Many people have asked me “Adriana, how in the world do you budget?” Or “Girl, you have cash on you? I only use my debit card or credit card.” I have learned from experience that the only way to truly stay on a budget is by sticking to only using cash. I will explain in this blog post how to budget and gain the understanding that cash is king!
Make your monthly budget
I kept track of how much money I use for things I need. You only have to do this for a month in order to see where your money really goes. Once I got my numbers I saw where I could cut spending and what was really necessary. You can see from the photo below what my weekly budget is. I keep this yellow post it note in my wallet and take it out every Wednesday to show the teller at my credit union. They already know that I’m on a budget and said they will be trying the same too
As you can see I have a few different categories for spending or sinking funds.
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| My weekly budget I keep in my wallet at all times |
Christmas: this is a sinking fund, I put away little by little every week so when Christmas comes I have money for gifts and food. It keeps you from putting everything on credit cards or having to depend on that Christmas bonus.
Food: pretty self explanatory, this is for what I eat. My boyfriend and I spend every Friday night meal planning and grocery shopping, then we meal prep on Sunday. I have taught myself not to eat out as much and to be honest I don’t even miss it. Homemade food tastes so much better to me.
Fun: this is for any night out or entertainment. I may be on a budget but that doesn’t mean I shouldn’t socialize.
Gas: I have budgeted enough to have a full tank every week plus extra money if I end up exploring on the weekend.
Massage: I get monthly massages, it my treat to myself and a rejuvenation for my body, it also helps out my sciatica problem tremendously. Since they are pricey I make sure to do a sinking fund for this too.
Miscellaneous: I use this category for things I need, like toothpaste, soap, shampoo, toilet paper, cleaning products, laundry detergent, etc.
Shop: even though I am on a budget I still treat myself once in a while. So if I see those cute shoes I really want I will just dip into my shopping fund. If the money is not there then I have to wait till I have the cash for them.
Travel: This is a sinking funds category. I save money every week so when it’s time to buy a ticket or package I’m not spending so much at one. Plus it’s really nice to have cold hard cash on hand when traveling.
The money being withdrawled goes into two different places. The money I use weekly goes straight to my wallet in their own dividers.
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| My wallet with the category dividers |
Some of the money I take out are for my sinking funds. What is a sinking fund you ask? Well, it is a category of spending money that is expected every month or something that you are saving for. I currently do it for my traveling, monthly massage and Christmas. You can do it for pet's vet visits, medical appointments, gym memberships, insurance, taxes, etc. Sinking funds can be used for whatever you need it for, just make sure not to touch your stash for anything than what it is intended for. Basically any expenses that is expected in the future.
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| Buy a cheap receipt/coupon divider to keep your sinking funds money in. |
So you can do one of three different ways of putting your money away. I tried the binder clip thing for a while and it was helpful, but it was a pain to have to put them away or I had one break on me. But these are what my clips looked like.
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| Label your mini binder clips |
You can stuff envelopes with cash. This makes more sense if you’re going to keep the money at home or if you have a big purse to keep them in.
My current way is now little dividers, this works so much better me when actually paying or putting money away. I made mine at home with scrap booking paper and laminating sleeves. You can buy them on Etsy as well. Just search for wallet money dividers.
Trust me when I say cash is the way to go. There are no surprises to where your money goes and once you’re out of money, that’s it, now you have to wait till next week. You don’t have to take money out every week, you are more than welcome to do it bi-weekly or monthly. Just make sure you stick to your budget.
I hope these tips and tricks help you on your budgeting journey. I know it’s tough but once you see the extra money in you’re savings account or can put that money towards other debts it makes it all worth it.
How do you plan on budgeting your money?
Con Amor,
Adriana💕
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