Budgeting: No One Size Fits All

I am no accountant. I am not a money expert. I am a woman who has lived 38 years of life and understand that if I do not manage money properly, I can end up in some bad situations. I have been asked by some people do I know how to budget. My answer is always yes because I do from a general life perspective. However, I will admit there are a lot of budgeting methods out there and that is why one method of budgeting does not fit all.

My budget method changed when I got married. Hold on, let me tell the real truth: I did not know how to budget until I got out college. I knew the concept of budgeting but to say I had a budget while in college would be a lie. I was single for about a year out of college and I began to budget then. My single life budget method changed once I got married. I had to take into account how my spending habits effects more than just myself. The way I budget for our household works because we are living peacefully and our debts are maintained to the point where they are being paid off.

Do I go by some overall percentage rule? No. Do I budget down to the last dollar where I get to $0? No. Some people need these types of methods to help them reach significant life goals. However, some people desire simple ideas when it comes to money management. I recommend doing a lot of research to see what works best for you. Read simple books; even old books. I took the time to read books like The Richest Man in Babylon and even the The Total Money Makeover. I also done Biblical studies on money management. What I recognize is the concept of implementing a budget is not difficult if you desire to overcome financial hardships. I know many people will argue they do not make enough to live the life they desire or possibly they do not make enough because of how much living cost. I understand those aspects because I have been in those situations. I have had to go through payday loans and maxed out credit cards because of unexpected situations. However, I learned some key concepts about budgeting that I now ensure I implement. Those key concepts are:

• Have an emergency savings. I am not going to tell you to have $500, $1000, or $6000. What I will tell you is to evaluate estimated costs for making it in case of the unexpected. For example, if you driving a luxury car, you'll want to ensure you have enough to cover major repairs. Definitely try to get something still within the factory warranty or invest in car maintenance insurance.
• Have an emergency credit card. I know some will disagree about having credit cards. It is not bad to have credit cards. It is bad when you continue to max out credit cards because you cannot control your spending habits. I have heard people have a major credit with a $5000 limit they do not use. It is just for emergencies only. This a good idea when it comes to home maintenance emergencies and even medical emergencies.
• Have an investment plan. If you do not have a job that offers 401(k) or something similar, look into starting an IRA, CD, or even a simple savings account with a good percentage rate, e.g. MySavingsDirect. We do an online savings account and a mix of low risk/high risk investments with a major investment company, e.g. Vanguard ETFs, Fundrise. We are not getting any younger so we are learning more about ensuring we have a stable retirement.

Now, I do encourage individuals to include these concepts in their budget plan. The overall goal of having a budget is help meet your personal and/or family financial goals. The budget is not meant to control you; it is meant for you to maintain self-control. We must admit that money and tangible items do not belong to us. We are only stewards over what is only temporary possession or ownership. We are blessed to possess wonderful and beautiful items but we cannot become so attached that we forget what really matters in life. Discover the joy and peace that comes with having a budget. Find the right budget method for you and your household. Below I will share two budget spreadsheets that I have shared with those who asked for my help with budgeting. No charge for those documents. You do need Microsoft Excel or a similar application to use them. If you would like any help with budgeting, email me and we can communicate via email on how to build your personal budget.

--Photo by Katie Harp on Unsplash

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Example budget for a household with two adults.

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Example of a budget that is based on percentage.

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Question: Do you want to have a budget plan? If so, what will help you stick with having a budget plan? Leave a comment below.