Budget Challenge + Finance Tech
I know in this difficult time, not everyone is thinking about a budget. A lot of people have lost their income either being laid-off, sacked or lost investments. It is hard to think of “budgeting smartly” when the world around you is falling apart. For those who need support: connect to your local food banks, loan resources, government aid to help you through this difficult time. It is a season not your forever, trust in that.
Have you guys come across this budget planning hack going around on Twitter, something about if you save $13 a day you’ll have enough for a downpayment for a house in a couple years? I know those types of saving hacks have been beneficial to a lot of people and that is great. What I’m willing to provide today is the basics and essentials of budgeting. This is my July Challenge to you, to find the gaps in your current spending habits that you can do away with.
1. Banking App — What you spend
Its great that a lot of banking apps are really more in tuned to the tools the average banking customer needs. A way to monitor and track their spending! Most banks have apps today, and these new tools to help track your spending built into the apps. If you’re not interested in your banking app, I recommend downloading separate personal finance app that can help track your spending for you. Regardless of which one you choose to use, the tools are out there so download that app! These tools are readily available to help show you what you’ve been spending, and help categorize where your money is really going. When you are able to take stock of that, then you can understand where “all your money is disappearing to”. I recommend Mint, Prism, Monfey as free to download financial management tools!
2. Reconsider Your Spending Habits
Now that your bank/finance app has shared with you where you’re really spending your money. Now its time to reconsider those bad habits. Did you order a bunch of things during quarantine, and now you realized you spent $250 on clothes and makeup you haven’t even touched yet? Yep that realization, needs to lead you towards reconsideration. This does not mean stopping your purchases cold turkey, but it means truly coming face to face with your spending habits and adjusting your budget to meet your goal.
3. Set a Spending Goal
This is the great part of customizing your own budget. It has to fit your lifestyle, not what we see on instagram, not what you think you should be making but your reality of incoming and expenses. I know one of my smaller spending goals is to only spend $100–200 a month on “ubereats, skipthedish,takeout”! It seems stupid but it really adds up. Its now been two months, of tracking this spending and I think I am doing quite well on that goal. What your goals will look like to you will depend on your spending habits. I know I’m not that materialistic, but I do love my food and my cravings can rack up a decent amount of spending. Take the time to figure out whereyour money going and create a spending goals for your expenses and try to reach them!
4. Reaching your Goal
It takes incremental steps. It takes you understanding what you are spending on, committing to a budget for that spending habit and actively limiting that habit when an urge to purchase that item comes up. For me, my spending vice is on food. An incremental step I’ve taken is to buy the groceries I REALLY love at the grocery store, so I never feel like my palate is “missing out” on my favourite foods. Also, I have forced myself to only pay for takeout on Thurs-Sat, only those days will I allow myself to purchase something more than the $10 bubble tea. It seems petty, ridiculous but its really the little things that add up!
It is important to show yourself that you can meet these smaller goals, then you can feel confident to really go for the bigger goals and I know we can do it together!
I will be posting more on personal finance, as I am understanding my goals for Adullthing. The more I pivot to find my footing for this blog, the more I enjoy the journey.
Cheers
Faith
