9 Budgeting Ideas to Kickstart Your Personal Finance Journey

It is all a mindset…finance is empowering and fun if you let it be. If you let it overwhelm you and takeover your happiness, you will lose control, and it will spiral in that direction. Please remember that you can start small, and you can start at any age. My mother saved 20 dollars a week to buy her first apartment, and I started saving when I was 15 years old and had a part time job in high school. No amount is too small, and no age is too early. As your money grows you will feel empowered and strive to do more and think of different ways to save, it’s kind of addictive and contagious. Just as emotional spending can be addictive and contagious, so too can saving. However, when you save, you are investing in your future and empowering yourself." On the other hand, emotional spending often provides instant gratification that fades quickly.

Is budgeting fun? Probably not. Is saving money fun? Probably not, but I argue that budgeting and saving can be enjoyable if you have the right mindset. There are different types of budgeting techniques that you can try. Experiment with different budgeting techniques and find the one that suits your personality best. You can always tweak or combine methods to make them work for you.

Think of saving as a game; the thrill of watching your money grow can be incredibly rewarding and empowering. I'll list some fun savings challenges you can experiment with. See if any of them fit your lifestyle or use them for inspiration and adjust them accordingly."

PERSONAL FINANCE PLANNER

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Here are several popular budgeting methods you can consider:

Different Budgeting Techniques:

1. Envelope System: Cash is divided into envelopes for different spending categories (e.g., groceries, entertainment). Once the cash in an envelope is gone, no more spending occurs in that category for the month.

I love this budgeting technique because when you actually see the psychical dollars exit your wallet you have an emotional feeling; believe it or not we are emotionally attached to our money, A ding at the cash register does not register in our brains the same way as cash leaving our wallets. You literally feel a sense of loss. This budgeting technique could be great for people like me who are emotional spenders. This will curb your spending and hopefully increase your savings. There are budgeting apps that replace this method for the modern day. However, I think trying the literal cash approach is a viable option / experiment.

2. Zero-Based Budgeting: Every dollar of income is allocated to specific expenses, savings, or debt repayment, so that the budget totals zero at the end of the month. This method encourages careful spending and prioritization.

3. 50/30/20 Rule: This method divides your income into three categories:

• 50% for needs (essentials like housing and food)

• 30% for wants (discretionary spending)

• 20% for savings and debt repayment

4. Priority-Based Budgeting: This approach involves ranking expenses by priority. You focus on funding essential needs and goals first, adjusting or eliminating less important expenses as necessary.

5. Incremental Budgeting: This method uses the previous year's budget as a base, making incremental adjustments for the upcoming period. It's often used in businesses but can be applied to personal budgets as well.

6. Flexible Budgeting: This method adjusts based on actual income and expenses. It allows for fluctuations in income and spending, making it adaptable to changing financial situations.

7. Cash Flow Budgeting: This approach tracks cash inflows and outflows over a specific period, helping to ensure that expenses do not exceed income.

8. Value-Based Budgeting: Prioritizes spending on things that align with your values and goals, ensuring that your budget reflects what matters most to you.

9. Budgeting Combo: Some combination of these methods tweaked to your personality. For example, you could adopt the envelope method and the 50/30/20 Rule.

Each method has its advantages, so it’s important to choose one that aligns with your financial situation and goals!

In the end, I challenge you to try one of these and let me know how it goes. If you feel like anyone of these is too cumbersome or too challenging, just save 1 dollar a day. At the end of the year, you will have 365 dollars. Treat yourself to something with that 365 dollars or better yet invest it. See how that makes you feel, and perhaps you can try one of the other techniques the following year. I understand that it is difficult to change our ways. I am the same way. Whether we realize it or not we have mental blocks in place, so start small and start slow.  

 Additional Ways to Add Money to Your Budget

1. Pack Lunch: Instead of buying lunch daily, bring your meals from home.

2. Cook Dinner at Home: Prepare meals instead of dining out.

3. Ask for Discounts: Always ask for a discount on big-ticket items, as many retailers are willing to negotiate. They will do it more often than not. They don’t want to lose a sale and want to make the customer happy. Giving a 10-20 percent discount is something most stores will do, since they often have promotions anyway. Try to combine promotions if you can, 10-20 percent discount, loyalty points and credit card points.

4. Make Coffee at Home: Brewing your coffee can save you a significant amount over time.

5. Avoid Impulse Purchases: Research purchases online to find better deals.

6. Check Online Marketplaces: Look for free or low-cost items on platforms like Craigslist or Facebook Marketplace. I have given away free almost brand-new refrigerators and ranges on Facebook marketplace.

7. Shop Thrift Stores: Explore thrift stores for unique items at bargain prices. My sister loves to shop at thrift stores for art and housewares. And she has found some treasures along the way.

8. Offer Services: Consider doing household chores, lawn mowing, or cleaning for extra cash.

9. Conserve Energy: Save on bills by turning down the AC or heat.

10. Shop for Insurance: Compare auto insurance rates to find the best deal.

KEY POINTS:

1. Empowerment Through Saving

2. Small Steps Matter

3. Budgeting Techniques

4. Savings as a Challenge

5. Practical Money-Saving Tips