LIVING ON A BUDGET

Living on a budget doesn’t quite sound glamorous and fun…BUT…

We want to talk about something that has taken us a while to master and really work through. It’s BUDGETING, and for many, it’s a dreadful and tedious task. I think it’s safe to say most people live on a budget. It’s the best way to save money and maximize your monthly income. You need to know what you’re workin with!

Since becoming a mom and leaving Corporate America, life has drastically changed for us. We no longer have a cushy full time salary coming in and because Zeshan and I are pushing hard toward our long term goal (filmmaking) while being parents, we have to stretch our incoming funds as far as we can.

Luckily, my Accounting background has helped to tailor a budget of sorts, identify where we are spending money, and WASTING money, and make those crucial decisions.

SO, HERE WE GO!

1. TRACK YOUR SPENDING

We were in the habit of spending without tracking. It felt stressful to keep looking at our bank account (no one likes to see their hard earned money disappear) and we didn’t want to have to review our balance every time we wanted to get a coffee or buy a little toy for Trudie. 

One day, we made the decision to look at it a different way. Instead of feeling the negativity of budgeting, we decided to make it fun and a challenge that we were going to master. And we did just that!

Through using the budgeting template we designed, which we want to share with all of you, we were able to realize a potential SAVINGS of $1,000 EVERY MONTH – at the time we were saving nothing! That’s a lot of cash to put away, potentially $12,000 in one year! That’s some serious dollars. 

We decided to check our bank account every day, making sure to write everything down. This forced us to pay attention and be PROACTIVE instead of reactive. 

2. CATEGORIZE YOUR SPENDING

By creating categories, we were able to see exactly how much of our money was going to specific-type purchases.

It was pretty amazing to see how much money we were spending on eating out, random mugs and household items we found on the clearance rack in Target (I’m embarrassed to even admit how much), coffees while going for our afternoon walks…

We are VERY visual – come on, we’re filmmakers! After grouping like-kinded costs, it was easy to see where the waste was happening. All of a sudden, it was easy to figure out how to correct our bad habits.

3. GROCERY STORE BARGAINS

I think by now most people know about grocery store member benefits. It’s been around and all the price tags in the grocery store have bright yellow tags showing you how much you’ll save with their “club card.”

At one point I could honestly say we had 3 or 4 different store club cards dangling from our keychain! Excessive?? Maybe, but it saved us a pretty penny often.

Here’s an example: We go to the grocery store to buy meat. (We’re carnivores and we simply can’t live without it.) Now, meat is one of the most expensive items on most people’s shopping list. It’s also why most people don’t eat it every day, it’s too darn expensive to!

But, there are so many deals out there and you just have to look. We actually go to three different grocery stores in our neighborhood, each have amazing prices on specific things we like. 

We’re talking, $7 – $10 savings on a package of meat!! Especially come summer when the grills are sizzling, who can pass up club membership deals like that!

4. EATING OUT – BEWARE

We LOVE to eat out…who doesn’t? You don’t have to grocery shop, cook or clean, and you get to eat something you would never normally cook. Sounds like a sweet deal to us – unless, you’re living on a budget and trying to save money or maximize those pennies. 

Eating out can get pricey. It gets even pricier when you’ve got kids. And the worst thing to do is to deprive yourself of something you love, I mean you don’t work hard for nothing.

So, here’s what we do. When the three of us go out, it’s easy to drop serious money. Three people, drinks, dessert – we know, we know, who said we had to get the works? In any case, if you know eating out is your thing, make room for it in the budget. 

You have to budget for food, everyone’s gotta eat. So if you must eat out, here’s a little tip: don’t buy groceries and eat out! This sometimes becomes a pitfall for people. 

You just went grocery shopping for a few days, and you get the urge. Eat the food you have, cook your meals so you don’t waste the money you already spent and then treat yourself to that lovely meal out. Your wallet will thank you.

5. SPREAD OUT THE SPENDING

We love lists. We make lists for the grocery store, to do lists, goals lists…we also have a list of larger ticket items we want. Everyone wants stuff, we’re only human.

So if you must buy, spread it out. Make a list of the things you want. Maybe it’s a new outfit, maybe it’s those shoes you’ve been eyeing, maybe it’s that stand mixer you wanted (we LOVE kitchen appliances). 

Instead of going on that shopping spree, figure out the one or two items you must have now and wait for the others. If you’re allocating each of your paychecks to all the various bills and costs you have, from each paycheck include only one of those desired items into your budget. 

This allows you to plan, keep your money goals in mind, and keep you on track for whatever goals you have set for yourself. 

6. MAKE IT FUN

Okay, so living on a budget doesn’t exactly sound like a game show. But you can absolutely make it fun. And setting goals is what will make this process less painful and more of a game.

We recently had to rack up some money quick for a “Trudie expense.” It was unexpected, we weren’t prepared and we needed to figure it out pronto. (Lesson learned, we won’t be unprepared next time for sure!)

This is when we created our Budgeting Template and put it to good use. We went back three months worth of spending, plugged it into our template and figured out the necessities. We broke it down, figured out how much money we could save and by when.

Now that was the easy part. The hard part was going to be sticking to it. We are creatures of habit – ever heard of muscle memory? 

So here is where you can turn it into a game – the game being, can I spend as little as possible (that being the necessities) until I hit my goal. And a reward is always a great idea – most people don’t care to play the game if they know there’s no prize at the end! So set yourself a reward (aside from hitting your goal) and work toward that prize!

Living on a budget doesn’t have to feel like a dreadful task. It just takes a little reworking, forming new habits and adapting to your circumstances. You can totally do it! We believe in you 🙂