5 Simple Steps to Help You Make a Budget and Stick to It

Budgeting is one of those things that everyone knows they should do, but few people actually enjoy doing. The thought of sitting down and poring over spreadsheets and receipts can be overwhelming, but budgeting doesn't have to be a chore.

In fact, with money apps like Cleo, budgeting can be fun and rewarding. 👀 💙

Three words you probably thought you'd never hear in the same sentence.

But it's true.

Budgeting's kinda like a roadmap for your wallet. Without it, you're just wandering aimlessly, trying to find your way to financial stability. But with a budget, you know exactly where you're going and how to get there.

Think of it like having a GPS for your finances. ✌️

We've got five simple budgeting tips to help you make a budget and stick to it.

You've got this. 🙌

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‍1️⃣ Assess Your Finances

Before you go ahead and create your new and improved budget, it's good to know where you stand financially. Start by going through all your financial documents (fun), such as bank statements, credit card statements, and receipts. Make a list of all your income and your monthly expenses, including rent or mortgage, utilities, food, transport, entertainment, and any other bills you have to pay. This should give you a clear picture of your current financial situation.

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‍2️⃣ Set Financial Goals

Once you've figured out your current finances, it's time to set some financial goals.

What are you aiming to achieve?

Do you want to pay off debt? Save up for a down payment on a house? Take a dream vacation? Whatever your goals may be, try to make them specific, measurable, and achievable. This will help you stay motivated and focused. 🚀

3️⃣ Create a Budget

Now that you know where you stand financially and know what your goals are, it's time to create a budget. Start by listing all your income sources and subtracting your expenses. If your expenses are higher than your income, you're gonna need to make some adjustments. Look for areas where you can cut back, such as eating out less or canceling subscriptions you don't use. Our Guide to Negotiating Bills should come in handy here. 💡

Budgeting tip: Remember to be realistic and allow for some wiggle room for unexpected expenses.

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‍4️⃣ Track Your Spending

Once you have your budget, it's important to track your spending to make sure you're sticking to it.

This is where FinTech apps come in. They make budgeting SO much easier.

There are plenty of free apps out there that can help you keep track of your expenses and income (ahem, Cleo).

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‍5️⃣ Review and Adjust Your Budget

Finally, review your budget regularly and make adjustments if you need. Hopefully, as you start to see progress towards your financial goals, you'll be motivated to keep going. And as your financial situation changes, you'll need to adjust your budget accordingly.

For example, once you've got that pay rise you deserve (go get it 💅), you'll need to update your income.

And remember, don't be too hard on yourself if you slip up. Budgeting is a process, and it takes time to get it right.

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And if you'd prefer an AI assistant to manage your budget for you…

Cleo's the ultimate money app to keep you on top of your financial goals, helping you budget in a way that suits you. 💖

It's pretty easy to get started and she won't cost you a dime.
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1) Get connected 🤝 – Download the free app, sign up, and connect your checking account.
‍2) Income 💸 – Select your latest paycheck(s) so Cleo knows when you get paid
‍3) Bills 👀 – Add your bills and double-check to see if they’re right so they can be tracked correctly
‍4) Spend limit 🥡 – Set a realistic spend limit
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Each month, she'll show you how much money you’ve got coming in and how much money you’ve got going out. Cleo will also alert you when your bills are due and how much you’re spending on certain categories including:
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💡 Bills
‍🎂 Groceries
‍🏦 Bank charges (hate you)
‍💰 Loans
‍🚆 Transport
‍🛍️ Shopping
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Easy.

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Big love. Cleo 💙