I know. I knoooow. The idea of a budget sounds just about as exciting as a diet – a lot of self deprivation and not having fun. BUT, that’s not the kind of budget I’m talking about today. This one is all about winning. I like to win, don’t you?
We’re gonna talk spending lifestyle, and how we can make sure you’re able to save a ton, give a ton, spend money on the fun stuff instead of the bills, and not be worried about running out of money in your checking account.
First things first, let’s identify what money you have. Answer two questions:
How much money do I have coming in? (Paychecks)
How much money is going out? (Bills, subscriptions, etc – this category is the lengthy one)
- Track your purchases / expenses. There are several apps and methods out there to track expenses, but I like EveryDollar. It syncs with our card accounts and logs purchases, then all I have to do is categorize them. Also, I just needed to build a template once for monthly purchases, and it’ll create copies of it every month. Main thing, be super consistent about logging every purchase you make!
Here’s a big list of different expenditures that you can use to plug in to your monthly budget.
- Tithe / Offerings
- Giving (Gifts, taking people out to dinner, etc)
- Savings
- Rent
- Utilities
- Car Payment
- Gas
- Phone
- Internet / TV
- Groceries
- Eating Out
- Travel
- Entertainment
- Insurance
- Hair
- Makeup
- Nails
- Gym Membership
- Subscription Services (Spotify, Amazon, Youtube, etc)
- Keep a generous balance in your checking account.
Create a “don’t go below” balance, and imagine that as your new Zero. I started with mine as one paycheck’s worth, and went up a bit from there. No hitting 0 balances, no bouncing checks, no emergency “big” purchases that wipe you out.
- Save fast.
My savings money is always the first that I put away.
Method 1: dollar amount. (Example, $300 always goes into savings)
Method 2: percentage. (10% of my check goes into savings)
Method 3: scrape off the excess. (Add just enough money to your checking account for bills and projected expenses, and immediately put the rest in savings) - Knock out debt aggressively.
If you have some lingering debt, be intentional about paying it off as soon as possible. Never pay just the minimum on a credit bill – look for ways to trim out excess purchases month to month and really zone in on whittling down your balance. - Identify unnecessary purchases or expenses.
To have more money to spend on the stuff you want, you’ll have to take it from something that’s not as worthwhile. Sometimes your money gets eaten up by automatic payments that you may never even catch. You might need to unsubscribe from some services that put little leaks in your budget. For example, online memberships, auto-ship subscriptions, apps, gym memberships that haven’t been used in months, or tv/music/streaming that isn’t getting used enough. Whittle out anything that’s not actively being used- just remember, you can always re subscribe if you decide you really miss it.
- Look at big expenses in monthly increments instead of one-time purchases.
There are some subscription services that I love having, like Amazon Prime, some editing apps, YouTube Red, etc. Many times you’ll find that the yearly subscription rate runs cheaper than a monthly one, but it’s tough to cough up a year’s rate when your monthly budget doesn’t have that much wiggle room in it. Here’s what I do: pay it up front, but then divide it by 12 and only add that amount into each month’s budget plan. You can do this with both subscriptions and big yearly expenses.
- Invest every month.
This looks different for everyone, but this an investment that you’re making on something for your future. It can look like a mutual fund or new art supplies for your future business – either way, plan every month to invest into your future.
- Set aside money to give away.
Nothing feels more liberating than the ability to give when you want to. Be intentional about setting aside money every month so that you can go for the opportunities to give. This sounds backwards in the realm of saving money, but a lifestyle of generosity opens up a new mindset – when you give, you become richer. We allocate the most money into this category every month, and have seen time and time again that when we give, we always receive more. It’s a challenge to keep giving bigger!
Hope these tips help you guys start your summer fresh!
