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I admit I fail to budget…like far too often.
Now, I’m not saying I’m an expert, so that’s the reason why I’m writing this. However, I do budget a bit better nowadays.
Now, through my horrific failures, I had learned a few things:
1. Fantasy Budgeting
So, I spend money as if it grows on trees.
Well technically, trees have fruits, wood, and many other things which can potentially be sold. So, in a way money does grow on trees.
However, that’s not the point right now!
I spend a total of $800 each month on groceries for a family of two – my boyfriend and me. I tried cutting that in half and end up eating cup ramen or eating out, which cost more money.
I end up failing with a pile of cup ramen.
In the end, I learn to start small which mean cutting out eating out even with a mere one time a week!
2. Past Budgeting
One lesson I learned is to keep track of where my money is being spent.
I grabbed a journal – any kind and kept track of all my receipts. You can always record everything online, but I choose to write it since I’m more old style. If you look back, you will come to terms that you’re spending money on useless things such as coffee (me), clothes (me), and food (also me). Your outcome will be different from mine.
For example, I don’t have any children hence I won’t start something like a college fund. I mean, I would start a college fund for them, but I won’t call it a college fund. I will call it a black hole because the kids will probably eat enough money from me and now I got to save for their future. Okay, now I am rambling.
Take a long good look at where your spending activity lays then cut it. I do not suggest cutting the fund drastically, but shorten like spend .05% less. Humans are
3. Emergency Funds
Sometimes, things unexpected things happen -such as a broken car or an unplanned baby – and you need to be flexible with your budget.
This is when you should have an emergency fund.
I opened two emergency funds – one with my bank and the other with Acorn.
4. Partner – if you have one
If you have a partner, talk to them.
If they don’t contribute – leave.
Okay, maybe that’s exaggerating, but seriously talk to them.
With a partner, finances isn’t only a “you” problem. If s(he) is overspending, then you’ll never achieve a budgeting success. I may not be an expert at relationships, but it’s a team effort, and everyone has to put in an equal amount of energy.
5. A for Effort
Yeah, you need more than just put in your effort. Keep your mind on the goal, and go for it. Not every budget is perfect, and that’s okay. However, it would help if you continued despite planning by the dollars or the pennies.
There will be times when things get tough, but don’t give up.
Now, set some time aside and dig out your financial statements. Start establishing a budget that works for you and not follows budgeting that works for others. Eventually, you will gain a clear picture of your financial standpoint. No more beating around the bush, grab your big person pants, and wear them! It is time to #adult!
Don’t forget to grab a box of tissues because you will need time when you realize how much money you’re spending!