Master Your Money: How to Start Budgeting
Before we get into it, let me start with, if you drink, smoke, have memberships/subscriptions or eat out regularly, you DEFINITELY have money to save. Okay, let’s get started…
Recently, my mom & I discussed my first realization of the importance of budgeting. I was about 9 years old, my dad was going to the store & I asked for something, he then answered with, “okay, where’s your money?”
I changed my mind with the quickness because I wanted to keep my allowance! I received $100 a month & I was rich in my mind, so why would I ruin that buy purchasing a piece of candy?! 🤣 In hindsight, it was my first experience & understanding of essentials, non-essentials & the importance of not wasting money.
Another memory I have of money is when I was in the 2nd or 3rd grade, with my Uncle Big Greg. He used to give my siblings & I money. While they received $20, I only got $5!! One day I was over it & I asked him why I always received less than my siblings, who were 10+ years older than me.
He asked, “Jazz, what you gonna do with $20? That’s too much money for you to have.”
My answer: “I can save it!”
Although I can’t remember his answer verbatim, I’m pretty sure he probably laughed while saying, “what you know about saving girl?!” But I do know I still only received five bucks! 😆 tragic right?!
Anyhow, my point is, money has always kinda been “my thing.” Now, before ya start counting my pockets, I’m not rich yet but I damn sure know how to budget.
Just like working out, budgeting is all about commitment, self-awareness, ditching bad habits & daily up-keep.
Some people find budgeting to be intimidating or think they don’t make enough money to have the need to budget.
The truth of the matter is, if you’re not where you want to be financially, you NEED to budget. You need to SEE WHERE YOUR MONEY IS GOING. Especially when you find yourself low of funds &/or in need of financial assistance.
Below Are 5 Steps to Help You Get Started on a Monthly Budget:
Review Your Bank Statements & Payment Apps (Venmo, CashApp, PayPal & etc.) for the Past THREE Months.
You need to see where your money is going.
Decide How You’re Going to Track Your Budgeting.
You can create a spreadsheet on Excel/Google Sheets (click here to access my template), use my Free Monthly Expense Tracker or snag a notebook/journal to write everything down. Heck, you can even use the Notes app in your phone. There’s no wrong way to do it, just know mentally visualizing everything isn’t a good idea for this.
Calculate What You Spent on Essentials & Non-essentials.
Do this for each month separately. I’m pretty sure you’re going to review everything & think or say, “damn.” LOL it’s okay, it happens. I’ve had this reaction many times.
How to calculate your spending:
Circle/Highlight your expensive habits, those can be:
Transportation for going out…is being outside causing you to spend more on gas? Ubering/Lyfting just to hangout?
Drinking Alcohol
Smoking
Traveling… roadtrips & in-state traveling counts as well
Eating Out… this includes your morning coffee & delivery services (Uber Eats, Lyft, Go Puff & etc.)
Shopping… don’t forget to calculate those Klarna & Afterpay payments as well!
Calculate what you’ve spent within the past three months for EACH EH.
Calculate the grand total… THIS IS HOW MUCH MONEY YOU COULD HAVE HAD. Crazy, isn’t it?!
Again, Understand That the Amount Spent on Non-essentials is How Much You Could Have SAVED.
Set a Goal…a Realistic Goal
Before setting your goal, take into account what you need to do to restrict yourself from indulging in those expensive habits. Be realistic… you may tell yourself that you won’t spend anything on those expensive habits because the truth is… you will & that’s okay you’re human. My weakness is curry chicken & I’ve proudly limited myself to only ordering once a month, but that didn’t happen easily. At one point, I was ordering every Sunday… that was roughly $92-$103 monthly.
PLAN to Spend
We tend to waste our money by mindlessly thinking, but you can avoid that by planning. Taking into account what you plan to spend will make it easier to stop wasting money. Before you spend money on something, think about what you have not paid for or what upcoming payment(s) will be needed.
Limit Yourself with Cash.
To avoid overspending, especially on the weekends or a night out, take out cash. If you don’t want to spend more than $50 or $100 while out, take that amount out. If you run out of cash & need to use your card then you know you’re over budget. It’s all about seeing where your money is going, stop being mindless.
Review & Adjust Regularly
At the end of each week or month, review your budget & spending. Adjust your budget as needed to ensure you stay on track to meet your financial goals. This will help you see if you’re actually putting in effort to save money or just making minor changes.
Put the Money You Saved into Your Savings Account
Keeping the money you intend to save in your checking account is never a good idea. Checkings is for access, savings is for…saving lol.
Continue to Follow These Steps Monthly in Effort to Save & Meet Your Financial Goals.
Simple Budgeting Tips:
Keep Store Receipts: Review them when you get home & calculate what you spent on extra items. This will again, help you SEE how much you could have saved or used on something else.
Use a Shopping List: Before heading to the store, make a list of what you need & stick to it. This helps prevent impulse purchases that can blow your budget.
Plan Meals Ahead: You all know I am a Meal Prepper!! Plan your meals for the week based on what's on sale & what you already have at home. This reduces the need for extra trips to the store & helps avoid last-minute takeout.
Shop Sales & Use Coupons: Look for sales, discounts, & coupons for items you regularly buy. Combining these strategies can lead to significant savings.
Avoid Shopping When Hungry: Shopping on an empty stomach can lead to buying more food than you need, especially unhealthy snacks. Eat before you shop to avoid unnecessary purchases.
Buy in Bulk When It Makes Sense: Purchasing non-perishable items in bulk can save money in the long run, but only if you have the storage space & the item is something you'll use.
Opt for Store Brands: Store or generic brands often offer the same quality (or better) as name brands at a lower price. Compare & save.
Set a Budget for Groceries: Determine a weekly or monthly budget for groceries & track your spending to stay within that limit.
Avoid Convenience Foods: Pre-cut or pre-prepared foods often cost more. Invest a little extra time in prepping your own meals to save money.
Freeze Leftovers: Instead of throwing away leftovers, freeze them for future meals. This reduces food waste & saves money on future groceries.
If you have anuy budgeting tips you’d like to share, please comment below! As always, if you need an accountability partner, feel free to contact me directly here!
Chat soon!
xoJR
