Top 10 Tricks for Building the Perfect Budget

The number one rule to financial success: spend less than you earn. And the best way to do that is to keep track of what you spend. Here are 10 tricks for crafting the perfect budget (and sticking to it).

10. Start From Scratch

9. Account for Every Dollar

8. Focus on What Really Matters

7. Prioritize Your Debt

6. Track Your Budget Using a Strategy That Works for You

5. Use Separate Accounts

4. Give Yourself Some Wiggle Room

3. Know Your Weaknesses

2. Adjust Your Budget as Time Goes On

1. Stick to It

10. Start From Scratch

If you have a budget that isn't working from you, wipe the slate clean and start over. If you haven't really created a successful budget before, start with the basics: how much do you spend on bills every month? How much are you/would you like to invest? How much would you like to save and spend? Once you've divided up your money into those basic categories, you have a pretty good foundation to build a more specific budget—even if you don't have a regular paycheck.

9. Account for Every Dollar

Building off #10, make sure that you've accounted for every dollar you make. That sounds overly meticulous, but it isn't: all it means is that you should "spend" all your money in your budget each month. And that doesn't necessarily mean spending it on stuff—it could mean saving it or putting it toward your 401(k). Some people do better with reverse budgeting, but for most of us, splitting your pay into categories is the best way to make sure it's all accounted for.

8. Focus on What Really Matters

When most of us think of budgeting, we think of the basics—rent, food, utilities—then go straight to "how much can I spend on the fun stuff?" But our minds often trick us into prioritizing wants over needs. As you build up the specifics in your budget, think of Maslow's Hierarchy of Needs: your physiological needs (food, clothing, shelter) are most important, followed by safety (insurance, utilities), and so on, down to the luxeries, which are the least important. Think of it this way: true wealth isn't about stuff, it's about having the freedom to do what you want with your life.

7. Prioritize Your Debt

If you've racked up some debt over the years, your budget needs a bit of extra special care. Whether you're completely broke, living paycheck-to-paycheck, or doing alright, you should prioritize getting out of debt now. Check out this step-by-step guide to getting out of debt for more info.

6. Track Your Budget Using a Strategy That Works for You

There are a billion budgeting tools out there, from simple spreadsheets to full-on budgeting apps right down to simple pen and paper. What works for you may be different than what works for others, so think about how you learn and where your weaknesses are to decide on the best strategy for you. Maybe it's a program like Mint that tracks your spending automatically, maybe it's creating a spreadsheet, or maybe it's one of these other popular tools. If you find something isn't working for you, try something else—but make sure it isn't your motivation that's lacking, either.

5. Use Separate Accounts

If you have trouble tracking your money when it's all lumped together, consider putting that money into separate "buckets" for each category. For example, have a savings account for your savings, one checking account for fixed expenses, and a second checking account for your spending money (which includes anything from groceries to "fun"). That way, you only "see" the money that you can spend, without having to think about what's coming up next. This isn't something everyone has to do, but many of you have noted that it's helped you out a lot.