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Money causing you stress? This is what you’re doing wrong…
Let’s cut to the chase:
You don’t have to track your spending
Don’t budget for only one month in advance
A budget isn’t supposed to limit and deprive you of what you want
Under budgeting for expenses is setting yourself up for failure
Using one checking account for savings, bills and everyday expenses
Here’s why:
You don’t have to track your spending
STOP tracking your spending
… only if you use just cash and really think you have a spending problem. Then maybe it’s a good idea to track your spending.
But yes, review it.
To review your spending, download your transactions from you bank’s website and look there to review your spending. If you’re tech savvy and know how to use spreadsheets, create pivot tables or charts. Download your purchases to CSV, import them into a Google Sheets spreadsheet, categorize them and chart them.
OR! Some banks offer charts to review spending (Chime does).
OR! there are apps for this, which make it a lot easier and faster.
Check out Goodbudget Budget Planner or Mint: Budget & Expense Manager
The point is, you don’t HAVE to track your purchases today.
You don’t have to track that purchase you just made at the grocery store earlier.
If you use a checking account for everyday purchases, the data is already there for you.
Just review it.
Don’t budget for only one month in advance
Create a budget for 3+ months into the future!
Doing this helps me daydream of being out of debt.
Checkout my BFF (Budget For Freedom) method. It’s the perfect budget template/spreadsheet for getting a clear picture of where your money goes.
A budget isn’t supposed to limit and deprive you of what you want
IT’S SUPPOSED TO MAKE ROOM FOR WHAT YOU WANT!
I repeat, it’s supposed to make room for what you want!!
Under budgeting for expenses is setting yourself up for failure
If the electric bill was $100 in June and $150 in July then DON’T budget for $100. Budget for $150! The BFF method is to budget for the most something has been in the past 6-12 months.
Why? Well, would you rather end up $50 extra? Or be short by $50? Coming up short sounds stressful.
Using one checking account for savings, one for bills and one for everyday expenses