Credit: apium

Sticking to a budget is more or less like sticking to a diet: It sucks, and you’re almost guaranteed to fail.

BUT! There’s another way. With a few simple tricks, you can take control of your spending and avoid feeling guilty all the time. Here’s what Tara Siegel Bernard from the New York Times has to say:

• Let the robots take control. Set up automatic transfers to your savings and investment accounts. It only takes a few minutes. If your savings is being automatically transferred out of your spending account every month, you don’t have to worry about spending it!
• Start at the finish line. What are you saving for? Saving is easier when you have a goal in mind (a vacation, a new car, an obscenely expensive pair of shoes). Figure out how much money you need and you’ll know how much money to have automatically transferred each month.
• Separate the fun money from the serious money. If you have a phone bill or rent to pay, keep that money separate from the money you plan to squander irresponsibly at the mall. Obviously.
• Brace yourself for big surprises. One of the easiest ways to muck up your budget is to suddenly spend a lot of money you hadn’t planned for. This one’s easy, though. Put a little extra away somewhere each month. You can use that to cover your surprise expenses without feeling like a total budgeting loser.

Best Quote:
“Ultimately, what we want our money to be is an energy source. It should help us get somewhere or do something.”  – Amanda Clayman, Financial Therapist (only in New York!)

Tags: budget, spending plan