It’s all about the Budget, Baby!
Create a Budget
You work hard for your money. Too hard not to know how you spend it each month. Do you panic the week before payday?? Praying you have enough cash to last until Friday. Worrying if you’ll be able to pay your rent is incredibly stressful. Luckily, there’s a solution. It’s called creating a budget!
it takes strategy to live on a shoestring
When I started out in nonprofit at the age of 30, I was making a wooden nickel (sarcastic expression to emphasize a tiny salary). Though I was supporting an important cause, I could barely afford to leave the house. 100% of my monthly take home pay went toward budgeted necessities. Consequently, a second job was also a necessity, as was a clear picture of my finances.
Budgeting isn’t my thing
Budgeting is boring and not really my thing. Sure, creating a budget is not the most exciting way to spend an afternoon. But making sure you are financially healthy is critical to thriving as an adult and thriving in a romantic relationship. When I consider dating someone, you better believe I pay attention to the way he spends and relates to money. I put a lot of time and effort into maintaining my financial health. The last thing I’m going to do is hitch my wagon to someone who isn’t financially savvy!
Change your Perspective
Sometimes women are hesitant to embrace their personal finances. That’s probably because you have underlying feelings about money that are getting in the way. It can be anger, frustration, fear, anxiety, etc. No matter the reason, starting something new can feel overwhelming. However, I challenge you to change your perspective! Focus on what healthier financial decisions will add to your life, not what you are giving up.
Let your future success guide your present decisions.
Making strong fiscal decisions for your future is a great feeling. Sure, there are uncomfortable emotions mixed in there too. Acknowledge the “icky” emotions that come along with changing your habits. Then, choose to allow your future success guide your present decisions. You can accomplish big tasks if you break them down into small steps.
The first step is creating a thorough budget. A budget is made up of three parts: fixed expenses, variable costs and discretionary (optional) spending. Discretionary spending is the category where most people overspend. It’s easy to move through life not knowing how much money you spend on clothes, coffee, manicures or eating out for example. Analyzing a year-long summary of your discretionary spending is the best way to identify areas where you can cut back. So, let’s get cracking, ladies!
I’m going to walk you through creating a three part budget, finding ways to cut costs and, most importantly, evaluating your spending habits so you can stick to your budget.
