![]() ![]() If you’ve read my book or attended any of my workshops, you know I generally teach folks to do a budget on a calendar. It is very visual and very effective. But it is also a lot slower than other methods. For those really struggling to make ends meet and/or to behave with their money, I believe this is needed. But eventually I hope we all graduate to a better method that allows us to put our funds into categories and allocate as appropriate. This is the assumed method with this template. That being said, I bet you’d appreciate it if I could give you an easier method to do your budget than pencil and paper. That’s what today’s post is all about, thanks to a question by a reader. Let’s learn to simplify the dreaded budget! It is hard, and it takes discipline. It also is IMPORTANT. So when you have to choose between the latest episode of your favorite TV show or doing your monthly budget after a long day of work, the budget is apt to lose every now and then. You can get personalized budget assistance and help with more complicated things, like negotiating with your creditors or finding out which financial assistance programs you qualify for.I preach the value of doing a new budget every single month and how important it is to get in the habit of planning every dollar that will come in. In doing so, I get a lot of feedback dominated by eye rolls and smirks. Apparently a lot of you don’t like to make a plan for your money on paper every month. Seek help: The National Foundation for Credit Counseling is a reputable nonprofit organization that offers financial planning help.This doesn’t mean you deprive yourself of these things forever it just normalizes not spending as much money on them and finding cheaper alternatives. Do a no-spend challenge: Try to eliminate spending for a month (or several) on a problem area in your budget, such as clothing or entertainment.You can ask a lender for a modified payment plan or refinance your debt into more manageable payments. ![]() Negotiate with creditors: If debt payments are pushing you into the red, reach out to your creditors.But going through your bank statements to see what you really spend can help you find areas you can work on. Review your spending: It’s easy to guesstimate your spending with the calculator above.Find ways to boost your income: Whether it’s working a side hustle or a part-time job or asking for a raise at your current job, finding a way to boost the income side of the equation can have the biggest impact of all.Other: This is for all other expenses that don’t quite fit in any of the categories above.Savings and investments: Money that you regularly save for an emergency fund or vacation fund, as well as long-term goals like college, retirement, and a home.It also includes medications, glasses or contacts, and the like. Health care: This includes all the out-of-pocket costs for health insurance, dental insurance, and vision insurance, such as premiums (if they're not deducted from a paycheck), copays, coinsurance, and deductibles.This category also includes debt payments (outside of mortgages and student loans) and vacation expenses. Personal and family: Cellphone bills, entertainment-including TV streaming services like Netflix and other subscriptions like Spotify-fitness, pet expenses, household supplies, personal care (haircuts, toiletries, etc.), and clothing.Also include any student loan payments you have. for children in K-12 and adults going to college. ![]()
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