Penny wise, Pound Foolish  - Your guide to smart spending!

Budgeting can seem like a painful and time consuming task that no one really wants to do, that ends up limiting your ability to spend your money.  However, the best way to look at budgeting is as a way to help you understand where you are financially, and then to have a plan to consciously grow your wealth one step at a time. It's important to start by having an end goal in mind that helps you refocus whenever you lose sight of why you started. Many gurus will tell you to cut certain habits like buying coffee,  having subscriptions etc. While this might work for some people and save them a few dollars here and there. What's more important are the big financial decisions you make that can have a significant impact on your finances. If you love having a cup of coffee from the cozy cafe down the street or watching Netflix after a long day, get that caffeine fix and keep your subscription, in the great scheme of things, it won't make a world of difference. But buying that brand new car with a big monthly payment, insurance cost, maintenance fees and so much more will! Let's take a look at some steps you can take to start your budgeting journey, just don't forget to enjoy the ride to your destination on the way there.  

• Goals -  Set clear financial goals for yourself,  What do you want to achieve? (buy a house, grow my savings, payoff debt, go on a vacation), How much can you afford to set aside per month? What are some important purchases you have coming up? 

• Cashflow - List all your income and expenses, Make it based on your actual earnings (after taxes and deductions) and expenses and be prepared to cut unnecessary items.

• Needs > Wants - Prioritize your needs over wants, this is easier said than done, but paying your bills trumps buying that new laptop. What are your needs? Take out your wants and add them to your goals, we can make these happen but let's earn them. What do you say?  

• Savings - It's 2024, automate your savings, set it and forget it, starting this habit now will make your life easier and will get you ready for the world of investing. Set aside a certain amount every month and don't think about it. 

• Rules - Use the 50/30/20 rule, 50% for necessities, 30% for discretionary spending and 20% for debt and savings. You can always amend these percentages.

• Review - review and adjust accordingly, check your budget regularly, it's okay to want to set crazy goals for yourself to attain financial freedom. But, it is also important to enjoy your money while you can (obviously saving for a rainy day or two!).

• Focus - Stay motivated, treat yourself for milestones that you set and achieve!

Be sure to check out the sample budget i created for you to use, this should help simplify your life, and get you going on that journey!