In 2023, my goal is to make budgeting, saving money and paying off debt as simple as possible. I want to focus on investing money also.
If you are on the same energy, then let's do this together.
First up, we have got to look at something other than what's in our bank accounts: we need to know what's going on with our bills & expenses.
So take some time to look at all your bills and list them out:
Example:
Rent $1,100
Utilities $250
Food $500
Gas $250
Car payment $300
Debt $200
Insurance $150
Kids $200
Then it's time to check the bank account. Pull your recent banking statement or log in to your bank on your phone to see your recent spending for the last 30 days. This tells the real story of your money. Maybe you thought gas would cost $250 for the month but it really cost $275.
Adjust your budget to match your real-time numbers. We can't be in denial about how our money is really being spent.
Now its time to carve out some money for savings and sinking funds because there's nothing worse than having an emergency or planned event and no money to cover it.
Example:
Emergency Fund $250
Vacation $100
Health/Medical $50
Investing $100
When you set aside money for all the things in life, this is called diversifying your spending. If you only spend your money on bills, getting to/from work, etc., you might want to sit back and think about that because long-term, it could have an unbalanced effect on your life.
You are meant to do more with your life than go to work everyday and pay bills. The quicker you realize your worth, the sooner you can make the adjustments (and sacrifices) to change your future.
A lot of that change comes from budgeting your money and telling your money where to go.
I'm a firm believer in taking one huge problem and breaking it down into smaller pieces so today's homework is to just look at the numbers. Follow the money and make a plan that you can stick to.
Next time we talk, let's focus on finding ways to save money.
Peace, love and budgets.
Rochelle
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