Actually... I don't... I don't like shopping... my mom even buys my clothes. I know... It is weird that a girl won't even go clothes shopping. I don't even go food shopping! Which I guess is why it was easy for me to figure out how not to live paycheck to paycheck.
My first paycheck at my new job, I wasn't so good. I went out and bought $80 worth of E-Mae clothes and bought fast food almost every day. I was BARELY squeezing by to pay my bills. I almost didn't have enough in my account to cover my monthly expenses, which aren't that much comparitively.
Then I read "The 5 Lessons." I had to put my life in order if I ever wanted to be a stay at home mommy with my darling daughter!
Here are my 5 steps to making a budget:
#1 Locate all Expenses-
Does your money disappear? Does it seem to go as quick as you got it? Out the window? What about your savings? Does it exist? Do you even have enough left over to put any away? Where does your money really go? What do you spend your money on? What is out of luxury and what is out of necessity?
Write a list of all your bills in order of their due dates. Then measure out all your other expenses. (i.e. food, clothes, makeup, etc.) Figure out what you need and what you don't need! The only thing I really had to budget is baby stuff and food. I don't shop for myself, but I still allotted some spending money. This is the most important step in here!
I learned why I was losing so much money. It was ridiculous how much money I spent on fast food! I cannot believe I actually spent that much... I can't believe I had that much! I spent a good $200 at least on fast food! And that is not even counting the random drinks I would go get or my snacks I "had to have."
I located where all my money was going and it made it easier for me to do the next step.
#2 Stop ALL Unnecessary Spending
Since I found my spending problem, it was easier to determine what was necessary and what was not. If you are spending about $25 a day eating out, there is definitely something wrong! Didn't you know that going to places like the Wal-Mart Deli is cheaper than a meal at McDonald's? And healthier. And more filling! So, if you look at it that way, it is better for you financially to go buy fresh food and/or cheaper food.
Also, you do not need a new pair of shoes every month, ladies. You do not even need a new pair every other month. I have had shoes last me for over 5 years. I still have my favorite pair of shoes from my junior year of high school. That is about 5 years ago. Can you imagine? You can actually keep a pair of shoes for a long time!
Once you have cut your unnecessary costs, allot yourself a little bit of spending money. There are going to be times when you have to get something out of necessity or in case you have something you feel you would die without, or if you have a present to buy.
This is going to make way for step 4.
#3 Figure Out Your Earnings
What do you earn per month? What do you earn per job? Do you even have a job? If not, none of this budgeting will work for you... But what do you make every paycheck?
This is pretty much a straight forward thing... If I were you, I would figure each paycheck. Whether you get paid weekly, twice a month, once a month, it doesn't matter. What do you earn per paycheck? Do you have side jobs? How much a month would you say you earn from that?
This one doesn't need much explanation.
#4 Write One Calendar
To get all your finances in order, you must first order them. I usually start at the beginning of the month. I start on day one. Is anything due? Do I get money that day? Do that to every day of the month. It is very important this is done before going to the next step. If you do not know when your bills come out and when you are paid, how can you successfully budget anything?
I have a piece of paper where I have my due dates and my check dates all written in order. I started on the 1st and made sure each day was accounted for. Then, I figured I would take it one step further...
Leading us to
#5 Separate Each Bill With Each Paycheck
After I was able to get a calendar, I was able to see which checks were able to cover which bills based on their timing. If I have a bill on the 4th of the month, why would I pay it with my paycheck that comes the 7th? How would that make sense? Am I going to go into debt over it or am I going to be late on a payment and just get a penalty fee, again puttin me in more debt? How does it make sense to pay your debt by going into debt?
It doesn't. That is why you h
ave to separate out what each bill will and can pay for. I have everything from the 7th to the 21st on my first check and everything from the 22nd to the 6th. That way, there is no confusion. The one I do not have as many bills, that is the paycheck I take out my savings and gas money. If you have more than one job, do what I helped my friend Heather do... pay all your bills using one of your incomes. Not both. And if you can, then put the rest into savings!
When I eventually get married again, I am going to ask my husband if we can live on one of our incomes. If I keep going the way I am, I will be completely out of debt before I even have the chance to get engaged. I have been plucking my debts away a little at a time and one year later, I am more than half paid off. (inner "woohoo" ensuing in my mind)
I have helped different people write different budgets, find ways to earn money and started people on their way to savings.
Some of you are probably asking about me helping a lot of people. Well, it is not A LOT of people... I have written my friends budgets and have been able to find things they have not. It is kind of fun for me... I know... but I really like lists and organizing things that are not mine...
Speaking of which, I think I am going to start offering my services to people who just need a little help with this. I need something fun to do during my break time. Why not earn a couple dollars doing it, right? I figure, I do it quickly, efficiently, and all I need to do is ask a few questions and you will have a new budget within 30 minutes. It is that simple!
So, if you have any comments, suggestions, or want my help with a budget either comment below or message me personally. If you liked this post and think others can benefit, share it on Facebook, Twitter, or Pinterest. :D
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