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Yikes! I feel like I’ve been covering a lot more adult topics as of late, but I do turn 29 next month…so I guess that is fitting? I can’t say I imagined we would still be under quarantine in mid-July back when everything started to close mid-March; however, I’m happy to say I am learning more and more during this pandemic. I’m obviously not happy about all the sickness going around, but I am thankful for the things I’ve been able to realize during this time. I’ll probably share a bigger post once this is all over as I am literally keeping a list. Until then, I want to talk about budgeting. This has been a slight change for us that has brought big rewards. I’m not sure we would have buckled down like this pre-pandemic. Additionally, there is not much to spend money on, so we have been able to save even more money than usual. My savings account is happy, though I could really go for a swim-up bar at an all-inclusive hotel right about now ;)

Budgeting is not a new topic for us, though this is the first time we have taken it seriously and not just used it as a guideline. Before getting married, I operated on the “if I need it (not want) then I buy it”. It’s not much of a budget, but worked pretty well for me alone. The only downfall is that it didn’t really leave any room for fun. Not that I had much fun money with an entry level fashion job. Hah! When we got engaged, money was one of the topics in our pre-marital counseling course. We discussed it, but it was more-so to make sure that we were on the same page. I wouldn’t say that I’m super frugal, but I am more frugal than Nick. We made our money work, but I’m not sure we were smart about it until now. What can I say? It isn’t a fun topic and can often feel restrictive.

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Daily Ritual T-shirt | American Eagle Shorts | Warby Parker Percey Glasses | Parachute Bedding | Sweater Pillow (old, similar here)

Budgeting can not only feel restrictive, but hard and confusing at times. For this reason, it can be very beneficial to find a way to track everything. Here are some options we have tried:

Mint . When I was single I tried to use it, but could never really stick to it. Nick has tried this as well and didn’t really like it either. The best part about Mint is that it is a free app.
EveryDollar. Nick has also used Dave Ramsey’s EveryDollar app, but didn’t care for that one either. The basic account is free. They also offer a premium version called EveryDollar Plus. It is billed $129.99 annually.
Excel. Nick built a module in Microsoft Office Excel to keep track of things. If you are really diligent, it can work. We actually still use this as a supplement to YNAB.
YNAB. An acronym for You Need A Budget, this is the system we currently use. I asked Nick what made using this app different for us…was it that we had changed or was this system really that much better? I do think that we have changed, but he says the system is that much better. It allows you to set or define goals around debt and savings, while tracking against your own goals. Other programs like Everydollar are very conservative and force you to pay down your debt before anything else. YNAB also connects with most banks and EveryDollar doesn’t (or didn’t when we used it). We have student debt and business debt to pay down, but still wanted to enjoy life in this season. YNAB is all about prioritizing and planning what you want to spend your money on… you literally have to account for all income coming in and give each and every dollar a job whether it is going to savings or the health section of your budget. This method is like teaching you to fish vs just giving you a fish. You following? You basically are forward-thinking about your budget, vs seeing a pie chart about where you spent your money. If you wait until you have already spent the money, it is too late. You can get a free trial for 34 days and then either pay $11.99 a month of $84 annually. As you can see, it is also cheaper than other subscription budget models. It might sound backwards to spend money to save money, but we find YNAB to be very beneficial and worth it. No this isn’t sponsored, but I will gladly take a sponsorship from them!!

All that to say, you should be tracking your money somehow. It isn’t going to be easy and you will have to become more aware of what you are spending; however, it will be worth it. Here are some other tips Nick and I have found helpful when it comes to budgeting:

Track it. I mentioned this above with several options; however, I wanted to mention it again because it is important!
View it as a game. If you win / stay in budget, you get savings for the future, and can buy something when you’e saved up for it, etc. Okay if you don’t want to do that, at least figure out a way to adjust your mindset about it. You don’t HAVE to do it. You GET to do it. Whatever helps you budget, DO IT.
Budget for things you want. This is an easy way to feel less restricted. Of course take into account the things you need, but if your budget allows, include things you want. I have this problem where I feel bad for buying something, but this shouldn’t be the case! We literally budget for that face mask or new dress. It is IN the budget and that isn’t bad.
Move money around. We do this to account for unforeseen expenses during the month, but more-so we do this when we are planning our budget at the beginning of the month. For example if we are traveling, we move money out of the grocery store budget and put it into the dining out budget. The other month when we bought our Dyson fan, we moved money out of our clothing budget and into our home improvement budget to account for that expense. As long as the money spent is staying within the budget and not exceeding it, you are good! We really try to avoid spending “next month’s” budget on something for this month, though sometimes that occurs. Anything we have leftover goes into savings.
Talk about it. If you are single, then this isn’t really important unless you are just wanting advice. This point is really for those who share bank accounts. While it is probably normal that one personal will handle the budget, it is important that you both are aware of it and what the account looks like. Nick and I have budget meetings to prep for the month ahead and plan the budget. Then we meet about it at the end of the month to see how we did and where we ended up. We also have a weekly meeting on Mondays to discuss the current state of the budget. I call them meetings, because it is important to do them and you will likely not cancel a meeting. I get it. Budgets aren’t fun to talk about. It is also something that I don’t really want to do on the weekend. Having a meeting on the calendar and having it on a Monday makes it to where we aren’t as inclined to cancel. Regardless, talk about it with your partner and talk about it often.

BONUS THOUGHTS:

Changes in your viewpoint. I kind of mentioned this above, but it’s crazy how much your mindset changes when you stick to a budget. Once you continuously budget, you’ll find that you will shop smarter. You will ask yourself more questions before making an impulse buy. I love clothes and beauty products, but now more than ever I’m about fewer, better things. If I really want something and it isn’t a necessity, I’ll save for a couple of months before buying. With so many options to get money now vs later and opportunities to split payments up over months, it can be hard to change your mindset in this “need it now”society.
Inconsistent income. The bulk of my income is inconsistent due to blogging. I never quite know what I will make in a month from affiliate links or other sources. On the flip side, most of my collaborations are on net-30 or more for payments, so I can see those coming. I don’t have a fool-proof way to budget with this, but the easiest answer is that we are more conservative than not. A good starting point for budgeting with an inconsistent income is to look at your net pay over the last year or even several months, pick out which one was the lowest, and budget with that number. ALSO don’t forget about your taxes! Inconsistent income usually means you are filing for yourself ;) Side note - I use Quickbooks to track my income, but I love writing each monthly line item as it comes in in my planner, which I discuss here.
Along the inconsistent income thought… even if you have a full-time job, is there anyway you can bring in another income stream on the side? Brainstorm and do it! This could not only help your “fun money” budget, but also your savings account!
Autopay or not. It can be your friend if you spend money before you pay your bills; however, in general we do not use autopay. This makes us pay attention to what our bills are so we are aware. It also serves as a checkpoint, to make sure we aren’t overcharged for something.
Credit cards good or bad. We are pro-credit card in our house. We don’t own a home, so it is good for building credit and also good for perks and rewards. Our favorite is the Chase Sapphire Reserve, but that’s another topic for another day. Credit cards aren’t bad as long as you don’t abuse them. If you are spending within your budget, that shouldn’t be a problem! I vividly remember my parents telling me that credits cards weren’t bad when I was younger. I think someone at school told me they were, so I asked why. It also could have been part of the conversation where I told them if I needed money I’d just go to the “Cash Store” (which was like a Payday advance). They were like NO DO NOT DO THAT. Hah! I didn’t know what I was saying, but I sure learned that day! Another note on this, because we use credit cards, we have never really been a fan of the cash envelope system. Do whatever works for you though!

Books around budgeting and money management: (Nick has read these, I haven’t)

The Richest Man in Babylon by George S. Clason
The Total Money Makeover by Dave Ramsey
Rich Dad Poor Dad by Robert T. Kiyosaki
The Millionaire Next Door by Thomas J. Stanley
It’s not a book, but I follow Clever Girl Finance on Instagram and really like them! They also have a website with info, free courses, worksheets, a podcast, and more. I’m sure there are resources and podcasts, but this is all I’ve got today!

Budgets are kind of like diets… people like to set them and then fudge the numbers, only to come out on the other side and say it didn’t work! Well Bob, just because you said you ate all veggies for the month of June, but really ate bags of potato chips in the pantry every night doesn’t mean you’re going to see the benefits of those veggies. Budgets only work if you stick to them. Too often people say they don’t work because they never actually gave them the chance to work. Spend what you want as long as it is within your budget AND you are making more than you have budgeted.

I hope this post has been helpful for you and encourages you to get your finances in order. It is never too late to start and you can always make the change. It can be an uphill battle at first, but will start to level out. Pretty soon you’ll be in an easy down-hill stride. Have any tips I missed? Let me know in the comments below so other people can learn too. Good luck!