5 Budgeting Tips for the Not-So Money Savvy

You see those bills piling up in front of you each month? Those are most likely because you are spending money on things you do not really need. I think the terminology I am looking for is a "Shopaholic." I completely understand!

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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Lessons I learned from "The 5 Lessons"

This last week, I had the opportunity to read the book "The 5 Lessons a Millionaire Taught Me." I am grateful for the ability I have to read and apply what I learn in books to my every day life. I love reading!

So, anyways, the first thing I did when I started reading this book, I decided to get all of my finances in order so I could live the "Millionaire Mindset" as it is called. I "decided" to be wealthy. This is first step in his 5 steps.

 The reason I started reading this book was because I absolutely blew through my money last month. I had to make a change. Deciding to be wealthy made me think of what I needed and wanted in life. I started going through my finances and looking at my debts and my income. First, I detailed the dates and amounts everything was due and what I was earning each month. Then, I balanced which bills I would pay with each of my checks and what I really needed to do with my money. I set aside money specifically for tithing, gas to and from work and school, E-Mae supplies (i.e. diapers, wipes, clothes), and savings.

That lead me into the second lesson... taking control of your money. This step is all about knowing what you are earning, know how you are earning, and knowing where all of your money is going. That is why last week, I started a ledger on my spending and my earning and what I have in each of my accounts. I also made a list of the totals I have to pay and what I would have to do to get all of my bills paid off in full.

Pretty much, I am paying all of my minimums ahead of schedule and doing the snowball effect like Dave Ramsey says to do. He says to pay all minimums and then pay off the lowest one first. After paying that one, add that to the second lowest. I figure that is what I have to do to get out of debt.

Next, I have to learn how to keep a little bit of my money for myself or for future things I will need. I have to start saving some money for myself instead of bills or other people. This one, I don't have much to say about... sorry...

But, anywho... the next one is one I need to start doing. I need to start winning in the margins. This means I need to start earning as much money as I can and saving all of the extra instead of thinking "Oh! I can spend all of the extra money because I am already paying my bills." Yeah... no. This is actually a really bad mindset to start using because then you will always be living paycheck to paycheck to carry on your lifestyle you have grown accustomed to.

Instead of going out to pizza and spending my money on things I don't really need or care about, why not put all of it into savings so I can start saving for a vacation with my family or even be able to some day buy a house with a large down payment and a low interest and payment for the next 15 years. That is a lot better than being stuck with a huge house payment for 30 years that I am stuck under and can't be a stay-at-home mom like I dream of being. I would have to work all of the time just to be able to help pay the house payment or just rent for the rest of my natural life. I want to some day be able to retire also.

Part of winning in the margins is that I need to start earning more money than I currently do just by doing little things all of the time. I am trying to think of ways of earning money. I think I am going to go through all of my stuff and truly see what I need and don't need and just sell a bunch of it and put it all in my savings. That seems pretty simple to me :D That way, I have like at least 6 months worth of bills in savings and I also have the money to take E-Mae (and maybe a special someone someday) on vacation and be able to pay for it all.

The other part of it is saving as much as you can wherever you can. This is the "Millionaire Mindset." Can you pick a millionaire out of a crowd? Me neither... but they are all over the place. They don't have the need to do everything extravagant. They don't spend a lot of money and show off their money throughout the day. Only the "famous" people do, because they get more publicity if they do.  They also file bankrupt after a little while of having their money. They don't have the sense to save even one portion of their money for anything. They just spend all they have, thinking it will never end. Eventually it all ends!

The last part is probably the most important one. I have been doing this for a long time and I have always found blessings every time. Giving back is one of the most important ideas of money. If you do not give back, you will start worshiping your money and then it will own you again instead of the other way around. You will find that helping people and giving money to those in need will make you feel more invigorated and like your money is worth more than it was before. Being a member of the Church of Jesus Christ of Latter-Day Saints, I pay tithing which is 10% of whatever I earn or receive.

I think the best thing about reading this book was that I was able to read advice from somebody who knows how to get from where I am in life to where they are. Richard Paul Evans is an LDS man who came from a home where he had to earn a lot of his own money. He is now a millionaire, author and family man. I think that is an amazing combination! Of course, he has other titles, those are just the ones I know off the top of my head.

This was a fantastic book and I think everybody should read it! In fact, I believe this so much, I have already loaned it to Fonnesy and Heather is next. Maybe when I am getting things done and I am able to be a stay at home mom again, I will fill you all in on how I did this... with details next time.

How do you save money? Is there a way you earn extra money? If so, please share in the comments below!

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