I don’t know why it took me so long to create a budget for my family. Wait yes, I do… It was never right, and we always over spent or I just didn’t have time to maintain it.
The truth is when it comes to a budget it doesn’t have to be perfect. A budget is a goal for every month.
I won’t say if you don’t reach those goals it’s okay because that will imply that it is okay not to try your hardest to make those goals. I will say life happens. Things come up and sometimes you just must work it out, spend money you didn’t plan on spending. But if you do your hardest to reach those goals, didn’t spend money on anything you didn’t need then you are on the right track.
There is nothing wrong with having to re-evaluate your budget. Eventually, you will have it set to where you won’t feel like your failing. Just remember we are aiming for
First things first prioritize. I find the one thing this society struggles with the most the difference between need and want.
NEEDS: What you will literally die without.
- Healthy Food
- Medical Insurance
- Home/Auto Insurance
- Child Care
THE MIDDLE: Things that can be cut and worked around if need be, but ultimately need to be paid to avoid penalties and legal action.
- Car payments
- Auto Repairs/Gas
- Credit Cards/ Student Loans/ Debts
(We will dive into how to reduce these payments later)
WANTS: Things that can be cut and used for rewards or a special treat because you can live without them
- Entertainment Expenses
- Eating out Expenses
- Nail and Hair Expenses
- Gym Memberships
- Meal Order Kits
- Smokes/ Alcohol
If you have made it to this point you are probably thinking “Man she is harsh!” Some people thinking they need some of that for their job, and even though pampering yourself makes you look presentable and feel better about yourself the truth is if you can’t write it off on taxes or your boss won’t reimburse you then you do not need it for work.
So, if you need to cut expenses start with those wants and remember it is not forever just until you are stable enough to enjoy those things.
Financial Task this month: Create your base budget. Prioritize, take care of the needs over the wants. Then if you have any leftover treat yourself to those wants. Remember it doesn’t have to be perfect for you. Budgeting is not an overnight easy thing, that is okay. Here is the budgeting worksheet I like to use.
Self-Task this month: I want you to think of one thing you can do for yourself, that will make you feel pretty and lift you up, that does not cost anything. There is so much focus on self-love out there that point to looks, but beauty is from the inside out!