Why experts suggest switching from a monthly budget to a weekly budget.
If better money management is on your resolution list, a weekly budget is a great place to start. While most budgeting apps are set up to help you plan spending on a monthly basis, a monthly budget won’t necessarily set you up for success. You can gain even better control of your personal finances with a weekly budget.
George Friedman, CEO of personal finance app Qapital recommends budgeting weekly, “because it’s a manageable amount of transactions to review at once.” According to Friedman “It is very clear this is the way to go since it is so easy to see previous weeks’ expenses and compare your progress from week to week.”
Here’s why you should switch from a monthly budget to a weekly spending plan to better manage your finances.
You’ll Be Better Prepared
Most consumers have less money the second week of the month than the first. If you plan a monthly budget, you might run out of funds sooner than you anticipated. By budgeting weekly, you’ll more closely track your expenses more closely, and identify just how much you spend on certain categories.
Spend Less Time Reviewing Purchases
While most bills are due at the end of each month, you make purchases every day. Trying to review all those purchases at the end of the month is a tedious exercise you can tire of quickly. By reviewing purchases once per week, you’ll reduce the amount of data processed at each sitting and avoid budget overload.
Make Changes Before It’s Too Late
Weeks happen more often than months, giving you more opportunities to tweak your budget if needed. If you budget by week, you give yourself time to make changes. If you find your budget too restricting or find additional opportunities for saving, you can make those changes before you’ve lost another month.
There are multiple apps that can help you manage your weekly budget. For example, budgeting app Mint allows users to track all their spending in one place and create a budget. Tracking your weekly expenses is even easier when they can be found in one easy to use platform.
If technology isn’t your thing, you can use a simple spreadsheet to track your spending and keep on budget. You can download your charges directly from your bank or credit card account and transfer them into your budget excel spreadsheet.
Budgets are an important part of mastering your personal finances. Ultimately, the decision is up to you. Whether a weekly or monthly budget makes more sense for you and your family, creating a budget is the first step towards better money management.