Helpful budget ideas

I hope you’re doing well. I’ve been taking a financial advisor class for three months because I’m still facing a different kind of debt that restricts my finances for a year. It is the way I spend and use money.

I sought to comprehend finance from a scientific perspective rather than relying only on advice from my grandparents and others. While their guidance was helpful, I needed to adapt it to fit my ADHD mind. I've been doing this for three months now, and I'm already noticing improvements in my savings.

I use apps like Mint and Rocket Money to track my budget and avoid overspending. I found though after COVID, and my health this was no longer working so I sought help. First, I learned writing down or typing my expenses into a spreadsheet keeps me aware of my purchases and prevents confusion about my spending.

There is a lot of information on creating budgets. I'm not a financial advisor, but I've hired experts for guidance. This is what I found helpful and might be worth considering. The challenge is to start a budget; if you already have one, great! If not, consider this your perfect Lent present.

My budget which I found different than what I did before with financial help is what I will share today. Staring with income- where do you take the money from that you are spending?

Credit Card	If you use a credit card you will show it as a negative in your income	For example, I have a 100 balance on my credit card from buying shoes -100 on my income
Checking	how much you have
savings	This is an account you use often like me you dip into all the time to pay for something.	This savings account will be labeled future spending and hopefully will replace the credit card

The primary difference in my new budget compared to the old one is that I now list the credit card as a negative entry under income, and I classify the savings account as future expenditures. Retirement and emergency savings are still included. My specific challenge is that I frequently tap into the emergency fund, preventing it from accumulating into a proper emergency reserve. (An emergency fund should cover two months of living expenses without incurring debt.) My first goal is to build up my future spending savings to cover major one-time purchases through 2025, such as vacations, continuing education units (CEUs), and healthcare. For me, a balance of $1,000 is what I want to maintain in this account.

The third factor, that significantly improved my situation was how I document my expenses.

Month	date	amount	account	feelings	important	what
Feb	1	100	checking	neutral	need	utilities

I've started adding emotions and meaning to my expense sheet. Emotions show how you feel about a purchase—good, bad, or just okay. Side - note if you're a woman check your ovulation schedule, you may find that hormones or lack of them can affect your spending. You can dig into why you feel that way and maybe think about talking to someone. As for significance, I break it down into Needs (must-haves for survival), Wants (things that make life better), and Savings (for emergencies, the future, and retirement).

How I'm saving now compared to before: I established an automatic savings account for retirement and future expenses (previously for emergencies). However, I initially set the dates incorrectly based on my spending habits. My financial advisor recommended pausing the savings for two months and then rescheduling them for times of the month when my spending was lower and my checking account had a positive balance. This small adjustment helped me better manage the amount I was saving and reduced my end-of-month stress about where my money had gone. I have Edward and Jones over my retirement investment since that is beyond my knowledge. I am using Stash for wealth build-up at the moment it is on pause till I get the debt under control.

I hope this provides you with some insights on improving your financial stewardship. I'll share a final piece of advice that has been beneficial to me in managing my finances. List your top 5 life values and examine how your spending aligns with those values. Here are mine:

1. Explore - I desire to discover, observe, and experience everything that adds diversity and richness to life.

2. Family - Ensure my family has security, love, and tranquility.

3. Serenity - I seek peace and rejuvenation for my soul, mind, and body.

4. Compassion - I strive to treat myself with compassion in all my actions, allowing me to show the same compassion to others.