Making Money Easy
MAKING CATEGORIES
Fixed Expenses & Variable Expenses
I try to spend a little time at the beginning of each month looking at where my money went, and then planning both my fixed and variable expenses for the one ahead. FYI: Fixed expenses occur regularly and are the same amount each time (weekly, monthly, etc). Variable expenses are the opposite.
Income
My income is fixed each month, so not much to track there, unless I've worked any extra camps or other outreach opportunities that I got paid for. If I did, I try to put my money where I need it most- whether it's paying off a credit card, putting it into my savings, buying something I need or treating myself.
Debt
Most of us have some type of debt, like credit cards or student loans- if you don't, I applaud you. Knowing how much you owe and a plan for paying it off is important for you to keep in the back of your head so, write. it. down. You can also use an app like, Intuit Mint to track these total numbers and make a plan based on much you are able to pay each month. Being "in debt" has a negative connotation, but remember that everyone moves at their own pace. It can be overwhelming, but just take it one payment at a time!
Savings
I'm going to admit that I am not the best money saver. I'm very much a "millennial" in that aspect and I really am trying to get better... hopefully one day all of this helps. But I have found some easier ways to save money in the past year...
1. Commit yourself to a money challenge where you take physical money out of your account each week. There are a bunch of these on Pinterest that can be tailored to getting paid bi-weekly or monthly. Click here to get the one I used... or create your own! Some experts say that you should save at least 20% of your income- using the other 50% for needs and 30% for wants- so be realistic and plan accordingly!
2. Transfer money into a high yield savings account (HYS) online. These accounts typically pay you a much higher interest rate than banks like Chase, to give you a bigger bang for your buck. I use Synchrony Bank, which is free to open, requires no minimum balance, and doesn't charge fees. It helps that I usually forget it's even there, especially when money automatically gets put there every time I get paid.
RE-EVALUATING YOUR BUDGET
Budgeting and being "money smart" is always a work in progress for me. That's why it's super important for me to review where my money went and know how much I have moving forward. When I am really on top of things, like I have been, especially for the past month, I do this at least once a week. I usually ask myself things like: What things could I cut out next month? Can I lower any of my monthly bills?
UNDERSTANDING CREDIT SCORES
I've learned a lot from using Credit Karma, which not only gives me updates on my credit score, but gives me tips on how to make it better based on what factors into it; things like payment history, credit card utilization, total number of open accounts, age of credit history and hard inquiries. You can link all of your accounts to get a better idea of prioritizing payments and what is affecting your score most. I feel like this is something that took me a while to learn, but my credit has improved because of it!
TIPS & TRICKS
Use A Calendar
Seeing everything laid out always helps me plan better. This way, you'll know exactly when bills are due, how much money you spent and how much money you have left until you get paid again. I use Intuit Mint to help me keep track of everything, but do what works best for you!
Auto-Pay As Much As You Can
I hate having to make payments and see the money leave my account. Almost all of my fixed expenses are on autopay, as well as most of my credit cards... for this reason and because it helps me not forget to pay each month, Late fees are a BIG waste of money.
Get A Side Hustle
Everyone can use some extra cash. Like I said earlier, even having a fixed income each month, I am always volunteering to work camps or other events for extra money. Ya girl likes to treat herself and I need money to do that. I have also donated plasma, which is a win-win because it's helpful to so many people in need. Or every few months, I go through my closet and pull things that I don't want or wear to sell on Poshmark or at a resale store.
Making A List And Sticking To It
I am really guilty of going into the grocery store and losing track of what I went in for in the first place. I know I'm not alone! Try to make a list before you go to the store so that you know what you need and don't get distracted. Plus, on most store apps or ones like Ibotta, you can add coupons for what you know you are getting, saving you even more $$$.
DIY Your Heart Out
Re-purposing boxes and things that you already have to get organized is obviously way cheaper then buying these things. You can also find some cute crafts on Pinterest using Dollar Store finds!
Find Something To Look Forward To
At the end of all the planning, I always write down things that I am looking forward to- a road trip home, a concert, a vacation with my best friends... anything that I will want extra money for. It helps make some small sacrifices, in the next few weeks or months, worth it.
GETTING MONEY SMART
I am not perfect when it comes to money and one of my biggest goals in life is to be financially free. The more I know, the closer I am to that goal. I hope that the things that I outlined in this post also help you, if you have the same goal or others! Here is the template that I created and have been using for almost a year. I left most of it open so that you can fill in whatever and however much you want. Get started now or practice tracking your money until May. I promise it'll be worth the work!