In response to today’s writing prompt, I am sharing how I deal with budgeting. It is not a perfectly organized spreadsheet-y thing (I am no spreadsheet guru by any means!), but it is what helps me feel a little more in control of my finances.
Okay, let’s be real – the word “budgeting” can sound about as fun as doing your taxes. But it doesn’t have to be a source of stress! It’s actually a pretty cool way to get a handle on your money and work towards the things you’re actually excited about and\or want.
Here’s my (slightly less chaotic) method:
First, I figure out where my money is hiding: I use a budgeting Excel spreadsheet template to see exactly where my money is going each month. It is often a little shocking (turns out, I do spend a lot on food\restaurants – need to cut back on that!).
The 50/30/20 rule (loosely enforced): I try to stick to the 50/30/20 rule – 50% for the stuff I need like paying house bills in full each month, 30% for the things I want, and 20% for saving up or paying off debt. It’s a good starting point, but strict rules also do not work all the time, so minor adjustments may be needed!
Check-in time! (aka Damage Control): Budgeting is not a “set it and forget it” thing! I try to check in on my budget each day (OCD much?) and make necessary modifications because let’s be honest, life happens, and sometimes I need to adjust for that extra unplanned expense.
Remember why I am doing this (besides a somewhat sense of financial freedom): Knowing why I am budgeting really helps me stay motivated.
What is your budgeting story? Any tips for someone who is still figuring it all out, or is all this just a bunch of malarkey?