I’ve never been an excessive spender and I’ve always been conscious of saving and not living outside my means, but I’ll be honest in saying I’ve never really followed a budget. I’ve just never really found them totally necessary since I was never really in too bad of shape, ya know what I mean? But after starting a business, being self employed and really hustling, it also really sucks to watch that hard earned money go! So my goal with learning how to budget is to be more focused on my spending and really understand where my money is going.
I’m also quickly learning that getting married means lots of money talks, lots of budget talks and you really have to be on the same page when it comes to all things money. So for June, I’m not trying to do anything drastic, but I will share what my plans are for working on putting together a serious budget.
- Know Where Your Money is Going: Jared has really encouraged me to know exactly where my money is going. Know my monthly and weekly expenses, track how much I’m spending on gas, eating out, eating in, getting my hair done, buying dry shampoo & nail polish (lol), etc. So I finally broke down my monthly and weekly expenses and I know how much and what I’m planning to spend my money on each week for the month of June.
- Set a Monthly Income Goal: Since I know where my money is going, I know what I need to pay bills and live, so that’s obviously the bare minimum for monthly income. So instead of just making money to pay my bills and eat and what not, I’m taking that up a notch. I’m going to start setting monthly income goals so that I can stay on track with my monthly earnings. (This mainly pertains to self employed people, but if you have a side source of income this is a great way to track!) Penciling it out each month REALLY helps for knowing how good you’re doing for the month, how you’re saving, when you can splurge on something, etc, etc.
- Dave Ramsey Cash Method: I’m going to try out the Dave Ramsey cash envelope system for eating out, groceries and gas for the week. Right now I just guesstimated this number for the week so I think this will really help me nail down what a do-able dollar amount for that is. I think the variables with this are what overwhelm me, so I’m just going to try it out and see how it goes!
- First of the Month Bill Pay: At the beginning of each month I set aside x amount of money for that month’s bill money. This week I went through my finances and paid some bills early, pulled out x amount for my auto pay bills and put things that are paid via paypal in my paypal account. So my entire month of June’s bills are set aside and ready to be paid! What a load off! That way the rest of the month is more focused on food, gas and fun purchases that I can more easily budget, monitor, etc.
- Implement the Credit Card Monthly Payoff System: Credit cards can be the devil or they can be rewarding! So I’m vowing to not put anything on credit cards unless the balance can be paid off in full by the end of that SAME month. Not the next month, not when the balance is due, during that same month, so it’s included in that month’s spending and expenses.
If you’re a budgeting queen this post may be a total budgeting basics post but I’m super excited to really learn where my money is going this month and where it’s coming from! I set all my money goals this weekend and am super excited to CRUSH them this month!
What about ya’ll?! If you have any basic budgeting tips please, please, send em my way! I’d love to hear!!