I mentioned before that my recent obsession has been everything money related. Since finishing university, I’ve been keen on making sure that I’m more mindful with money that I earn because well, earning it is hard work! I made a promise to make sure that I stop spending every last penny of my paycheck on stuff I don’t need.
Since moving away from home, I found myself being more sensible with my money. After all, I now have rent and other monthly expenses e.g. bills and food to think about – no more mom and dad to help me through it all (even though they still offer, don’t you love family? 💖) Me being me, I’ve been keen on writing my financial development journey (things I’ve tried, failed and successes) and so created a new section of my blog dedicated to posts on this journey! The online world kept me accountable on my fitness and health journey, so keep me accountable with 💰
Money is the cause of many people’s stresses, an aim of writing so openly about finances on here is to start honest, safe conversations on what we can do to move away from the negative connotations attached to it. We all face it together!
Spending money on items that grant temporary joy or satisfy a ‘want’ is a common trend among young adults in today’s society. Seeing a celebrity you look up to wearing the most amazing pair of sneakers can make you want them, or you may be tempted to color your hair to coordinate with the upcoming season. But keeping up with trends can take quite the toll on your bank account.
With a proper budget, you will know how to prioritize and calculate your savings so you can have enough money to spend on things that truly matter. Here are some great tips to lead you in the right direction!
❓Did I really spent that much this week?
Now that you are on your way to becoming a professional budgeter, let’s start off with how to track your spendings!
First, you want to categorize your expenses (an excel spreadsheet is super helpful for this!) into needs and wants. Your wants include clothing, shoes, coffee, extracurriculars, and nail or hair appointments. Your necessities include gas/car repairs, rent, phone costs, and food. If you see that you are spending a lot more than you thought on the ‘wants’, try spending a little less next month to save more for the ‘needs’.
For example, instead of shopping or going out to eat, seek more affordable options like eating meals at home and limit your trips to the mall. After taking a dive into your bank statements, differentiating your expenditures will be a breeze!
💸 Where is this payment coming from?
As you’re living your day to day life, you may forget about an auto-payment or subscription you signed up for or discover a payment that can be lowered to a more affordable option.
Make sure to check your bank statements and clean up any of your automated payments. Are you paying for a magazine membership you don’t want anymore, or is it an option to decrease your student loan payments? Completing this task will give you the opportunity to perform an in-depth analysis
At the end of each week, I’ve been spending some time looking at my finances to give the green light on any upcoming automated payments. If there are any surprises, I deal with them as soon as I spot them rather than putting it off which was one of my bad habits!
💡 What if I want to make some extra money?
If you are more materialistic than you thought and maybe love investing in your wardrobe or traveling, make some extra cash by looking into different side gig options!
Whether its dog walking, babysitting, mowing lawns, or working a side job at a local restaurant, these will make a significant difference in those deposits. You can even funnel profits from your side gig into an easy investment app and have your money start working for you!
As some of you know, my side-gigs from hobbies have earned me money! This includes a video, a blog, speaking at an event and developing a website – all on the side. 🙌🏼
💻 Do I need to track everything on my computer?
With technology on the rise, there are definitely other ways to track your budget.
If you are constantly on the go, download a budgeting app to track your spendings! Not only will you see how much you have spent, but you can program any payments you have to pay on a monthly basis into the app and set up a notification system as a reminder to submit the bill.
I personally use my Monzo card to pay for everything, this helps me see where my money goes every money and what I need to have a tighter budget. For my first month away from home, it was eating out – oops! Start cooking instead of heading to the local burrito shop 😆(but don’t beat yourself up if you do have occasional treats!)
Do you have any tips for living rich on a cheap budget? Comment below!
Make sure you check out what Earnest has to offer for you on your financial journey!
Posted under: Collaborations, Finance