My Budgeting Routine + Money Mistakes I've Made
Here we are again..
Discussing adulting and all its beautiful glory.
I decided that there is no perfect time to talk about finances, so we will just talk about it. I have never been good with budgeting and savings. I’ve always been an avid spender and an impulsive one at that. I can’t even count how many times I’ve had the money lecture from my mom about how i should make better decisions and not be so impulsive.
I’ve truly started taking her advice the day that I paid my first full months of rent. Rent is no joke. Adulting is no joke either. It’s easy to spend money on things that you want, it’s hard saving and delaying instant gratification.
So I am here to help you be BETTER than me.
Let’s start by talking about my budgeting routine.
Write down your expenses - Time to look over your expenses on a spreadsheet or notebook paper. It will also help to add the payment dates. Your expenses should be split based on mandatory expenses such as rent, insurance, energy bill, etc from your miscellaneous expenses such as groceries, nails, shopping, etc. This will allow you to subtract your mandatory and then whatever you have left over you can allocate correctly.
Calculate Your Income - Write down your estimated incoming paycheck for the total month. It will also help you to break down the amount to a bi-weekly amount to see what your funds will look like and how you can allocate them based on expenses payment dates. I would recommend that you calculate the net income ( gross income - taxes ) and budget off that amount.
Set a Goal - How much do you want to save? It’s important that you set a goal of how much you want to put aside for a rainy day or big purchase. So you will have money allocated when you need it in case something comes up that you can’t pay for using your checking account.
Make a Plan - It’s time to make a plan about how you’re going to allocate your paycheck towards your expenses and savings.
Follow Thru- Actually, do what you say you’re going to do. Track your progress. Try Cash Envelopes for your miscellaneous expenses like groceries, nails, etc to help you stay on budget.
I usually do this during the weekend before my paycheck hits my account . I have a monthly budget spreadsheet and paycheck to paycheck spreadsheet as well. It helps me break down the money that I have coming in and gives every dollar I earn a purpose. It also helps that I have a plan for the money before i receive it so I don’t get crazy and end up spending the money that I need to pay for bills.
I also started using cash envelopes again and that helps me keep track of the budgeted amounts that I set for myself. I would definitely suggest them for impulsive spenders like myself.
Now let’s talk about the money mistakes I’ve made since moving out
Spending a lot of money on Decor - I literally went full out on decor, while I didn’t go broke broke from decor shopping. I know I could’ve saved that money for a rainy day instead. It’s common to feel pressure from yourself to fill up your apartment and make it aesthetically pleasing but take you're time. it might take you months to make it a little more homey but it will get there eventually. Don’t go broke to make your apartment look insta-worthy.
Not realizing how expensive adulthood is - Adulting is no joke. Let me repeat. Adulting is no joke. Adulting costs money. SAVE.SAVE.SAVE
Budgeting can be confusing and frustrating at first but once you see your savings grow, credit debt go down, and your financial stability rise. You will realize that budgeting is the best thing you could ever do for yourself.
If you’re feeling down because you’re not at the financial level you would want to be on, just know that with time and dedication you can get there. SAVE that money. PAY your bills. LIVE your BEST life.
You can do it all.
Let me know what other financial topics you would like me to talk about in the comments.
Don’t forget to like and share this post with someone who could use a financial lift.