Do all people have a budget? In short, the answer is ‘no.’
There could be a lot of reasons for this, but I think a lot of people do not budget because they think it sounds too difficult. To an extent, it isn’t easy. However, most things in life that require a lot of work are worth it. If you’re tired of living from paycheck to paycheck, then you can start your budget living journey today. You don’t have to stay in this same day-to-day cycle! What’s sad is you might think it’s a life you’re doomed to live because that’s how your parents were, your grandparents, your great-grandparents, etc. To be frank though, I dare to disagree.
Change starts with YOU. You do not have to be the product of bad spending decisions. You can learn to do better and to be more disciplined. I believe in you!
What Do I Do First? List Income
To get your budget started, you need to list your monthly income. You can do this on a sheet of paper or a document on your phone or computer. Nevertheless, that’s all it takes to get started. Just write it at the top of your paper “Monthly Income” with a dollar amount next to it. This amount needs to be what you make WITHOUT overtime included because that’s not a guarantee every month.
List Necessities
Next, make a list of all your monthly expenses. These need to be your NECESSITIES. What this will most likely include is:
- rent/house payment
- utilities (electric, gas, and water)
- groceries
- transportation costs
- car insurance
- health insurance
- life insurance
- cell phone bills
- tithes
- Internet bill
- retirement.
List Your Debts
Next, write out your debts that you owe. These are bills that MUST be paid every month! This could include:
- car payment
- credit card payments
- student loan payments
List The “Other” Items
Lastly, do some math. Look at how much money you have left after subtracting the necessities. This total determines how much money you have left for “other” items. These are not listed as “necessities” because you might need them this month, but you may not need them next month. They fluctuate. These categories can include:
- dining out
- clothes/shoes
- medical (doctor copays or medicine)
- baby items (diapers and wipes)
- cleaning items
- personal care items (toothpaste, shampoo, body wash)
- TV subscriptions (Dish, Hulu, YouTube TV, Sling, etc.)
I know what you’re thinking. Personal care items should be considered a necessity. Afterall, we need to shower every day and put on makeup and deodorant. So what’s the deal?
Here’s what I mean… They ARE a necessity, but your budget will let you know if you can afford that expensive makeup, or if you need to just get a Walmart brand foundation. That budget will determine if you need to buy the shampoo you have a coupon for even if it’s not the typical one you get.
Not only that, but your budget will also determine how much you can afford to eat out. Can you afford to have a pizza night every Friday night of the week? Perhaps you can, or maybe it’s best to save that for only one time a month. Are you really feeling the financial squeeze? If so, then cut it out entirely. Harsh? I don’t think it is. I think having NO money at the end of the month or going into the negatives is harsh.
Making “Cuts” in Your Budget
Now, sit down and look over your numbers. Look at where your money is going every month, and give yourself some time to digest it. Are you going to come out with some money leftover at the end of month, or are you going into more debt?
That’s the bottom line to me. If you are spending more than you’re making, then you need a change. Now is the time to make cuts to trim the budget. To do that, look at what is not a necessity. You do not need multiple TV subscriptions. For that reason, cancel all of them but one.
Do you need diapers this month? Shop around! Look for sales and off-brands. The baby is only going to use them to pee and poop anyway, so does it really need to a top brand? Not really. If you need some new shoes, then explore your options. Look at Facebook marketplace and other secondhand options. You might find someone who has the right sized shoes for you, and they need to get rid of them. There’s nothing wrong with the shoes; they just never get worn for whatever reason.
Do you need to limit or completely cut out your eating-out budget? That’s entirely your choice. I’ll let the numbers speak for you. If you do cut that, then you’ll be cooking more. Don’t dread it! There are plenty of easy dump-and-go recipes available for you! Click here to check out my recipes! Most of them are SO easy and cost-effective.
You might disagree with me. You might truly believe that eating fast-food is much cheaper than cooking. If that is your stance, read the following article: “Is Fast Food Cheaper Than Cooking At Home?” In response, the answer is NO. It is MUCH cheaper to eat at home, and the article is a 2022 study. So it is very relevant.
Let Your Budget Be Your Guide
Do not be discouraged by the numbers on your budget. You can and you will find a way to make things work, and we’re here to help! Let the numbers be your guide instead of viewing them as being restrictive. Start your budget living today so that you can enjoy your money more in the future! One day, you can enjoy getting a nice iced coffee while you’re out. I promise, it’ll taste better with you knowing that it won’t hurt your budget for the month either 😉
If you’d like more tips on budgeting, click here.
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