Budgeting

Hey Hey Rosology Fam! Grab your notebooks, cute stationary and take a seat cause today for Adulting 101 we are jumping into budgeting!

I know, talking finances can be dreadful and a lot of times we like to pretend money problems don’t exist but sadly, they do but, theres a way to make finances less scary I promise!

Budgeting is important for everyone rich and…not so rich.

I know from the time I first got my own bank account, I had zero clue how to handle money and I didn’t have much guidance when it came to creating a budget.

I have had some of my biggest financial mistakes that ended up with debt, a horrible credit score, and burnt bridges. All because I never learned how to budget.

This might sound dramatic but it is definitely the truth… I had no idea how to budget properly therefore I never saved enough money for bills and other responsibilities causing me to fall behind pretty quickly.

I am just now, after three years, building my credit back up and paying down debt slowly but surely.

So here are a few tips and tricks that helped me find my way in the world of finance. Lets get into some budgeting!

Start small…

Take out your notebook and write down all the static bills you have monthly or weekly these are bills you have to pay by or on a due date that recurs monthly.

After you have all those bills written down, write out the things you know you spend money on, for example, food, gas, pet stuff, etc.

Start with an estimated dollar amount for each of these, its okay if you’re unsure, the first month of budgeting, track how much you spend in total on each of these things!

Combine all those numbers and thats your monthly deductions from your bank account that are MUSTS, put that to the side for now.

Now tally up your estimated income every month (if you get paid weekly or biweekly just do some quick math to see how much you make monthly), try to round down with the income unless its a steady salary just so you are prepared if you do not make as much one month.

Take your monthly income and subtract 10% of that total and put it right into your savings without a second thought. This was my biggest problem, I saw the money I should’ve been putting in my savings account, as spending money, so I was left living paycheck to paycheck.

So now that your “monthly musts” and your savings are done, figure out how much you have left over, don’t be surprised if its not that much and please, do not feel the need to spend it!

If you’re a visual learner like I am, you can download my FREE customizable budgeting worksheets that include a calendar and category page to help you put everything out in front of you.

Pull out your MONTHLY MUSTS and see where you can save some money, for example I try to buy products that are not name brand if the only difference is literally the name, most name brands and store brand products are exactly the same.

I like to meal plan for my week and go from there, keep in mind that some weeks your groceries will be more than others if you factor in products you might not need to buy weekly, so try to ROUND UP when estimating grocery costs!

Depending on how you choose to budget, whether its weekly, bi-weekly, or monthly, if you have any leftover money at the end of each cycle, put that into savings, this will help you grow your savings account and keep you from spending money on things you might not necessarily need!

I know this seems boring and strict but don’t forget you’re allowed to have fun and spend the money you work hard for, just make sure its not sacrificing a bill or anything!

A rule of thumb when buying things for fun, if you see something you want, wait, if you forget about it in a few hours or a few days, you don’t need it; but if you cant seem to get it out of head after a few days or weeks, go for it! Its okay to spend money on things that bring you joy.

In debt? Don’t stress! Debt is a scary word and most people experience it eventually, but there is so much more to life than debt and money. Instead of trying to pay all your debts down slowly at once, start with one bill, one collections account, pay that off and move onto the next.

If you have accounts in collections try giving the collections company a call, most of the time you can settle for less money than you owe (BUT paying the bill in full will up your score by a few extra points)

So pick a bill and add that to your budget, try to pay it off between 3 and 12 months, divide the total cost over the amount of time you want to pay it off and that’s what you owe for that bill each month.

EXAMPLE:   

Bill Total: $600          Months: 4 months

$600 / 4 = $150 a month

Ill get more into Debt and how to get through it in another post so stay tuned!

Last but not least, money is money and you can always make more of it, so if you’re struggling right now, follow these budgeting tips and don’t stress over it, there’s way more to life than money!

Do you have any budgeting tips you like to use? Let me know! Email or Dm me on Instagram, info in the contact section!

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