November 28, 2018

Creating a budget can be as easy as 1, 2, 3.

Simply put, a budget is a plan for every dollar you have. It’s not magic, but it represents more financial freedom and life with less stress. It also is a positive way to track your spending and build healthy financial habits and a savings account.

If you are not sure where to start on creating a budget or how to manage your spending, Leadership in Action has gathered information to share about using the 50/30/20 rule. Watch below to learn how.

The best way to keep up with a budget is by tracking your spending, advises NerdWallet. You can use either a budgeting app or online banking. By tracking your spending you can see exactly where your money is going and how to manage it to fit within your daily, weekly or monthly budget. Another way to manage your spending is to wait 72 hours to make any impulse buys, the website suggested. This gives you time to think about the purchase and how it will fit into your overall budget.

Another tip from the website is that you also will want to think about saving for retirement. It might seem like decades away, but the earlier you start the more you will save in the long run. Every $1,000 you can put away in your 20s equals around $20,000 more you will have in at retirement. Look into your employer/company’s retirement programs; most offer an IRA or 401(k) match, which means they will match a certain percentage of your contributions. It is easy, free money.

Every budget needs to have some wiggle room and money that you are entitled to spend on whatever you wish. Your budget should be used as a tool and not a restraint from keeping you from enjoying your life. If you never have any money to spend on fun, you will be less likely to stick with your budget, but a good budget is one you will stick with.

Use these skills and tips to build a Chapter budget successfully. Use this template as a Chapter to create a budget for each year, term and event. Having a budget will help your Chapter be prepared for sending a Delegate to National Convention, Members to Leadership Academy and other necessities for your Chapter. Take the time during Chapter, Executive Board and Committee Meetings to discuss the budget and where changes may need to be made. You can find other Chapter budgeting resources here.

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Take the Leadership in Action Challenge! Earn two points by creating your own budget plan. You can figure out your 50/30/20 with the help of this quick calculator

Continue learning ways to develop self-control and become self-motivated, skills that are important to have when trying to stick to a budget, by participating in the Developing Emotional Intelligence-Managing Yourself Leadership in Action Module. Request it today.