It was the scariest thing I ever did. I had little understanding of the word, let alone what it does and why I should pursue it. The worst part was I had no example in my circle - family or friends- that could teach me. So I did what any curious person would do; I took it to the streets of Google and YouTube. I watched and read about budgeting a few hours a day and even joined some free online challenges.Â
The time came to put into action all I learned, and the DIY train ran out of fuel; I did what any curious and hungry person would do; I trekked an hour and a half to two hours for personal finance sessions. What I needed help with was about two hours away and across Chicago, but I committed in all weather. With no car and a combination of bus, train, and walking, I faithfully went to sessions in the Northside of Chicago for months. I felt proud when my personal finance coach said I was ready to let her go because I now had the tools to do this on my own. I was not ready, but I was prepared. So, with courage and confidence in my new-found knowledge, I started my budgeting journey, and I want to inspire you to do the same.Â
Budgeting Is Not Scary. You need little to begin and don't have to be savvy in money management. All you need is a notebook and a pencil. Some people like the Excel version or the apps because that is the world we are in now. But I love the muscle memory I get from the traditional ways of writing things down- my mind opens up differently to what I am doing when I put pencil to paper. So pick which method you like, but try it with the notebook and pencil before adding to your screen time.
When you have your designated notebook, start by writing down three reasons why you want to or need to budget. Keep it simple: this is not when you become a philosopher; your reasons don't have to be deep or thought-provoking; they simply need to make sense to you and be the truth.
Get a glass of wine or water. Some of my past clients have avoided me and themselves for weeks after doing this next step and exercise. It was a revelation they knew was coming but were not ready to see it written out. Warning: before you do this non-negotiable exercise, make sure you are in your most comfortable clothing, in your favorite place of your home, and have a glass of whatever you want to drink.Â
Let's get started... The main event I am talking about here is writing down your expenses - all your expenses. This exercise can take a few days to a week because you might not recall everything you spend your money on, especially non-monthly expenses such as car oil changes, tire changes, semi-annual insurance payments, etc. In this exercise, you will write your weekly, bi-weekly, monthly, non-monthly, and yearly expenses. The tip here is to be patient and kind to yourself. No shaming or negative talk. Keep writing and sipping on that glass of whatever.
Where is the money? This is another come to Jesus moment, so best to refill that glass of whatever and be kind to yourself. In this exercise, you will write all your sources of income. Although short and quick, this step can be daunting and debilitating, so again, be gentle with yourself.Â
Putting it all together. After calculating all your expenses and sources of income, subtract your monthly expenses from the monthly income total, and you should get positive or negative numbers. If you end up with a positive number, that is great! However, suppose you have a single digit (say $5) left over each month; that is cause for concern because that means if life should take a sharp turn, you will be in a financial hole that might be hard to come out of - unless you have healthy savings stashed in a high-yield savings account.
Whether your answer is in the low positive numbers or in the negative, you have to either cut down on your expenses, get more income, or do both. From my experience working with my clients, they usually needed to eliminate some expenses because they were making more than enough, but their lifestyle required an adjustment.Â
The Importance of Budgeting is easy to understand but the application is often the hurdle many can't overcome. Budgeting is easy but can be overwhelming, and that is where getting help like I did comes in. Although I watched and read all the YouTube videos I could access, I needed someone to hold my hand and bring structure, expertise, and clarity. It cost me money, freezing on public transportation in Chicago weather, time, and discipline. However, I am glad I invested in myself and am now benefiting from that decision. Was it painful? Yes! Was it easy? Sometimes it was easy, and sometimes it was difficult. Will I pay for services that will help me be a better steward of my blessings and those coming my way? YES!Â
My testimonials speak for themselves, and I love working with folks who need clarity and tailored structure in their budgeting, saving, and debt management.
Ben gentle with yourself,
Celestina
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