I apologize for what might seem like a naive question, but I never learned about money or budgeting growing up, and I also struggle with ADHD. When people talk about setting money aside or including it in their budget, where do they physically put that money? To me, a budget is just numbers and words on paper. How do you ensure that the money allocated in your budget is actually saved and not spent?
Hello sorry about your ADHD condition.
I am not an expert either since I also struggle with budgeting
I had to talk to my bank about the recurring bill pay. Basically, it is just an option where you permit your bank or credit union to send the payments to the company where such a bill is due
You can consult with your bank so that they advise further
Hi LizNick… Setting money aside in your budget typically involves physically segregating it into different accounts or envelopes designated for specific purposes. For instance, you might have a checking account for daily expenses and a separate savings account or envelope for savings goals. Automating transfers from your main account to these designated accounts or envelopes right after payday ensures that money allocated for savings or other goals is set aside before you have a chance to spend it. Budgeting apps can also help by organizing your finances, tracking expenses, and showing progress towards savings goals. Consistently tracking your spending against your budget and adjusting as needed ensures that the money allocated in your budget is actually saved and not spent unnecessarily, providing a practical approach to managing your finances effectively.
- Go back to the beginning.
- Stick with it and work things out.
- Don’t get caught up in the day-to-day.
- Slow down impulse buys.
- Sweat the small stuff.
- Double-check the calendar.
Effective budgeting involves tracking income sources (salary, side hustles, interest), monitoring expenses monthly (categorized into needs and wants), and selecting a budgeting method.
When I first started learning about budgeting, I struggled with understanding how to physically allocate and save money. It wasn’t just about planning numbers on a spreadsheet but also ensuring that those allocations translated into actual savings. I began by setting up separate savings accounts with my bank, each designated for specific purposes like emergency funds, vacations, or major purchases. Automatically transferring money into these accounts each month helped me stick to my budget and build up savings over time.
To ensure that the money allocated in your budget is actually saved and not spent, consider setting up separate bank accounts or using budgeting apps that allow you to create virtual envelopes for different spending categories. Automate transfers from your main account to these specific accounts or envelopes as soon as you receive your income. This practice helps to physically separate your savings from your spending money, making it easier to resist the temptation to dip into savings for non-budgeted expenses. Regularly reviewing your budget and tracking your expenses also reinforces discipline and accountability in sticking to your financial plan.