some benefits to taking a “set it and forget it” approach:

• Reduce stress and anxiety around bill due dates and amounts
• Improve your credit score over time with a good payment history
• Pay on time to avoid late fees
• Reduce budgeting time by focusing on larger financial goals
• Achieve financial discipline by automating the expenses you absolutely need to pay, regardless of income

In addition, automatic transfers simplify day-to-day budgeting, increase accountability, and support better cash flow management. Setting up automatic payments for these bills means you only have to think about your recovery and goals.

Personalize your budget to make it fun

I condensed all the line items under each category so it wouldn’t be overwhelming. I also gave each line item a fun nickname. Here are some examples of my past budgets:

effort

• Reduce debt! = Pay my student loans
• My next dream home = saving for a down payment
• Smashing the Patriarchy = Business Spending

resurrection

• Watch Fly at 40 = My Yoga Studio and Dance Studio Membership
• Rich Aunt Era = Flights to visit nieces and nephews
• Kid-free and fun = date night with my husband

survive

• Investing in infrastructure = paying taxes
• Tasty food in my belly = food
• I love my home = rent

There is no perfect budget

You may have found budgeting in the past to be boring because it was an all-or-nothing plan. If a project doesn’t go as planned, it means failure, anxiety, and stress. No budget is always 100% perfect.

I learned that 80% success is enough to make meaningful progress. It’s okay if one or two items in your budget go awry. This means you live a normal life.

This budgeting method gives you a combination of control, flexibility, and thoughtful spending. Sticking to a budget 80% of the time is better than not sticking to a budget at all.

CNET Editors’ Choice Award Winners for Best Budgeting App