Budgeting 101
So, let’s get to it! Budgeting is the art of telling your money what to do and where to go. In order to be successful, you must be intentional and it takes a whole lifestyle and mindset change. I’ve attempted budgeting numerous times. I’d stick to it for a little while then it was back to “Dang, where did all my money go?”
Then I found Dave Ramsey’s podcast, rented his Total Money Makeover book from the Library and attended his Financial Peace University workshop and my eyes were opened. Don’t get me wrong after attending I’ve fallen off the wagon a couple times but as of late I have been “Gazelle Intense” about my finances, budgeting and paying off debt.
When budgeting follow these tips and you should be off to a great start:
1. Every dollar has a place.
Also known as Zero based Budgeting is making sure your income minus expenses equals zero. After completing your budgeting your ending balance should be zero because you are in charge of your finances. You tell your money where to go by making sure your expenses match what’s coming in monthly. Literally place every dollar you make in a category and watch your money work for you.
2. Decide whether you want to use a budgeting app, pen and paper or an excel template and write everything down
Every Dollar is an app that follows this zero-based budgeting method and it is a big help. I actually use all 3 methods because I’m crazy. I start by writing everything down then transferring it to excel and inputting it in the app. It’s a way for me to triple check and hold myself accountable. By no means do you have to use all three resources try them all out and pick what works for you. Write down expenses and income and then subtract income from your expenses to equal zero.
3. Recognize that every month is different and won’t look the same
For this reason, you need to create a new budget every month. Some months may mimic each other but different expenses and income fluctuations happen/
4. Start with the most important categories first
I always start with Tithe/Giving and Savings. I pay the Lord first and then myself.
5. Use cash for certain budget categories that may be unpredictable
For me that consists of entertainment, personal care, and anything else that is outside of my budgeting categories that may come up. I set aside a certain amount each month and call this category CASH. Once the cash runs out then I cannot do anymore extracurriculars until the new budget starts.
6. Go easy on yourself!
Don’t expect to be a budgeting pro right off the bat. It usually takes 3-4 months to get a grasp on this whole budgeting thing. So, allow for mistakes.
I hope you find these tips useful and remember a budget doesn’t limit your freedom, it gives you freedom! It’s really all about being intentional with where your money goes. Happy Budgeting!
With Love,
Jasmine Kaye
Sources:
https://www.daveramsey.com/blog/how-to-make-a-zero-based-budget
https://www.daveramsey.com/blog/the-truth-about-budgeting