Budgeting While Broke
Ladies! Hope you’re having an AMAZING week!
Today, I want to share with you a few tips that I’ve learned about BUDGETING! Before we get started, I wanted to let you know that in order for your budget to work, you HAVE to stick with it, chile! #lessonlearned.
My Financial Faux Pas
I have to admit, I didn’t have the best handle on my finances! I would just go with the flow and when something was due, I would just pay it! Not the best way to get on top of the financial game! This week, I had the “money talk” with Franklin. We sat down, estimated our monthly cash flow, calculated our debts, set our financial goals, and created an updated budget.
Today, I’m gonna show you how to do just that! And it’s super simple! You’ll need to know:
Write your numbers for all of these things!(expense, income, and bills)
Let’s to start with your expenses. Here you’ll log everything that requires you to put money out. This includes rent, utilities, cable, cell phone, Netflix, Hulu, internet, car insurance, etc. You’ll want to make sure you also include the amount due as well as the due date.
On your income list, you’ll want to write down every source of income you have for the month. This includes your paychecks (full time and part time) and any financial gifts you’re expecting for the month. This can get a little tricky if you’re self-employed (trust me, I understand the self-employment financial roller coaster), but the best thing to do is to record an estimate!
Good ol’ debts. Our favorite subject, right?! In a previous article, I talked about how important it is to not ignore your debts! Come up with a plan to tackle them, because you can’t get ahead financially while you’re in debt. There are many ways that you can plan to get yourself out of debt, one includes the Debt Snowball that is discussed in Dave Ramsey’s Baby Steps! You can read more about that here.
A big part of writing your financial goals is being able to see where you’d like to be in the future. Do you want a large house? Want to have a certain amount of money in your savings by a specific date? Write it down! Out of all the steps in creating a budget, this one is the most important step of them all! Reason being is that if you don’t have a goal, something you’re aspiring to, you don’t have a reason to stick to your budget. FIND YOUR WHY.
If you find yourself in a position to where you don’t think that you make enough money to save for your financial goals, it may be time to take a look at your finances. Are you getting the best available rates for your phone bill, car insurance, and health insurance? If you’re unsure, it would be wise to look into it so you can come up with a new financial plan that sets you up for success!