The Not-So-Scary Guide to Starting a Budget

BUDGET.

Yeesh, even the word just makes my skin itch. I'm not a huge fan of putting limits on myself but my pathetic savings and hefty credit consolidation loan are both results of my butterfingers on my credit cards so it's something I always need to fight. Being aware of and planning around our money is really a necessary part of our financial lives for us to keep moving ahead and meeting our goals. And knowing we have enough of it to keep the lights on...oops.

Here's something I've found that helps me cope with it all better. When I am able to really formulate a WHY, a very specific, relevant-to-me why, is when I am most focused and motivated to mind my money. Vantage's Not Your Mama's Account (NYMA) has a feaure that can help get this process started for you!

Step 1) Use NYMA's tagging feature for a month to really start to see where your money is going. This was terrifying for me. I spent about $200 shopping last month...no WONDER I was scrambling to scrap together our utility payments, geez!!

Step 2) Analyze that. I went to Target HOW many times?? I drank HOW many energy drinks?? I spent HOW much money on eating out vs. getting any kind of groceries?! Find some patterns like "whoa, I could have an extra $80 this month if I just NEVER went to McDonalds..." and start compiling trends. You may be shocked to find that you could actually pool HUNDREDS of dollars a month by cutting some crap out.

Step 3) Figure out what expenses you MUST have each month and total them up. First, is there anything you should cut out or could cut down, such as electricity use or even the amount you spend on groceries? If so, make it happen. Cut your cable, get a cheaper phone plan or clip some coupons before you get regular weekly groceries.

Step 4) Set some goals. If you could save $80 a month by not eating fast food then in 3 months you could feasibly use that money to buy a plane ticket somewhere awesome, make a big dent in paying down a credit card or start a responsible little savings account! Recently it's become important to me to start building up a modest "emergency fund" because we've never really had one and just getting started by committing to set aside $50 a month is what I was advised to do. It was empowering to hear that savings AREN'T built by ANYONE in just a day and that everyone who has a savings has it because of little bits collected over time. That may seem like a "well duh.." kinda point but for me, $50 each month can seem sorta tiny in the scope of the savings I wish would just APPEAR for us and certainly WAY more beneficial immediately if put toward shoes or eating out. It's a constant battle that really requires a big change in mindset.

If you're thinking about things like a budget and minding your money, chances are you kinda HAVE to right now. But it doesn't have to be horrible and it really is just a bunch of skills that we need to develop to keep living better and better, whether we are ever just swimming in money or not.

What are some of your secrets to making sure your money ends up in the right places and not just in drive thrus or shopping malls? Let me know in the comments!

Keep rockin',

Jenn