Budgeting For Beginners

Lets be real, sticking to a budget can be hard work! How can you make a budget and stick to it?

  1. Follow the 50/30/20 Rule

The 50/30/20 rule is a ratio designed to allot how much of your money should be going to different areas of your finances. The 50/30/20 rule is based on your income after taxes. 50 percent of your income should be going to your needs. Your needs are things such a housing, car insurance, gas, food, and other necessary bills you may have. If this category takes up more than half of your income, find ways to reduce this category. 30 percent of your income should be going to things you want such as eating at restaurants, subscriptions, shopping, etc. This 30 percent is designed for the things you want. 20 percent of your income should be going to savings and paying off debt. Saving part of your income will create a great safety net incase an emergency arises.

2. Write It Down

The easiest way to make a budget and stick to it is to write everything down. When you commit to writing down everything you spend money on, including small items, you can see exactly where your money is going. This will allow you to cut back in areas that you are spending too much money on. Get a book or journal specifically for tracking your spending. This doesn’t have to be a fancy book, just find a safe place to write down your spending record. You may prefer to write this down in your phone. Everyone is different, just remember to write down it down when you make a purchase!

3. Don’t Pay Market Price

This is huge! Never pay market price for something you want. Shop around on places like Amazon, Facebook Marketplace, and thrift stores. You can find the same item you want at these places for so much cheaper. If you’re looking for a car, phone, designer bag, video game console, or a TV, check other places first. These items can be found in so many other places for half the price. I’m a firm believer in this. It can save you hundreds of dollars over time.

4. Refinance Loans

Loans vary in interest rates and length. Refinancing a loan could save you money depending on your current interest rate and the length of your loan. Interest is the amount of money you’re paying just to borrow money. Why pay more for a loan than you have to? Something to consider is the length of your loan. Longer loans will be less expensive to pay monthly. However, these loans will be far more expensive overall. If you can afford to pay more money monthly, consider refinancing for a loan with a shorter loan period.

5. Pay Off Debt

Paying off debt will allow you to have more money per month. Imagine no longer having a car payment, a credit card payment, or a loan payment. How much money would that free up during the course of a month? Paying off debt is important for a stable financial future.

6. Don’t Impulse Buy

Impulse buying is very bad when you’re trying to stick to a budget. Follow the 30 Day Rule when you feel yourself attempting to make an impulse buy. For example, if you want to buy a new phone, wait 30 days and think about the decision. If you still want the phone after 30 days, then purchase the phone. I would like to add, while you’re debating buying an item, start saving up for it so that you won’t struggle after your purchase. Remember to look for this item at different stores and find the best deal you can. This will save you money!

7. Set Goals

While you’re following a new budget strategy, start setting goals. Pick debts you want to get paid off in a certain amount of time and try to achieve this goal. Or, set a savings goal. Find a reasonable amount of money to save and do your best to achieve this. Once you have achieved your goal, reward yourself for your dedication.

8. Be Realistic

While you’re on your budgeting journey, be realistic. Don’t set a savings goal that you can’t achieve based on your income. Don’t spend all of your money trying to pay off a debt all at once. Set a budget based on your personal circumstances. Create a time frame that will work for you. Remember, emergencies happen. Maybe your car broke down or you have an unexpected hospital visit. While these things can be frustrating, keep trying. These may be setbacks, but you can still reach your goals. Adjust your goals based on your personal circumstances.

I hope these tips have helped you. I will be featuring more financial advice on my next post. Subscribe with your email for updates on my new posts. Thank you for your support! I appreciate everyone who takes the time to read my content.

What is your path in life?

Family and peers have a huge impact on the choices we make in life. These are people who have been with us from a very early age. It makes sense that our choices will be influenced by these people, right? We have all been put in a situation where the decision to make ourselves happy and the decision to make those around us happy don’t align. Are you being pressured by loved ones to walk a path that doesn’t necessarily make you happy? For most of us, the answer is yes. Life can yield some pretty hard decisions over the years. Sometimes you have to make the decisions that are best for you regardless of how other people feel. This is your life, after all.

Our friends and family want what is best for us. These people will push us so hard to do well in life. Sometimes, they just don’t realize the decisions they’re trying to get you to make are not decisions that you want to make. I have been pressured by my family from a young age to join the medical field. I am one year away from completing my nursing degree. One day, I had to stop myself and ask if this is what I really wanted from life. The answer is no. I have invested three years of college towards something that I don’t want to do.

My message to you is make yourself happy. I want all of you to stop and think about where you are at in life. Are you satisfied? Are you investing in yourself? Here are some tips to consider:

  • Evaluate. Think about what you want in life. Make sure you’re making decisions based on what you want to do. Don’t let other people persuade you to make decisions that will steer you away from what you want to do.
  • Consider your own happiness. Making sure you are happy is the most important part of my message.
  • Plan. Start working towards your path. Perhaps you want to be a nurse, a writer, an actor, etc. Whatever you want to do in life, start working towards it.
  • Seek help. If you know what path you want to take but don’t know where to start, seek help. Contact other people who are in the profession you would like to join. Ask them how they got where they’re at in their career.

The sky is the limit. You only live once. It is so important to focus on making yourself happy. Even taking one small step at a time will get you moving in the right direction. Best of luck!

Toxicity

This is a message from my heart. I have recently let go of a person who was very important to me because of their constant negativity. I was being held back. I lost all of my motivation. Ultimately, I lost who I was. It got to a point where I was unable to smile. I wasn’t myself. I allowed this person to stay in my life for an entire year. Over time, the people around me noticed the change. I’m a very social and happy person but I didn’t want to speak to people anymore. When I finally made the decision to let go of this person, people commented on my constant smiling again. I very quickly became myself once more. This was a huge life lesson that I will happily share.

There will be people in your life who keep you from growing. You may love these people and choose to ignore the fact that they are holding you back. You may even recognize that you’re being held back. I recognized that I was being held back but I allowed the negative person to stay in my life for a year. Why did I and why do you let these people stay? Is it your friends, your family, a partner? Sometimes you have to walk alone to find yourself. Your perspective on life can be influenced by those around you. Their words and thoughts have power over you. Life is about growing. There is a purpose for you in your life but you have to grow. You have to let go of some people and overcome the obstacles in your life.

The two pictures are the same image. One can be perceived as gloomy. The other is a very beautiful image of a nice day. This first image is the influence that the wrong people have on you. The color is drained in the first image. The other if full of life. Do not let someone drain you. Be happy and full of life. You have the power in yourself to be successful without others. It is better to walk alone and to be yourself than to let someone take the color from your life. Be happy. Be free. Be beautifully yourself.