Budgeting for Badasses: Ditch the Ramen, Own Your Money (and Maybe Even Treat Yourself to Guac)
Raise your hand if you've ever looked at your bank account balance and thought, "WTF did I spend all my money on?" 🙋♀️🙋♂️ Yeah, me too.
Budgeting might not be the sexiest part of adulting, but it's a non-negotiable if you want to ditch the ramen noodle diet, pay off your student loans, and actually have money left over for the fun stuff.
Don't worry, Crew, I'm not here to lecture you about spreadsheets and pinching pennies. I’ll share how we flipped the script and turned budgeting from a chore to a tool that empowers us to live the life we want. 😉
Why You Should Give a Sh*t About Budgeting:
Let's be real, money = stress, especially when you're just starting out. But budgeting right can help reduce the stress:
Avoid Debt: Say goodbye to those late fees and overdraft charges.
Reach Your Goals: Whether it's saving for a down payment on a house or that epic backpacking trip through Europe, a budget can help you make it happen.
Gain Peace of Mind: Knowing where your money is going can take a massive weight off your shoulders.
Budgeting Methods: Choose Your Fighter
Just like dating apps, there's no one-size-fits-all budgeting method. It's all about finding what works for YOU. Here are a few popular options:
50/30/20 Rule: This simple method allocates 50% of your income to needs (rent, food, bills), 30% to wants (entertainment, hobbies, shopping), and 20% to savings and debt repayment. It's a great starting point for beginners who want a straightforward approach.
Zero-Based Budgeting: This method involves assigning every dollar a job. You allocate all of your income to specific categories, leaving nothing left over. This can be more time-consuming, but it helps you be super intentional with your spending.
Cash Envelope System: This old-school method involves dividing your cash into envelopes for different spending categories. Once an envelope is empty, you're done spending in that category for the month. It's a great way to curb impulse spending and stay on track.
Pay Yourself First: This method automatically transfers a predetermined amount to “adulting” categories like savings and investments. The remainder is your leftover income that you can spend on enjoying your life. This ensures that you're prioritizing your future self and building wealth over time.
Our Pick:
My wife and I are big fans of the "Pay Yourself First" method. It removes the willpower from saving and investing and forces us to live on the remaining amount. Through this method, we've achieved financial freedom, and we highly recommend it.
Budgeting Hacks from the Adulting Pros:
Track Your Spending: Seriously, every penny counts. There are tons of apps out there that can help you track your expenses effortlessly.
Cut the Crap: Take a hard look at your spending and see where you can cut back. Do you really need that Netflix subscription and Hulu? Can you cook at home more often instead of ordering takeout? Small changes can make a big difference.
Set Goals: What are you saving for? Having a specific goal in mind can help you stay motivated and on track.
Automate Your Savings: Set up automatic transfers to your savings and investment accounts, so you don't even have to think about it. Out of sight, out of mind!
Don't Be Afraid to Ask for Help: If you're struggling with budgeting or financial planning, reach out to a financial advisor or counselor. Or join the conversation below.
Remember: Budgeting isn't about deprivation, it's about empowerment. It's about taking control of your finances so you can live the life you want, not the one your bank account dictates.
So, ditch the ramen noodles and embrace a richer life! It's time to boss up your budget and make your money work for you. Subscribe for the next article where I’ll share tools for you to automate your budget.
