Budgeting

When we started planning for me stepping down and going part-time, we had to get even more serious about finances. The first step was to create a monthly budget. We needed to commit on living with less not only because we had less income, but also because we wanted to ensure we were still putting money towards savings, and paying off debt.

Budgeting is important because it allows you to create a plan. This plan will help ensure your bills are getting paid, needs are being met and that you are meeting your financial goals. We started with making a spreadsheet with all our monthly expenses, then we added our monthly income. You can use Excel or Numbers to make it, or try another software (there are many out there). You want to make sure all these items are accurate, otherwise you will never be able to meet your goals. Don't forget to add small things like that monthly charge for your Netflix account, or your Starbucks habit (trust me... it adds up).

The difference that is left over, is what my husband and I put towards savings, recently though we decided to add savings as an "expense" and what is left over in the budget, provides wiggle room for when we want to treat ourselves (#treatyoself). This works better for us, but I encourage everyone to try a way that feels most comfortable for you based on your spending habits.

I also have a jar at home so we are not wasting a single penny and putting everything towards our goals. I got a sticker on Etsy that says Travel Fund and any change we have in our pockets or laying around, gets added to the jar. We keep it in the living and made it a family "thing." Even Gaby adds to it when she gets or finds change. There was one month where I was able to get $100 off of the jar and put it towards our Disney vacation!

We also like some of the best practices from the Dave Ramsey method. I highly recommend everyone to read up on it, it works! With using the debt snowball method, I got rid of my credit card debt and improved my credit. I have a board on Pinterest with more info on this and other methods you can use.

One of the things we have learned over the last 7 months, is that a budget is constantly evolving. It is an ongoing plan to keep an eye on, and the goal is to protect its accuracy. Also things come up and you need to adjust. But don't let that discourage you!

It has not been easy to stick to a budget, it is definitely a challenge. But I assure you that overtime, its gotten easier. I also know that it is what is best for us given our situation. I knew that if I was going to walk away from my career to be there for my daughter more, I needed to make some major sacrifices and money was one of them. I have no regrets, and being with my daughter, has been worth every penny I lost and more! Its priceless!

#finances #budgeting #money #family #income #debt #goals #motherhood #parenting