Budgeting has become a primary thing people talk about, especially since the pandemic has started. It seems like no matter how much we listen to random influencers and podcasts. We cannot completely comprehend how much budgeting is essential—not saving up a hundred. We are talking about real budgeting. Getting real with your debt, credit cards, what you spend when you feel emotional, or you want to feel valid, but it ultimately gets you nowhere while your score gets lower. Our relationship with money is complicated as any other in life, but how many of us look at it that way? Do you work while anxiously waiting for your paycheck a week after you got one, or are you able to pay for your rent or bills? And still, have enough?
Why do you need to become financially educated and smarter about your budget? Because it will make your life easier, and your mental health will get better, whether you are having a mild crisis right now or not. Budgeting is a sustainable way of paving a better way to your future, and it starts now. Whether you are single and need to support yourself and your pet, having a partner, or even children (where budgeting includes children is a lot different), we will offer you advice to be applied to everyone.
Start with what you can do now.
Maybe you can’t pay off your debt right now, but you can make a plan and see how you could work toward your goal (whether it’s paying off something or buying some necessary things for your kids). Set some time aside. It’s essential you don’t do it during your break or right after work. Maybe during the weekend. The point is, don’t start when you are completely tired or stressed out. You will not be able to come up with rational solutions, and you will feel desperate. There is no need for that. Forgive yourself. If you could’ve paid that thing you owe money to your bank now, you would’ve. That’s it. Why would you make additional problems if you had the money? Exactly. That’s why you will figure out a plan that will be solid, medium-paced and most important – you will stick to it. Put everything on paper and see what doesn’t add up, and where you are maybe spending a bit too much. Check if you are still paying for some subscription you forgot about two years ago. Do you have a credit card limit? What is necessary to pay as soon as you get your paycheck, and what is next? If it’s easier, try the 50/30/20 method. Google different variations of budgeting and see what could work for you. But start now, and please write it down. Don’t just think about it. Put that paper where you can see it once you’re done with it. Write down financial goals, and over time you will be able to cross them out.
How to learn the right way?
There are many ways you can learn and slowly adopt a “budgeting” mindset, and it depends on your learning type. Are you a good listener? Then you could follow some high-rated podcasts that deal with these topics. Do you prefer reading? Get yourself a book (research on the internet first!), and see what would fit your style and speak to you the right way. Do you need prompts, or do you need some templates so you can organize better? There are many apps and even free financial sheets you can download to reorganize your finances the right way. It is useful to have a notebook for your finances only. It might sound odd since we live in a digital era, but it seems like everyone prefers right old pieces of paper when writing down important things that need to be done.
Budgeting and mental health
Decluttering your budget means decluttering a bit part of your mental space. It is hard initially, but you will see how easier it is to know exactly how much money you have, where you should put it in or invest. Your mind will be thankful that there isn’t some debt you forgot about hoping it will disappear waiting around the corner. Finally, put your plan in motion, and don’t be worried about the pace. As long as you are consistent, it will pay off.