When you hear the word “budget,” does it feel like a list of what not to do? You’re not alone. But in reality, a budget is a tool that empowers you to spend with purpose.
It’s your plan for telling every dollar where to go, helping you regain control and achieve your financial goals.
How to Start a Budget
Without a budget, money can feel like it’s slipping through your fingers. If you’ve ever wondered where your paycheck disappeared to, a budget might be your missing piece. Whether you’re tracking down every expense or just looking for ways to save, a budget offers structure and clarity.
Your budget begins with your income. For those with steady paychecks, it’s easier to calculate. But if you have irregular earnings from freelancing, gig work, or commissions, budgeting becomes even more essential. Determine your average monthly income to create a realistic plan that works for you.
Choose Your Budgeting Method
There’s no one-size-fits-all approach to budgeting. Popular apps like You Need A Budget (YNAB) and Monarch make tracking your finances easy.
Prefer a tactile approach? Try the envelope method, where cash is divided into labeled envelopes by category.
You can also explore budgeting tools offered by your bank.
The best method for budgeting: The one you’ll stick to.
Progress, Not Perfection
Your first month of budgeting might not be perfect—and that’s okay. Unexpected expenses or misjudged categories can throw things off, but the key is to learn and adjust.
A budget is a living document; small, consistent improvements each month lead to long-term success.
Tackling a Common Budget Struggle: Food
One expense that trips up many budgets: food. Between groceries, takeout, and dining out, it’s easy to overspend. The solution? Balance.
- Set a food budget: Decide how much you’ll spend on dining out versus groceries.
- Cook more often: Meal prep or try a meal kit service like HelloFresh to make home cooking easier.
- Prioritize experiences: Plan your dining-out budget around experiences that matter most, like two special nights out a month instead of frequent, casual spending.
A clear food budget helps you enjoy your meals without guilt while freeing up money for savings or other goals.
Create a Budget That Reflects Your Life
The beauty of a budget is its flexibility. It’s a tool to help you manage expenses, pay down debt, save for the future, and gain a sense of control over your finances.
With a budget, you won’t have to wonder where your money went—you’ll know.
Want help creating a budget that will help simplify your finances so your Childfree life can be amazing? Click here to schedule a Childfree Wealth® Checkup today.