I also use more natural colors like browns and dark greens for categories that include money for nonessential spending. By color coding categories, I train my mind to prioritize different expenses. Writing down your goals can increase your chances of achieving them. According to a study by Professor of Psychology Dr. Gail Matthews, participants were 47 percent more likely to achieve their goals because they wrote them down. Maybe you overspent on a housing project or didn’t account for a last-minute expense, but your budget got blown again. Or you can have a new goal each month, such as a no-spend month or a don’t use your credit card month.

With a budgeting binder, you can write out a whole section for goals related to financial goals, such as saving money and paying off debt. Because your binder is something you will usually use weekly and, at the very least, monthly, you’ll always understand what’s going on with your finances. What to include in your budget binder There are certain elements that your binder should include to ensure you use it to its potential. Here’s what to have, and remember that each component is important. Your budget binder cover If you struggle with overspending with credit cards, cash envelopes could help you curb your spending. You can store your cash envelopes in your budget binder for safekeeping.No budget binder is complete without the printable templates! There are many FREE budget binder printables that you can use to build out your binder. Having a budget spreadsheet is already a solid start when managing your finances. And why spend money on a pre-made binder when you can easily DIY one at home? You can get creative and customize your binder to fit your style. A budget binder is excellent for people who are visual learners, creatives, or anyone who wants to try something new. I love writing different areas of my budget with different colored pens. It’s an easy way to keep categories separate and see how much I have going out at any given time. A three-ring binder with a clear cover would be the best one to get the job done. However, it’s crucial that you choose a binder size that will accommodate your lifestyle and your printouts.

A budgeting sheet lets you see how much money you spend on specific areas. For example, you can see how much money you spend eating out. Don’t overlook decorating the cover. Once you have the structure of your binder in place, be sure to add your printables, such as your expenses sheet, your actual budget, and your money worksheets.In addition, you can see which expenses are unnecessary and can be excluded from your budget. Your actual budgets Storing receipts in your binder can help you better understand exactly where you’re spending is going. For instance, when you review your grocery receipt, did you use all the groceries you bought? No matter the amount of debt you have, it can accumulate fast. Credit card debt, student loans, car financing, medical bills, or personal loans can contribute to more debt. Using cash envelopes is a good system for those who want to see how much money they have left to spend each month. When every dollar in the envelope is gone, you’re done spending for the month.

A budget binder is a visible way to use a zero-based budgeting system. With a binder, you can see all of your money goals simultaneously while being able to tweak them as necessary. By organizing your financial life in your budget binder, you can decide how to use your resources best and ensure that you live below your means. Here are some tips to help you get started using your budget binder: Set Goals

Writing out your goals gives you direction and focus. Having your financial goals written out and placed where you can frequently see them will help your goals feel more obtainable. A budgeting binder also gives you space to save any receipts you may need in the future as well as space to utilize cash envelopes and develop sinking funds. It helps you keep your financial documents in one place and saves time too! What can you use a budgeting binder for? For instance, if your goal is to create a side hustle each month, you can create goals such as updating your resume, taking an online course, or filing for an LLC. When starting, be sure to set yourself up for success. Gather the correct materials, such as the right size binder, colored pencils or highlights, envelopes, and dividers. One way I use my colored pencil is by using vibrant colors for the expense I need to pay attention to. For instance, I may highlight my rent, insurance, and electricity bills in red.

Sometimes our biggest downfalls can be variable spending areas such as groceries, but this can easily be corrected with your binder. Planning purposesThere are so many different apps and methods for managing your money. And although technical means can be efficient, there’s no reason money management can’t be fun and effective. It’s happening again. It’s the end of another month, and you aren’t sure why you can make any progress on your monthly financial goals. Developing a budget is one of the most significant steps you can take to get out of debt and take control of your finances. Now that you’ve set financial goals and taken a look at how much money you have coming in and going out, you can plan your budget. The cover is where you can have some fun and express your creativity. Decorate the exterior of your binder with something that makes you happy. You can add a photo, cut-out pictures of the Bahamas, or even an inspirational quote. We often have an “idea” of what we would like to spend in each category, but we’re usually unsure. It’s hard to know if you are overspending or underspending, in any category, without knowing where your money is going.