My Budget – My Spending Habits = My Reality!
Read Time: 2 minutes
Word Count: 419 words
Written by: Tab M0ney
“I do not understand budgeting, what is a budget?”
A budget is a plan, a blueprint, a roadmap! Budgeting is spending with purpose and intentions before the month begins! Budgeting is the foundation of financial freedom!
By analyzing our spending habits we have an idea of what to the budget/project for the next month. See
Create Your Budget
Start with important categories first (subjective to the individual/family) i.e. rent/mortgage, utility bills, student loans, credit card debt, car notes, food, transportation, etc.
Budget to ZERO dollars ($0.00) before the month begins
Every dollar gets a name before you spend it!
For example, if you earn $10.00/hour at your job and work 8 hours, 5 days a week, before taxes your estimated salary every 2 week is $400.00.
Budget $400.00 for the month.
Example: Projected Budget – September 2018
|Categories||Projected Budget – September 2018|
|Pay myself 10% first||$40.00|
|Cell phone bill||$50.00|
|MISC/WAM (Walking around money)||$5.00|
|Labor Day Weekend/Vacation||N/A|
Question: Our Budget is tight… Where can we make budget cuts?
Every month is different! Some pay their car insurance every 6 months, every 3 months; special occasions such as birthdays, holidays, and vacations occur as well… plan ahead!
You look at the calendar and you see Day 25 is approaching, you know it’s time to budget for the next month!
At the end of the end of the month is when you analyze the present month and plan/budget for the next month. If you have been practicing Tab M0ney Habit$ and have been writing down your actual expenses for the month and have been projecting expense for the next month, I need you to subtract your actual expenses from your projected budget. See the example below.
|Categories||Projected Budget – September 2018||Actual Expenses – September 2018||Am I sticking to my budget?||Projected Budget – October 2018||Actual Expenses – October 2018|
|Pay myself 10% first||$40.00||$40.00||$0.00 Yes|
|Cell phone bill||$50.00||$50.00||$0.00 Yes|
|Car note||$150.00||$150.00||$0.00 Yes|
|Hobbies –||$25.00||$25.00||$0.00 Yes|
|MISC/WAM (Walking around money)||$5.00||$15.00||-$10.00 No|
|Labor Day Weekend/Vacation||N/A||N/A||N/A|
Self-Analyze: What areas need more funding? Is your budget realistic? Can you make budget cuts? Are you on track to meet your long-term goals?
Your budget is the plan!
Execute the plan!
Tab M0ney Habit Loop
Trigger: End of the Month is approaching
Routine: Set Budget for the next month
Reward: Extra money to save, financial stability
The trigger and reward do not change, only the routine changes! Changing Routines! Changing Habits!