Minimalism is in. It’s hip to have less and to spend less. However, it can be hard when you start this journey to figure out exactly what to minimize. And that’s what today’s post in the MBB Budget series is going to tackle. You will have questions, such as: where do I cut back? Did I cut out enough? Too much? So that’s where I shall chime in. Let Morning Beans help you out. Grab a cup of coffee, get comfy, and read on my lovelies!
First things first. Write down your total income. Go on, grab a fresh, crisp, clean piece of paper and jot it down. Use colored ink. Be free, but honest. Most of us have a general idea of all our earnings, but you didn’t sit down and calculate it to the penny. Now would be good time folks.
Secondly, where is your money going? Ask yourself. Pay attention here: look through all your bank and credit card statements. Ask your friends and family if they have an idea of what you spend in cash, and what you’re spending it on. I promise you are in for a surprise, but not necessarily a good one. Once you have these figures down, make a plan. Decide what you want to DO with your hard-earned money, and adjust your budget accordingly.
Next, decide what truly matters to you. It’s important, trust me. You will need to bank this question and ask it often to keep that budget minimal. For example, do you like eating healthy, organic food? Do you love shopping for new clothing? Shoes? STOP. There is no need to keep dumping your hard-earned moolah into something that doesn’t necessarily rank high on your priority list. Make your budget reflect what matters most in your life.
How about setting some financial goals? Do you want to put some money away for later? How about a vacation? Listen up; your budget MUST reflect your lifestyle. Start by setting up a plan to help you save for the important things in your life. To start saving immediately, take a peek at your bills. How can you minimize them? It’s all about priorities. If you leased a luxury car and the payments are more than your income, you need to step back and take a long hard look at your future finances. Keep the necessities, but get rid of the excess baggage.
Evaluation. Make sure that your budget reflects your lifestyle – the one you are living in now, not in fantasyland or the future. Get real and decide if you are spending in the right places. Reflecting is a hard, tough job lovelies, but YOU CAN DO IT! Create a tight budget to help you reach your goals, but enough to give you some wiggle room for emergencies. And yes, sometimes new shoes ARE an emergency.
Lastly, figure out what works for you. Give it three months. Look at that minimal budget and feel free to make adjustments where necessary. Sometimes you need more where you didn’t think you needed it, and less where you thought more was important.
I’m no expert, and I am learning with you as well my caffeinated peeps. I do hope this helps you start your savings plan or current budget with minimal hassle. It’s not only about restrictions but about leaving out the non-necessities.
Stay motivated and caffeinated!😉☕