She Strengthens

Taking Control of My Finances: A Wake-Up Call

The Hard Truth

As I reflect on my biggest regret of 2019, I’m forced to confront the harsh reality: I didn’t budget until November. Flying by the seat of my pants didn’t get me very far. I ended October in the red, had to borrow from family, and received a much-needed wake-up call. November was looking bleak, with a loan to repay, a trip to fund, and a desperate need to save for a down payment. The problem was, I lacked a clear understanding of my finances and had no idea what that down payment amount would be.

Creating a Budget: A Simple yet Powerful Tool

So, I sat down with pen and paper and crafted my November budget. The process was surprisingly straightforward. I listed my regular expenses, including utilities, gas, and public transport. I also accounted for flexible categories like drugstore and grocery expenses, which vary depending on our shopping habits. My husband and I take turns shopping on weekends, and those expenses fluctuate accordingly.

Tracking Expenses: The Key to Success

Next, I tackled the daunting task of tracking my spending for the month. I opted for a simple, low-tech approach: carrying a small notepad in my purse and jotting down every purchase. I’ve grown tired of apps and prefer the tactile experience of writing down my expenses. This habit has become oddly satisfying, allowing me to maintain control over my finances.

Striking a Balance

My budget shouldn’t feel suffocating. While saving for a down payment is a priority, I refuse to adopt a bare-bones budget that would leave me miserable and unsustainable. I’ve learned to allocate funds for haircuts, dry cleaning, and the occasional coffee or snack at work. These small indulgences bring me joy and make my budget more realistic.

Saving for the Future

Conventional wisdom suggests saving 20% of my income, but I’m intrigued by those who manage to save 40% or more. I’ve set my sights on saving 50% of my income, a goal that feels both ambitious and achievable. Although November’s expenses limited my savings, I’m optimistic about December, when I’ll have the opportunity to work overtime and bolster my emergency fund and savings.

Adapting to the Unexpected

Life is full of surprises, and unexpected expenses will inevitably arise. I’ve discovered that my wiggle room is limited, and cutting back too much on essentials can lead to added stress. When my appliance broke, I dipped into my emergency fund, a safety net designed for precisely such situations.

Lessons Learned

As I navigate the world of budgeting, I’ve realized that turning last month’s unexpected expense into this month’s line item can be a wise move. I’ve also learned to prioritize my spending, sacrificing non-essential items like clothes, makeup, and magazines. And, of course, I’ve come to appreciate the importance of creating a separate budget for Christmas, focusing on food, traditions, and meaningful experiences over lavish gifts.

A New Era of Financial Responsibility

I’m committed to maintaining a budget that respects my hard-earned money. As I look to the future, I’m considering crafting a yearly budget, a daunting task that will require discipline and consistency. Wish me luck, and I’ll be sure to share my progress along the way.