Ah finances. One of the most awkward but important topics to think about. Let’s be real, budgeting and saving is not easy. It can be really hard when starting a budget, let alone one you can stick to. When I got engaged to Elbert [link to wedding series 1 post], we had to sit down and really dive deep into what our savings goals were, our financial priorities, and what our current budget looks like.
It’s not a topic we learn much about in school so I had to do a lot of research and learning on my own. Full disclaimer, I’m not a finance professional by any means so I’m just sharing what I’ve learned over the years. If you’re looking to get serious about budgeting, I’d highly recommend talking to a financial advisor!
But without further ado, here are my 5 tips to starting a budget you can actually stick to:
Pay yourself first
Paying yourself first means taking a portion of your paycheck that you feel comfortable with whether it’s 10%, 20%, or more, and placing it directly into your savings account or investments. Every payday, you put away that chunk of money into your savings and forget about it. You can actually automate this with your bank so you never forget.
That savings account might be for a big vacation you’re saving up for, maybe a wedding fund, or even an emergency you want to have on hand for those unexpected days. Whatever it might be, taking a chunk out of your salary every time makes it easy when you’re starting a budget you can actually stick to. I find that I feel less guilty spending my money during the month if I know I’ve already put aside money for my savings goals. I already did the saving and investing for the month so it’s okay to treat myself to that coffee today.
Pick your spending priorities based on category
I have been guilty in the past of overspending on certain categories. It can be super tempting to always get the latest Aritizia drop or update your wardrobe from Winter to Spring. One thing I learned when I was starting a budget was to pick the spending areas most important for me and budget for them.
For me, I love eating out and trying new restaurants with my friends. So in my budget, I set out a certain amount of money each month for eating out.
To balance that, I don’t allocate much of my budget to clothes, activities, or a daily coffee. I prioritize the fact that I love being able to dine out with my friends over other budget categories that aren’t as important. By allocating your dollars based on what you love, you’ll not only be more satisfied with your spending but also feel better when you do spend. I know the joke goes that millennials can’t afford housing because we love avocado toast but if that’s what you love, GET IT GIRL! Just adjust the rest of your budget to fit.
Find a budget system that works for you
Some people use budgeting apps, some use a simple spreadsheet. I’ve even seen people who track all their transactions in a simple google doc. Pick a system that works best for you that you can stick to. Make sure to keep it simple and something that you actually want to do vs. a complicated app you might not want to update.
Elbert and I use a Google spreadsheet where we place our collective monthly income, expenses, and other monthly spending allocations. We put our must-have expenses like rent, groceries, utilities etc. first and allocate our income to those.
Prior to us getting married, I just used my phone notes to keep track of monthly spending—so to each their own.
Make budgeting fun by becoming the CFO of your own life
Once you find a system that works, it’s time to make it fun!
Budgeting and finances can seem boring, tedious, and stressful but if you make it a positive experience, you’ll want to stay on top of your goals.
There are a lot of changes that come with being married. I feel responsible for not just my spending habits, but also collectively as a household. Communication is so important, and hence, Elbs and I set aside 1 hour every month to look through the expense sheet and have a chat.
This is scheduled time for us to go over the budgeting sheets, our expenses from the month, and our income goals. This time is built out just for us and we try to make it as fun as possible. Budgeting doesn’t have to be boring or painful.
Plan ahead but stay flexible – life happens
Planning ahead is a lifesaver when it comes to budgeting.
What events or birthdays do you have coming up? Do you need to buy a present or buy tickets for something you are attending? Do you have 6 weddings this month post-Covid?
Take a peek at your calendar to plan and budget ahead for those months with more expenses. Your budget doesn’t have to stay the same every month. Adjust your budget based on life vs. sticking to set budget categories. While your spreadsheet template might look the same, the amounts and categories can change. It’s okay to be flexible when starting a budget. It’s progress not perfection!
I hope this helps you get started on your budgeting journey! I know finances can be an uncomfortable topic but the more we share, the more it becomes normal.
I’m always on the hunt for new resources or experts to follow so let me know where you get your financial knowledge from over on Instagram.
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Until next time,
Samantha
