After I posted my Guide to Being on a Budget, a lot of people asked how to stop living paycheck to paycheck. So I did a post about that which you can find here.

Still the most common question I continue to get was “What if my income isn’t enough to cover my monthly expenses?”

That’s a great question and a very common problem. In fact, I used to be that way as well and I can tell you the ways I changed it. It is certainly possible for most people as long as you stay dedicated and disciplined. Remember, it’s worth it!

So here are 5 methods I used. I hope these help answer that question. 

1. Cash Envelope System

You won’t spend more than what you planned to if you plan for everything.

I can’t stress enough how crucial an envelope system is. Not only does it help you see where your money goes but when you set it up, you need to write down what type of expenses you generally have. Since most people don’t even think of random things like a car emergency, or a random doctor’s appointment (copay + medicine cost), it can sometimes throw off your month and you end up spending more than you plan for. Even if I don’t have a car expense one month, I still put money aside from my paycheck, so that if I have one the next month there’s already money there. For instance my muffler rusted out on my car this month and guess what, I didn’t even flinch because I had more than enough o cover it in my envelope system under the car category.

Think of it as a mini savings fund. It technically is a savings fund, so when I think of how much money is in my savings I always remind myself there’s even more if I include my car fund, pet emergency fund etc. Refer to my link on my envelope system to set up your own! I even have a stress free Christmas because I put money aside all year, as detailed here.

2. Cut Costs Everywhere + In Every Way

I did a post about 10 things I splurge on and 10 things I save on and I can’t tell you how much it makes a difference with my finances. Try shopping at the dollar store for cleaning supplies or buying generic brands as often as possible. Cut coupons and follow sales so that you can get double savings when you match coupons up with existing deals.

And remember every little thing adds up, even your $5 lunch at work. I pack my lunch, I make my own coffee at home, I buy my own drinks and bring them in, and I drive a car that’s paid off. Even though it’s nice to get a new car, I’d rather save the money each month than have another car payment.

Your routine bills deserve extra attention, as well. It might not be easy to cut all of your utility bills, but take a look at the subscriptions you can cut, as well as which you can switch for a better deal, such as by looking at cable TV providers in your area. Even if it’s just a little bit saved, that can make a significant difference over time.

3. Make Extra Money Each Month

I did a post about the 10 weird ways I save money and as silly as it sounds, every dollar adds up. I get paid to take online surveys (all of my sites I use are legit and I’ve done them for well over 5 years!) and in turn I get paypal cash, gift cards for stores and eating out, Itunes, Amazon, etc. I make $50 -$100 a month from that and while some people think it’s not enough or may not be worth it… that’s a month of gas for me!

I also sell things on ebay. It may take some time but once you start doing it you get more comfortable with using ebay and you’ll be very pleased with the income you make!

4. Buy and Accumulate Less Stuff

I embraced minimalism in many aspects of my life and it’s amazing how free I feel financially. I don’t spend money on DVDs and books because I cut back on my collection. I use Apple TV to rent, and I own a Kindle so I don’t have to accumulate physical copies of books. It also has me conditioned to stop and think before I purchase anything. Just because something looks amazing on the shelf, I ask myself to I really need that? It’s just going to take up space and I have enough home décor as it is for now. 

5. Live Well Below Your Means

I don’t get manicures and pedicures. Instead, I do them myself. I ask for gift certificates for them as a gift however so I still get to enjoy them. I go to a very affordable hair salon and I take care of my hair in between cuts so I can stretch every last dollar I have. 

Instead of going to the gym, I workout at home to DVDs. I moved back home with my parents which isn’t so glamorous but it saves me money right now.

I wash my hair every other day which saves on shampoo and conditioner costs and I only do one load of laundry a week.
Another thing I never do anymore is rush to the store to buy an outfit for a night out. I use what I own already, and I create new outfits by mixing and matching. I also thrift shop if I absolutely must go out.

I truly hope some of these methods can answer your questions but if you still have some, please leave them in a comment below!

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A Look at My Filofax Budget Envelope System

This post was originally posted in 2014 but gets updated yearly.

If you're already working on fixing your finances (whether it's from by being on a budget post or my book), you're likely feeling motivated to create a spending system that works for you.  This is key to taking control of your spending by using cash and finding a way to keep it organized. I've shown off my original Filofax Budget Envelope System and I want to give you the tips to make your own!

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My Filofax Budget Envelope System

Do you remember when I featured my guide to being on a budget? One of the things I explained was how to create an envelope system for your different spending categories so you can use cash only and track where every dollar goes. I've been using that system for years now and it has been working like a charm! I find that every time I open my cash envelope system at a store, the cashier always tells me what a great idea it is and asks me how I did it. Thanks to all those compliments and questions, I decided to put together a post showing off how I made my envelope system. Enjoy!

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3 Benefits of a Clothing Fund in Your Budget

If you haven’t even thought of controlling your spending through an envelope system,  it’s not too late to start.  Just because you are on a budget doesn’t mean you can’t buy anything for yourself.  When I originally wrote about it in My Guide to Being on ABudget  I made sure to explain that one of my expenses I allow myself each month is clothing.

Using a clothing envelope has many benefits:

It forces you to plan your spending.

If you only get $100 for each season, you will pretty much map out where you wanna go and what you need to buy that your wardrobe lacks.     Think about it….have you ever bought multiples of the same type of shirt or jeans?   If you only have a certain amount available to spend, you are much more likely to skip over that nice black tshirt, considering you already have 3 at home.  You would much rather spend your money on something you don’t have.

You will make smarter spending decisions. Instead of buying those $80 shoes, you’ll notice that you start looking for the best deal on a particular style of shoes.   This means less impulse buys.

You will use coupons.

Next time you see a coupon for 20% off an item from your favorite department store, you are more likely to take advantage of it and really think before you decide what item to spend it on.

Have you started using a clothing envelope yet?

5 Reasons You Don't (DO) Need a Budget

I've written about how I stay on a budget and it's important to know that a budget doesn't mean that you can't manage money or won't be allowed to spend it.  A budget is simply controlling and tracking where your money goes so you efficiently and effictively spend or save each dollar.  

Below are 5 major reasons that some of my Facebook friends gave me for why they don't need a budget. And below each reason is why they still may need one.

1. I have a lot of money and I don't need one.
Well, just because someone's on a budget doesn't mean they do or don't have money. Wealth is a state of mind.   Wealthy people still track their money.  In fact, wealthy people don't have less stress when they have more money, but they have less stress because they know where all their money goes. REMEMBER: Budget does not mean LIMIT SPENDING... it means TRACKING SPENDING!!!


2. I'm too lazy.
The more you put this off and procrastinate, the worse it'll be if a crisis ever happens, and by crisis I mean life.  We all have had those moments where life is derailed for a bit and we lose track of our daily and weekly schedule and routine, even with money!

3. I don't have the time to budget.
You don't have the time NOT to budget!  It literally will take a few hours or  a couple days to just do the work.  And once you do it, it's done and the only thing you'll ever have to do is maintenance and updates here and there! 

4. I'm scared to see what my situation really is.

Okay...and once you see, you can make the adjustments then and there on paper or on your database, and see how your situation ISN'T so bad.  It's never as bad as you imagine if you aren't already tracking it.  Just trust me on this one!

5. My current "Method" works fine.

That's fine if it does, but then you should never ever have a situation come up where you don't have any money to put towards an emergency that arises.   That's why I also say that by budgeting for unexpected expenses you will always have money put aside in an emergency fund, a mini savings fun for your car, your home, and whatever else you need to save for.  A healthy budget always allows room for some emergencies.   Besides... your current "method" can already be your budget, you just call it something besides the B word!


Have you heard the news? I have published a book all about finances! Check it out on Amazon!




What reason do you have for NOT needing a budget? 

Be sure to join my Facebook group, Fixing Your Finances, to help you with your finance journey along the way.  

How to Budget for Unexpected Expenses

The funny thing about this post is that once you get to the bottom of it, you'll see that there ARE no unexpected expenses if you budget wisely! 

Last week I asked my Twitter followers what unplanned and unexpected expenses always end up coming up and throwing off their budget and finances.  It’s quite awesome actually the responses I got, because each one has an easy solution, that I’ve already been doing…. The truth is there really is NO unexpected expenses if you budget for them, and here’s how I do it.

The responses on Twitter included Vet bills, House Repairs, and Car Maintenance.

That’s why in my envelope system, I put $20 away to each, from every paycheck.

If you put $20 away every 2 weeks, in 3 months you’ll have $120 in one of the 3 envelopes.  Can I just tell you it’s an amazing feeling when I realize my windshield wipers need replaced, because I no longer think “Oh crap, do I have money in the budget for them and when will I be able to buy them?”

Now I just look in my envelope, and grab the amount I need.

This also acts as a mini savings per category, so that you don’t have to tap into your main emergency fund as often.  

So, when you go to do your envelope categories, as discussed in my Budget Blog Post, you can think of what things have thrown your finances off in the past (do you tend to get flat tires often? That’s what the car envelopes for!) and then add that as a category.

My Guide to Being on a Budget

This post was originally published in 2013 but gets updated yearly.

 

The feeling of having debt is overwhelming and when you're trying to work on paying it off as one of your financial goals, it can be chaotic if you don't have the other aspects of your finances in order. A major aspect is creating and living by a budget, not to restrict your spending in an unreasonable way but to assign every dollar of your money a job whether it's to be spent, saved, or put towards debt.

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