Whether you are saving for a home, trying to decrease your debt, or choosing to keep your spending in-check, budgets can be a vital tool in managing your finances. Budgets can be simple to create too. Yet budgets are only as effective as their creators. Before even drafting your budget, know that it will require discipline in order to be effective.


Besides discipline, there are a few additional guidelines that can be helpful in developing a successful budget:piggy-back


  1. Simplicity is key

Do not set yourself up for failure. When beginning a budget, keep it simple. Focus on one area to reduce your spending and leave room for error. Trying to create a highly detailed, unrealistic budget will only create frustration. So if you regularly buy unnecessary amounts of boots, enjoy an expensive coffee every morning, and buy gifts for friends, consider cutting back on only one activity. Through time, as you become more disciplined with budgets, you will be able to cut costs in other areas.

  1. Check your figures

Many individuals do not know exactly how much debt they owe or exactly how much they make, but when creating a budget, you want to make sure your figures are as accurate as possible. Determine your income, net worth, average expenses, debt, and how much money is in your saving accounts. Once you are aware of your monetary distribution, you will be more aware of your spending and be able to create an applicable, credible budget.

  1. Your budget does not have to be rigid

Remember that budgets are outlines and while you must be disciplined to follow one, know that you might have to make adjustments due to unpredicted events. Often when drafting your budget, you will forget about minor expenses so be prepared to edit your budget and shift funds around.

  1. Consider saving for an emergency fund

As horse people, we understand that unpredictable events occur. Hopefully, a successful budget will leave you with additional funds that can be consolidated for an emergency fund. That way when your horse decides to injury himself, you can focus on their care rather than worrying about where you will find the money.

By Anna Hellman

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