According to Experian, the average American’s debt is $104,215 including credit cards, mortgages, auto loans, and student loans. If budgeting feels dreadful and boring, you’re not alone—but it doesn’t have to stay that way. A few simple shifts in how to budget better can turn it into a tool that empowers your financial goals. Here’s how to get a head start and take control this year:
Schedule Your Budget Like A Meeting With Your CEO
Time is your most valuable resource. Dedicate two hours per month to reviewing and adjusting your budget. Use this time to tackle small wins, like automating bills or paying down a specific debt. A consistent schedule makes budgeting manageable.
Right now, schedule a recurring meeting on your calendar for the same time every month and make it non-negotiable. If you the CEO of your company asked you to meet, it’s unlikely you would ignore or cancel it. The same level of respect and urgency should also be applied to your budget, with you as the CEO.
My husband and I have consistently budgeted the first Sunday of every month since 2016. I credit this recurring meeting as the main reason we were able to pay off $300,000 of debt in three years and reach early retirement.
Let your friends and family know you are booked and busy during that time. One of my client even has a chalkboard sign on her office door that says, “Busy Budgeting.”
Simplify And Focus Your Budgeting Energy Each Month
Instead of mapping out every financial scenario for the next year, zoom in on the upcoming month. Choose one area—like food or travel—to optimize. Tackle finances month by month and decide what needs more attention for the next thirty days to avoid overwhelm.
For example, because I travelled heavily in the past few months, the amount of money I spent eating out at restaurants on unhealthy food made me feel guilty and annoyed at myself. So, for this month I am focused on getting back to my habits in sustaining a lean kitchen — planning my grocery trips, clearing out the pantries and scheduling time for cooking.
Aim for 80% Success On Your Budget If You Want To Pay Off Your Debt
Budgeting is not about being flawless. Even with a few missteps, consistent budgeting will guide you to debt freedom. Many of my clients gave up on budgeting at first because something unexpected happened to them like a surprise expense or one bad day of undisciplined spending.
But the reality is that you are not perfect, and your life will never be perfect. So, expecting to have a budget go exactly as planned every month is a sure-fire way to be frustrated and disappointed over and over again.
Practically, this can look like giving yourself a break on Sundays to eat out with friends. It can look like using your emergency fund for a surprise visit from family, rather than just life or death situations. It might mean you go over budget this month with the intention of planning differently next month to make up the difference.
Start 2025 with a renewed approach to your finances—your future self will thank you by aiming for 80% success instead of a perfect A+.
Budgeting Is A Skill; Be Patient With Progress
If you were learning a new instrument or decided to start playing pickleball, I doubt you would expect to be amazing at either after just a few lessons. Like any skill, budgeting takes practice. If you’ve given up after a few tries, you haven’t really committed to the process.
Budgeting feels overwhelming initially, but by month six, it’ll be a routine that works for you instead of against you. Some ways you can improve your practice around budgeting can include reviewing it weekly for the first few months until you get the hang of it. Even better is to enlist an accountability or hire a financial coach or planner who can keep you on track and help brainstorm ideas when you feel stuck.
My husband and I have consistently budgeted every month for eight years, and not once did our budget go exactly as planned. And as our net worth grew and our values evolved over time, we also had to learn to adjust our budgeting skills to meet those new challenges. Progress over perfection is the key to sustainable success.
Align Your Budget With A Tangible Long-Term Vision
Stop rehashing old spending mistakes. Spend no more than 10 minutes reviewing last month’s expenses, then shift your energy to planning for the next month.
Recently, I had my CRUSH Club coaching clients complete an important exercise to help them with their budgeting. They were tasked with writing a narrative of what their life would look like eight years from now. I asked them to include details of who they were with, how they looked and felt, where they lived and played and what they were proud of.
Without a picture of what financial and debt freedom looks like, the routine of budgeting will feel empty and tedious. Write this narrative for yourself and review that story when you are feeling unmotivated to crunch those numbers. A forward-focused mindset keeps you motivated and proactive.
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