Let’s start at the very beginning, a very good place to start…
It's time to talk about money
Maria certainly knew what was up when she broke into that particular song. And as we all know, the first step is discussing the Do(ugh).
Ok, so you want to make a change when it comes to finances. But where do you start? Do you get real tedious about a budget spreadsheet? Cancel all your subscriptions? Sell your car and get a bus pass? Unfortunately, the answer isn’t going to be the same for everyone. As my current shaman Kendra Adachi, The Lazy Genius points out-you need to start with your values. Does having a perfectly manicured lawn bring you true joy? Or does your petty ass just want to have the nicest yard on the street? Are elaborate home cooked meals your greatest passion? Or do you just want to make sure your kids don’t go to bed hungry? Only you can really decide what is valuable to you and your family. But here are some questions to ask yourself.
Why do I want to cut down on spending? Am I in debt? Do I anticipate (or hope for) a big purchase in the future? Is there a big trip or life event coming up? Do I want to retire early? Do I worry about the future, and want to secure a healthy “rainy day fund?”
If attached, is my partner on board with a change in our financial choices?
What is my current income? Is it predictable, or does it fluctuate?
What are my non-negotiable, fixed expenses? (rent, insurance, etc)
What was the average of my variable expenses over the last 3-6 months? (groceries, utilities, gas, clothing, etc)
What are the products and services that are important to me?
Are there some things I could live without?
While I hate Excel as much as the next inexperienced Excel user, I will admit that these questions are leading us towards a budget. But I want to assure you, this does not have to be rigid. It can be as simple as grabbing a pen and a piece of paper, opening your banking app, and crunching numbers in your phone’s calculator. If you are a spreadsheet superhero, lean into your strengths and use one of the many templates available. Or, if you are a techy, go ahead and download that sweet budgeting app! The important thing to remember, is that it has to fit your personality. I’m an old-school analog girly, so me and my Bic be grabbing a piece of scratch paper and getting things done! So come on in! The water’s affordable!
XO,
Christine, your Frugal2aFault Friend