Simple Ways To Make Budgeting Fun

Let’s kick that habit into touch right now. Budgeting isn’t the beast or ogre you’ve always believed it to be. In fact, if we’re going to use fairytale analogies, think of budgeting rather as your financial fairy godmother. Sure, it’s not going to land you fancy new wheels or a designer dress by waving a magic wand, but with a bit of commitment, it could help you save enough to swap your old banger for a BMW or justify a splurge on new shoes. At the very least, it can be a great first step towards financial stability and help you avoid falling into debt.

• How can I change my preconceptions about budgeting?
• Do you have any tips for sticking to my budget?
• How can I keep track of my progress?
• Is it a good idea to involve partners, family or friends?
• Does a budget leave any room for treats?

How can I change my preconceptions about budgeting?

For a start, stop calling it a ‘budget’. It might sound daft but this is a real game-changer for many people. It can stop you from thinking of budgeting as an onerous task and concentrate the mind instead of on all the possibilities that getting on top of your money can usher in.

The re-naming exercise is especially good if your financial plan revolves around buying something exciting. Perhaps you’re squirrelling money away for your wedding, or a long-haul holiday, or a new house. Referring to your budget as ‘The Big Day Builder’ or ‘Mojito in the Maldives in the Making’ is a much more enticing way into money management.

If this works for you, consider rolling it out into other areas of your spending and savings. Renaming your different bank accounts into something more inspiring or personal can stop you from feeling so detached from your cash. Another tip is to nickname the plastic you carry around day-to-day in your wallet. If you find yourself reaching for the credit card when you know you shouldn’t, scrawling ‘For bail purposes only’ on one side of it will not only make you smile but likely think twice about that purchase you were going to put on it.

Do you have any tips for sticking to my budget?

Knowing what you want to get out of budgeting is the first step to sticking to it. Basically, set yourself a goal. Perhaps you’re trying to pay off a loan or splash out on a new kitchen. Visualising this – either the weight off your shoulders when the debt is cleared, or the stylish splashback behind your brand new double oven – will help motivate you to keep working towards that aim.

They don’t have to be big goals. In fact, it’s much more gratifying to tick off a few things in the early days, so set smaller aims to start with – £75 for a birthday night out at the end of the month, £500 for an emergency fund, or enough to cover that builder’s quote and finally fix the guttering outside…

These will give you the confidence boost you need to tackle the bigger goals in due course. For these, it’ll also help if you set mini-milestones and regularly review your progress. Sit down fortnightly or monthly to assess how you’ve been getting on, to make any necessary tweaks to your budget, to take a look at your credit report and, of course, to revisit your financial hopes for the future.

Put the date in your Google Calendar so there’s no chance you’ll forget, and schedule it for early on in the week when you’re less likely to feel knackered from work and other commitments. Most of all, remember that financial planning doesn’t need to be a chore, so bring out the chocolate, put on some music or even turn it into a date night with your partner by ordering take-out and finishing off with a film. The whole point is to re-wire your brain to actually look forward to these evenings; not fear them.

How can I keep track of my progress? 

These days there are tons of free budgeting apps to take the stress out of monitoring your money. If you’re a budgeting beginner or looking to streamline your subscriptions, Emma might be a good bet. It analyses your bank accounts and credit cards, categorises your spending (including subscriptions, so you can see which ones you’re not using) and flags up any bank fees.

If your finances are a little bit more complex, Money Dashboard could be worth exploring. You’ll benefit from customisable categories for your spending (for example, you could group together all payments made on car maintenance and upkeep). And there are graphs of your projected monthly spending, with a predicted balance at the end of the month.

If you use an app-only bank, such as Starling Bank and Monzo, you may already have budgeting features at your fingertips. Personalised spending analytics and the option to separate your money into savings pots should be a big help keeping your budget on track.

Prepaid cards can also be useful for budgeting and controlling your spending. Most have mobile apps which will show your balance, spend and provide you with ways to top-up. 

If you’d rather be reminded of your budgeting progress in a more tangible way, however, nothing beats getting crafty with good old-fashioned paper and pens. Creating a debt or savings poster, in which you incrementally colour in your success saving up or paying something off, is a fun way to keep you motivated and see how far you’ve come. There are also free online versions to download and print.

Is it a good idea to involve partners, family or friends?

Absolutely! Getting your loved ones on board with budgeting is only going to make it easier in the long-run by holding you accountable. Start by sitting down with your partner and having a frank conversation about your finances and what your individual money aspirations are. Be honest about what you want, but try to see things from your other half’s perspective too. Once you’ve reached an agreement, get the kids on board by making a game out of it. Offering rewards for the top saver of the week is a great way to get them excited, and you’ll be teaching them good money habits to boot. 

If you’re worried close family might be too forgiving if you slip up, you could look for a ‘money mate’ to keep you on the straight and narrow instead. This might be someone who shares similar financial goals to you (perhaps you’re both looking to pay off your student loans) so you can benefit from some friendly competition on who saved the most each month. By choosing someone you’re not super-close to, you’ll also feel an element of pressure to keep your budgeting on track.

Being open with your entire circle of friends about your financial goals could also pay dividends. For a start, they’ll be less likely to encourage you to “stay for one more” at the pub, and they might be able to offer budgeting tips of their own.

Does a budget leave any room for treats?

Yes, you’ll be delighted to hear! Budgeting doesn’t have to mean depriving yourself of little splurges now and then – in fact, the best budgets make allowances for these. A good rule of thumb for any budget is the 50-20-30 principle. The rule states that you should spend up to 50% of your after-tax income on your basic ‘needs’. These are things you absolutely must pay for, including rent or mortgage payments, utility bills, groceries, car tax, insurance etc.

Once these are covered off, the remaining half should be split up between 20% savings and debt repayment, and 30% on ‘wants’ i.e. anything else that you might fancy. By all means include meals out and new handbags in this category, but the crucial thing is to make sure you’ve got your basics covered first – what are also known as the ‘four walls’ of budgeting. 

To help keep you motivated with your budgeting, treats (think of them as ‘rewards’) can also be a great way to reinforce positive habits. If you’ve cut down on cinema trips all month, then spoil yourself with a movie night with pals at the end of it. If you’ve taken homemade lunches to work for a week, allow yourself a sandwich from the deli the following Monday. As long as you’re careful not to throw your budget off track, rewards for good financial behaviour will likely make you feel more inclined to keep going and reach your targets. And, of course, they’ll offer more fun along the way.