Review Against Budget

Its one thing to create a well thought out budget. Its another thing to use and review the budget.

Your budget isn’t set in stone—think of it as a working document that you can adjust as needed. It may take 12-18 months to really get it working for you, so don’t be discouraged if things don’t click right away. Take it slow and give yourself time to figure it out.

Think about your financial goals. This could be paying off credit card debt, tackling loans or a mortgage, building an emergency fund, or saving for retirement, your budget is your roadmap to getting there. By tracking every euro, you can maximise the money you have left at the end of the month and put it toward your goals.

Stay On Track

Reviewing your budget regularly is key to staying on course, but it doesn’t have to be time-consuming or complicated. The most effective habit for long-term financial health is simply tracking your spending. Many people get overwhelmed thinking it takes a lot of time, but it doesn’t.

Here’s a quick and simple method:

• Review your expenses weekly.

• Focus on 1-3 budget categories you want to monitor closely.

• Take a look at your total monthly spending.

By checking in weekly rather than waiting until the end of the month, you get four chances to adjust and keep your goals in sight. At the end of the month, take a step back and do an overall budget review. Ask yourself these four questions:

1. Where Was My Budget Successful?

Your first budget probably won’t be perfect, but there will be wins. Look for areas where you spent less than planned or made progress on cutting back in certain categories. Celebrate those victories and see how budgeting helped you.

2. Where Do You Need To Improve?

You might not hit every target, and that’s okay. Instead, use it as a learning opportunity. Did you overshoot your goals? Was there an unexpected expense? This information helps you adjust your approach next time.

3. What Progress Did You Make Toward Your Goals?

How much did you save? How much did you contribute to your retirement or investments? Did you pay down any debt? Even if you didn’t fully meet your goal, look at the progress you made. Any improvement, no matter how small, counts as progress.

4. What Budgeting Changes Will You Make?

Each month will give you valuable insights into what’s working and what isn’t. Remember, budgeting isn’t all about cutting back. Sometimes, it means increasing a category you’ve underspent or tweaking your numbers to make your budget more realistic.