Every time I talk to someone about budgeting, I get the same response, "Why budget? I don't make enough money anyways." That's a toxic mindset. Pour me some positivity please! We may not be making the amount of money we THINK is enough, but we CAN make it the money we do earn enough. All you need is a budget that fits you. Budgeting is too important to ignore. It is literally the first step in building financial wealth. Budgeting can save you from an emergency, helps you reach your goals and put an end to living a paycheck to paycheck lifestyle. Let me show you!

OH by the way if you like any templates, click on them and download for free!

Before you start your budget I want you to think about the reason why you would like to start a budget. Is there a car you want to buy, a trip to visit family, a laptop for class, a house, or just for an emergency fund? It's important to add emotional value to your budget because that's when you become invested.

Here's how:

1. Start by writing your short term goal next to GOAL.
2. Write down how much money you need for that short term goal.
3. Give yourself a time frame of when you would like to reach that goal. (Ex. 6 months).
4. Divide the amount you need by the number of months in your time frame. That amount is how much you need to save each month to reach your goal. (Readjust your time frame if the monthly amount is too high for your budget.)

The Envelope Budget is a pretty simple budgeting strategy and consists of you creating "envelopes" or categories for your spending.

Here's how:

1. Write down your monthly income.
2. Add up all of your monthly expenses and write them under "expenses".
3. Subtract your "income" and "expenses" and what is left goes under your "net cash flow".
4. Create envelopes (Needs, Wants, Goal, and Savings or make your own not more than 5 it will get confusing).
5. Distribute the money you have left in your "Net Cash Flow" into the different envelopes you created. 

The Zero Based Budget is a popular budgeting strategy for businesses also known as the balance sheet. This budget helps you account for every penny you spend.

1. Write down your monthly income under the "Income" box.
2. As you write each expense under the "Item" box subtract it from your income. 
3. Make sure to subtract every expense even those you do not pay monthly( gas, fast food, clothes, etc).
4. Subtract an amount for your monthly goal and savings. Subtract all expenses till you reach zero. 

This budget is perfect for someone who has never created a budget before. The 50/30/20 budget let's you know how much you should be spending on each category given your income. Here is a free calculator you can use.

1. 50% of your income goes towards needs such as rent, food, water, and utilities.
2. 30% of your income goes towards wants. Things you like to spend on such as our guilty pleasure of online shopping.
3. 20% of your income goes towards savings, goals, emergency funds, loans, paying off credit cards, debt etc. 

Finding the right budget for you may take some trial and error but once you find one that works for you its smooth sailing from there!

Mindset is key in successful budgets. One day each month create a positive environment at home, with a nice cup of coffee or tea at the table and your budget worksheet and just take control of your finances. If apps are you thing, keep scrolling. I mentioned two apps that I trust to help me when I'm in need of a budget do over.

My quote for the day: "Someone is sitting in the shade today because someone planted a seed a long time ago."-Warren Buffet.