Do you ever wonder why your own personal finances are so messed up? Well, the answer is probably because you’re not making any real effort to change things. When you first start tracking your spending and analyzing where your money is going, it can feel like there are so many opportunities for improvement. But as time goes on, the picture becomes a little less clear-cut. How much of an impact do your various expenditures really make? Are you overleveraging your savings account or underappreciating how much money you truly have? If you’re ready to take action and take control of your finances, then check out these tips for starting and progressing your own zero-based budgeting business.

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Establishing your Go-To-Market (GKT) strategy

When you first sit down to analyze your spending, you’ll likely discover that there is a large disconnect between what you spend money on and what you make. The fact that you don’t track your income may lead you to think that you don’t have a cash cow. But in reality, you may be underappreciating your income. The best way to establish a GKT strategy is to get customer service from every major retailer you shop at. Ask them how much you should be spending on each item and see if they have an ideal price range for you. From there, you can create a budget that allocates money accordingly.

Stop making impulse buys, they only cost you money

Some of the money you spend is likely to be for impulse purchases that you later regret. If this is the case, then you’re simply wasting money. If you regularly purchase things on a whim, you’re not only asking for a bad experience this holiday season, you may not even end up with what you bargained for. After all, what if you got the wrong item or it just didn’t look quite right? What if you accidentally bought a duplicate item or were overcharged? You might not regret a single dollar spent on impulse buys each and every year, but how long is that before you start getting to the root of your financial troubles?

Don’t let your caring nature get in the way of being effective

Some people worry that being too hands-on with their finances will make them hard-hearted. But this is simply not the case. If you’re on the cusp of having a budgeting system put in place, you may be afraid to say no to friends and family because you don’t want to hurt their feelings. Don’t be afraid to say no when it’s needed and easy. In fact, saying yes to others often times might end up costing you more in the end. You have to say no to save your own skin and the skin of others.

Be self-disciplined and don’t be afraid to ask for help

When you first start tracking your spending, it can feel like there are so many opportunities for improvement. But as time goes on, the picture becomes a little less clear-cut. How much of an impact do your various expenditures really make? Are you overleveraging your savings account or underappreciating how much money you truly have?

Plan your expenses and keep a record

One of the best things you can do to make it easier to follow your budget is to keep a record of your expenditures. This can be a ledger, a spreadsheet or a Google doc. Once you have a good idea where your money is going, it’s much easier to start making adjustments if necessary.

Set a realistic schedule and aim for frequency

You can try to set a budget every other month or once a month. It’s better to aim for frequency. In the beginning, you may feel as though you have no leeway when it comes to your budget. But as you get more used to budgeting, you’ll find that it is actually quite flexible. You can always go back and change your budget if you want to lower or increase your allotted funds. Just make sure to record the changes so you don’t get in over your head next year. This is one of the ways on how to create zero based budget.

Decide what you track and how you measure success

One of the most helpful things you can do to make it easier to follow your budget is to decide what success looks like to you. Are there certain things you feel accomplished by having completed or achieved? Once you’ve decide what success looks like to you, it’s easier to establish a budget that benefits you.

Identify Your Cash Cow Activities

When you first start tracking your spending, you’ll likely discover that there is a large disconnect between what you spend money on and what you make. The fact that you don’t track your income may lead you to think that you don’t have a cash cow. But in reality, you may be underappreciating your income. The best way to establish a GKT strategy is to get customer service from every major retailer you shop at. Ask them how much you should be spending on each item and see if they have an ideal price range for you. From there, you can create a budget that allocates money accordingly.

Develop a Simple System to Follow

One of the best things you can do to make it easier to follow your budget is to develop a simple system to follow. This will help you stay on track and avoid making bad choices. You can start by keeping a daily journal and recording your spending on a spreadsheet. Then, add in any taxable bills or charges as a separate category and keep track of your utilities and cable fees. You can also use a budget buddy or a friend to keep you honest. Having someone else there to ask you how you spend your money and help you stay on track can be extremely helpful.

Set small monthly goals

One of the best ways to start progressing your finances is to set small monthly goals. For example, you can start by setting a budget of $50 every other day. This should take no more than five minutes and will help you stay focused and on-task.

Conclusion

Budgeting is a critical part of financial planning, as it helps you to manage your income and expenses in a healthy and effective way. It's also a great way to get control of your finances and prevent financial problems.