How to Budget

A few days ago I posted a photo on my Instagram while I was doing mid year budgeting revision.  I got a few messages asking me to write a blog post in regards to budgeting.  Let me get something out of the way; I am NOT the best at budgeting, I love to spend money ! lol however true adulting requires me to level up and take care of my finances and know where my money is coming in and where its going out.  

I have thought about the easiest most helpful way to share how I budget and my ideas in regards to money.  If you have the idea that you just "wanna be happy and not care how much money you make" you need to start right there; mentality shift.  Money is not,  never was and never will be the enemy.  I too have heard that rich people are not happy because they just surround themselves with materialistic stuff and lack love, fun experiences, free time etc.  What people do not understand is that that money is connected to ALL of those things you love.  Let me quickly explain.

Write down the things you truly love and enjoy doing. for example I love my dogs because they give me joy and unconditional love.  In order for me to take care of them I need to have money to buy them food, toys, pay their veterinary etc etc.  If I was limited with money I might not be able to buy them their medicine when they get sick or get them the potty training class so that they can stop pissing on my carpet etc etc.  Money is a form of freedom.  Its there to help us have joyful/happy lives.  So in conclusion working hard/smart to obtain money,  saving money, budgeting and having limits will in return give you more freedom.

How I budget

I have a designated notebook where I write down all of my money goals, calculations, etc.  If you are starting from scratch you will need to first write down what your money goal is.  For example, like I shared in my Vision Board 2020 post, I will have 50k saved by the end of the year (I write "will" because law of attraction)  Your goal could be to pay off all your credit cards, to increase your credit score, to save 10k,  buy a new car, go on a trip etc.

Then make a list of all your monthly expenses.  Start with your main expenses such as bill, groceries, gas, insurance, mortgage etc.  Following into the personal category such as nail salon, hair salon,  shopping, dinning out, Netflix etc.  You have to write it all down so you can see where your money is going to.   Make sure you add it all up to equal the sum of your estimated monthly expenses.

After make a list of your monthly income and add it up.  You will then need to subtract your expenses from your monthly income.  If you are in a negative number, well.. you got work to do.  Start by crossing off unnecessary expenses, setting a budget for a category like groceries (I spend way to much money on this so I made myself a budget range I can spend on it weekly).  You will need to go down the list of expenses and really evaluate where and why you are spending more money than you would like in them.  This helps your mentality shift and almost realize that you are probably fucking yourself up in your finances.

Once you have the total amount of money left after all the expenses are taken, set aside X amount for savings account, if you have credit card debt set aside the monthly payment you wish to give to pay it off in x amount of months.  As you can see you will begin to see where your money will go to.  Quick tip, if you are between saving or paying off a debt, always pay off the debt first.  You are automatically saving money by stopping interest accumulation; that is your instant saving.  Whatever money you have left is your "spending" money on shit you don't need like movie date, wine, sunglasses, a new purse etc.

In regards to savings which is the area I have made more progress on.  Multiply the savings amount by the months you have left between now and the time of your goal or do it yearly.  Is the number something you are happy with or what is needed to reach your goal? if yes then you have yourself a budgeting plan, if not... you need to do two things: increase amount of income by adding more forms of income OR lower your expenses.


Quick tips for better money management: $

• Stop thinking money is "bad" or the "enemy
• Educate yourself on money (currently reading this book)
• Get mobile banking; all banks have apps nowadays 
• Check your account 1-2x weekly or daily if you feel the need
• stop impulsive buying
• Unsubscribe from monthly/yearly apps you do not use and are paying for (dollars add up)
• Change you relationship with money: place it around your space so you are constantly seeing money and realizing there is an abundance amount for you.
• Be a smart spender
• Quality over quantity! I will rather pay $200 for a pair of shoes that will last me years as oppose to a pair of $25 sandals that will need replacement in 2 years.

Lastly, map out your plan.  Write down what steps you will take to reach that goal(s) we talked about at the start of this blog.  Remember that it will take time to reach your goal so its important you have realistic attainable money goals that will make budgeting fair.

I hope my post helped as I am no money budgeting/maker/saving expert and my method is quite simple (I think).  Changing my mentality towards money has changed my life for the better.  I manifest and attract greatness and will not settle for less.  

 "I am open and receptive to receiving new opportunities to create wealth.  I can and will be successful mentally, physically, and financially! " – Stephanie Locks

@ Instagram

WITH LOVE,

                                MAGGIE ♥