Budgeting

…money…money..money…

I never ever thought about budgeting in my entire life. Why the new obsession? I moved out, spent more than was in the bank and now we are hear (#longstoryshort). Retrospect, would have been nice if someone told me how to budget and handle fluctuations in income. Now, things can be worse, but this is the worst I have had to deal with soooooo…

Honestly, the anxiety attached to debt is really crippling and affects my mental health. I doubt I am the only one dealing with this right now. I am going to post something about my detailed experience with debt because it is a journey that seems never ending. The positive? My obsession with money and  budgeting and learning. Randomly, I have found a passion in finances and all the subcategories that come along with it. Now, I am focused on educating myself about savings and budgets and making money.

So let me share what I have learned about budgeting…

Definition

a budget is “an estimate of income and expenditure for a set period of time” (source).

My Definition

a budget is understanding what you have and what you need to spend, then allocating the remaining

Educate yourself…

Podcasts

Podcasts are literally finding “professors” that are passionate about the category they are choosing to speak about! These are episodes that revolve around budgeting. Motivational and educational, perfect.

 

Visuals

I did major Pinterest searches regarding finances and budgeting, these are my favorite visuals that have helped me plan out my financial life.

What I have learned…

IT IS UP TO YOU THE EXTENT TO WHICH YOU ARE GOING TO RESTRICT YOUR LIFESTYLE TO GET OUT
YOU STILL NEED TO LIVE AND DO THINGS TO MAKE YOU HAPPY WHILE BUDGETING
INCREASE INCOME, LOWER EXPENSES, SAVE, PLAN

What I have started doing…

I am naturally frugal. Since making my own money and spending it, I hold back on certain things that other people would indulge in without thinking.

How you can start budgeting…

  1. How much do you make? $$$
  2. How much are your monthly expenses? Rent, car, insurance, phone, groceries, gas, etc.
  3. How much can you lower your expenses? Call your insurance or phone people and ask for a cheaper plan, search for a cheaper place to live, live closer to work = less gas $, plan groceries to focus on needs over wants
  4. How much do you spend on random things that are unnecessary for survival? Be honest!
  5. How much debt are you in? Kill that first by putting the money you are randomly spending towards it instead…
  6. What would you like to do in your financial future? Buy a home? Travel? 
  7. How much do you need to save to achieve that goal? Estimate or literally look up the exact amount to focus on…
  8. Put all this info into an excel sheet and have as frequent check ins as necessary for you to keep up and be productive!

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