Money is something that American society doesn’t talk about. That being said, 7 in 10 people live paycheck to paycheck. There is absolutely nothing wrong with that. It is just harder to get ahead when you’re always feeling behind. The easiest way to change how you spend your money is to know where it is going. Everybody and their brother has a different way they will tell you to budget. The reality is, you have to find a budget that works for you. It is usually best to make a spreadsheet so you can see how much you have coming in, and then list out your bills.
Another factor that impacts how we spend is how we pay; with a debit or credit card or cash. I personally pay all my hard bills online, the ones that don’t significantly change every month (think water, wifi, electricity, etc.) then take the rest of my budget out in cash. It has been scientifically proven that we find it harder to hand over cash than to swipe a card. Personally, I know the card is much easier to swipe or tap than handing over the cash I worked for. That’s why I do a cash budget. I pay all my bills online but any other money (food, gas, fun, pet, self-care, etc.) gets pulled out in cash and divided into envelopes. This method works for me because I loathe watching those envelopes go down as the money is spent. This method may not work for some because they like the way they feel after spending that money. It may take some trial and error for you to figure out what works for you.
Once you figure out how much you’re earning, and where it’s all going, it is easier to redirect it to fit what you want. I figured out that I was spending waaayy too much shopping (I like expensive shoes) and getting things for other people. I also was overspending on going out to eat. Once the numbers were in front of me, and my credit card bills, I decided that I didn’t like having to pay that off and I needed to adjust my spending habits. Now, I try to save for my spending habits and get pieces that will last for more than a month or two. That was the other piece that was killing me. I was buying for the latest fashion trends, and most of them I didn’t wear for more than a month or didn’t look good on me and I ended up wasting money. The fast fashion industry makes a ton of money because they push changes in short periods of time, so you feel the need to buy more. Most of the time, those purchases aren’t worth your money.
Here are some examples of ways to budget.
Zero Sum budget
50/30/20 Budget
Pay yourself first budget
Envelope Budget
Make time once a month to go through your finances. I use that time to pay all my bills, look at my savings progress, see what my retirement account is doing, and really analyze where I am spending money. For those of us that have a really hard time focusing for a long period of time, there are lots of finance apps that help you track your spending as you go. It will help you categorize your purchases and help keep you organized.