While there will always be expenses that are mostly outside of your control, like your rent or insurance premiums, you can control how well you're prepared to deal with them.

But actually creating a budget or other financial plan is one way to take some power back. Thinking about tracking your expenses might make you feel anxious and overwhelmed. 'Doing the foundational work of understanding what you're saving for will help make budgeting feel more productive and intuitive,' Burrell says. It goes back to the premise of finding your 'why.' 'It's often easier to plan and stick to a budget every month when you reframe the choice as investing in a better financial future, rather than a sacrifice,' Burrell says.ĭon't think of it as 'skipping drinks with friends to save money.' Consider it an investment in the house you're going to buy or a meal you'll have on the vacation you're saving up for. But viewing it as a way to reach your goals can help you stay motivated. Many people think of budgeting as restricting, which is part of what makes it so unappealing. But having a plan and a general understanding of how much money you have and what you want to do with it helps tremendously. You don't have to track every single dollar you spend, Evans previously told CNBC Make It. 'It's important to break this barrier and come to terms with your unique situation without comparing it to other peoples'.' 'People are often fixated on a one-size-fits-all approach to budgeting, making them hesitant to begin if they don't meet certain parameters,' Evans says.

While budgeting is important, it doesn't have to look a certain way. Taking a critical look at your cash flow can feel intimidating, but it's critical for achieving your financial goals. 'Avoiding your money or having trouble starting the process of tracking your expenses can feel like you are protecting yourself from a daunting task.' 'Oftentimes our relationship with our finances is rooted in something deeper than we realize,' Aja Evans, a licensed mental health counselor who specializes in financial therapy at Laurel Road, tells CNBC Make It. If you want to start budgeting, 'the most important thing is to understand your financial goals first,' Burrell adds.Īdditionally, it may be difficult to start good money habits if you have subconscious negative beliefs or feelings around money that you haven't addressed. 'Just like with starting any new practice, there must be a good 'why' or purpose behind it to help you stay motivated and accountable,' she says.

'Even with tools like a budget tracker or net worth calculator, all good habits require dedication and time,' Courtney Burrell, a financial advisor with Empower, tells CNBC Make It. And like eating healthy or working out, it takes time and effort to start, and consistency to make it habitual. (Check out this list of the best budgeting apps from CNBC Select.)īut at their core, these actions are habits. If you want to start budgeting and tracking your cash flow, there are numerous tools available to help, including apps, downloadable worksheets and financial professionals.

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