Do you ever wonder where your paycheck went? You think, “I just got paid last week and my money is already gone.” Is there more month left, than money at the end of the month? This is normal, but being normal kinda stinks.
This is one area of life where you don’t want to be normal. You don’t want to keep being broke. You don’t want to follow in the Jones’s footsteps. Because, honestly, the Joneses are BROKE!
I want you to be different. Be the odd duck on the block. I want you to have a plan for where your money is going to go. And I want you to pay yourself first! Yes, really, pay yourself first. So, what does that look like?
You might not like this word. In fact, this word is like a taboo word. Many people run away or plug their ears when they hear this word. But you, my friend, NEED A BUDGET.
If you are surviving on a low income, you need a budget. If you are middle class, you need a budget. If you are upper class, you need a budget. If you are a millionaire, you need a budget.
Every single person, couple, and family needs to have a budget. A budget is simply this, it tells your money where to go. It is a PLAN for your money.
Making a lot of money does not make someone rich, in fact, someone who brings in $200,000 a year, could be broke. If you don’t have a plan for your money, your money decides to up and run away. I swear, your money is like the missing socks from the dryer, it just disappears.
So, how do you come up with a budget? Well, first things first. I suggest you go back and look at the last 3 months of your bills and spending. Write down every dollar you spent for the past 3 months. If you are able to, figure out how much money in what category you spent money on. For example, I shop at Target and Walmart a lot. I keep track of how much money I spend on food and how much money I spend of hair care products at Target. I pay for these categories together, but I keep track on an app on my phone of specifically what I am buying.
Going back 3 months and seeing where and what you are spending your money on will give you a good starting point for what to budget for and how much to budget in those specific categories. You will begin to see a pattern in your spending. Hopefully, you will see some areas where you can cut back on your spending to save some money or put that money toward paying off debt.
A budget will and should change from month to month. Some expenses are fixed, like rent or a mortgage. While others are variable, like fuel and food. You want to give yourself a little bit of a cushion, especially in the beginning stages of budgeting.
It is ok if you go over budget in one category, you are able to take money from a different category. Just don’t overspend in all the categories! I have been budgeting with my phone app for 2 years and I still don’t get it right every month.
This is not about being perfect. It is about being smart with your hard-earned money. You work too hard not to be winning with your money. I want you to pay yourself first. This is where automation comes in handy. I automatically save a set amount of money from each of my paychecks. I want you to do the same thing.
There are different budgeting methods, you need to choose the one that will work best for you.
There are many ways of keeping track of your income and expenses. You can be as simple as using a piece of paper and pen. You can buy some really pretty budget spreadsheets on Etsy. Or you can use a budgeting app like I do. I use the Every Dollar App (the free version) and I love it. I am able to quickly enter each transaction I make on my phone. It is simple to use. I enter in our income and then there is a Planned, Spent, and a Remaining tab. I can easily see how much money I have “left” in each category at any time. I can also see how much I went over or under budget at the end of the month. I can make the next month’s budget at any time as well. I have heard good things about You Need A Budget (YNAB) as well. But I personally have not used it.
It doesn’t matter which budgeting app or spreadsheet you use. The important thing is that you make a plan, make a budget, stick to it, and adjust if needed.
I want you to be able to pay off your debt and save your hard-earned money. Don’t pay hundreds of dollars in interest for things you can save up for.
If you want to learn about sinking funds and an emergency fund, be sure to check out my other blog posts.
Remember, no one is perfect and I definitely am not. You just need to tell your money where to go. Spend less than you make and pay yourself first.
If you need help, make sure you find a Money Coach who can help you. Hey, I offer coaching!!
