Budgeting

I get it. Budgeting can sound as exciting as getting your taxes done or watching paint dry. But if you’re wanting peace of mind with your finances and forward progress with your goals, budgeting is essential. Here are a few misunderstandings about budgeting that you should know the truth about.

1) I don’t have time to budget

-Once you get in the habit of budgeting and staying consistent, it really doesn’t take much time.

When you know your numbers after a few months, creating a new budget is really just tweaking the previous month’s budget.

2) I’m not good at math

-Maintaining a budget only requires basic addition and subtraction. No math geniuses needed. But if that still stresses you out, there are great apps like Every Dollar, that do most of the math for you.

3) Having a budget means I can’t do anything fun

-Using a budget means deciding to spend your money on the things that are important to you. You’ll want to make sure you have your necessities covered and are preparing for the future, but it doesn’t mean you can’t have some fun too.

4) I keep track of my budget in my head

-That may work for large expenses and bills, but other spending is sure to sneak through the cracks. Those are the expenses that add up and surprise you. A successful budget is an accurate budget.

5) I make enough money not to budget

-No matter what income you are bringing in, you need a budget. You can always find something else to blow your money on unless you setup a plan for it. Budgeting is being intentional with what you do with your money no matter how many dollars you’re earning per month.

1. Set a Budget - Decide how much you want spend for each person and stick to it.
   
   2. Do your Research - Hunt around for the best prices and map out what stores you plan to go to.
   
   3. Set a Time Limit - once you know where you want to go, set a time limit for each store. You’re more likely to spend more money, the longer you stay in the store. You’re also more likely to make rushed, impulsive purchases if you run short on time.

Christmas is a time of year to enjoy and celebrate with loved ones. One thing that can distract us from that is when we get disorganized with our finances. It can be really easy to find yourself spending more money than you intended or even racking up credit card debt. Below are steps to take to stay on top of your finances this holiday season, so you can be freed up to actually enjoy it:

1. Set your spending limit

It’s important to know your total funds available before building out your Christmas list. If you build out your list first, you may be more likely to go over on your spending and rely on credit cards or funds that were meant for something else.

2. Setup holiday categories

Make an exhaustive list of who you’re getting gifts for, any new decorations, holiday events, and additional food. Divide your available funds through those categories. If there aren’t enough funds for all the categories, you’ll need to reduce the amounts or potentially be willing to say no to some extra events or lawn ornaments.

3. Track your spending

Find a central place that you can keep receipts and also track your spending. I recommend an excel spreadsheet or a budgeting app like Every Dollar. It’s important to be able keep each of your spending categories up-to-date so that you know what you have left to spend.

4. Prepare for next year

If you found yourself tight on funds, this year, start saving in January for next Christmas. Take your new Christmas goal and divide it by 11. That’s your new savings goal for each month. It’ll take a weight off your shoulders next year knowing you already have the money set aside