Hey girl, hey!
So you want to get your finances in order, right? Well, the only way to really gather control of your finances is by making sure you have an outlined budget. A budget is a written out plan that clearly identifies how much money is coming in, how much money is going out, and how much money is left over. When you're first starting out, budgeting can seem like a daunting task but after some practice (and by having someone hold you accountable... me!), it can really start to become a habit of everyday life! So I know you're probably wondering, "How do I begin?" Girlfriend!... I'm so glad you asked.
Start by writing down all the expenses you have to pay for on a monthly basis (No... Seriously... Grab a pen and paper.) Or if you happen to be an undercover nerd like me, you'll flip open your laptop and open... Excel. (So sexy!) Check out the sample budget below for reference. I include savings as an expense because if you pay towards your savings account as if it's an actual bill, then saving regularly will become routine and there will be no excuse as to why your savings account is not building (stack that money, girl!).
Got it? Cool! So after all of your monthly expenses are written down, subtract that amount from the amount you receive on your actual paycheck(s). If you receive monthly paychecks, this exercise will be very straightforward. However, if you are paid weekly or bi-weekly (every two weeks) then you'll multiply the amount on your paycheck by two (2) or four (4), respectively, in order to get your monthly income. Then subtract your expenses (I'll wait for you to get the calculator). If there is money left over after everything is paid for the month, then hunty, (yes, I said hunty!) you're on the right track! However, if there is no money left over after subtracting your expenses from your paycheck(s), then girl, some things need to be reduced or straight up eliminated! Check out the scenarios below to see what I mean.
So go ahead! Take the first step, and get an idea of where you stand financially with just regular monthly expenses. You might be surprised when you see everything written out in black and white. Comment below and let me know how this works for you. And don't forget to like and share!
Until Next Time,