Budgets: Foundation for a Solid Budget

Accurate Spending Categories

You need to have accurate spending categories to see where your money is going each month and where your areas of opportunity are. Some people over spend in their grocery category or their misc purchase category. These categories will be very unique to you and what your life entails. My categories range from pet medications to my daughters school fees to utilities for my home. It just depends on what you have going on.

Accurate Income Projections

This requires you to print out bank statements from at least 3 months and go through your income to get an average income to put on your budget. Some months may vary with different circumstances. If you are doing a new budget system currently but you have been laid off due to COVID-19 that would be a circumstance where you have zero control. You do however have the opportunity to pick yourself up and generate income by any means necessary.

Categories for Irregular Spending

This means a category for random things that come up each month or new subscriptions you’re paying for. Typically your budget will come in close to what you project but there will be times where you overspend at Target on clothes when your budget only called for groceries. This means you have budgeted for these things in that irregular spending category to cover times like this where you purchase many different types of things with one type of budget. Like going to Target for groceries and buying clothing at the same time.

Tracking Cash Purchases

Tracking cash purchases might not seem like a big deal but it is crucial to keeping tabs on all your purchases. If you are really trying to keep a close eye on your transactions then I would recommend getting the Microsoft Office Lens app for your phone and taking a picture of all cash receipts and then putting them in a folder on your phone or the Google Drive for safe keeping. This is great especially for self employed individuals to keep track of cash purchases and business expenses for tax purposes.

Plan for Major Purchases

You must always keep a list of ongoing goals whether they are short term or long term so you can incorporate them into your budget each month. You should have accounts called “sinking funds” for these goals.

7 Sinking Funds to Include in Your Budget:

  1. Christmas
  2. Important Birthdays/Events
  3. Car Maintenance
  4. Home Repairs
  5. Pet Expenses
  6. Travel
  7. Medical Costs

4 Rules For a Successful Budget:

  1. Give every dollar a job
    • You’re the boss. When you earn money, you prioritize how you’ll use it.
  2. Embrace your true expenses
    • Turn large, less-frequent expenses into manageable, monthly bills.
  3. Roll with the punches
    • Be flexible and address overspending as it happens. No guilt necessary.
  4. Age your money
    • Consistently spend less than your earn, and be more than prepared for the future.

Those negative feelings associated with money will subside- the stress, anxiety, confusion, and shame gets replaced with confidence, calm, and even joy and excitement as you really start to feel in control of your money and tap into the potential of what it can do in your life.

21 comments

Finances: Where to Start - Jessica Durbin

[…] grew up around the financial world. Budgeting and saving is like second nature to me. I have done my budget since I was 18 years old. Once I got […]

Consistency and Finances - Jessica Durbin

[…] is crucial to review the previous month’s budget to stay consistent with it. You need a solid monthly/weekly routine so you can be the most […]

Where to Start Within Your Finances - Best Holistic Life

[…] grew up around the financial world. Budgeting and saving is like second nature to me. I have done my budget since I was 18 years old. I had to […]

tek part

thanks Jill. I always wonder how insights into the making of writing are viewed, especially ones that draw on personal circumstances. Are they too immature? Should they be hidden from sight? But they help me understand not only the process of writing but the process of living, and how the two are connected. Pavia Filip Doralia

altyazili

Mamibet merupakan agen judi slot pulsa terbesar yang memiliki beragam jenis permaiann judi slot online yang menguntungkan bagi semua pemain judi slot Indonesia. Dominga Gregoire Lyndel

lost

Baru paham sekarang UKM dan UMKM itu beda ya uda. Berarti lebih besar UMKM daripada UKM. nah, usaha rumahan masih rata-rata tergolong UKM jadinya ya? Malynda Winnie Goles

altyazili

Quero acerta minha divida com a C&A e quero meu Cartao de volta tem como. Wendeline Porter Lynden

anime

Hey there. I found your web site via Google whilst searching for a related subject, your web site got here up. It looks good. I have bookmarked it in my google bookmarks to visit then. Jacklin Jamil Chapel

720p

Greetings! Very useful advice within this article! It is the little changes that will make the most significant changes. Many thanks for sharing! Frances Ephrem Shamrao

bedava

Maam pwede po mka hingi ako review nyu..marami pong salamat Ginni Sanford Sedgewinn

torrent

The statements you present in this material are quite exact, fascinating and educational. I concur with several statements here. Well done! Lorena Guthrey Austina

watch

Wife and I retired last year. Will be 65 in spring and original thought was to take OAS at 65 and CPP at 70. With poor market performance since pandemic I am now concerned trying to draw down investments so will need to decide moving forward. No other pensions available to us. Gretna Arne Starlin

diziler

I have a blog centered on the same ideas you discuss and would really like Orel Ignazio MacGuiness

dizi

Kadang suka kepikiran aja gitu, kalau semisal gak ngikutin jalan yang orang tua pernah lakukan. Apalagi kalau misal dari orang tua suka ngomong terkait kisahnya yang keren banget, masuk sini bagus masuk sana bagus. Kita sebagai anak yang sudah terlanjur masuk ke tempat lain jadi kayak gak bisa kasih yang terbaik gitu dah. Winona Tam Charo

yabanci diziler

Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis. Judith Efren Annecorinne

amateur

Everything is very open with a clear explanation of the challenges. It was really informative. Your site is extremely helpful. Thanks for sharing. Rana Bink Petite

yabanci

This is an excellent spin on freedom and may God help us all to embrace this. Pammy Wayne Boak

720p

In ex mauris, convallis faucibus risus quis, tempus faucibus sapien. Nunc ultrices mi sed bibendum eleifend. Vivamus a finibus dui. Nam volutpat libero ac tempus mollis. Cras ullamcorper venenatis enim a sollicitudin. Jacqueline David Kaden

dizi

Really appreciate you sharing this blog post. Thanks Again. Much obliged. Elisabet Cross Blakeley

Leave a Reply

Your email address will not be published.