5 Budget Reminders You Might Need
Okay, so - I don’t actually love the word “budget”. For most individuals, it’s loaded with a LOT of misconceptions. And unfortunately, those misconceptions will stop you in your tracks from even trying. The good news - we get to reframe all of them.
Today, I’m busting out some budget reminders for you so you can stay on track or get started.
Here we go!
#1. IN CASE YOU FORGOT - THE DEFINITION OF A BUDGET
If we actually look up the definition of a budget, it says: a statement of estimated income and expenses. Let’s look at a couple more:
a plan for using money
the amount of money available for some purpose
I just want to call out that no where in these definitions does it say - you never get to buy anything you want ever again! Ya’ll, that’s what we call a diet budget and guess what? Just like diets - they don’t work. A good budget, or a money flow, shouldn’t feel super restrictive. If that is you, let’s loosen up the reins. It might sound counter intuitive, but it will actually help you stick to your numbers and create some sustainable habits.
#2. YOUR END OF MONTH BUDGET RESULTS
When you look at your budget at the end of the month, there are three possible results:
A negative number
A zero
A positive number
That’s it. Those are the options. This might sound obvious, but there’s something about saying out loud that can help alleviate some of the money monsters that are in your head. Those monsters will keep you in sweet, sweet avoidance, so let’s take back some of our power.
#3. THE 50/30/20 RULE
It doesn’t have to work for you. This rule is used as a guideline to start budgeting and it basically says:
50% on necessities
30% on wants
20% on debts
It’s a great starting place, but don’t freak out if it isn’t working for you. My rent alone is 45% of my monthly income. HOLY BEJEZUS! If you’re like me and live in a high rent area, that 50% just isn’t going to cut it for necessities. So find the mix that works for you that helps you live your life and hit your money goals.
#4. AREAS FOR BIGGEST BUDGET CHANGE
If you need to lessen your expenses there are three areas that will create the biggest shift for you:
Transportation
Home
Food
We can spend a lot of money on rent/mortgage, car payments and insurance and food (groceries and eating out). These are the areas if you shift to other options will likely save you the most. Example - I just moved so I could save $600 per month on rent. Now, it must be said - making more money should always be on the table! I want all the Betties to get in the practice of looking for money. More please!
#5. YOUR BUDGET IS MEANT TO BE BROKEN
Unpopular opinion! Listen, that budget is a “plan” and, I don’t know about you but, I’m not sure if I’ve ever executed something, “according to plan”. You know? Your budget is living and breathing. Why? Because that’s what your life is doing. We can’t predict everything. So think of your budget as the banks of a river. It helps your money flow easy so you can move it in a way to support your life. Knowing your line items, allows you to move things around if something pops up. It puts you in the driver’s seat and gives you the ability to respond without stress.
Are you ready to hit the budget streets? Give Breaking Up With Broke a whirl. It’s my students’ favorite budget tool, AND it comes with some money mindset lessons. And if you’re ready to get after it for 90 Days, try my 90 Day Money Breakthrough. It comes with Breaking Up With Broke, one of my 90 Day Journals and lots of lessons from debt repayment, money mindset and credit scores.
Xoxo - B
