The 60/30/10 budget turns the traditional rules of budgeting upside down. Instead of focusing on discretionary spending, this budgeting rule emphasizes sprinting toward our financial goals. And although the 60/30/10 rule budget won’t work for everyone, many could use it to take their finances to the next level. Here’s what you need to know about the 60/30/10 rule budget.

What is a 60/30/10 budget?

The numbers in the 60/30/10 each represent a percentage of your financial plan.

• With this system, you will use 60% of your take-home pay to build your savings or even an early retirement account, invest, save up for a down payment, or repay debt.
• Next, you will spend 30% on your needs. These might include food or frugal meals, rent or mortgage payments, utilities, healthcare, and transportation like car payments.
• Finally, you use the remaining 10% of your budget to pay for discretionary spending. These wants might include new accessories, a spa day, or other ways to pamper yourself. You may also spend money on hobbies, entertainment, or other non-essential expenses.

Who is it ideal for?

After seeing the percentages, you might be curious to know who would thrive under the 60 30 10 rule budget. Ambitious savers are best suited for this budgeting style, especially if they have an ultimate lifetime money plan that includes a big money goal.

If I have big financial goals, then prioritizing saving might seem right.

For example, let’s say I want to pay off a large amount of debt fast. Putting 60% of my take-home pay towards that goal will help me achieve that goal faster.

Another example is anyone interested in achieving FIRE; Financial Independence Retire Early. It is no secret that those seeking FIRE must save a significant amount of money.

Pros and cons of a 60/30/10 budget

As with all financial choices, there are some advantages and disadvantages to sticking with the 60/30/10 idea. Here’s a closer look at the pros and cons you should consider before diving in.

Pros

Let’s start with the pros of the 60/30/10 rule budget. This idea has some significant upsides.

Faster progress toward financial goals

The most obvious advantage is that you’ll accelerate your timeline for any financial goals. Whether you want to build emergency fund savings or save money for a big-ticket item, saving 60% of your income in your savings accounts will help you accomplish that more quickly.

Disciplined spending on what excites you

You can still have fun with your spending. But you’ll need to be intentional and only spend on things that really matter to you. It helps to determine what your wants truly are when using the 60 30 10 rule budget.

For instance, if I really value traveling but instead usually spend my extra money on coffee and shopping, then I would need to change my spending. I would stop spending on those categories and focus on saving for my next vacation.

Motivation to boost your income in creative ways

If you want to boost your discretionary spending within the rule, you must increase your income. It could be the perfect way to stick to your side hustle.

The budgeting rule can help you accomplish your financial goals. Plus, it helps you uncover what type of discretionary spending is truly important to you.

Cons

Of course, there are also some downsides to consider. An extreme budget like this isn’t for everyone.

Limited discretionary spending options

Depending on your wants, it might be challenging to cut back on your discretionary spending. Some people prefer a more luxurious lifestyle and this budgeting method restricts those types of purchases.

For example, if you’re used to spending half of your income on discretionary expenses, it will be a major adjustment. But you can do it if you really want to prioritize your money savings goals!

Adjustments to your lifestyle

You may need to cut back on the needs in your life to keep it within the 30% rule. It might include cutting back on housing through house hacking or transportation and car expenses. Also, eating at home versus dining out and finding ways to drastically cut expenses.

It is clear that you might need to make some cuts to your spending within this budget. You’ll need to decide for yourself if the cutbacks are worth it.

The math may not work for your income right away

Unless you have a very large income, this budget could be challenging without some major lifestyle and financial changes.

For instance, even if you make $10,000 a month, your expenses would still need to be very low ($3,000) for this to work. So if you have this income and your expenses are $5,000, you would need to switch up some percentages or drastically change your lifestyle.

To make this work, you can either increase your income, decrease your expenses, or both.

How do you set up a 60 30 10 rule budget

If you want to move forward with a 60/30/10 rule budget, here’s how to set one up. Check out the following guidelines:

Step 1: Determine your take-home pay

The basis of the 60/30/10 budget is your take-home pay. It includes the money you earn after you account for taxes. 

If you are an employee, it may be as easy as looking at your paycheck to determine your salary. But if you are an independent contractor or business owner, it can be more difficult to nail down your take-home pay and monthly income.

The IRS offers a free tool to help you determine how much you should expect to withhold for taxes. But if you run into questions, it is a good idea to talk to a tax professional to help you determine exactly what your take-home pay is.

Step 2: Allocate to your financial goals first

Once you determine your take-home pay, it is time to allocate 60% of the funds to your financial goals. The best part is that your financial or savings goals will be entirely unique to your situation. You may decide to build an emergency fund, start investing, or pay off debt from credit cards or student loans.

Before you take any action, take some time to find and choose examples of financial goals that align with your future.

Perhaps you want to start investing. That’s a great step! But you should consider what your long-term goals are to ensure you make investments that will work for you.

As an example, one of my major savings goals is retirement. Let’s suppose I need to save $1,000,000 to reach my goal. Based on my current income and this budget, it might take about 20 years to reach this number.

But now I have a financial goal with a number, a time limit, and a long-term plan.

In addition, I should determine what investments will be best for my retirement goal in 20 to 30 years.

Step 3: Take care of your needs

Next, you will use 30% to cover your needs. Necessities encompass the essentials of life. Some examples include housing, utilities, food, groceries, transportation, and healthcare.

You may need to shop around to build a lifestyle that fits within 30% of your income.

For example, you might decide to drive an older car or choose to cook at home more to save money. In addition, you may get a roommate in order to reduce your house payment.

Step 4: Spend the last 10% on things you want

Last but not least, the remaining 10% of funds is to be spent on things that you want.

Whether you want to take a lavish vacation or upgrade your simple wardrobe to a more extravagant one, you’ll know what your spending limits are.

Don’t be tempted to skip spending on the things you want. It is important to treat yourself to the things that matter to you. Otherwise, it can be easier to let the entire budgeting plan fall apart.

Expert tip: Focus on having specific savings goals

Since you aren’t going to be spending as much money with this budget, it’s important that your savings goals feel very worthwhile to you. They need to be specific to your situation and also things that are very fun or interesting.

For instance, I really value being a home owner, so saving a down payment will be worthwhile.
Or perhaps you want to travel the world for a year and save a lot for retirement.

No matter what, make sure your goals are important to you. Also, be sure to use vision boards or create mini goals in order to stay focused.

What to avoid with this budget

There are several things you should avoid including being caught unaware by unexpected expenses. Since the percentage for necessities with this budget is low, there isn’t much room for error. Beware of increases in necessities like housing costs or groceries due to how inflation affects a household, etc.

Another thing to remember is not to confuse or mxi up your categories, like what is essential and what is extra non-essential spending. Remember your percentages and keep spending in check!

Last, don’t take on extra credit card debt, as it can be too much to handle. I find that not increasing my debt burden helps me to pay things off in a timely manner and can make this budget work long-term.

How does the 60/30/10 budget differ from the 50/30/20?

The difference between the 60/30/10 budget and the 50/30/20 budget are the percentages. The 50/30/20 budget was created by Elizabeth Warren and her daughter, Amelia Warren Tyagi. The idea is that 50% of your income pays for expenses and needs, 30% is for wants, and 20% is for savings.

The 50/30/20 budget is easier to achieve for many people because it is less extreme. With this approach, you save 20% of your income instead of 60%.

However, many people now believe saving more is better, especially with the rising cost of living. So it’s really up to you what percentage you feel is best to save or invest. You may lean more towards a higher saving percentage, or you might choose to spend more on living expenses, depending on your unique situation.

Is the 60/30/10 budget right for me?

The rule is an enticing choice for anyone who wants to improve their financial situation. Before you jump in, take a minute to be realistic about your current income. If you have a lower income, this plan might be too extreme at first.

Ultimately, this budgeting strategy is possible for everyone. However, you may need to consider increasing your income through a unique side hustle. Or making major cuts to your spending on big-ticket items like housing and food.

Of course, there are many other types of percentage budgets that you can try first if needed to get in the groove of saving.

For instance, the 70-20-10 budget, 30-30-30-10 rule, 50/30/20 budget, or the 80/20 rule are great budgets to start with.

If these don’t suit you, you could move back to the 60 30 10 rule budget! The main thing to remember is to pay yourself first so you are sure you save money before spending it.

What is a 60/30/10 rule example?

Let’s look at a couple of actual monthly budgets using this system. Suppose my monthly income is a net pay of $5,000. Next, I’ll divide it into categories. 60% of $5,000 is $3,000, 30% is $1,500, and 10% is $500.

In this scenario, I could save $3,000 for a down payment and an emergency fund. I would pay my bills with $1,500, including rent, groceries, and insurance. Then, $500 would be mine to use as I like.

For example, I might go to the movies or go on a weekend getaway.

You can see how this type of budget works better if you have a larger income.

For instance, let’s say the budgeter has a take-home pay of $12,000 per month. That gives much more money to pay bills and more to save. You would save $7,200 (60%), use $3,600 (30%) for necessities, and use $1,200 (10%) for fun.

Even with a high income, this rule is best used when you have big savings goals and your necessary expenses are quite low.

More articles related to budgeting

If you enjoyed learning about this budget and how to apply it to your finances, check out these other posts next!

• What Is The 70-20-10 Budget?
• 10% Rule: Is Saving 10% Enough?
• What Is The 60-20-20 Rule And How Does It Work?
• Save $5K With The 200 Envelope Challenge!

Save more money with the 60/30/10 budget!

The 60 30 10 budget could help to transform your finances. You’ll significantly accelerate your progress toward long-term financial goals. But you may need to spend some time boosting your income through multiple sources of income to make this budget a comfortable reality.

If you need some help creating a budget that works for you, then take advantage of our completely free budgeting course. You’ll find helpful guidance for setting up a budget that fits your goals and finances! For more fantastic financial tips, join the Clever Girls Know podcast and YouTube channel!

The post How Does The 60 30 10 Rule Work For Budgeting? appeared first on Clever Girl Finance.

Going out to watch a movie, see a sports game, and attend a concert can be a fun way to spend your time, but it can also be quite expensive. But you don’t have to spend much money to have a good time! There are tons of fun challenges to do at home to beat the boredom. Keep reading for some great ideas!

Did you know that American families spend about $3,458 on entertainment every year? Instead of spending your hard-earned cash paying for entertainment, gather up some friends and family and give these at home challenges a try!

32 Fun challenges to do at home

Whether you love speed challenges or fitness challenges, we have just the list of at home challenges for you! These challenges can be done by yourself or with friends and family. Even use them as family night ideas!

That said, here are 32 fun challenges you can do at home that are entertaining and budget-friendly!

1. Accent and impressions challenge

The accent and impressions challenge requires at least two people, 20 sheets of paper, a paper/pen, and a timer.

First, write an accent (i.e., American, British, Scottish accent) on each slip of paper and put the pieces of paper in a pile. If there are more than two players, you can split the participants into two teams.

Then, two players (from the same team) must stand on opposite sides of each other. Have one player pick up an accent card and raise it above their head.

Finally, the other player must speak with the accent shown on the card. If the participant with the accent card can guess the accent being spoken, then the team gets a point. Each team is given one minute to rack up the most points. You can get accent help or confirm an accent is accurate by checking on YouTube!

Alternatively, you can also impersonate famous people and guess who that person is.

2. Psychiatrist challenge

This at home challenge requires at least two players, and no materials will be needed. One player will be assigned the role of the “psychiatrist,” and the remaining players will be the patient(s).

Then, the players must form a circle with the psychiatrist in the middle. The objective of the psychiatrist is to figure out the shared pattern among the other players.

For example, say the players (patients) agree to use a number every time they speak. The psychiatrist will be allowed a maximum of 20 questions to determine this pattern.

Example:

Psychiatrist: Patient 1, who are you?

Player 1: No one (1)

Psychiatrist: Patient 2, who are you?

Player 2: Me too (2), I am no one (1).

If a player (patient) doesn’t follow the rule, the other patients must shout, “Psychiatrist!” That usually gives the psychiatrist a hint as to what the pattern might be.

3. Know that lyric challenge 

Are you a song aficionado? You’ll certainly love this fun challenge that you can do at home! The “know that lyric” challenge requires at least two players, 20-30 slips of paper, and a pen/pencil. You can also use a bowl to put the papers in.

First, on each slip of paper, write a song lyric. Then, underline half of the lyric for each slip of paper. Take a look at this song lyric, for example: “Oh say can you see, by the dawn’s early light.”

You would start by singing the first part. Then, the other players would have to jump in and guess the second part (the underlined section). If a player guesses the lyric, then they receive a point. The player with the most points wins.

Try writing different song topics for the best results, and try different genres. For instance, write songs from a category like country music, but also Broadway show tunes and pop music.

I personally love games like this and find it’s great to play for a family game night!

4. Blindfold makeover challenge

The makeup challenge requires at least two players, a blindfold, and the makeup of your choice. One player must apply makeup on the other participant while wearing a blindfold.

Take some pictures after the challenge and share them with your friends. You might be surprised by how well you’ve done! Maybe you will get inspired to try our custom “glow-up” challenge too!

5. Blindfold drawing challenge

The blindfolded challenge for drawing requires at least two players, a pen or pencil, two pieces of paper, and a blindfold. The players must wear a blindfold and draw the same picture from memory.

When finished, remove your blindfolds and compare drawings. Then have a judge decide who drew the better picture and give that person a point.

6. Baby food challenge

Ready to test your senses? Here is a fun challenge you can do at home. The baby food challenge requires at least two players or more, six types of baby food, and a couple of spoons.

Each must take turns eating a spoonful of baby food without spitting it out. If a player keeps the food in their mouths, then they will get a point. The player will get another point for identifying the type of baby food that was eaten.

After going through all six containers, tally up the scores. The player with the most points wins!

7. Tin can challenge

The tin can challenge requires at least two players, eight to ten tin cans, a spoon, and a can opener. First, pick out different types of canned food you find gross, strange, or smelly. Then, pick out several canned foods that you find tasty. You might use beans, tomatoes, etc.

Next, remove the label of each can and place a number on each corresponding can. Write the numbers down and place them in a container (or a hat).

Then, have each player draw a number from the container and open the can with the matching number. Finally, the player must eat a spoonful of the mysterious substance without spitting it out.

Each person who guesses correctly gets a point, and the person with the most points wins the game! It’s one of those fun challenges to do at home that requires a strong stomach.

8. Eat it or wear it challenge

Don’t mind the mess? Here is another fun challenge you can do at home that you’ll definitely enjoy!

The eat it or wear it challenge requires at least two players. You will also need about 15-20 brown bags, spoons, cups, and random food (mayonnaise, tuna, soda, french fries, juice, and donuts) you may have in your house.

Start the game by having each player go through the bag and remove the item inside. The player can either choose to eat it or dump it over their heads. If the player chooses to eat it, they can dump the remainder on the player of their choice.

The game can get really messy (and smelly!) so you might want to play this at home challenge in your backyard.

9. Whisper challenge

The whisper challenge requires at least two players, headphones, and a device to play music from. Pick one player to wear the headphones, and another to turn up the music so that the other participant is inaudible.

The player without headphones must say a phrase, while the player with the headphones guesses the phrase by reading the other person’s lips. If the player guesses the phrase right, then they get a point. The player with the most points wins.

This is one of the best at home challenges to play. Even Keanu Reeves and Jimmy Fallon have a blast with this challenge!

10. Cookie challenge

The cookie challenge requires at least two players and a cookie of choice. If you enjoy cooking or you like baking, you can make the cookies yourself! First, each player must place the cookie on the middle of their forehead.

Then, they must use their facial muscles to get the cookie into their mouths. The first player to do so wins! The cookie challenge is personally my favorite of all the fun challenges to do at home.

11. Chubby bunny challenge

The chubby bunny challenge requires at least one player and a bag of marshmallows. Stick as many marshmallows into your mouth as you can until you can no longer say “chubby bunny.”

If you are playing with multiple participants, take turns putting a marshmallow into your mouth and saying “chubby bunny.” The person who can fit the most marshmallows into their mouth while being able to say “chubby bunny” wins! If you love sweets, then this is one of the tastiest fun challenges to do at home.

12. Bake off challenge

The bake-off challenge requires at least two people and random ingredients you can find in your pantry. First, give each player 30 minutes to make something from those ingredients. After the 30 minutes is over, have someone taste the creations and decide who did it best.

I love baking so this is one of the best challenges to do with friends, in my opinion. My favorite part is that we get to eat the leftover baking creations!

Alternatively, you can challenge yourself to a bake-off with another player by seeing who can make the best meal from the same recipe. Consider these delicious, frugal meals to try out to level up your game.

13. Egg dropping challenge

The egg dropping challenge requires one person, a raw egg, and materials for the container.

The objective is to build an “egg” armor that can withstand the impact of a drop. Test your design by dropping the egg from a high elevation. If your egg doesn’t crack, congrats, your device works!

14. Yoga challenge

Every yogi will love this fun challenge that you can do at home! The yoga challenge requires at least two players and no materials are necessary. Start by having the first player perform a yoga pose of their choice.

They can either start with an easy pose or jump to something more advanced. The other players must mimic the pose and hold it for at least ten seconds.

Each player who can mimic and hold the pose for ten seconds earns a point. The person who earns the most points wins!

15. Dance-off challenge

Get ready to bust a move with this at home challenge! The dance-off challenge requires at least two players and no materials are necessary.

To start, the first player must perform a short dance move. Then, the next player must mimic the dance move and add a new one.

Each player will take turns performing the previous moves while adding their own. There will eventually be a long sequence of dance moves, so the person who breaks the sequence loses! It could be another great date night idea, too.

16. Relay race

Hosting a relay race among friends can be a fun summer challenge that you can do while you’re home! The relay race requires at least two players, and the materials will vary based on the type of relay race.

There are messy outdoor water activities, like the fill-the-bucket water race or bobbing for coins, and fun indoor games, like necking the orange or passing the balloon. The types of relay races are endless, and are pretty easy to set up!

For your relay race, try to include at least two or three challenges that each person must complete before the next person on their team begins. The first team to finish everything wins!

17. 30-Day jump rope challenge

Jump rope is a great way to get your body moving and your heart pumping, especially if you don’t have that much time! The jump rope fitness challenge is great if you want to squeeze a little exercise into your day. The 30-day jump rope challenge requires at least one person and a jump rope.

Start off with as many skips as you feel comfortable with, then increase your skips in 25-50 intervals each day. By the end of the 30-day challenge, you might be able to get up to 1500 steps or more!

Of course, don’t forget to take breaks when needed. After all, this is supposed to be an enjoyable challenge!

18. Riff-off challenge

Love to sing? Then this is one of the most fun challenges to do at home with your friends. The riff-off challenge originated from the movie Pitch Perfect and has been a popular game since. This riff-off challenge requires at least two players and no materials are necessary.

One player starts the game by singing a song lyric, then stops at a word of their choice. Then, the other player has to sing a new song starting off with that particular word.

For example, if the song lyric is:

“I can’t help falling in love-“

The other participant can jump in with:

“-love never felt so good.”

The game ends when a player can’t think of a song to start at that particular word.

19. Alphabet game

The alphabet game has at least two people, and no materials are necessary, making it one of the easiest challenges to do with friends.

Each player will take turns acting out a random scene (e.g. friends at a party, or students in class). The first person must start their sentence off with the letter A, and the next player must start their sentence off with the letter B.

Each player must deliver their line starting with the next alphabet letter. The game’s objective is to go through the entire alphabet without stopping. Give each player about five seconds in between each turn.

If players can’t think of the next sentence before time is up, they are eliminated. The last player standing wins!

I think if you can think quickly on your feet, this is an extremely fun at home challenge.

20. Ice bucket challenge

You’ve likely heard of the ice bucket challenge and the role it played in promoting awareness and donations for ALS organizations. You can still support these organizations using the ice bucket challenge!

The idea is simple. Fill a bucket with ice water and choose a willing participant. Then, dump the bucket of water on their head. The idea is to increase donations for research and a cure for ALS, so try to give if possible!

Get your friends and family involved, challenging each other and donating.

21. Minute-to-win-it challenge

The minute-to-win-it challenge can either be played by one person, a group of people, or in teams. The materials vary based on which games you choose to do.

Make a scoreboard if you are playing with multiple people to track who or which teams win. The list of minute-to-win challenges is endless!

Play defying gravity and try to keep three balloons up for a minute, or see if you can completely wrap your friend up in streamers without exceeding the time limit. Sounds fun? Here are some minute to win it fun challenges to do at home!

22. Word recall challenge 

The word recall challenge requires at least two people, at least 4 sheets of paper, and a pen/pencil. Start by having one player write a list of 25 words (preferably 4-letter words) on a sheet of paper.

Then, give the other player two minutes to study the entire list. After the two minutes is over, take the list away and have that player write down every word they remember.

Finally, the players will switch roles and repeat the process. The person who can recall the most words wins!

23. Try not to laugh challenge

This challenge requires at least two players and a compilation of your favorite videos. You can also tell jokes or stories to try to get people to laugh. The players must sit through this without laughing.

The player that goes the longest without laughing wins. This at home challenge will brighten anyone’s day!

24. Photoshoot challenge

The photoshoot challenge requires at least one person and a camera (can be your mobile phone). Have a photoshoot in and around your house. Use your imagination to create backdrops and props from items lying around.

Then, share the silly pictures with your friends and family or on Instagram! Who knows, maybe you will love them so much that you will turn them into a profitable photography side hustle!

25. 100 layer challenge

The 100-layer challenge requires at least one person and 100 articles of the same type of clothing or makeup of your choice. If your clothing of choice is a shirt, then layer on 100 shirts.

If your makeup of choice is lipstick, then apply 100 layers of that lipstick. To play this game with a group of friends, see who can put on the 100 layers without quitting, or who can do so the fastest!

26. Pillow challenge

The pillow challenge involves taking common home decor (like a pillow) and turning it into a wearable piece.

It requires at least one person, a pillow, and accessories of choice. Turn your pillow into a dress or a skirt and embellish your outfit with accessories! Then, have a photo shoot around your house and share your pictures with friends and family!

27. Cleaning challenge 

Need to get some cleaning done but don’t have the motivation to do it? Decluttering your life can have a ton of benefits, like reduced stress and increased focus. And decluttering doesn’t have to be boring, either!

It can be one of the most fun challenges to do at home. Simply spice up your cleaning routine by turning it into a game. See how fast you can declutter your room, and try to beat that number each time you clean it.

Want to get your family to enjoy decluttering? Have a competition and see who can clean their room the fastest. Reward the winner with a prize afterward!

28. Getting to know you challenge

Getting to know you is one of the best at home challenges for new best friends or long-time partners. Good communication builds strong relationships and can improve all aspects of your shared life. It doesn’t have to be daunting, either!

The getting to know you challenge facilitates conversation through the exchange of surface-level and personal questions. You can deepen your relationships by learning more about someone and having them learn more about you!

You can make it a challenge by having each person ask a question and then the next person for a set amount of time. Or you could have each person ask several questions in a row and see who runs out of questions first!

29. Escape room challenge

An escape room challenge takes some prep time, but it’s worth it and is a memorable way to spend an afternoon.

First, find a place to create your escape room, which could be an empty room or space in your home. Then, make clues and a puzzle that must be solved, each clue leading to the next one like a scavenger hunt. The final clue should solve the puzzle or open the door to the room.

It’s also fun to have a time limit so that there’s a sense of urgency during the game. See who can escape the room first or solve whatever the puzzle is!

30. Mannequin challenge

The mannequin challenge will put your skills to the test! Each participant must remain completely immobile, like a mannequin, at the start of the challenge. You can then see who can stay still the longest, or you can play music and have people freeze as you turn the music off and use a point system.

Be creative with this game, and try out different versions!

31. Cooking challenge

For this game, you need an impartial judge and 2 or more participants. Each person will be given a time limit (usually between 1 and 3 hours), and they must create a delicious meal. You can have everyone use the same ingredients or give people time to shop for their own.

If you are having everyone use the same ingredients, try to include some unique flavors that present a challenge, like watermelon or hot sauce. Or add a unique twist, like, the meal must involve chopsticks.

At the end of the time limit, they’ll serve their meal to the judge and be graded on things like originality, flavor, presentation of the food, etc. It’s a fun idea if you’re an amateur chef trying to perfect your craft or if you’re just having fun!

You can do multiple courses if you want, but the best part is that everyone can eat the food at the end!

32. Save money challenge

A money saving challenge like this is ideal if you have a bit of time and you want to improve your savings game! You’ll need at least two people for this challenge, though you can include as many as you like.

To play, agree on an amount of time, like a week or month. Then, see how much money you can save during that time.

For instance, you might see how much you can save in ten days. But remember, you must start from zero and not include previous savings!

A quicker version is to see how much cash you can find and save in a single afternoon. You might check your change jars, under the sofa, or in your car. In the end, see who found the most change.

If you want, treat yourselves to something fun, like ice cream, with the money you find!

Expert tip: You can still have fun spending time at home

Personally, I’ve discovered that trying out a fun at home challenge can save me a ton of money. It also helps me bond and spend quality time with my friends and family. Doing something like this can help you out if you’re on a strict budget or want to save a lot of money for a goal.
You can still spend time with your friends without spending a fortune. Pick one night a week, every two weeks or once a month to try out something fun!

What challenges can you do at home for kids?

There are so many fun challenges to do at home for kids, and some ideas include the accents and impersonation challenge, the blindfold makeover challenge, the blindfold drawing challenge, the whisper challenge, and the dance challenge.

Make sure to choose a challenge that will be entertaining or educational. Competition challenges can also be fun, but make sure that kids don’t get too competitive! Instead, help them remember to have fun and do their best.

What at home challenges can you do by yourself?

On your own? Not to worry, there are several challenges you can do at home alone that are a ton of fun!

For example, you can try out the chubby bunny challenge, the egg-dropping challenge, the 100-layer challenge, the cleaning challenge, and the 30-day jump rope challenge.

Another great challenge is the saving money challenge. You can compete with yourself to save more money each week or month than the one before.

Be sure to check out our list of things to do when you’re bored!

What are fun challenges to do at home with friends?

Some fun challenges to do with friends include makeup or drawing challenges, baking challenges, and even money challenges. It’s important to pick something that interests you and your friend group.

To find the right games, I like to consider whether my friends and I enjoy competition, art, or practical games. Then, I choose things that will be both entertaining and help me spend quality time with the people I care about!

Why is it more fun to do a challenge with friends or family?

It’s more fun to try out a game or challenge with people you care about because it can help you become closer. You’re spending quality time together and doing something fun and memorable!

Additionally, some challenges can be fun on your own, but others are better with a group. You’ll create fun memories and may discover hidden talents you didn’t even know you had, such as cooking or drawing.

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• 18 Money-Saving Challenges To Save More Money!
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• 28 Different 30 Day Challenge Ideas Everyone Should Try

Try these fun challenges to do at home!

These at home challenges are an excellent way to enjoy the day without spending a bunch of money. Even if you are a working mother of three kids, a full-time graduate student, or a working professional, you are never too busy to have fun. “Playing” as adults can have lots of benefits, and can be considered a form of self-care.

The best part is that having fun can be completely inexpensive and guilt-free! Learn how to incorporate “fun” into your budget by creating a budget that works for you with our completely free budgeting course! You can also make saving money fun by trying out some different money-saving challenges.

Check out the Clever Girls Know podcast and YouTube channel for more fun ideas on how to save money!

The post 32 Fun Challenges To Do At Home Instead Of Going Out appeared first on Clever Girl Finance.

When you’re budgeting and want to boost your savings, the last thing you might consider doing is spending more money. But there are situations where choosing quality over quantity can actually help you save more in the long run. Keep reading to learn more!

I know it sounds crazy to buy something more expensive, right?

Well, actually, there are plenty of times when knowing how to spend wisely will help your future finances. I’m here to tell you about them and help you make the right choice.

Quality over quantity meaning

What does quality over quantity mean? Okay, so the definition may be obvious, but it’s important to be clear about the quality over quantity meaning before we go any further.

The phrase implies that choosing fewer things of higher quality is better than owning lots of low-quality things. It can apply to your fashion goals, what you eat, and what items you buy for your home.

Quality is how well-made something is

In basic terms, quality is how good something is. If an item is high quality, it means that it is well-made and will not easily break.

As an example, expensive bag brands like designer handbags are much more likely to last longer than high-street bags. But excellence often means a high price.

However, the quality of an item can also be subjective. A person’s opinions and feelings can determine it.

Quantity is just an amount

Quantity refers to the amount of something. So the number of shoes and handbags I own or general items around my home that I don’t actually need are quantity items.

Unlike quality, quantity is measured in a numerical format, and it can be counted.

How spending more can save you money in the long run

So this is what I’ve recently considered with purchases: Instead of filling my life and home with stuff, what if I carefully considered every purchase I make? How would that benefit my financial health?

Well, it would certainly make sticking to a budget much easier and my savings goals easier to achieve. I’d also stop overspending on cheap items that need replacing regularly.

While spending more on an item might seem like it would be more expensive, it will likely cost me less over time.

10 Quality over quantity examples

Ready to save money by buying quality things? Here are 10 quality over quantity examples that will improve your finances.

1. Furniture

When shopping for expensive items such as furniture, it can be tempting to purchase the cheapest items available. But by choosing high-quality items that are made to last, you may actually save money.

For example, if I buy an $800 sofa that lasts five years, it will cost me around $160 a year.

In comparison, if I buy a cheaper sofa at $400 that only lasts two years, it will cost me $200 a year.

Nobody wants uncomfortable furniture, and did you know that poor-quality chairs can negatively affect your body and health? Some things are worth spending more on, and furniture is definitely one of them.

High-quality furniture that is properly maintained can even be a good investment that you can sell when you decide it’s time for a refurb.

2. Clothing

Most of us are guilty of contributing to the fast fashion crisis. When it comes to clothes, quality is definitely best for our wallets and the environment.

If you spend a lot of money on a new pair of jeans, you’re much less likely to make an impulse purchase on cheaper items because you’ve already made a substantial purchase.

High-quality clothing is made of more durable fabrics, which means it won’t need to be repaired or replaced as often as lower-quality garments.

3. Food

Cutting your grocery bill and using the cheapest grocery list is a smart financial move to reduce your outgoings. But whilst canned goods and processed foods cost less, they can negatively affect your health and cost you money in the long term on healthcare.

Instead of compromising on the quality of your food, shop smarter by:

• Buying in bulk
• Growing your own fruit and vegetables
• Eating less meat
• Reducing food waste
• Buying in season

 4. Reusable items

Reusing items wherever possible is a great way to save money and do your part for the environment. Here are a few reusable products that will save you a ton of cash over time.

• Grocery bags: Most stores will charge you for carrier bags, so reduce your bill and take your own.
• Make-up eraser towels: Trade the disposable cotton pads for a more eco-friendly and purse-friendly towel. Simply wash, dry, and reuse it again and again.
• A smart notebook: Eliminate the need to buy a ton of notebooks and invest in a smart notebook. Write your notes, scan the page, clear it, and start again. Genius.

 5. Storage

Utilizing storage options can save you money on things like food and furniture. The right storage solution can protect and prolong the life of items, meaning you won’t have to replace them as often.

From buying freezer food bags to renting self-storage for your furniture, there are many ways to care for your possessions and get the most value from them.

6. Debt

What does quality over quantity mean when it comes to money? It doesn’t just apply to tangible items. Credit card debt is the perfect example of how spending more can save you more in the long term.

Making the minimum monthly repayment means that your debt will take longer to pay off. The balance left will also then accrue interest, costing you more overall.

For instance, suppose my credit card has a $2000 balance and an 18.9% interest rate. Clearing the debt in three years instead of five will save me hundreds of dollars and keep me from drowning in debt.

7. Homeownership

Are you deciding between buying your first home or continuing to rent?

There’s no denying that owning a home costs more than renting in the short term.

However, from a long-term financial perspective, buying a house allows you to save money and invest in your future.

The most important thing is only buying a home you can afford so you don’t become house poor. It’s often worth saving for longer before getting on the property ladder to increase your down payment and reduce your monthly mortgage repayments.

In most cases, rent prices may be higher than mortgage repayments, so you can use the difference in money to boost your savings.

8. Memberships

If you, like us, love a good subscription service, here’s some good news. You might be able to save some cash with the right membership!

For instance, if you use Amazon, it’s definitely worth investing in an Amazon Prime account. You will save money on deliveries and have access to videos and music, so there will be no need to spend money on these elsewhere.

Perhaps you already have a subscription like this. If not, you can save by buying only one that offers a lot instead of several.

Food subscription boxes are also a good way to save money by reducing food waste. With some research, you can find subscriptions that prioritize quality over quantity.

9. The neighborhood you live

Good neighborhoods may demand higher rent and mortgage payments, but living in a better area can save money.

For instance, good neighborhoods come with lower crime rates and a sense of community vigilance. They also tend to have well-maintained surroundings, including roads, parks, and public spaces, which contribute to a clean and pleasant environment.

Schools have good ratings and living in a desirable neighborhood can positively impact property values. I certainly considered school district rating and property values when I was deciding where to live and raise a family.

You may also be able to save on car insurance which is likely to be lower if you live in a lower-risk area.

10. Insurance

Paying for health insurance or a health savings account may seem unnecessary when you’re young and healthy, but it can save you thousands of dollars if you require emergency care.

Instead of skipping the coverage completely, shop for the best price. You can also save money by joining a family member’s existing plan if you are a spouse or under the age of 26.

Expert tip: Be consistent in your choices on quality

To truly live a lifestyle that values exceptional quality, you need to be consistent in the choices you make. You need to clearly define your personal core values and stick to them. Every time you spend money, it should be on something that reflects your priorities.

I found that physically writing my values down on pieces of paper and sharing them with my family motivates me to make the right decisions. You could even include a few in your wallet so you see them every time you open it. I also believe it’s easier to say no to things that cost money if family and friends know what you’re aiming for.

Here are some questions to ask yourself to help you stay consistent in your choices:
Do I really need this?
Why do I want to buy it?
Can I afford it?
How long will it last?
Could I borrow it instead?

Buying quality is all about making the right kind of purchases, and these are never rushed! You can apply this approach to items as small as a bottle of water or as large as a car to ensure you’re consistent with your buying habits and long-term goals.

Why choosing quality improves your life: 6 Reasons

Maybe you’re convinced to start buying for quality. But just in case, here are a few more reasons why buying quality is always the right option.

1.   Quality lasts for years

High-quality products are created to stand the test of time. Which means you won’t need to constantly replace them. I love that I can buy something for a bit higher price but am confident that it will last for years.

2.   It’s better for the environment

When a product is well-made, it’s less of a burden on our planet because it won’t need to be thrown away. You can help the earth with sustainable living and your budget at the same time.

3.   It helps you save time

By focusing on quality over quantity examples, you won’t waste time trying to have everything at once. The time you save can be better spent doing the things you love instead. Having fewer items to care for is another way to get some of your time back.

4.   It can benefit your mental health and well-being

Understanding what quality over quantity means will not only benefit your bank balance but also your happiness.

In fact, clutter can hurt your mental health. So, instead of having many items in your home, choose fewer possessions of high quality.

5.  Reduces stress in your life

Carefully choosing the people and things you have in your life will reduce stress. How? Well, owning many material items and being part of a huge circle of friends can be overwhelming.

Stress is often caused by trying to do too much. Less clutter and less worry and busyness can lead to a more carefree lifestyle.

6.  Helps you live more simply

Choosing quality ultimately means doing what makes you happy. When we do what makes us happy, we experience satisfaction and fulfillment. When people say “it’s the simple things in life” that make them happy, it really is!

Think about it like this: Would you rather invest in one classy, timeless piece for your wardrobe or buy a bunch of trendy, lower-quality garments that clog up your closet and will become redundant in a few months anyway? I guess that most of us would go for the first option.

What is the theory of quality over quantity?

The quality over quantity theory uses measurement to explain why investing in quality things is better for our mental and financial health. It focuses on value and fulfillment being more important than volume. Quality gives us longevity and significance, whereas quantity just gives us a large volume of an item or thing.

You may need to shift your mindset to train yourself not to choose quantity over quality, and that’s ok. Start by prioritizing what’s important to you and focus on those things. With practice, you’ll naturally strive for quality and a simpler life as you start to benefit from the many reasons quality is king.

In my opinion, daily gratitude is an excellent way to achieve a quality mindset. I like to take ten minutes out of my day to remind myself of what I have to be grateful for.

You could even make a list and look back at it whenever you need a reminder.

What does quality over quantity mean in relationships?

The quality over quantity meaning in a relationship is not about how much time you spend together; it’s about HOW you spend it.

For example, if you spend every evening with your spouse but use the time to browse social media and watch TV, it doesn’t count as quality time focused on each other.

A few activities you could try that prioritize quality with your significant other without breaking the bank are:

Cooking together

Preparing a meal requires conversation and physical closeness, making it the perfect date night activity. 

Treat yourselves to a spa day

Who doesn’t love a spa day? Relax in each other’s company and enjoy the moment.

Have a picnic

Sometimes the simple activities are the best. Pack a picnic, choose your favorite spot, and watch the world go by.

Exercise 

Exercising together can strengthen your bond. It’s also great for motivating each other to keep going and achieve your fitness goals.

Stargaze

If you’re looking for a cute activity for date night, look no further. You don’t need fancy equipment—just some blankets and the stars!

Plan a vacation

Nothing beats the excitement of planning your next vacation! Make a list of places you want to go and things you want to see, and choose everything together. And don’t forget about a vacation budget!

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• Why Everyone Should Try Slow Shopping
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• How Do I Shop My Closet Instead Of Spending Money?

Focus on what matters most!

So, here are the final thoughts…choosing how we spend our money is powerful, and we choose how we spend it.

By making quality purchases, we will reap the benefits of our purchases for a long time. And, in turn, save both time and money!

So leverage the tips we’ve explored here and the many ways that opting for quality over quantity can help you lead a financially healthier and happier life. You’ll save money and live better. And next time you make a purchase, focus on quality, not quantity, to help you save money!

The post 10 Areas Of Life Where You Should Buy Quality Over Quantity appeared first on Clever Girl Finance.

When you are paid on a biweekly basis, it may make sense to create a biweekly budget. A biweekly budget is perfect for those who get paid every other week. You can structure your budget around your paychecks so you don’t miss anything with your money, and you can find out how here!

There are many monthly budgets to choose from, but it may get confusing if you get paid a few times in the month. Or perhaps you are simply looking to budget by each paycheck to have better control of your finances.

Personally, I’ve found using this budget game-changing. I have more control over my finances than ever before by budgeting this way. The process is not complex as long as you plan things out and set aside some time to prepare it.

If you are curious, I’ve got you covered with this guide on creating a biweekly budget. You’ll also find links to some excellent biweekly budget templates to help you start!

What is a biweekly budget?

A biweekly budget is a budget that considers a person getting paid every 14 days. So you will usually get a first paycheck and then a second paycheck in the same month (with some exceptions depending on the month e.g. some months will have three pay checks).

Some other pay schedules are getting paid monthly, weekly, and semi-monthly.

The difference between bi-weekly and semi-monthly pay schedules

The biweekly and semi-monthly pay schedules are slightly different as the total number of paychecks per year varies. The key difference is that you get 26 biweekly paychecks versus 24 semi-month paychecks.

That said, creating a bi-weekly plan gives you control over your finances because you can allocate specific expenses to specific paycheck each month.

How does a biweekly budget work?

With a biweekly budget, you will have ten months where you collect two checks and two months where you collect three checks. 

Even though your paychecks may be different in some months, many of your fixed expenses will stay the same. When you set up a biweekly budget, you’ll need to your expenses and income and lay it out for each month.

When I first started bi-weekly budgeting, I have to make sure I was properly distributing my income to specific expenses and goals each pay period. It was a little tricky at first to figure out how to do this but after a few weeks, I came up with an approach that works for me.

I essentially assigned bills that had due dates in the first two weeks of the month to one paycheck, and bills with due dates in the last two weeks of the month to the other paycheck. When it came to my savings goals, I decided on specific dates each month that I would like to “pay myself” and I split those payments according to when I would get paid.

Pros and cons

There are a few things to consider when setting up a biweekly budget. Some people find it makes life easier to budget on a weekly or monthly basis.

However, you can budget based on how you are getting paid. Here are some pros and cons of the biweekly budget.

Pros of a biweekly budget

1. Takes into account the timing of your paycheck and the pay period.
2. Using a bi-weekly expense planner allows you to plan and save up for the unique event.
3. The months with extra paychecks allow more room to pay off debt or save.
4. It is much easier to keep track of bill payments and times with the budget in place.

Cons of a biweekly budget

1. The initial input and setup take time. 
2. You may have to move around bill payment times to make it work.
3. There is a chance of not using the third paycheck appropriately.

How to create a biweekly budget

Now that we have the basics down let’s look at the steps in creating a biweekly budget. You want to ensure you can easily cover all of your essentials.

That means your rent (or mortgage), utilities, groceries, etc. Here are the steps to follow:

Step 1: Set up a calendar

To start creating your biweekly budget, you’ll need to set up a budget calendar with your bill due dates, pay dates, savings plans, and other important dates.

Having a calendar gives you a visual view of everything that will occur during the month, this way you can plan each bi-weekly check you get accordingly. That means that you can manage your first and second paychecks without worrying between them.

You can do this on a spreadsheet to have a visual view of everything that will occur during the month.

Step 2: Organize your expenses according to your bi-weekly pay

Once you have your calendar set up, ask yourself if you need to adjust the due dates on certain bills so they are more evenly spaced. Base this on when you get your bi-weekly pay so you don’t get behind on bills.

Look at when your mortgage, utility bills, and credit cards are due. Think about all the monthly expenses you pay out of your account.

The goal is to be able to cover the expenses that fall in each 14-day window with your bi-weekly paycheck. Split your expenses up into different categories to help you get this right.

Utility companies and other sources of your recurring bills can be quite accommodating when it comes to moving bill payment dates. Don’t be shy to call and ask for your due dates to be moved.

If you want to be sure you haven’t missed anything, it can be helpful to review your last few months of bank statements.

Step 3: Don’t forget your variable expenses

Once you have all your recurring expenses in place, go back through the month and examine any other potential variable or one-time expenses that could arise, such as entertainment costs.

For example, are there birthdays this month? Do you have to make an extra payment toward a larger debt? Are you planning a vacation or do you have a back to school shopping list?

Determine where to best fit them in your bi-weekly budget template. You should plan to review your variable and one-time expenses ahead of time every month.

If you want some extra help here, there are plenty of tools available. Some people find that using an expense tracker or debt tracker works for them, for example.

Step 4: Create a buffer

I personally think that this is the most important step for a biweekly budget. When all of the consistent and variable expenses are in place, go back through the budget and add a buffer.

The buffer should be for emergency money and big upcoming costs that would fall under sinking funds. Having this extra money is a huge help if/when an unexpected or big expense should come up. If you don’t use the buffer, keep it saved.

Step 5: Start tracking your budget

Now that your budget is in place, the last thing to do is start tracking. You must keep track of all spending and savings so that your personal budget is accurate. Keeping a spending journal can help!

There will be things that come up that are not part of your plan. These can be extra income or extra expenses, so make sure you track them all.

So, set a bi-weekly reminder to check in on your budget and make your bill payments and savings account transfers every two weeks. You might want to use a budget binder or download a PDF budget template to help you.

Biweekly budgeting tips

As you can see, the process of setting up a biweekly budget is not all that difficult. It takes an hour or so at the beginning of the month to plan out any expenses and income for that month. If you have mostly recurring expenses, it can take even less time.

Having this head start and being aware of the month ahead can help you ensure you are financially stable. Here are some great tips for biweekly budgeting.

1. Make sure you write everything down.
2. Use an app on your phone to track spending if necessary.
3. If your bill due dates are not working out, call companies and ask to change the due dates.
4. Save up for one month of expenses so that you will always know you have the month covered should something come up.

What to do when you have a third paycheck

Ready for some good news? Getting your third paycheck in a month will feel like a bonus if you follow your biweekly budget correctly. There are so many great ways to use that paycheck, but here are a few of the best options.

1. Pay down your debt.
2. Put some money away towards a big bill coming next month.
3. Plan ahead and grow your emergency fund.
4. Save for a vacation or a significant home expense that may be coming up.
5. Use it to put aside an entire month of expenses as a backup.

Best biweekly budget template options

Although you can always create your own biweekly budget templates, sometimes it is much easier to just print one. There are many different styles out there, so you can find one that matches your preferences.

1. Biweekly budget planner from The Savvy Mama
2. 101 Planners free budget template 
3. Templates free biweekly budget templates 
4. Vertex biweekly budget template

You can try each bi-weekly budget template. Or create a biweekly budget planner using a binder and make space for your bills, bank statements, and other financial documents.

Expert tip: Save a “fun” fund too

We’ve gone over how to cover your basic expenses but that said you make money so that you can enjoy your life. When you’re creating your budget, be sure to set aside some cash for the fun things in your life too. 

Alternatively, you might want to use your third paycheck for this from time to time. For example, I have found that this extra “bonus” is useful when covering trips away, parties, and special occasions. 

How much should I save bi-weekly?

If you can, it’s a great idea to set a goal of saving 10% to 20% from each paycheck when you are budgeting on a bi-weekly basis.

Of course, there will be times when saving that amount is out of reach. If that is the case, keep it as a goal for the future and instead you can aim to save at least 5% of your income each paycheck.

Is a bi-weekly budget different from a semi-monthly budget?

Yes, a bi-weekly budget and a semi-monthly budget are different. With a bi-weekly budget, you are planning your finances based on getting paid every 2 weeks (14 days). In a 12 month period would get paid 26 times.

Whereas with a semi-monthly budget, your plans will be based on getting paid twice a month. And in a twelve month period, you’ll get paid 24 times.

With a bi-weekly budget you will get an extra paycheck twice a year. So it’s important to look at the calendar and determine which months you’ll get paid three times so you can properly plan for this money! I like to use this pay to accelerate my savings goals or plan for big events like family trips.

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Try the biweekly budget to manage your finances!

Now that you have everything you need to develop a biweekly budget, set aside time on your calendar to get started. We know the process of putting this all into place can be a bit daunting, but it is indeed the right path to becoming fiscally responsible and successful.

It’s hard to see exactly where your paycheck is going until you put it down on paper. Putting together a budget is eye-opening and will change how you think about day-to-day spending.

If you are paid biweekly, then a biweekly budget planner can be the best method for your finances. The more specific these plans can be, the better your chance for success.

The key is to manage your money wisely so you don’t have to live paycheck to paycheck. Learn more about ditching debt, saving money, and building wealth with our blog and completely free financial courses!

The post How To Create A Biweekly Budget In 5 Simple Steps appeared first on Clever Girl Finance.

How can you ensure you don’t go over your budget? Staying focused with money can be challenging for many of us (raising my hand here!). The temptation to overspend, unexpected expenses, and lifestyle inflation are just a few obstacles that can get in the way. However, with the right strategies, learning how to stay on budget can be done!

In this article, I’ll go over key tips and techniques to show you how to stay organized and not overspend with money. Let’s dive in!

Fundamentals for budgeting success

Before we can figure out how to stay on budget, it’s helpful to understand some basics. At its core, budgeting involves three fundamental steps: defining our financial goals, tracking our expenses, and creating a system that aligns with our objectives. Here’s a little more about each of these:

Define your financial goals

As we begin our journey, defining and clarifying financial goals is essential.

Whether buying a house for the first time, eliminating debt, or building an emergency fund, establishing clear and measurable goals is key. Once we have those goals in place, we can better determine what kind of system to create.

Track your expenses

With our goals in mind, it’s time to gain a thorough understanding of current spending habits. As they say, we can’t move forward if we don’t know where we are right now.

Keep meticulous records of expenses for a few weeks, categorizing each and identifying patterns.

For instance, where do you like to spend? Struggle with overspending? By doing this, you can start to pick out areas where adjustments can be made.

Whether through the use of apps, spreadsheets, or an old-school notebook and pen, tracking your expenses is one of the first steps toward exercising control over finances.

Create a realistic budget

With an understanding of our financial goals and insights into our spending habits, we’re ready to create a system. While there are many ways to create and make a better budget, one key is to make sure ours is realistic.

I like to account for all sources of income and expenses, including fixed costs and discretionary spending, like clothes and gifts. Be authentic when setting your budget. You don’t want to set yourself up for disappointment.

Focus on creating a balanced system that reflects your current financial reality, leaving plenty of room for adjustments.

6 Tips for staying on budget

With an understanding of what a budget is and a solid financial system firmly in place, here are six tips to help you stay on budget:

1. Set spending limits

It’s important that you establish clear spending limits within each category. This is key to preventing overspending. Allocate specific amounts for essentials such as groceries, transportation, housing expenses, and fun money/discretionary categories like dining out and entertainment.

It’s okay to spend on certain “frivolous” things. Nobody is stopping you from occasionally indulging in what you love. But we should set limits for ourselves.

For example, if you love shopping at Sephora (who doesn’t?), include that, but set yourself a cap and vow to stop spending once you hit that limit. That way, you can still indulge here and there but won’t blow your money goals because of it.

2. Automate your bill payments

Automating our finances is one of the most effective strategies for staying organized.

By setting up automatic transfers or payments for recurring expenses such as rent and utilities, we can be sure we’ll meet our financial obligations on time.

Not only does this minimize the risk of late fees or missed payments, but it can also help ensure those bills are always paid first before we begin to spend on discretionary things.

3. Practice the 24-hour rule

Impulse purchases are the downfall of many money-conscious people, derailing even the most meticulously crafted plans.

To combat impulse spending, adopt the 24-hour rule: before making non-essential purchases, wait twenty-four hours and reassess whether the purchase aligns with your financial goals. This cooling-off period provides an opportunity for reflection and helps prevent impulsive decisions.

I’ve successfully used this rule to help me curb my impulse spending. I’m aware that social media ads can easily lure me into buying something I didn’t even know existed before logging on that day, so I’ve implemented the 24-hour rule for online shopping.

If I see something I like, instead of adding it to my cart and instantly buying it, I make myself wait a day. Usually, I don’t even remember I saved something in my cart until days or weeks later, and by that time, I’m no longer interested. But, if I still am, and if it’s in my budget, I can still buy it!

4. Plan for unexpected expenses

Are you wondering how to stay on budget when something unexpected happens? Life is unpredictable, and unexpected expenses are inevitable.

To mitigate the impact of these surprise costs, establish an emergency fund with three to six months of living expenses. You can weather financial storms by setting aside funds for emergencies, such as hospital bills, car repairs, or home maintenance.

5. Practice self-compassion

Like most areas of personal finance, cultivating a sense of self-compassion is essential. Everyone will veer off course and throw their budget out the window at some point.

Instead of beating ourselves up over a slip-up, reacting with kindness is important. Remember—it’s about progress, not perfection when it comes to sticking to a money system.

6. Regularly review and adjust your budget

How can you ensure you don’t go over your budget? One of the best ways is to do a budget review periodically.

As our circumstances change and our financial priorities shift, we need to remember to adjust our financial system accordingly. Whether due to changes in income, expenses, or personal goals, we will all see lots of changes in our financial lives.

We should set aside time each month to assess our money, identify areas for improvement, and make the necessary changes.

Expert tip: Try loud budgeting

In recent years, there’s been a big shift in how we talk about money. And this is a good thing!

No longer is money the taboo topic it used to be. For example, it’s become more commonplace to share salaries with our coworkers or tell our friends how much our end-of-year bonus was. That’s why “loud budgeting” is having a moment right now.

To make loud budgeting work for you, start by being more open about what you want to and can spend your money on. We can thank Gen Z for promoting this idea, but it can help all of us stick to our budgets!

How can you ensure you don’t go over your budget?

In addition to the strategies outlined above, here are some more tips to help safeguard us from overspending:

Use apps

Digital tools are one of the best ways to streamline our finances and stick to our goals. From expense tracking to goal setting, apps offer many features designed to keep us on target.

Some of our favorites include You Need a Budget (YNAB) and Microsoft Excel’s budget templates, in addition to our own best budget templates, of course!

Know your spending triggers and keep away

Identify the triggers, such as emotional spending, that lead to impulsive shopping.

For me, it could be stress, boredom, or anxiety. We can develop strategies to prevent overspending when we become aware of our triggers and temptations.

For example, if I know I always shop online when bored, I can replace this behavior with calling a friend.

One of my big spending triggers is procrastination. More specifically, I procrastinate when I’m anxious about a task that I don’t know how to start. When this happens, I will do anything to avoid that task!

Often, that “anything” includes shopping. I’ll convince myself I have to shop to avoid the discomfort of not knowing how to do something. Luckily, I can usually identify when I am doing this, have a little chat with myself, be kind to myself, and force myself just to start.

Find an accountability partner

Want to know how to stay on budget? Ask a good friend or family member to serve as an accountability partner on your money journey. Share your financial goals, challenges, and progress with this person.

In addition, you can use their support and encouragement to stay motivated, and they can get the same benefits from you.

What is the best way to stay on a budget?

Staying on budget requires planning, discipline, flexibility, and self-awareness. Here are some additional tips to help us stay consistent with our finances and achieve long-term financial success:

Find a method that works for you

Explore different methods, such as zero based budgeting, the cash envelope system, or the 50-30-20 rule, to find an approach that resonates with you and your financial goals. Experiment with various techniques until you discover the best method for your needs.

Be disciplined yet flexible when learning how to stay on budget

While sticking to our goals is essential, staying flexible is just as crucial for long-term success. Life is full of surprises, and maintaining flexibility in our budgets allows us to navigate unexpected expenses or income fluctuations, such as irregular income, without sacrificing our financial stability.

Celebrate small wins along the way

How can you ensure you don’t go over your budget? Acknowledge and celebrate your achievements, no matter how small, as you progress.

Whether it’s paying off one credit card or sticking to your financial system for one week or an entire month, each accomplishment brings you one step closer to your goals. Celebrating your successes reinforces positive financial habits and motivates you to continue your journey.

Why can’t I stay on a budget?

Despite our best intentions and efforts, we may fail to stick to our budgets.

In fact, we probably will, and that’s okay! The important thing is that we adjust and get back to it. Here are some common reasons why people might struggle with how to stay on budget:

Failure to adjust for income or lifestyle changes

We’re likely to face changes in income or expenses, which can significantly impact our money. If we don’t adapt our finances to accommodate these changes, it can cause a lot of frustration, not to mention financial strain.

We need to be proactive by reassessing our finances regularly and making adjustments as necessary to reflect our current circumstances.

For example, a few years ago, I left a job with a high salary. It was the best thing I could have done for my mental health, but it wasn’t the best financial move because I did not account for my adjusted (lower) income.

I kept my lifestyle and spending habits for a few months, not adjusting my finances to my new reality. Luckily, I did correct course quickly to live below my means, but it’s something to be aware of because our financial circumstances are often changing. It’s important to make sure our spending and budget change, too.

Unexpected expenses

Emergencies and unforeseen expenses will occur. For all of us.

Failing to plan for these costs can disrupt even the most carefully crafted budgets. To minimize the impact of these unexpected expenses, prioritize building an emergency fund and maintain a financial buffer.

Emotional spending

Emotions play a powerful role in our financial decision-making processes. No matter the root cause, emotional spending can sabotage our efforts and derail our financial goals.

If we can learn to recognize the underlying triggers behind our spending habits and develop healthier coping mechanisms to address them effectively, we’ll be well on our way to sticking to our budgets.

Articles related to budgeting

Want to learn more about creating an ideal system for your money? Check out these great posts!

• How To Budget By Paycheck: 5 Key Tips For Success
• Budget Not Working? Here Are 5 Tips For Better Budgeting!
• 15 Key Tips For Living On One Income
• Save More! Try A No Spend Challenge!

Embrace these principles to help you stay on budget!

By embracing the principles discussed here, we’ll all be one step closer to staying on target with our finances.

Remember your finances won’t always be perfect, and you might slip up here and there, but you can always regroup and get back to successfully budgeting. Focusing on your goals and keeping organized finances will help you make progress!

The post 6 Practical Tips For How To Stay On Budget appeared first on Clever Girl Finance.

Budgeting can be a tough habit to maintain especially if you have a lot of numbers, but it’s oh-so-important for women who want to take control of their finances.  Because budgeting can feel like a drag sometimes, everyone could use a little extra motivation to keep their spirits elevated when it comes to budgeting. That said, today’s motivation comes in the form of 42 budget quotes (in total) that will improve your mindset!

Why budget quotes are inspiring!

Want to know why quotes about budgeting help? Quotes are short and sweet bits of wisdom or humor (Check out our funny money quotes!) based on something someone has said, which in turn inspires us to keep moving forward when the going gets tough.

Budgeting quotes are usually quite brief, so they can help us focus and give us just the push we need to continue on with our day even if the tasks we’re doing don’t feel like they matter much in the moment.

Below are 42 budget quotes broken out by category to inspire you, motivate you, help you stay on track, and give you ideas to take your budget mindset to the next level.

8 Quotes on budgeting for overall inspiration

We all know the purpose of a budget but sometimes, just a little bit of inspiration can be just what we need to stay focused. 

Use these inspirational budget quotes to reignite your passion for budgeting and find the inspiration you need to keep going!

1. “If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.” – Edmund Burke

2. “Budgeting is not just for people who do not have enough money. It is for everyone who wants to ensure that their money is enough.” – Rosette Mugidde Wamambe

3. “Every cent you own and every moment you spend is always an investment.” – Natalie Pace

4. “If broke people are making fun of your financial plan, you are on the right track.” – Unknown

5. “Life is a dance between making it happen and letting it happen.” – Arianna Huffington

6. “One reason people resist change is because they focus on what they have to give up, instead of what they have to gain.” – Rick Godwin

7. “A budget doesn’t limit your freedom; it gives you freedom.” – Rachel Cruze

8. “Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success.” – Picasso

Remember why you are budgeting in the first place

What I love about these inspirational quotes is that they remind us why we budget, which is helpful when we’re mired deep in the how of budgeting. 

When you forget to “find your why” budgeting can sometimes feel like you’re just slogging through the numbers, making a ton of sacrifice and making yourself feel guilty about what you’ve spent our money on.

But in reality, the whole point of budgeting is to find financial freedom. As Rachel Cruze said, a budget gives you freedom. So, these quotes can help you keep that freedom top of mind.

I encourage you to pick one or two of these quotes that resonate with you and write them on a post-it note. (Or if you’re feeling fancy, type them up in a pleasing font and print them out.) 

Post them somewhere you’ll see them often. They’ll inspire you to whip out your budgeting app or spreadsheet even when you don’t feel like it. Additionally, it’s worth thinking about what your favorite quotes about budgeting are and using them in your everyday life.

8 Motivating quotes even when budgeting is hard

Sometimes budgeting can be downright hard. It could be that your budget isn’t going accordingly to plan or you are just too tired or stressed to track it. 

However, there are some handy, motivational quotes about budgeting you can use. These quotes will give you the motivation you need to keep budgeting!

1. “Becoming rich is hard. Staying broke is hard. Choose your hard.” – Eric Worre

2. “You don’t have to see the whole staircase, just take the first step.” – Martin Luther King, Jr.

3. “The slightest adjustments to your daily routines can dramatically alter the outcomes in your life.” – Darren Hardy

4. “It is not necessary to do extraordinary things to get extraordinary results.” – Warren Buffett

5. “Money, like motions, is something you must control to keep your life on the right track.” – Natasha Munson

6. “A budget isn’t about restricting what you can spend. It gives you permission to spend without guilt or regret.” – Unknown

7. “If you don’t get serious about your money, you will never have serious money.” – Grant Cardone

8. “People do not decide their futures. They decide their habits, and their habits decide their futures.” – FM Alexander

Small actions add up to big progress over time

One reason that I find budgeting so draining is that it takes small, consistent, and often monotonous actions to see tangible, exciting results. And as a result, those actions can feel meaningless when we lose sight of why we’re doing them.

For instance, on a day-to-day basis, it can be easy to think to yourself, “I won’t ruin my budget if I don’t budget today.” However, say that too many times and soon you won’t have a budget at all.

Use these quotes to motivate yourself to keep doing the small actions every day (or at least once a week!). Actions like importing your transactions, categorizing your expenses, and reviewing your monthly budget progress do matter.

There are ways to make budgeting easier. Find budget templates or tools that work for you and make budgeting less painful.

12 Budget quotes to help you save more money

Saving money can be painful and demotivating, especially when you’re first starting out. Additionally, even a small leak can have big consequences.

However, with the best quotes about budgeting by your side, you can upgrade your saving habits and find motivation for saving money. So here are some quotes to help you stay focused as you work on saving more money:

1. “Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” – Ayn Rand

2. “Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” – Will Rogers

3. “You must gain control over your money or the lack of it will forever control you.” – Unknown

4. “When money realizes that it is in good hands, it wants to stay and multiply in those hands.” – Idowu Koyenikan

5. “Beware of little expenses; a little leak will sink a great ship.” – Benjamin Franklin

6. “Don’t give up what you want most for what you want now.” – Unknown

7. “Unless you control your money, making more won’t help. You’ll just have bigger payments.” – Dave Ramsey

8. “Money isn’t about buying bigger and better things. It’s about being prepared to take care of your family.” – Unknown

9. “Save money, and money will save you!” – John Soforic

10. “Don’t save what is left after spending; spend what is left after saving.” – Warren Buffett

11. “The rich get rich because they pay themselves first.” – David Bach

12. “We must consult our means rather than our wishes.”― George Washington

Learn how to spend money so you can save more money

I subscribe to the philosophy that if you’re cutting back on expenses to the point of depriving yourself of everything you love, you’re not likely to stick with your budget. 

That said, I didn’t include any budget quotes that shame you for spending money on things you love. Budgeting shouldn’t be about only spending money on the bare necessities, because you need fun money, too.

Instead, opt for creative savings where you can. Don’t spend your money on expenses that don’t truly bring you joy or value. And if you do have to cut back on some things to save money, use these budget quotes about saving to remind yourself why you’re doing so.

5 Budgeting quotes that will inspire you to earn more

Sometimes our budgets reveal that if we want to truly make progress toward our financial goals, we need to start earning more money. 

And when we do start earning more money, our budget helps keep us accountable to actually save that money instead of increasing expenses. 

In addition, there are a bunch of budgeting quotes that can help here. So let’s take a look at are our favorite quotes about this:

1. “Become so financially secure that you forget it’s payday.” – Unknown

2. “The more your money works for you, the less you have to work for money.” – Idowu Koyenikan

3. “The stock market is designed to transfer money from the active to the patient.” – Warren Buffett

4. “Compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn’t, pays it.” – Albert Einstein

5. “Don’t make money, create wealth. Making money is easy. Being able to create and sustain wealth is what will set you apart from the rest.” – John Rampton

You have what it takes to earn more money

Many of these budget quotes reveal that one of the easiest ways to earn more money is to put your money to work for you and invest.

However, are you afraid you don’t have enough knowledge about investing? Investing for beginners isn’t as difficult as you’d think.

You don’t have to be an expert on investing to get started, and there are plenty of resources to help you learn more. (Order the Clever Girl Finance book Learn How Investing Works, Grow Your Money today!)

You can also learn how to invest with a small amount of money. Investing just a little bit today can earn you more than investing a lot of money in a few years, thanks to the power of compound interest.

9 Best quotes on budgeting overall

This last section includes some of the best quotes of all time on budgeting. Many of these budget quotes were spoken by people who have seen firsthand how the power of budgeting helps you grow wealth and become financially secure. 

1. “The simplest definition of a budget is ‘telling your money where to go.” – Tsh Oxenreider

2. “Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” – Joe Biden

3. “A budget is telling your money where to go instead of wondering where it went.” – Dave Ramsey

4. “A budget is more than just a series of numbers on a page; it is an embodiment of our values.” – Barack Obama

5. “The budget is not just a collection of numbers, but an expression of our values and aspirations.” – Jacob Lew

6. “Money is a terrible master but an excellent servant.” – P.T. Barnum

7. “Got my mind on my money, and my money on my mind.” – Snoop Dogg

8. “Stop being the chess piece, and start being the chess player. It’s time to master the game of money once and for all.” – Tony Robbins

9. “Budgeting isn’t about limiting yourself – it’s about making the things that excite you possible.” – Unknown

Chances are, one or two of these will resonate with you and remind you why you’ve committed to budgeting in the first place.

The speed of your success depends entirely on your own dedication to budgeting. You can change your spending habits and the way that you manage money by identifying your true needs. Also use these quotes to align your purpose for budgeting with your personal core values. 

Expert tip: Create a budgeting vision board

Nobody can do the work for you. When it comes to the understanding of your budget, you are the master of your own destiny.

But sometimes, we all need a little motivation to get things moving. With a little creativity, you can make your own budgeting vision board.

For example, include images that make you feel motivated, a handful of the best budgeting quotes, and anything else that inspires you. 

Saving money is the result of habit. The secret to getting it right is reminding yourself why you are doing it. Whenever you feel like going off track, take a look at your board for support. 

What is a positive quote about budgeting?

One of my personal favorite positive quotes about budgeting is “A budget is telling your money where to go instead of wondering where it went” by Dave Ramsey. For me, it sums up why we put sustainability and budgeting first. Essentially, we need ot have a plan for our money, otherwise it will slip away.

What is a famous quote on budget?

Chances are, you know the lyric “Got my mind on my money, and my money on my mind” from Snoop Dogg. It may not be the most literary budgeting quote but it will stick in your head!

What is a catchphrase for budgeting? 

If you’re looking for a short and sweet catchphrase about budgeting, here’s one of the best. “Save money, and money will save you!” by John Soforic. Why not write it somewhere you will see it every single day?

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If you liked learning from these fun budgeting sayings, you’ll love reading these articles next!

• 20 Debt Free Quotes To Inspire You!
• 11 Key Ways To Improve Your Money Mindset
• 31 Funny Money Quotes That Teach Real Life Lessons!
• 10 Big Budget Challenges And How To Tackle Them

Get inspired by these quotes to stay on track with your budget!

Budgeting can set you free financially. Furthermore, done consistently over time, budgeting allows you to practice intentional living with your spending. And cutting the budget without sacrificing the things you love most is rewarding.

So if you’re struggling to stay on track with your budget, pick one, two, or even three of these quotes that stand out to you and post them in a place you’ll see them often. Stay focused, stay motivated, and just keep budgeting.

In addition, if you want to become a budget boss, make sure to enroll in our free Create a Budget That Works course. Also, check out our other 100% free courses, worksheets, and resources to help you build and maintain a solid financial foundation for the rest of your life!

The post 42 Budget Quotes To Improve Your Budget appeared first on Clever Girl Finance.

Are you looking to jumpstart your savings? Does saving money feel too hard or even too boring at times? You can turn saving into a game and complete a 6 month savings challenge!

By completing a 6 month money challenge, you’ll end up with a pot of money, form new money habits along the way, and be inspired to keep on saving. I can attest to this as I’ve personally used this challenge multiple times to bulk up my emergency savings as well as save for my other goals.

Ready to get started? Read on to learn how to successfully complete a 6 month savings challenge!

What is a 6 month saving challenge and why should you do one?

First things first – what exactly is a 6 month savings challenge? There are many ways to complete one, which we’ll go into more detail about below.

But the main idea is that you save a little bit of money every week for the entire six months. And by the end of the challenge, you will have saved up thousands – yes, thousands – of dollars!

Second, you might be wondering, “Why should you try this challenge?” There are many different types of money savings challenges out there, such as the 52-week money challenge and the spare change challenge. Why this one?

Well, for anyone who is serious about saving, there is nothing better than a 6 month saving challenge. Here are some reasons to try one for yourself:

1. Helps you reach a specific financial goal quickly

Do you have specific financial goals you’re working toward? The challenge is especially great for someone who already has a financial goal in mind, like saving for an epic summer vacation or paying off credit card debt.

It’s a great way to kick off your savings and reach your financial goal, especially if you’ve had trouble saving for the future in the past.

And as I mentioned earlier, this challenge has been incredibly helpful in helping me meet my own goals!

2. Proves to yourself that you can save

A positive, growth-oriented mindset is one of the most powerful financial tools you can leverage. One reason why you might not have unleashed the power of mindset when it comes to your finances? You haven’t yet seen the evidence that you can actually successfully save.

When you complete a challenge, that negative mindset will all begin to change. You will prove to yourself that you really can save. It will increase your confidence and inspire you to try even more things!

3. A 6 month money challenge makes saving fun!

This reason is quite simple – participating in a challenge is fun! It’s fun to track your weekly savings, see it add up, and figure out what you need to do to ensure you meet your weekly savings goals.

Sometimes, it really does help to put a little bit of fun and play back into something that can feel as serious as personal finance. Adults don’t have as much fun as we should, to begin with. There’s no reason why you can’t treat saving like a game, with the prize being a ton of money!

4. Sets you up with good savings habits that reach beyond the 6 month savings timeframe

The most impactful benefit of participating in this challenge is what will happen after it’s over. Sure, over the course of the challenge, you’ll save thousands of coins. That will put you all that much closer to reaching your financial goals.

But the real, lasting benefits of the challenge are the saving and spending habits you’ll have created. If you stick to something for six whole months, you’re likely to integrate that habit into your life without having to even think about it. You will have turned yourself into a money-saving master!

Two ways to do the 6 month money challenge

The idea behind the challenge is to save a specific amount of money every week for the entire period. You can do this any way you want.

Whether you save $5 a week or $500, you will still end up on top at the end of the challenge! You can even save more on the first week of the year and less on the second week as long as it all adds up to your desired amount. 

But it helps to have more guidance than that. So, here are two ways to complete the challenge that will save you either $2,000 or $5,000!

Option 1: Save $2,106

Saving this way is an excellent option for those looking to ease into saving while still accumulating over $2,000 in savings in just six months. Here’s how to do this version of the challenge:

During the first week, you save $6.

Then, every week after that, you contribute $6 more to your savings account than you did the previous week (i.e., on week two, you save $12 in week three, $18 in week four, $24, and so on).

By the end of the challenge (week twenty-six), you will contribute $156.

And, by the end, your savings will amount to $2,106! You can use money savings charts to help you keep track.

Option 2: Save $5,018

Want to save even more? If you’re really serious about saving in a short amount of time, try out this version.

It will help you save over $5,000 in just six months! It’s hard work, but it is worth it to see that number in your savings account:

Every week, you save the same amount – $193. It’s really that simple and straightforward!

Alternatively, you could contribute twice that amount ($386) every other week. Doing so is a smart option for those who want to do a biweekly budget. Whenever your paycheck hits, you can automatically deposit $386 into your savings.

By the end of this version of the challenge, your savings will total $5,018!

How to successfully complete your 6 month savings challenge

Setting the goal to save a certain amount of money or do a 6 month savings challenge is one thing. But that’s just the first step, and, quite frankly, that’s the easiest part.

The hardest part is actually saving the money and following through with the challenge when it feels impossible.

That’s where these tips on how to successfully complete your 6 month saving challenge should come in handy:

1. Set up a savings account

First of all, you’re going to need somewhere to stash all of the cash you’re saving. While you could save it under your mattress or in a dresser drawer, you’ll be way more likely to keep up the momentum if you deposit your money in a dedicated savings account.

If you already have an emergency fund, that’s a great place to put this extra money. If you don’t, set up a savings account, preferably an interest bearing account.

Bonus points if you automate your finances and set up an automatic transfer from your checking account each week. You won’t even have to think about the challenge as you complete it!

2. Live below your means

Where is all of this extra money to put toward your savings going to come from, you might want to know? There are a few ways you can save quickly, including living below your means and cutting back on your monthly expenses.

By curbing your expenses and living frugally, you’ll find yourself with extra money. Instead of splurging, dedicate yourself to savings success during this challenge. You’ll likely have plenty of money to fill up your savings account.

3. Combine it with a no-spend or low-spend challenge

Love a challenge? Why not double up? Another great way to save more money, fast, during the challenge period is to combine the 6 month money challenge with a no spend challenge or a low-buy year.

During these challenges, you choose to spend little to no money on anything that isn’t essential. What is essential is up to you, but generally, people cut out things like clothes shopping and eating out.

It’s basically impossible not to save money during one of these challenges, so they surely will help accelerate your savings if you do one in combination with a 6 month savings challenge.

4. Set a goal and keep that goal top of mind

When you begin the challenge, find your why. What is your reason?

Do you want to save for college? For a new wardrobe? For a down payment on a house?

Whatever your reason, decide on it and what you are going to put your money toward.

Then, make sure to remind yourself of that goal throughout the challenge. You will probably be sacrificing to complete the challenge. And when you are giving up things you like to do or buy, you’ll need a reminder of why you’re making those sacrifices.

Try keeping a sticky note with your goal written on it or save a reminder about it on your phone. Then, you’ll keep your goal at the top of your mind when the going gets tough.

5. Make more money

If cutting back on your expenditure isn’t enough to meet your savings goals, it’s time to increase your salary.

There are several ways to do this, such as:

 Start a side hustle

Choose something that doesn’t have any start-up costs, such as freelancing, graphic design, tutoring, or pet sitting, to maximize your savings amount.

Sell your old stuff

There’s money hidden in your house where you least expect it. All you need to know is where to look to make money from home. Start in your closet to dig out the clothes you never wear before raiding your bedside drawers for unused, forgotten gift cards.

Rent your spare room or driveway

Renting is an excellent way to earn cash fast, especially if you live near public transport links. List your parking space or spare room on reputable sites and start earning pennies.

For example, you can list your parking spot on neighbor.com or your room for rent on roommates.com

6. Shop smarter

Who wouldn’t want to slash their shopping bill and save money? Well, now you can with these tips.

• Choose generic brands
• Only buy what you need
• Avoid impulse purchases
• Substitute meat for vegetables
• Don’t shop hungry
• Be mindful of products at eye level on the shelves – they are put there to tempt you!

Smart shopping doesn’t have to stop at the grocery store. Next time you need to buy somebody a gift, consider making something meaningful to give rather than opting for shop-bought. 

7. Check utility provider deals

Utilities can take up a large part of your monthly expenses. When trying to save money, it’s a smart move to review your current package and try to negotiate a lower price or find a better deal elsewhere.

Contact your current provider first to see what they can offer, then use online comparison sites to compare deals elsewhere. You may find that your supplier gives you a better package to keep you as a customer.

Be mindful when switching suppliers of any cancellation or early termination fees that would impact the amount of money you save overall. But trying to lower your electric bill and other utilities is worth it.

8. Review your debts

High-interest debt can badly damage your savings potential. If you’re serious about saving, you need to tackle debt first.

Start by paying off credit cards fast that you pay the most interest on. Once you’ve cleared the balance, focus on the next card and so on.

Next time you get tempted to use your credit card, reach for your debit card or use cash instead.

9. Alter your mindset

Our mindset has a lot to answer for. It can affect your health, the decisions you make in life, and even the way you handle money.

If you have negative feelings towards your finances, it’s important that you improve your money mindset before taking on a savings challenge so you have the best chance of succeeding.

Using positive affirmations and letting go of past financial mistakes are just two ways that you can mentally prepare yourself for the task of saving money. Believing in yourself is also a powerful technique that should be practiced daily when setting yourself a target.

10. Don’t quit even if you slip up during the challenge

So you missed a week…or two or three. Or you were only able to save a fraction of what you intended to save. Whatever you do, don’t quit!

Being too much of a perfectionist can cause you to procrastinate on tasks or give up when it would be better to simply move forward and save as much as possible.

Even if you don’t complete the challenge “perfectly,” you will still come out a winner at the end of the six months.

Imagine if you only end up saving half of what you intended to save. That’s still going to be a thousand dollars (or more) than you would have saved if you hadn’t even begun the challenge!

And don’t forget, you’ll reap all the other benefits of participating in the challenge, too, like setting up good saving habits going forward.

Expert tip: Ask a friend to join you

Need help keeping motivated to meet your goal? Ask a friend to join you in a 6 month savings challenge. It’s one of the most effective ways to ensure you get there (and have fun doing it!). Together, you can come up with frugal ways to go out and have great entertainment without blowing your budget.

Another top tip is to do your frugal grocery shopping together with friends and buy in bulk. Not only will this save you money on groceries that you purchase, but also gas if you car share to the store. You may even find that you save more money than if you were doing a savings challenge alone!

If your pals love a competition, set up a friendly challenge to see who can save the most over a period of time.

How can I save $10,000 with a 6 months challenge?

The good news is it’s totally achievable to save $10,000 in 6 months with a solid 6 month saving plan, some self-restraint, and the right mindset.

To achieve your goal, you will need to save approximately $1,666 per month or $385 every week. But smart saving is all about adjusting your plan to meet your individual circumstances, income, and expenses.

For example, if you have a tax bill that is due during your savings challenge, lower the amount you put away in that month and put more into your savings fund another month when you have fewer outgoings. Remember to work it out to the nearest dollar so you are left with the exact $10,000 at the end of your challenge.

As $10,000 is a large sum, the best way to make good progress is to earn extra money that you can put into your savings. If you already have a full-time job, you could do some night shift jobs for pennies that can be dedicated to your target rather than used to pay monthly expenses.

Or if you work part-time, why not see if you can temporarily increase your hours?

Trying out vision board ideas is also a great way to stay motivated when saving a large amount. Use your favorite colors and images that mean something to you and boost your chances of success.

So, whether you need to pay an unexpected bill, go traveling or buy a new car, don’t reach for a credit card. Instead, save $10,000 in just 6 months with these money-saving tips.

How can I save money quickly in 6 months?

If you need to get your hands on money quickly, there are certain things you can do to meet your 6 month savings goal fast.

Meal prep

Groceries are by far one of the largest monthly expenses for households, making budget meal prep a great place to start when you need to reduce your outgoings.

Buying ingredients in bulk and batch cooking allows you to save time and money. How? Some consumable items such as rice, pasta, and tinned goods are cheaper in larger quantities.

Portioning food also means that you can easily get it out of the fridge or freezer and cook it when you want it. No more late nights cooking after a long day at work or wasting food that had spoiled before you had a chance to eat it.

Cut out unnecessary recurring expenses

Any transaction that appears monthly on your bank statement is known as a recurring expense. While most types of regular payments will include non-negotiable transactions such as a mortgage or a rent split, or loan repayments, there are some that could be reduced or canceled altogether.

Unnecessary payments could be gym memberships, subscription services, or even a buy now, pay later plan that you’re still paying off.

Make a list of all your recurring expenses and cancel or pause the ones you can to see how much you could save.

Slash your cell phone bill

Do you know how much of your allocated cell phone data, minutes, and texts you actually use? If you don’t use the full amount, it’s likely that you’re overpaying for what you need.

A simple way to save money fast is to consider changing your cell phone package and only pay for what you use.

How can I save $5,000 in 6 months, biweekly?

When trying to save $5,000 in 6 months biweekly, consistency is key. A biweekly budget and saving makes your goals more manageable and keeps you focused on putting money aside rather than spending it.

First, you need to work out how many biweekly milestones you need in your savings plan. So, if you want to save $5,000 in 6 months, there are 13 payments of $385 that will need to be deposited into your separate account. (Since there are about 26 weeks in 6 months.)

Or, if you prefer, you can make staggered payments so that you pay more on the first payment milestone of the month and less on the second.

Four ways to save money biweekly

Now you know exactly how much you need to save, it’s time to figure out how you’re going to do it. Here are some ways that you can easily free up some money.

Adjust your budget

A good budget is flexible, which means that when you want to increase the amount you save, you can easily see areas where you can cut back.

Cancel subscriptions

Some people have monthly subscription costs eating up their spare cash without even knowing it. Take a look at your bank statement and do a search on every transaction over a full month. It will highlight any outgoings that you’re unaware of and allow you to cancel them to use the money elsewhere.

Pause eating out

Eating out is a great way to socialize and have fun with friends and family, but it can get expensive if you do it regularly. A simple way to save some of your hard-earned cash is to pause or cut back on your restaurant trips.

Instead, choose to cook at home and invite your friends over for a dinner party.

Use discounts

Coupons are a fantastic way to save money on everyday items such as groceries or toiletries. You may only be saving pennies in the short term, but this soon adds up to a much more substantial part of your monthly budget. Check out the best coupon websites to help you save.

If biweekly saving doesn’t quite work for you, try making weekly deposits to your bank account, piggy bank, or savings jar if you prefer (remember to cash it in safely). You’ll end up with the right savings amount but in smaller chunks. This method is perfect for people who get paid weekly or bi-weekly.

Articles related to money challenges

If you enjoyed learning about the 6 month savings challenge, you’ll like these other ideas!

• 100 Day Challenge Ideas: 11 Ideas To Reach Your Goals
• 18 Money-Saving Challenges To Save More Money!
• 28 Different 30 Day Challenge Ideas Everyone Should Try
• 10 Money Savings Charts To Save More Money

A lot of good can happen during a 6 month savings challenge!

A 6 month money challenge is called a challenge for a reason – because it certainly isn’t easy. You’ll need to save a lot smarter than the 52-week money-saving challenge, but if you’ve read this far, it probably means you’re up for it.

Just think, in six months, you’ll be that much closer to reaching your financial goals if you start this challenge today! Or you can try out another type of challenge, like the no new clothes challenge or 30-day challenges for something different!

The post How To Do A 6 Month Savings Challenge! appeared first on Clever Girl Finance.

Do you spend money faster than you can make it? If you feel this way, you’re not alone. That said, ideas on money saving challenges could be just what you need, as we could all use some extra money, especially in these trying times.

According to Forbes Advisor, over 75% of Americans are concerned about their family’s financial security. And when you compare the increase in the cost of living versus the real wage index, you can see why people might be interested in saving.

By setting financial goals and partaking in challenges, you can set yourself up for financial success.

For example, a monthly savings challenge can help you build an emergency fund, save for a vacation, or save a down payment on a new home. All it takes is a little motivation for saving money and some great challenges to get started.

What is a money saving challenge?

As the name implies, a money saving challenge can remind you and keep you focused on doing what’s necessary to achieve your goal.

In addition, they are very easy to do. You simply save a set amount of money, depending on the rules of the particular challenge.

For example, in the $5 challenge, you save every $5 bill you get. There are many fun money challenges to choose from to help you achieve your savings goals and become better with money. Soon, saving part of your paycheck will become second nature.

Why money saving challenges are a great idea

Money saving challenges are an effective way to motivate you to save your money. Most importantly, it makes saving money fun and makes your goal easier to attain.

In addition, a money challenge is an excellent way to build your emergency fund when you have no savings.

You can use a monthly challenge to save for your dream vacation, put a down payment on a new home, or start that beautiful designer handbag collection you’ve been longing for.

18 money saving challenges to try today

Having extra money can relieve stress and help you achieve your financial goals. By participating in these ideas, you can start building a new successful habit and get that savings account built up fast.

Further, you could even open up a dedicated savings club account just for your challenges.

When picking a challenge, be sure to pick one that lines up with your goals and that you will be able to stick with. It needs to be a realistic goal to set you up for success and prevent you from getting discouraged and quitting.

There are challenges for eating out, saving $5 bills, saving pennies, and more. So, no matter your financial goals, these 18 money saving challenges are sure to get you the results you desire.

1. The 6 month savings challenge

The 6 month savings challenge is easy to follow because the amount you save is already planned out for you. Each week, you save the allotted amount scheduled.

The first week is only $3, week 2 is $7, and it gradually goes up in increments each week. By the end of the 26 week challenge, you will save $1378!

2. 30 days to master your spending challenge

The no spend challenge can save you some serious cash and help you stop over spending.

So with this challenge, you commit to a specific time frame, in this case a month, and only spend money on necessities. The rules are simple:

Only buy essentials

You can only spend money on essentials such as rent, gas, and groceries. It’s important to still buy the things you need to have a healthy lifestyle when doing the money saving challenges.

Don’t buy non-essentials

You cannot spend money on eating out, shopping sprees, coffee, or anything considered non-essential. Anything that isn’t a bill or basic expense must wait until later.

Once you get started, you’ll be surprised at how many non-essential items can sneak into your daily spending habits.

Lastly, track this monthly money challenge with a spending journal for maximum results.

3. 30-day meal planning challenge

Eating out is expensive. The average amount spent eating out every day is $9.22. That’s $3,365 per year when you do the math!

With this challenge, you pack your lunch 5x per week for 30 days by leveraging meal planning.

In addition, this also helps prevent wasted groceries and adds a significant amount to your savings. Plus, you can use ingredients you like and avoid unhealthy foods if you want to.

4. $5 savings challenge

The $5 challenge is a fun challenge that stacks up the cash fast. Over 90 days, every time you get a $5 bill, you save it.

So, if you don’t use cash, for every extra $5 you have in your checking account, transfer it to your savings.

To prevent you from spending that extra cash, get a cute piggy bank, container, or money envelope that makes putting the money in easy but taking it out hard. It’s a bit random, but that’s what makes this money saving challenge fun!

If you opt for envelopes, consider the 100 day envelope challenge or the 200 envelope challenge!

5. Create a Clever Girl Fund challenge

A Clever Girl Fund is an essential money challenge. The fund can be used for unplanned life emergencies such as job loss, your car breaking down, or urgent home repair. It can also be used to establish sinking funds for upcoming expenses.

The challenge will help you determine how much you need to save, help you with setting up the right savings account, and keep you on top of making consistent deposits.

To do this challenge, designate an account for saving, and then try to save $1000 to start. You can save $333 per month and save your money quickly, or take more or less time if you want.

Take as long as you need to build your Clever Girl Fund. Just make sure you have a plan in place. And after you get to $1000, consider adding more for extra security.

6. Find extra money challenge

You can find the money you didn’t know you had with some tips and tricks. Simply look for extra money in various places.

In addition, this money challenge will inspire you to get creative. For instance, cashing in all those spare coins in your wallet, car, purse, or lying around the house.

Or spending less than your grocery budget and putting the extra money in your savings account. You can also declutter your home and sell items you don’t use anymore for extra cash. The whole idea is to challenge yourself with ways to save that you ordinarily won’t do.

7. Penny saving challenge

If you don’t think that saving pennies will help build your savings, you’re wrong! The penny challenge is like the 26-week challenge and is super easy to follow.

Firstly, you start with one penny, and each day, your amount increases over 365 days. So you save a total of $667.95 in one year! Remember, every penny leads to a dollar!

8. Christmas club challenge

These classic savings accounts are making a comeback, and they are the perfect way to save money to prepare for Christmas!

A Christmas Club Savings account is offered by certain banks to help you save money for Christmas.

However, you can also set it up on your own with a dedicated savings account.

Most importantly, you can use this account to help you save for whatever you want to purchase.

Typically, these accounts are available via credit unions. So when you open this account type, you’ll get a payment coupon book to make deposits with.

On November 1st, your funds will be transferred into your dedicated account. You cannot withdraw your funds from this account without a penalty, so it prevents you from being tempted to spend it during the challenge.

9. Coffee break challenge

A latte a day makes the cash go away! So say goodbye to Starbucks for this challenge.

The average cup of coffee costs $4.90. This adds up to over $1700 per year if you buy a cup every day, a pretty big chunk from most people’s salary!

With this monthly money challenge, you set up a piggy bank or money savings jar next to your coffee pot. You’ll then motivate yourself to make your own coffee. So each time you do, add that $4.90 (or the cost of your coffee) to your piggy bank!

After that, you can use those extra funds and buy a fancy coffee maker as a reward and use the rest to pay off debt or save.

10. Weather Wednesday saving challenge

The Weather Wednesday money challenge can bulk your bank account fast. Every Wednesday, you find out the highest temperature in your state, and you save that amount in dollars.

So, if it’s 80 degrees, you save $80 that week! The hotter it is, the more money you add to your weekly savings!

So for best results, do this during the summer months.

(Love Wednesdays? Check out our Wellness Wednesday ideas!)

11. The 30-day minimalism challenge

With a 30 day minimalism challenge, you basically get rid of something every day for 30 days. So, by focusing on getting rid of items, you are less focused on spending money.

In turn, this can save you a lot of money since you can sell the items you get rid of to earn some extra cash!

12. A 3 month savings challenge

There are different amounts of money you can save for the 3 month savings challenge based on your goals. You might choose to save $1000, $2000, or more or less than this.

The idea is to save a set amount per week or month and then reach your goal by the end of the three-month mark.

13. A 12 month savings challenge

A 12 month savings challenge is easy and gives you plenty of time to save up cash. For this 52-weeks money challenge, you’ll save a certain amount of money per week.

The challenge starts with a dollar, and each week it increases by another dollar. You’ll save $1378 by the year’s end of this 52-week challenge!

14. $20 saving challenge

If you’re looking to save up a small emergency fund over the course of a year, then the $20 challenge could be the perfect thing. Every week, you save $20 from your paycheck, and by the end of the year, you’ve put away $1040! Easy and effective.

It’s an especially good thing to try if you have a somewhat expensive purchase coming up that isn’t time-sensitive. Treating yourself to something like a luxury purse or a small home project would be great.

15. Cancel all the things challenge

Don’t worry – it’s more fun than it sounds! The cancellation challenge helps you save money by canceling every subscription, cable alternatives or streaming service, and monthly membership that you don’t use.

You won’t even notice there’s a difference in your everyday life, but you can easily save all the cash that you aren’t paying now. Your results will vary based on how many things you cancel, so be as frugal as possible to succeed!

16. Monthly savings challenge

The monthly savings challenge is a very flexible option for choosing your own savings goals. To start, decide how much money you want to save per month.

You can begin with the same amount every month and then change or increase it over time. Soon, you’ll reach your savings goals.

The best part about a monthly challenge is you get to choose the amount, and you can use any tactics you want to save money – from working extra hours to selling items around the house.

17. No new clothes challenge

For this money-saving challenge, you’ll save yourself money, time, and an overstuffed closet. The no new clothes challenge is simple but difficult – you don’t buy any new clothes for an entire year.

To turn this into a month-long challenge, take the average amount you spend on clothes per month and start saving or investing that amount instead. By the end of the year, you might be shocked at the progress you’ve made!

18. Monthly money challenge

If you want to keep being challenged and you like to win, determine to do a monthly money challenge every month for an entire year. The rules are simple: you must do a different challenge each month, and you must complete the one you pick.

It’s a great way to save a ton of money but in a fun way that still lets you keep your financial freedom.

Expert tip: Organize your money to maximize savings

To be able to save consistently, make sure you know how much you’re making and spending. A budget can help you keep track of your income and expenses. When you can see how every dollar of your money is being spent, you’ll know how much you can save every month. 

Then, you can set an amount to save each month and cut out expenses to make sure you reach your target. Once you’ve figured out that amount, set up automatic transfers to a savings account every week, month, or every time you get paid.

Voila! You’re saving without much effort.

The best times to do money saving challenges

It’s always a good time to start saving money, but sometimes it’s easier when you have a fresh start. Decide on your financial goals and pick a monthly savings challenge that will boost your savings for that time of year.

Here are some great times to start doing money saving challenges:

New year

January of the new year is a great time to start a monthly challenge, especially after the expenses that often come up at the end of the year in December.

You can make your money saving challenge your ultimate financial goal for the year. Decide how much you want to save by the same time next year and get started.

New season

A new season is another excellent opportunity to do money saving challenges. You can try a 3 month savings challenge for each season.

For example, you can jumpstart your summer vacation fund by beginning your challenge in the spring.

What are the potential obstacles to saving money?

Potential obstacles to saving, like impulse buying and overspending, could make it hard for you to save.

Saving can be a struggle as well if you’re not making enough money to cover all your expenses. The same is true if you don’t have a consistent income.

Additionally, having to pay off credit cards may prevent you from saving. 

But by keeping your focus and staying disciplined, you can overcome these obstacles. Plan ahead with your money so you aren’t tempted to impulse buy or overspend. Consider paying off debt and saving at the same time so you can make progress with both.

Additionally, a good budget can go a long way toward helping you afford both your expenses and savings.

Why is it challenging to save money?

Unfortunately, the cost of necessities like groceries, transportation, and housing has increased, making it challenging to save. For many, their income doesn’t free up much for saving. 

On top of that, it can be difficult to save money if you’re carrying any type of debt. On the other hand, saving can be challenging simply because you’re not used to it. 

Start small by doing a monthly money challenge to get into the habit. It gets easier over time as you see results. Reminding yourself what you want to achieve from saving money can be added motivation as well. If you don’t earn enough to save, consider picking up an extra job such as dog walking or freelance writing.

How can I save $5,000 in 3 months challenge?

Using the rules of the 3 month savings challenge, you’d need to save $416 per week for 12 weeks. Or $1,666 each month to achieve your goal of saving $5,000.

The idea of saving $5,000 in 3 months can be overwhelming. More so if you don’t have a high income or are paying off debt, but it’s doable. 

First, calculate how much you make each month. Next, look at your expenses.

Then, create a budget using a budgeting method. Plan how you’re going to spend every dollar you make in the next three months. Look where you can cut your spending and allocate all the extra money to savings.

In addition, you may need to find ways to make extra money, such as working overtime if that’s an option at your job. You can also start a side hustle. And don’t forget to look around your house, you may have household items that you can sell for quick cash.

Articles related to money saving challenges

If you love saving money or trying out new challenges and you want to find more ideas like these, check out these posts next!

• 100 Day Challenge Ideas: 11 Ideas To Reach Your Goals
• 28 Different 30 Day Challenge Ideas Everyone Should Try
• A 30-Day Minimalism Challenge To Change Your Life
• 20 Couples Challenges To Improve Your Finances And Relationship

Save your way to success!

When you save money, you are setting yourself up for financial success. You will finally have an emergency fund for unexpected events and be able to take that dream vacation you deserve.

Doing money saving challenges with friends can also give you the extra accountability you need to actually complete the challenge!

If you’re ready to take control of your finances and build your savings, get our FREE Savings Challenge Bundle and get started now! Plus, if you love these money saving challenges you’ll love our expanded list of 30-day challenges for your life and money!

The post 18 Money Saving Challenges To Save More Money! appeared first on Clever Girl Finance.

Receiving a sudden financial windfall can come with many mixed emotions. It’s exciting and overwhelming all at the same time! When handled with care and used wisely, receiving a large sum of money provides a great opportunity to improve your financial situation.

Windfall money might materialize in the form of gifts, bonuses, settlements, inheritances, lottery winnings, property sales, etc. No matter the source of funds, getting any kind of financial windfall can immediately send your mind reeling with possibilities.

So, what would you do if you received a large lump sum of money? Would you save it, invest it, or treat yourself to a handful of nice things?

In this article, we’ll be looking at ten windfall finance tips to help you make the most of that extra cash. And use it to benefit your future!

What is a financial windfall?

Well, a windfall is usually like a surprise gift from the financial universe—it’s a sudden and unexpected influx of money. 

This money might not always be a complete shock. However, it is generally a fairly large sum of money that doesn’t come to you in a traditional way.

The best way to understand is to look at some examples.

Examples of financial windfalls

Here are a few of the diverse ways windfall money might come into the picture:

• Generous gifts from people in your life.
• Inheritances from family members who pass on.
• Extra bonuses at work that weren’t already factored into your total compensation.
• Winning the lottery/contests/sweepstakes (we all wish, right?)
• Settlements from legal proceedings.
• Tax refunds that are more than you expected.
• Successful investments that gained value suddenly/rapidly.
• Profits from selling something valuable, like an heirloom or piece of land. 
• Finding money you didn’t realize you had—make a habit of checking unclaimed property websites for states you’ve lived or worked in!

Even winning a small amount in a contest could be considered a financial windfall. 

However they enter your life, these unexpected surges of money can be both thrilling and a little stressful. The key to success is to approach them with a clear plan.

10 steps to manage a financial windfall

A situation like this might feel like a stroke of luck—and it is! But many people follow the impulse to use their money for short-term enjoyment, then end up with nothing to show for it later. You don’t want to be in the same boat! 

Handling a windfall wisely is crucial to ensure lasting benefits for your financial future. These 10 steps can help you handle your windfall finance planning with a future-focused mindset.

1. Don’t make any sudden decisions

Before doing anything with your financial windfall, pause! Take some time to think.

Put the money into different types of bank accounts like savings or a money market account, and refrain from touching it during this waiting period. You are more likely to make better decisions about the money if you don’t immediately start spending.

When you receive a good amount of money, there’s often a tendency to purchase or do things that you wouldn’t normally be able to do.

However, in many situations, rushing causes rash decisions. It is wise to take several weeks, or even a few months, to think about your options before making plans for the money. Waiting will help you be more rational and more intentional.

2. Consult with professionals for your windfall finance planning

During the waiting period, consult with a certified financial planner, a financial advisor, and/or a CPA to determine what to do concerning taxes. A large amount of money usually comes with tax implications and/or fees that need to be figured out before you make too many plans for the windfall.

After working through the tax portion, seek advice from your financial advisor or planner to come up with a good plan of action for the rest of the money.

Using your financial goals as a guide, work with a professional to establish (or update) your financial plan. They will be able to provide advice about the best ways to use the financial windfall to achieve your goals. That might include assessing your risk tolerance, helping you build an investment strategy, or figuring out how to save money for short-term objectives.

They can also help you determine which accounts are best to hold any savings that you don’t want to put into investments. 

3. Update or create your estate plan

If you don’t already have an estate plan, now would be a great time to create one. After receiving a significant amount of cash, your net worth and financial circumstances change. It’s a major life event.

You should update or create an estate plan to reflect the change. Consult with an estate attorney to make decisions about how your loved ones will be taken care of. Also, determine how your money and other assets will be distributed in the case of an unfortunate event.

4. Save some windfall money for emergencies

Set aside some of the money to start or build up your emergency fund. It’s a good idea to have at least 3 to 6 months of living expenses saved. Depending on the amount, receiving a financial windfall can help you fully fund your emergency fund.

Be proactive and save for those “just in case” moments when you may need access to cash quickly. You never know when you may need to tap into your short-term emergency savings, if you need to live without a job for a while, for a medical expense, or for another emergency.

5. Pay down or pay off high-interest debt

Paying off high-interest debt, such as paying off credit card debt, will save you a lot of money over time. Interest rates and fees can be very high on consumer debt. Throwing a big lump sum of money at those debts can be a game-changer! 

If the amount isn’t large enough to pay off all of your debt, paying down your balances is still progress. Not only will you save money fast by paying less interest, but you will also reduce the amount of time it takes to repay your creditors.

Paying off or paying down debt helps your regular monthly cash flow as well. It frees up income that you would normally allocate to debt repayment and allows you to use that cash elsewhere or invest it.

So, if you decide to use part of your money towards your debt, be sure to craft a debt reduction strategy for it!

6. Save for a large expense or upcoming goal

If you have a large expense coming up soon, you can use part of your financial windfall to jumpstart your savings for that expense. Or maybe there’s something that you want to purchase in the future that has a hefty price tag.

Acquiring a big amount of money can provide cash to set aside for that as well. Perhaps you are someone who desires homeownership. This would be a great opportunity to get your down payment and closing fees squared away.

Or, if you already own a home, you could put the money towards your mortgage. For those with high-interest rates on their mortgage, it can be smart to pay your loan balance down faster.

7. Invest your money

Take advantage of increases in value and compounding interest by investing to have money stashed away for the future. Get help from your certified financial planner with creating an investment strategy and setting up your investment accounts, such as index funds. 

Whether you want to invest for retirement, income, or growth, they can assist you in creating an investing plan that fits your goals and needs. Dollar-cost averaging is one simple way to make sure you’re diversifying your purchases across the highs and lows of the market.

Of course, investing doesn’t have to mean the stock market alone. You can also invest in a way that provides passive income to you now through an avenue like passive real estate investing or other income-producing assets. 

No matter your goals, please consult with a pro to determine the best way to approach investing for your particular situation. (Check out our article on what to do with 50k for ideas!)

8. Use your money to invest in yourself

Your cash can also be used as an opportunity to invest in yourself. You may want to invest in your education. Using your money could give you a chance to further your studies or make a career transition. 

Or maybe you have a unique side hustle that you’ve been working on. A large amount of money may be what you need to take it to the next level. 

If you have a viable idea for a business but haven’t had the capital to make it happen, maybe consider using a portion of the windfall to invest in yourself and your endeavors.

9. Do something nice for yourself

Many of the points that we have touched on so far aren’t inherently fun or exciting. There are a lot of “business” types of decisions that you’ll have to make, but don’t forget to treat yourself a little bit.

Set aside a small portion of the money to do something nice for yourself. Purchase something that you’ve had your eye on.

Take a nice family vacation. Take the opportunity to do something fun and exciting that you have been waiting to do or that you otherwise wouldn’t have had the chance to do. While a windfall is a great opportunity to make some financial strides, it also provides the chance to live a little.

10. Donate to a cause you’re passionate about

Help out others and donate to those who are less fortunate. Not only will you be doing a good deed for your community, but this may also lower your tax liability. Be sure to discuss this with your financial planner or financial advisor for specific guidance.

Pick a foundation or organization that you believe in and are passionate about, and bless them with a donation. They will be grateful for your contribution. And you will feel good about using your blessing to help those who are less fortunate.

Expert tip: Keep living your life normally

This little psychological tip can make it easier to handle a sudden influx of money: act like you don’t even have it! An attitude like this will help you avoid lifestyle inflation, aka “lifestyle creep.” 

Continue budgeting and spending just like you did before the financial windfall. Resist the temptation to immediately upgrade your living standards with the newfound funds. 

With this approach, you’ll be able to stay grounded and not get swept up in various short-term impulses and desires. Make your windfall finance plan, stick to it, and then put it out of your head.

Factoring in taxes

Before any visions of spending dance in your head, it’s crucial to consider the tax implications. 

Different types of windfalls may have different tax treatments. Inheritances, for instance, are generally tax-free, but windfall money from a lottery win or a bonus is typically taxable. 

Discussing with a tax professional can help you understand your obligations and plan accordingly. The last thing you want is to earmark all the money for other purposes, then get hit with a huge tax bill and scramble at the end of the year!

How do you deal with sudden financial windfall?

Handling a sudden financial windfall requires a thoughtful and strategic approach. Start by resisting the urge to make impulsive decisions. Give yourself a cool-down period to process your feelings before you take action.

While you wait, take the time to assess your financial goals and find examples of financial goals, whether it’s paying off debt, saving for the future, or investing. Make a list of priorities balanced between your wants, needs, and goals.

Another idea is consulting with a financial advisor to create a comprehensive plan tailored to your individual circumstances.

What should you do with a $1,000 windfall?

A $1,000 windfall is a great opportunity to establish or boost your emergency fund. Having a solid financial cushion can provide a sense of security and prevent you from going into debt in case of unexpected expenses. 

Alternatively, consider using it to pay off high-interest debt to save on interest payments and improve your overall financial health.

If you want to treat yourself a little, take $50 to $100 for lunch or dinner at a restaurant you like!

What should you do with a $5,000 windfall?

If you find yourself with a $5,000 financial windfall, you have more room to make impactful financial moves. 

Consider splitting the amount between debt repayment, savings, and investing. Tackling high-interest debt first can free up future income, while allocating a portion to an investment account can help your money grow over time.

If you want to take 5 to 10% of this amount for the “treat yourself” fund, that gives you $250 to $500 to play with. The windfall money could turn into a fun weekend away or a purchase of a bigger item that’s been on your wishlist.

What should you do with a $10,000 or more windfall?

A windfall of $10,000 or more opens up significant opportunities. Consider diversifying your investments and exploring a mix of stocks, bonds, and real estate. Paying off (or paying down) any substantial debts, such as student loans or a home mortgage, can also be a wise move. 

If your windfall is on the larger side, you could earmark a portion of it for a dream vacation, a newer car, or other pricier short-term goals. But be careful!

Decide how much you want to spend for personal enjoyment, prioritize your wants, and stay disciplined so you don’t exceed that amount. Otherwise, your money can have a way of disappearing quickly.

It may also be a chance to invest in your future dreams. Look into further education or business opportunities so you can turn that money into long-term financial stability.

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If you found this article about being smart with your money and any financial windfalls helpful, check out these other posts next!

• How To Be Smart About Money: 5 Ways
• What To Do With $50K: 18 Smart Ideas To Grow Your Money!
• How To Manage Your Money: 19 Tips To Do It Right
• How To Budget: The 4 Best Budgeting Methods To Try!

Manage your large sum of money smartly!

Depending on the size of the windfall, doing a combination of the things listed above may be the best way to make the most of the situation.

However, no matter what, please remember to pause and take some time for your excitement and other feelings to level out.

It is exciting to acquire a financial windfall. It is exciting to think about all of the things that you will be able to do with that lump sum of money and how it will help you improve your financial situation. But without careful thought and consideration, it is also very easy to misuse the money and later regret it as a bad financial decision.

So if you receive a windfall, consult with financial professionals, be intentional, make progress towards your goals, and don’t forget to have a little bit of fun along the way!

Learn how to grow your money even more with our completely free “How investing works” bundle! For more great money tips, tune in to the Clever Girls Know podcast and YouTube channel!

The post How To Manage A Financial Windfall In 10 Steps appeared first on Clever Girl Finance.

Sometimes, no matter how much we think we are cutting back on spending, it’s not enough. Cutting back on things like gym memberships and Starbucks might be a good way to save money, but sometimes we need more. Instead, we need to resort to living on an extreme budget and finding extreme ways to save money.

I remember my family went through a tough time one year, and we ate nothing but chicken and rice for a full year. Why? Because my mom found a really good deal on chicken from a local farmer.

I couldn’t eat chicken for years after that, but my mom’s ingenuity helped keep food on the table even when money was tight.

If you’re looking for some ideas for saving, we’ve got you covered. Keep in mind that it doesn’t have to be forever, but over the short term, this approach can be very helpful for your finances.

Why would you want to find extreme ways to save money?

There are many reasons why you might want to find extreme ways to save money. Maybe you lost your job and have to live on your savings while you look for another job. Or maybe you want to finally pay off your credit card or other debt.

Living on an extreme budget can even be a good way to build up your emergency savings or build up your retirement savings fund. You might even find that some of these ideas not only save you money but simplify your life as well.

If you’ve fallen on hard times, it’s nothing to be ashamed of. In fact, over 37 million people live in poverty in the country of the U.S., according to the United States Census Bureau. But hopefully, these extreme money saving ideas can help you save a bit, even when times get tough.

Extreme ways to save money: 25 Ideas

So, are you ready to start cutting the budget and try out some of our extreme money saving ideas? You can try a couple or all 25. One thing is for sure: if money is tight, you will build your savings fast with these ideas!

1. Make your own toothpaste and deodorant

Did you know that you don’t need a lot of fancy ingredients to make your own toiletries? It’s very easy to make your own toothpaste and deodorant. All you need is some coconut oil, baking soda, essential oil, and a few other ingredients.

It can also be better for you, especially if you have sensitive skin and gums. Not to mention the environmental benefits. You can find some toothpaste and deodorant recipes on The Zero Waste Collective, as well as some other DIY skincare ideas.

2. Become vegetarian

Meat is expensive. Especially red meat. A quick way to save some money at grocery stores is to cut meat out of your life and become a vegetarian.

There are plenty of delicious vegetarian recipes, so you don’t need to cut down on taste, either.

Keep in mind that a vegetarian diet can be expensive if you’re buying out-of-season or are eating specialty products. And you’ll need to make sure you are getting enough protein through foods like nuts and chickpeas.

However, cutting meat can be beneficial if you are living on an extreme budget!

3. Turn off the A/C

Another extreme money saving tip is to turn off the A/C. I know this might sound too extreme. But did you know that A/C isn’t as common in some other parts of the world?

It makes sense, too. A/C takes up a lot of energy and can really drive up your electric bill. 

While turning off the A/C might not make sense everywhere in the U.S., at the very least, you can raise the temperature a little bit more than normal. Or consider a hand fan or good old-fashioned cold water clothes.

4. Lower the heating

On a similar note to the idea above, another extreme way to save money is to lower the heating. Like A/C, heating takes up a lot of energy, and the bill can be crazy, depending on the type of heating you have.

You can also try to insulate your house or apartment, which will help keep your home warmer. Put up plastic sheeting on your windows and make a door draft stopper with rice and an old pair of jeans or pants. Keep the doors of rooms closed as well, so your heating system doesn’t have to work as hard to heat up each room.

5. Mend your clothes and darn your socks

I started darning my socks as a way to be more sustainable, and I find it very relaxing. I usually darn socks while I am watching Netflix. Best of all, I haven’t had to buy new socks in nearly four years, thanks to darning.

You can use the same darning method to fix holes in your sweaters. Not only does this make your clothes look better but it also helps keep them in shape and lasting longer. You can learn something new and save your pennies!

6. Make your own cleaning supplies

Just like with toiletries, you don’t need tons of expensive products to clean. The most effective cleaning supplies are lemon, white vinegar, and baking soda.

In fact, baking soda is good for so many things around the house I always try to have at least two packets around.

Just mix up one part white vinegar and one part water, add in a lemon and let it infuse for a week. Then put it in a spray bottle, and you’re good to go!

It cleans just about anything. You can sprinkle some baking soda for tougher stains and dirt.

7. Freeze your food

Your freezer can hold just about anything and is the best resource when you’re living on an extreme budget. You can freeze fresh herbs in olive oil, freeze old bananas to use in shakes or bread, and even freeze leftovers so nothing goes to waste.

About 60 million tons of the food supply in the U.S. is thrown away each year, according to Recycle Track Systems. Freezing your food before it goes bad not only saves you money but also keeps it from sitting in landfills. Just make sure you keep track of what you have and eat it before it gets freezer burn!

8. Buy in bulk

Buying in bulk might seem counterintuitive at first, but buying in bulk can save you money in the long run. The only downside to this extreme saving strategy is that you might need more money upfront to buy in bulk.

Household items that you use often, like toilet paper, and even pantry staples like rice and pasta, are cheaper in the long run when you buy a lot of them. Practice better budgeting by adding your bulk spending into your budget in advance.

9. Get free cosmetics samples

You can sometimes get free samples of makeup and other beauty products.

In fact, my favorite lipgloss lasted me three years and was from a Sephora sample I received.

On top of that, you can actually request free samples in-store, except for a few products like mascara and lipstick. Big department store beauty counters also offer free samples too!

10. Dumpster dive

You never know what you might find in the dumpster. This one isn’t for the faint of heart, but if you’re an extreme money saver, you can find a lot of things that people throw away. That can include everything from clothes to furniture.

Just be careful about dumpster diving on private property.

11. Live with roommates

Living with others is a good way to save on big costs like splitting rent and utilities.

In fact, if you want to go really extreme, you can even share a bedroom. I did this one summer during a college internship in D.C. because, as an intern, I couldn’t afford the outrageous cost of living.

12. Use coupons

Coupons and coupon websites are still a thing and can really help you save money if you are living on an extreme budget. You can find coupon codes online these days, so do a quick Google search if you’re shopping online.

You can also watch for sales and only buy things you need, like new clothes or electronics when they go on sale. While it might seem like a lot of work at first, couponing can soon become a money-saving habit.

13. Attend networking events for free food

One extreme money saving hack I used during college was to go to opening events and networking parties. Why? For the free food.

Those days, that would often be my dinner. And I was able to network and meet some interesting people as well.

14. Stop using paper towels

Not only are paper towels bad for the environment, but they cost so much money. I always feel like the more paper towels I have, the more I need to use. A really great and cheap alternative is to use towels or even rags.

You can even start upcycling fashion or reusing clothes that are falling apart by cutting them up into rags, extending their life even more. Ditching paper towels is an excellent idea for those wanting to try extreme saving!

15. Use restaurant condiment packages instead of buying them

Every time I go to McDonald’s or Taco Bell, I feel like they give me so many condiment packages. So much so that I don’t even feel the need sometimes to buy ketchup bottles at home.

Another extreme and easy way to save money fast is to keep all the condiment packages and even ask for extras. You can even store them in your condiment bottles so you don’t have to worry about an overflow of small packages in your fridge. Saving condiments is a simple tip that doesn’t take much effort.

16. Save restaurant napkins

Getting extra napkins from restaurants is another one of those extreme ways to save money without much effort! I always ask for extras and carry a few in my purse. You never know when you’ll need them.

And why buy paper napkins when you can get them for free (well, minus the cost of the meal).

17. Brew your coffee or tea twice

This extreme money saving hack is a trick from my great-grandmother, who lived during the Great Depression. According to my dad, she would brew coffee in the morning and save the grounds to brew coffee again in the afternoon.

I’ve tried this hack, and while I find it difficult to brew my coffee twice, it’s a good trick to use with tea.

18. Always shop in the sale section

Whenever I need a new pair of jeans or a jacket, I always wait for the sale season and then head to the sales section. I don’t even bother looking at the front of the store but always head for the back. You might have to dig a little, but you’ll find what you need and save big bucks while you’re at it.

You can even find gifts for birthdays or holidays this way and save even more!

19. Take online surveys

While it might seem like everyone has an opinion on the internet, some people will actually pay you to give them your opinion. Places like Swagbucks and Survey Junkie pay you to answer surveys and sometimes even test products. It’s an easy way to earn some cashback.

20. Rent out a spare room in your home

If you have a spare room in your place, you can earn extra income by renting it out through Airbnb. The site has a calculator on its website to make it easy to figure out how much you can earn a week by renting.

Keep in mind though that you may have extra costs like cleaning. Plus, you will need to be okay with having strangers living in your house for a few days or weeks.

21. Sell your old clothes

Have an old pair of boots you thought were really cute but you never wear because the heels hurt too much? Instead of throwing them away or keeping them to collect dust at the back of your closet, you can sell them through marketplace apps like Poshmark.

It’s very easy to set up and takes very little time to maintain. Just snap a few well-lit photos, decide on your price, upload, and wait for someone to snatch up your old clothes.

22. Stop using the clothes dryer

If you want to save money, use your clothes dryer less or not at all. In the summer or whenever the weather is warm, you can dry your clothes outdoors pretty easily. In the winter, a drying rack comes in handy and saves you money on electricity.

To take it a step further, try using cold water in the washing machine. It can save energy!

23. Be mindful of your energy use

Take an assessment of the appliances and electronics in your home to see what’s plugged in and consuming energy. Be intentional about only plugging in appliances when they’re in use to save energy.

For example, the coffee pot, the toaster, and the phone charger only need to be plugged in sometimes. Obviously, some things like your refrigerator must stay plugged in constantly, but save where you can!

24. Start a garden

If you don’t mind some outdoor work and time, you can start a vegetable or herb garden to save money on groceries. Rather than purchasing these foods at the store, you can grow them in your garden!

Although there are many factors that determine the cost of a garden, you do have a chance to save money.

Here’s a great beginners guide to starting a vegetable garden.

25. Downsize your home

If you really want to lower expenses, consider downsizing your home to save on costs like rent/mortgage and utilities.

You can move to a smaller apartment or even explore tiny house living if you currently have too much space, and this adjustment will suit your lifestyle. If you are focused on an aggressive savings plan, this could be a good idea for you too.

However, if you have a large family with kids, downsizing may not work for you. Just do your research to be sure that your rent or mortgage and associated utilities will be cheaper.

Also keep in mind that downsizing a home can take time, especially if you need to sell your home or wait for a lease to end before you can downsize.

Expert tip: Extreme living does not have to be permanent

Living in an extreme way to save money can be difficult. It helps to remind yourself that this isn’t something you have to do indefinitely.

You might choose to do this for a few months while you find a new job, or for a year while you save up an emergency fund or pay off debt.

Have an end date in mind if you are trying out extreme ways to save money, and know that it will be worth the effort.

What causes extreme frugality?

Extreme frugality might be caused by necessity, or it may be that someone just really wants to save more money. There are many reasons, including job or income loss, a big savings goal, or wanting a simpler lifestyle.

Regardless of why you choose this, know that there are multiple ways to save cash!

How can I save insane amounts of money?

You could save insane amounts of money by being mindful of your spending and by being willing to make some serious lifestyle changes.

Extreme saving involves things like at-home meal planning, repairing items rather than buying new ones, learning to make your own household cleaning supplies and products, and learning how to coupon.

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• 15 Extreme Frugal Living Ideas And Frugal Hacks!
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• 40 Crazy Weird Ways To Save Money!
• 33 Creative Ways To Save Money Right Now!

Use these extreme ways to save money to bulk your savings!

If you’re looking for extreme ways to save money there are lots of ways to save a bit of cash. From dumpster diving to clothes mending to taking surveys, with a bit of creativity and luck, you can easily save a few extra dollars every month.

And while it might not seem like a lot, after a few months, it will definitely add up. Get even more extreme frugality ideas here!

The post 25 Extreme Ways To Save Money appeared first on Clever Girl Finance.

There are many different ways to come up with your perfect budgeting strategy. Alongside your monthly budget, you should also have a bare bones budget waiting in the wings. Even if you don’t need to cut back completely right now, it’s a good idea to know how to create a minimal-expense budget and have it ready so you are prepared in case of a financial emergency.

What is a bare bones budget?

It’s a budget that only covers the necessities. Meaning you will only spend enough money to survive with the basic essentials and fulfill your minimum financial obligations.

With a bare bones budget, you do not leave any room for extra spending.

Sound restrictive? It definitely is. That’s why this is not a plan for better budgeting in the long-term.

In normal conditions, you should also leave space for you to buy things you don’t necessarily need but that you want—like vacations, nights out, and lattes. (That’s right—treating yourself to lattes will not lead to financial ruin.)

On the other hand, this budget is a short-term solution to help you get through a period of financial distress.

Who needs a bare bones budget?

Covering only the bare expenses will help you to significantly decrease your outgoings. While it may seem dire, there are a lot of different reasons why you may need to cut back. 

When you experience income loss

Most often, people turn to a restrictive budget when they need to curb spending because they are experiencing some loss of income. During these periods, you may only have the cash to pay for the essentials. For example, when:

• You lose your job.
• You have a pay cut.
• There is a loss of income in your household.

This is why it’s so essential to have an emergency fund. While cutting back is likely necessary when you lose income, having an emergency fund as a cushion will really help take the pressure off when you’re in a money-tight situation.

When you want to save a lot of money fast

That said, there are also times when you may want to switch to a bare bones budget even when you haven’t lost any income. For example, when:

• You want to get out of debt.
• You want to achieve a specific financial goal quickly.

Swapping your regular budget for a minimal one for a few months can definitely help you slash expenses so you can save up a big chunk of money fast.

When you want to be prepared

Even if you’re not ready to cut back completely, it’s still a good idea to create a bare bones budget.

If you create one before you need it (hopefully, you won’t ever need it!), then you’ll be ready to cut your spending right away in the event of a financial emergency.

How to create a bare bones budget

There are only 3 steps needed to get started. Check out this simple list to help you create a budget without excess.

1. Make a list of your necessities

First, start by printing out all your bank statements and credit card statements from the last month. Doing so gives you a look at your current spending—which may be a lot different than you think.

According to Nerd Wallet, 83% of Americans think they overspend. Be diligent! Look carefully and use a highlighter to identify only the essential expenses.

2. Make a list of what you need to cut

Next, see everything else in your statements that isn’t highlighted? That’s what you need to cut back. Yup, it’s about only covering the basics—nothing more.

In addition, take note of any non-essential expenses that are automatically deducted from your account or charged to your credit card—and cancel them.

3. Use a budgeting tool to stay on track

Finally, use a budgeting tool to document your new budget. Having everything organized and written down will help you stay accountable and stick to your budget. You can use a budget planning notebook or an app if you prefer.

Also, it’s a great idea to give yourself a timeframe for how long you expect to use this type of budget. Remember, a bare bones budget is simply a temporary measure; once you’re out of your money-tight situation, you’ll have to reevaluate your spending.

Key considerations

Everyone’s budget will look different because cutting down on spending looks a little different for everyone.

Of course, there are some general rules of thumb to follow. The following payments are usually necessary costs. They are non-negotiable.

Housing

• Mortgage/rent
• Property taxes
• Homeowners association fees

Utilities

• Heat
• Electric bill
• Water
• Air conditioning

To shrink your monthly bills, try to reduce your use of utilities as much as possible.

Food

Particularly, this is a hard one to whittle down. But when you’re lowering expenses, you need to remind yourself to only spend money on essential groceries.

Believe it or not, according to Recycle Track Systems, the U.S. throws away almost 60 million tons of food a year. That’s a lot of waste—and a lot of lost money!

Fortunately, learning about budget meal planning can go a long way in helping you stick to a tight food budget so you can avoid waste. On top of that, remember to check out what coupons are available at your local grocery store to save more money.

Transportation

• Car payment
• Gas
• Parking
• Public transportation

Debt repayments

Don’t forget to include your debt reduction strategy and repayments in your bare bones budget!

While it may seem like this is something you can skip, doing so will just make your pile of debt grow with increasing interest. Plus, continuing to make debt payments will help you maintain a good credit score even during a money-tight situation.

When you’re trying to lower expenses, just focus on the minimum monthly payments. But if you’re adopting a bare bones budget to save money to pay off your credit card debt faster, then you can reallocate the money you save from other expenses to make bigger debt payments.

Phone

• Reduce your phone plan to the cheapest plan possible

Internet

• Same thing here—reduce your internet plan to the cheapest plan possible

Healthcare

• Medications
• Co-pays for appointments
• Over-the-counter treatments

Insurance

• Health
• Auto
• Life/disability
• Renter’s

Certainly, insurance is something you want to keep—even when you have to switch to a bare bones budget. To help you start cutting back, try calling your insurance providers to see if they have any discounts you can use.

Retirement contributions

Your long-term retirement savings might be impacted by your budget, especially when you are trying to lessen your expenses.

If you still have a job

If you are employed, keep on making contributions to your retirement account. You may prefer to hold off on extra contributions to your retirement account for now, depending on your situation.

But if your employer offers matching in a 401k, for example, then keep contributing at least as much as your employer will match.

If you lost your job

If you don’t have a job and you’ve been contributing to your own traditional or Roth IRA outside of your employer, then you may decide to stop making contributions to your retirement account for now.

That’s okay for a few months—above all, you want to avoid dipping into your retirement savings to cover expenses.

Family expenses

• Daycare
• School tuition
• Alimony
• Child support

Personal care

• Toiletries
• Work clothes
• Haircuts as needed for work

Pet care

• Pet food
• Medications
• Vet bills

Expert tip: Consider minimalism to cut down on your budget

Minimalist spending means cutting back on all the expenses you don’t need to cover. Yet, so few of us actually practice this.

When you are sticking to a strict budget, embrace the opportunity to appreciate the value of things rather than merely the cost. Focus your attention on doing things that add true value to your life rather than being expensive.

That may be reading a good book, spending quality time with a loved one, pursuing your creative passions, or even working on your business. 

Bare bones budget example

Here’s an example of a budget that has only the essentials based on a monthly income example of $3,500. It goes along with the categories discussed above.

The example totals $3,500. You can adjust the expense numbers to fit your personal situation. If you find that you have extra money left, don’t spend it. Save instead, pay off debt, or contribute to retirement, depending on your circumstances.

What you shouldn’t spend on

Now you know what’s essential, but here’s what to avoid adding to your expenses.

• TV
• Streaming subscriptions or cable alternatives
• Music subscriptions
• Any other unnecessary memberships or subscriptions (e.g., magazines, newspapers, gym, etc.)
• New clothing
• Non-essential travel
• Non-essential personal care products (e.g., cosmetics, manicures, etc.)
• Restaurants and bars

Sticking to your budget and splurging

If you’re truly in crisis mode and can only cover the bare expenses, then you’ll need to halt all unnecessary spending.

However, if you’re using a bare bones budget to get out of debt or save for a big financial goal (e.g., a down payment on a house or a wedding), then making room for a monthly splurge can actually be a good idea.

Leaving room for treating yourself to one monthly splurge (like a dinner out or a manicure) can give you a tiny bit of relief from the strict rules you’re following.

How do you successfully stick to a bare bones budget?

To stick to a bare bones budget, first work out what your necessary costs are and ensure you can cover them. All other spending (such as luxuries, entertainment, and non-essentials) will need to go on hold.

Sticking to a bare bones budget can be tough but it is very possible to do with intention and focus. If you are struggling to stop spending, here are some tips that you can try for yourself: 

Keep track of your spending

Do you know where your money is going? If the answer is no, you need to start tracking your spending.

A great way to do this is by leveraging a spending journal where you write down what you spend and then review it at the end of each day. There are also plenty of budget templates and tools you can use to do this.

Remove any obvious temptations

Whether it’s your friends asking you to go on a night out or “window shopping” at the mall, you may be tempted to overspend. Removing these temptations will help you stay on track.

Use cash, not your credit cards

If you usually spend money using credit or debit cards, now is the time to stop. By using cash, you can see exactly where your money is going in real time.

What do bare expenses mean?

Your bare expenses are the payments that you need to make in order to live. They include essentials, such as your housing costs (rent or mortgage), food, medicines and your core utilities like water, electricity and internet.

When you are trying to cut back on spending, these are the costs that are unavoidable, so you need to continue to pay them. 

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If you liked learning about how to budget without excess, check out these posts about budgeting next!

• 12 Tips For How To Drastically Cut Expenses To The Bone
• How To Budget: The 4 Best Budgeting Methods To Try!
• 10 Of The Best Budget Templates And Tools
• 7 Budgeting Best Practices

Prepare now—don’t wait for an emergency to create a bare bones budget

Even if you don’t need a bare bones budget right now, having one outlined and at the ready is always a good idea. That way, if you’re ever in a money-tight situation, you can relieve a bit of the stress by being prepared to cut expenses fast.

Above all, having a good budget (and sticking to it!) is the key to financial wellness—no matter your current financial situation. You can also discover other creative ways to cut back on your budget!

The post How To Create A Bare Bones Budget appeared first on Clever Girl Finance.

A quick Google search of budgeting methods will show you that there’s no shortage of options out there. There is, however, one particular budgeting method that could work well if you are just getting started with budgeting and more so if you don’t like the idea of a monthly budget. The method we’ll talk about involves creating a paycheck budget.

Budgeting by paycheck can help take some of the overwhelm out of the conventional monthly budget. You’ll get a super clear understanding of the money coming and going from your bank account. You’ll also find out how to avoid overdraft fees once and for all due to more frequent planning.

What is a paycheck budget?

The paycheck budget is a strategy where, rather than budgeting just once a month, you budget each time you get paid.

Because most workers get paid either weekly or biweekly, according to Patriot Software, courtesy of the U.S. Bureau of Labor Statistics, this budgeting approach can be a good way to stay involved with your finances. Especially since it requires you to think about your finances every time you stop by the check cashing place.

When you use the paycheck budget method, you assign each of your expenses to a specific paycheck.

For example, let’s say you get paid on the 1st and the 15th of each month.

If rent is due on the 1st, you can plan to use the paycheck from that pay period. If your cell phone bill is due on the 20th, you can then pay that bill with your second paycheck of the month. You can also leverage your budget to determine how much to save from each paycheck.

Benefits of a paycheck budget

Using a paycheck budget is a great way to get started with money management and begin embracing healthy financial habits.

You know where your money is going

First, paycheck budgeting gives you a clear understanding of where each dollar is going. You probably know roughly how much money you earn and how much you spend each month.

However, budgeting by paycheck really shows you where the money from each paycheck goes.

Overdraft and late fees can be avoided easily

Next, it helps avoid overdraft and late fees. It can also keep you from running out of money before you get paid again. If you know exactly which expenses will come out of each paycheck, you can make sure you aren’t spending more than is actually available to you before your next paycheck.

Many people put expenses on a credit card and then pay it off each month. Which can become problematic when you’re spending money you haven’t actually earned yet. It gets even worse when you spend more on your credit cards than you’ll earn to pay off.

From Generation X to Gen Zers, over half or nearly half have credit card debt with each generation, according to Bankrate. But when you budget by paycheck, you can better avoid the trap of credit card debt.

You can keep track of your money easily

Finally, this budgeting method forces you to check in with your finances on a regular basis. And when you check your budget regularly, it becomes easier to manage.

Keeping track of your money is key for staying on top of your spending and keeping pace with your financial goals.

As you can see, there are several advantages of budgeting by paycheck.

Who is this method right for?

Personal finance is just that: personal. As a result, there’s no single budgeting method that will work for everyone. The best strategy for any one person is the one that they’ll stick to.

That said, the paycheck budget method is ideal for people in a few specific financial situations.

People who are paid more than once per month

Budgeting is a little easier when you’re getting paid monthly. Monthly is simpler because you always know where the money for your bills will be coming from. But for those who are paid more often, there’s a little more legwork that goes into it.

You have to time your expenses just right to make sure you aren’t spending money that hasn’t hit your bank account yet. With the budget-by-paycheck method, you can divvy up all of your expenses to correspond with a specific paycheck.

People who live paycheck to paycheck

If you are living paycheck to paycheck, which is over half of Americans, according to CNBC, the last few days before payday can be painful. You may be scraping by on your last few dollars.

Budgeting by paycheck can help you make a plan for your income to ensure you don’t run out before payday. It might also be what finally helps you to break the paycheck-to-paycheck cycle.

People who are new to budgeting

Traditional budgeting advice would have you plan out your expenses one month at a time. But this doesn’t take into account the fact that many people aren’t paid on the first of the month.

So, if you’re new to budgeting, following this traditional advice may result in spending money you don’t have yet.

A paycheck budget can help you get into the habit of noticing when money comes in and out of your bank account. This, in turn, can help you manage spending money only after you’ve earned it.

While paycheck budgeting is definitely ideal for some individuals, others would probably do better with a different strategy.

For example, if you have an irregular income, it may be a struggle to assign expenses to a specific paycheck when you don’t earn a regular paycheck.

How do you get started with budgeting by paycheck?

Ready to start budgeting by paycheck? Here are the steps to follow:

1. Grab a blank calendar

You can use a printable calendar, a monthly budget planner, or even a digital calendar. You can also use a spreadsheet. Learn how to create your budget calendar here.

Remember: The best budget planner is the one you’ll actually use. So, if you prefer things digital, skip out on buying the pretty-looking agenda and just use your Notes app since you know this is where you’ll look regularly.

Or, if you know you prefer pen and paper, don’t let yourself get distracted by flashy apps.

Instead, get a dedicated notebook to track your budget and keep it in a place that’s easily accessible.

2. Add your paychecks and bills to your calendar

Add all of your paychecks to the appropriate date on the calendar, along with the specific paycheck amount.

Next, add your regular monthly bills to their due date on the calendar. Regular monthly bills include your fixed expenses, such as rent or mortgage, insurance, debt payments, car payments, student loans, etc.

3. Tally up your total expenses

Calculate your monthly variable expenses, such as groceries, eating out, gas, and entertainment. If you aren’t sure how much you normally spend, go through your last few months of bank statements and find an average.

You can also divide your variable spending into multiple expenses. If you normally grocery shop once per week, you can add a grocery spending category to your cash calendar as a weekly expense rather than accounting for the whole month at once.

4. Include savings and sinking funds

Ideally, you’d be putting money aside each month to fund an emergency fund and sinking funds. These are some of the most important budget categories that you don’t want to miss!

While there’s no specific date that you have to fund these, choosing a consistent date can help you stick to your savings habit. You can even use an automatic transfer to make the commitment easier.

5. Assign each expense to a particular paycheck

You can use multiple highlighters to color code your calendar. Highlight each expense in the same color as the paycheck you’ll use to fund it. Keep in mind that you won’t necessarily pay every expense with your most recent paycheck.

Let’s say that you get paid equal amounts on the 1st and the 15th of each month, but most of your bills are due in the first half of the month.

In that case, you’d probably use some of your second paycheck each month to pay bills in the first half of the following month.

Expert tip: Use cash envelopes

Using a combination of the paycheck budget and the cash envelope system is a great way to help keep your spending in check. With the cash envelopes system, you put cash into different envelopes depending on how much you want to spend on each budget category.

For example, you may put $300 in an envelope for groceries and $150 in another for fun money. Note that the cash envelopes system doesn’t usually work for bigger expenses, like mortgage payments, car payments, or student loans. (Unless you pay these expenses in cash!)

Instead, you can keep track of these bigger expenses in a simple budget template.

How do you handle unexpected expenses?

The budget-by-paycheck method is a great way to get intentional about your spending and ensure that your spending aligns with your income.

However, regardless of the budgeting method you choose, there’s no avoiding the risk of coming across unexpected expenses.

Whether you’re paying for unplanned car repairs or a medical bill you didn’t know was coming, these emergencies are practically inevitable.

So, how do you handle these unexpected costs in the paycheck budget method? You can create two new budget categories: An emergency fund and sinking funds.

Protect yourself from unexpected expenses with an emergency fund

First, be sure to set aside money in an emergency fund. If you don’t already have one (preferably with 3-6 months of living expenses), then you can make room in your budget to start setting aside some money each month.

Then, when those small and large emergencies pop up, you can pull from your emergency fund.

Prepare for unexpected spending with sinking funds

Another way to avoid an unplanned expense throwing off your budget is by creating sinking funds. The basic premise of a sinking fund is that you take an expense that comes up irregularly and set aside money for it each month.

For example, think about Christmas on a budget. Rather than paying for all of Christmas with your December budget, you can set aside a small amount of money each month all year long.

You can use sinking funds to save for any expense that only comes around once in a while.

For instance, use it for annual expenses like Christmas, biannual expenses like car insurance, and irregular expenses such as car and home repairs.

Add a buffer to your budget

The final way you can handle unplanned expenses with this method is to include a buffer in your budget.

In other words, allocate a set amount of money as a buffer for each paycheck. If a small emergency pops up, you can use that money to cover the cost. If nothing comes up, you can put that money into your emergency fund.

Best tools for setting up a paycheck budget

There are tools available for just about every budgeting method you can imagine, and a paycheck budget is no exception. Let’s talk about a few tools that might be particularly useful for this type of budget:

A monthly calendar

The entire premise of this budgeting method is assigning expenses to a specific paycheck based on the date they come out of your bank account.

Because of that, a calendar lends itself particularly well to this type of budget. You can use color coding to make this method especially easy to keep track of.

Budget templates

There’s no shortage of the best budget templates and printables available these days. No matter what budgeting method you use, you’re sure to find several free and paid options on the market for your method of choice.

A budgeting app

If you prefer digital tools, a budgeting app might be the right choice for you. There are many apps that lend themselves especially well to the paycheck budgeting method.

You can find them by searching in your phone’s app store, filtered by best reviews. Some great ones include YNAB (You Need a Budget) and the Every Dollar app.

How much of your paycheck should you budget?

You should budget your entire paycheck.

In other words, every dollar of your paycheck should be accounted for! This means keeping track of how much you spend on fixed expenses (like rent), how much you spend on discretionary expenses (like restaurants), and how much you save. Using dedicated budget templates and tools can help you stay on track.

What is the 50-30-20 budget biweekly?

With the 50-30-20 rule or budget, you divide your after-tax income into three categories: 50% for needs, 30% for wants, and 20% for saving. You can combine the 50-30-20 budget AND the paycheck budget by following the 50-30-20 budget biweekly. You’ll divide up your after-tax income every time you get a paycheck.

Articles related to budgeting

If you found these budgeting ideas helpful, check out our other posts next!

• How Much Should You Save From Your Paycheck?
• How To Stop Living Paycheck To Paycheck
• How To Make A Budget Calendar Work For You
• Always Running Out Of Money Before Your Next Paycheck? Do This!

Creating a budget by paycheck may work for you!

The paycheck budgeting method is an easy system to start with. It is also an effective way to be intentional about where your money is going so you can make more progress towards your financial goals.

For anyone who lives paycheck to paycheck or struggles with spending money before you’ve earned it, this is a great strategy to help you get back on track. Be sure to check out our top budget quotes to keep you inspired as you work on your budget!

The post How To Budget By Paycheck: 5 Key Tips For Success appeared first on Clever Girl Finance.

The word frugal is often misconstrued into a negative one. However, although a frugal lifestyle can seem like a sacrifice in quality, it doesn’t have to be. Instead, you can choose to try frugal living tips that will add more value to your life.

So, let’s dive into what it means to be frugal as well as out my top frugal living tips to get you started!

What is frugal living?

Frugal living is the act of being very intentional with your spending. If done properly, you’ll be able to start prioritizing yourself and your family and, ultimately, what matters most to you.

I’m a huge fan of this approach to living because I can prioritize spending money on those things that matter the most to me and cut back on my budget in other areas.

That said, how to live frugally can mean very different things to different people.

Frugality does not need to mean trading your favorite cereal for a generic store brand. It does not need to mean living without napkins. And it does not need to mean forgoing adventurous vacations in favor of staycation ideas.

The best part about frugality is that you are able to create your own approach. You decide where you will be living stingy with certain aspects of your budget and where you will live largely.

37 Frugal living tips

Here are some frugal living tips and strategies to help you get started on this new path!

1. Start budgeting

Creating and sticking to a budget is fundamental to your financial success.

Although budgeting isn’t necessarily fun, it is a critical piece of the puzzle. Within your budget, you can prioritize things that matter and ruthlessly cut out things that don’t.

Keep in mind that there’s nothing wrong with occasionally splurging on the things you like. Just make sure you’re saving for these purchases in advance. So if you want to take a particular trip with friends or buy a nice bag or pair of shoes, start putting aside the money for it.

Luckily, there are many strategies to help you find budgeting success and understand how to be frugal. Learn more about creating a budget that works here.

2. Meal plan

If you are anything like me, then meal planning doesn’t sound enjoyable. A combination of kitchen fears and laziness led to a lack of meal planning that was burning a hole in my budget.

When I took the plunge and started budget meal planning, I was pleasantly surprised at the savings. Instead of ordering lunch every day, I just eat what I’ve cooked at home.

The savings of $10 to $20 a day really add up quickly. Check out our 30-day meal planning challenge to find some inspiration.

3. Cook in bulk

In a similar vein, summoning the energy to cook dinner after a long day at work can be next to impossible. Unfortunately, I typically resorted to fast food, which only hurt my budget and my waistline.

However, cooking in bulk has completely changed my dinner routine. Now, I cook in bulk based on what’s on sale that week or discounts I can find. I typically cook on Sunday afternoons and have enough to freeze several portions.

During the week, I simply take those meals out of the freezer and heat them up. My budget and my waistline have thanked me.

How much could you save with a little bit of time in the kitchen? You might even find that you actually enjoy cooking when you don’t have to do it every single day. here are some great ideas for frugal meals!

4. Take a look in your pantry

The amount of food I keep in my pantry at one time is somewhat embarrassing. But most people have a similar amount of food lurking in their cabinets.

Take stock of what you have on hand. Consider making a meal out of what’s in the pantry or fridge rather than grocery shopping.

Recently, I’ve been eliminating one weekly trip to the grocery store each month. The goal of that week is to finish all of the leftover ingredients lying around my kitchen using various recipes. You might be surprised by your creativity in the kitchen.

5. Check out coupons

Grocery shopping on a budget can be expensive, even if you buy items in bulk. 

Take advantage of the best coupon websites, and believe me, if you look, you’ll find them. You might be able to save a few dollars on each trip to the store. Those savings can add up quickly and turn out to be one of the best frugal living tips!

6. Sell things you don’t need

Most of us are guilty of having a bit of extra clutter lying around the house.

Whether you have amassed an oversized collection of designer handbags, have a ton of items your kids have outgrown, have too many dishes, or have an overflowing bookshelf, it might be time to downsize.

That clutter could be turned into cash with a little bit of effort. A few places to start selling include Facebook Marketplace, eBay, and Poshmark.

7. Buy used

When you have the option to buy something used, do it. You can save a significant amount of money with lightly used items.

Check around your local thrift stores, garage sales, and online marketplaces to find the item you need at a much better price. Not buying at full price is one of the best ideas for how to live frugally.

8. Return things you don’t need

Take a look at your recent purchases. Is there anything that you absolutely don’t need? Make a trip back to the store or ship that item back and get your money back.

You can even return groceries.

Yup! You read that right. Grocery stores will take back spoiled food and non-perishable items.

9. Repurpose the fabulous clothes you already have

Do you love to shop? Do you consider having nice clothes and shoes a part of your fabulosity profile? If so, you probably already have a closet full of items that you hardly wear.

Instead of going out to buy another pair of shoes or a shirt that you’ll only wear once and forget, consider shopping in your closet.

There’s probably a bunch of clothes and shoes lost in the back of your closet, begging to be worn again. Organize your closet so that you can find some of these hidden treasures.

Learn to repurpose the fabulous clothes you already have before spending unnecessary money on things you don’t need. You can be fashionable on a budget!

10. Buy a car you can afford

A car is a major expense. 

In fact, it is one of the largest purchases you will make in your life. With that, it is critically important to buy a car you can afford using frugal living tips.

Don’t let the bells and whistles of a shiny car steer you wrong. Instead, ask yourself, “What car should I buy?” and determine what you can really afford before you head to the dealer.

11. Walk or bike when you can

Although having an affordable car is great, walking and biking are much more cost-effective for living frugal. Take the opportunity to walk or bike whenever you have the chance. You will save on gas while enjoying some exercise.

12. Shop around for the best insurance

Insurance can be a large expense. Not having proper insurance can significantly derail your financial goals. It is critical to choose the best types of insurance for your life and your budget.

Once you have a better understanding of what insurance you need, make sure to shop around for a policy. Shopping around can save you thousands.

13. Swap out your lightbulbs

LED lightbulbs use a fraction of the energy that a standard bulb uses. Plus, they last many years longer.

Over time, it can help you with how to lower your electric bill. Consider making the switch.

14. Automate your savings and investments

After setting up spending goals, it is important to automate your finances. Otherwise, you may easily fall back into the habit of overspending.

One of the best tips for retirement is to start by automating your retirement savings through your employer. Next, consider automatic payments for all of your bills. Run through your finances to find new ways to automate your money and use frugal living tips.

15. Check out the library

While many prefer to purchase books on Amazon or a local bookstore, a library is an amazing place full of free entertainment. Of course, they have a wide selection of books.

However, most libraries also have extensive collections of movies, magazines, and more. If you haven’t signed up for a library card in your area, then please do.

You might be able to sign up online, and you can access your local library’s selection of books (including audiobooks) via apps like Libby and Overdrive.

You’ll be shocked at the sheer amount of resources available to you for free. In addition, check out our list of the best passive income books.

16. Evaluate your subscriptions

Are you guilty of having more subscriptions than you really need? Take the time to comb through your subscriptions and decide which ones are worth keeping.

In addition, you might have more time to enjoy one or two of your subscriptions if you cancel the rest.

17. Have date nights at home

Date night doesn’t have to mean an expensive restaurant or a movie out. 

For instance, it could mean a board game night at home or a walk through your neighborhood. Find creative ways to enjoy each other’s company with at home date night ideas while staying within your budget as a couple.

18. Get a part-time job

One surefire way to accelerate your savings is to pick up a part-time job.

Although you can find a job in your local community, work from home jobs tend to be more flexible. If you already have a 9 to 5, then consider finding one of the best work from home jobs.

There are many interesting options. It is important to find something that interests you. Otherwise, it can be difficult to find the energy to work after a long shift at your day job.

19. Pay down your debt

Debt is a drain on your resources. Make it a priority to clear your debts for good.

Once you eliminate debt from your life, you will never want to go back. Finding frugal ways to live within your means will allow you to break free from these financial burdens.

20. Avoid credit card debt

Credit card interest is expensive, and it can be easy to rack up unnecessary debt fast with credit cards. So it’s essential you pay your balance off in full every month if you do use your credit card. If you are unable to pay it in full, it’s best not to use it.

One of the key frugal living tips is avoiding credit card debt because you can save a bundle of money and stay out of debt. So, find out how to stop paying credit card debt and stop worrying about it.

21. Downsize

Living in a larger home has its perks.

However, the costs of living in a bigger space can add up. Not only are you paying for more square footage but also the little costs that come along with it, like utilities. Consider downsizing your living space to a more affordable living situation, and start living below your means.

22. Try a low-buy or no-spend challenge

Sometimes, it’s easier to stick to something if it’s in the form of a challenge.

If you’re not sure where you’re money is going, why not try to do a low-buy year or no spend year? Or, if a whole year intimidates you, try a no-spend month to start with and go from there.

23. Use money-making apps

Put some extra money in your pocket with these 26 best money-making apps! You can earn cash back, invest your spare change, or sell those beautiful sunset pictures on your smartphone. Earning extra money has never been easier when learning how to be frugal.

24. Buy in bulk

Buying frequently used items in bulk, such as toilet paper, toothpaste, paper towels, soap, etc., is one of the frugal tips that can save you money on your grocery bill.

The price per unit is usually lower when you buy in larger portions, and you can make fewer trips to the store, too. Remember, if you purchase perishable food items in bulk, you should cook and freeze them to prevent waste.

25. Ditch cable

Depending on what cable package you have, this is one of the ideas that can lead to significant savings if you’re paying $100 a month in cable, which is $1,200 every year!

You could quickly build your emergency savings and start saving for a luxury purchase if you wanted by living frugal.

Instead of expensive cable, opt for a cheaper streaming service or cable alternatives and rack up those savings.

26. Frugal traveling

One of the best frugal living tips is to travel frugally. You can save a good chunk of cash by traveling places during what they call their “off-season” and still have a wonderful vacation.

You can also save while traveling by cutting down on eating out and opting for a place with a kitchen so you can make some of your own meals.

Also, things such as purchasing discounted airline tickets or fares can save hundreds of dollars. 

27. Skip the salon

Okay, we all need our beauty treatments and pampering, but skipping the salon when possible can save you so much money.

For instance, if you get your nails done twice a month at $25 a pop, that’s $600 in a year! Even if you reduce it to once a month, this is one of the savvier frugal tips that will help you save money quickly and still pamper yourself.

28. Make gifts instead of buying them

Whether you’re getting a gift just because, for a birthday, or it’s the holiday season, making your gifts instead of buying them can reduce spending and avoid credit card debt too.

The winter holidays are extremely expensive and can be challenging for those on a budget. Making gifts can be more meaningful than purchasing them too. Check out Pinterest and YouTube for some great gift-making ideas!

29. Grow your own vegetables

Did you know you can grow vegetables indoors? Whether you live in an apartment or have a house with a yard, you can grow some of your own vegetables and herbs to save money. Not only is growing your own vegetables one of the more unique frugal living tips, but it’s also fun too!

30. Lower your electric bill

There are many ways you can lower your electric bill.

For instance, you can use fans if possible when it’s not too hot to cut back on using your air conditioner. You can avoid cooking with your oven on hot summer days to reduce use too.

You can also use cold water when washing clothes to cut costs on your bill as well. There are many ideas on how to lower your electric bill to help you save money.

31. Fun for free

Nothing makes a challenge easier than making it fun. One of the best frugal living tips is having fun for free. There are a ton of free fun things to do, such as going to the park, having a picnic, or having a bonfire.

Or if you do want to spend money without spending, save up any gift cards you get as presents or for holidays, and then spend them doing something fun!

32. Cut expensive coffee

Millennials are willing to spend over $2,000 a year on coffee, claims Newsweek according to Empower research! Yikes!

I’m not saying cut out your favorite coffee, but reducing how you spend can be a big deal. Even if you average $20 a week on lattes to go, that’s still a whopping $1,040 a year.

It’s hard to cut yummy coffee, but you can purchase different flavors of coffee and creamer and have your cup of joe at home and put that cash in the bank. Coffee at home is one of the frugal living tips that can save you a bundle of money!

33. Fitness at home

More and more Americans are opting to work out at home. The average gym membership can be about $40-$70 per month, claims Good Rx Health, equaling $840 in a year on the higher side.

However, you can find home workout videos on YouTube and save quite a bit of money by exercising at home.

34. Stop impulse buying

Impulse buying has never been easier, thanks to e-commerce. You can find anything and everything at the touch of a button, and before you know it, those late-night shopping sprees cost you hundreds to thousands of dollars.

Learning how to stop online shopping is one of the most crucial frugal living tips to help you save money.

35. Determine what things you can do without

Just because you can buy something doesn’t mean you should. As you work on stretching your dollars, determine what things you can do without. Whether it’s temporary or permanent, this can really give you a boost by saving more money.

36. Try homemade cleaning products

Making your own cleaning products using natural cleaners like vinegar can save you from buying the overpriced stuff from the store.

While it takes a bit of know-how and time, it’s easy to learn how to clean your home naturally and without spending much at all. You can use ingredients that you already have in your cupboard or can easily purchase during your next grocery run.

37. Eat less meat

Meat is quite expensive to buy and can affect your budget. And if you love steak or chicken, you don’t need to give it up completely.

But having one or two dinners a week that don’t include meat can save you some grocery money. Salads, soups, and baked potatoes are all easy meals that don’t require meat.

Expert tip: Make a list of things to try

When it comes to leveraging these frugal living tips it’s a good idea to make a short list of tips you want to try. Once you’ve done this, you can build them into your routine and lifestyle one by one.

Not every frugal tip will be a good fit for you so instead focus on which of the tips will work best for your lifestyle!

Benefits of living frugal

First and foremost, a frugal life will allow you to build more financial freedom into your life by accelerating how quickly you achieve your financial goals. You can allow for a cause-and-effect reality to take hold.

Every time you choose to spend less money on something, you can put that money towards things that matter to you. The best part is that you get to decide what matters to you most.

Maybe you will put your newfound savings away for early retirement. Maybe you will put them aside to fund your dream of living on a sailboat. Or maybe you will allow the safety net of savings to allow you to pursue a job you thoroughly enjoy.

How do you develop a frugal mindset?

Developing a frugal money mindset involves being particular about what you allow to influence you. It means you know what you want, and you focus on your own financial and life goals, not what others have.

In addition, it involves thinking strategically about purchases before you make them and thinking long-term.

For instance, if travel is important to you, then you may choose not to eat at expensive restaurants, and you may opt for the library instead of buying cable for entertainment. Then you will be able to afford the next trip you want to take.

It’s all about being careful with what you spend your money on.

However, you must also know when something is worth buying.

For example, a large home, a new sweater, or excellent food may be valuable to you. You can look for deals with the things you do want to buy and say no to what isn’t the most important to you.

How do you live a low cost frugal lifestyle?

Don’t be afraid to make some changes along the way as you learn how to live a low cost frugal lifestyle. As you start to try out different frugal tips and savings hacks, remember that this is not a one-size-fits-all strategy.

Instead, you will need to try out different frugal living tips and see how they feel. You may find that giving up meals out is not a problem, but forgoing your favorite brand of shampoo is not going to be an option.

Simply try new tips and strategies out with an open mind. You will likely need to do some experimenting to find the balance that works best for you.

It is critical that you don’t overdo it. Although it is exciting to learn how to drastically cut expenses without mercy, too many cutbacks could lead to a backfire. Instead of saving over the long term, you might experience burnout and forgo the savings altogether.

A good way to start living frugally is to add new frugal tips and strategies slowly. Try them out to see how they feel. If you like a strategy, then keep it and add another.

If you hate a strategy, then let it go and try something else. You may need to try many strategies before you truly find your frugal stride.

Is it worth it to live frugally?

Yes, if you are tired of letting money control your life, then frugal living is worth it.

However, it is critical to look at the positives. If you only look at the sacrifices that come along with how to be frugal, then you will have a difficult time staying on this path.

Of course, you will have to give things up along the way. But these sacrifices on your journey can add up to larger benefits down the line.

Remember, you are choosing to be frugal in order to enjoy the things you prioritize. If you keep your priorities in mind, it may not be as difficult to live a frugal life!

How can you be frugal like a millionaire?

Everyday millionaires think about the future rather than just the present when making buying decisions. It’s all about prioritizing. So you might ask yourself some questions to help yourself be frugal.

For instance:

• Will this make me more money in the future?
• Do I truly want this item, or do I need it?
• Is there a less expensive alternative?
• How can I save more for what matters?

Does frugal mean cheap?

Absolutely not, frugality should not be confused with being cheap. Cheap means going to the store to buy the lowest-priced item without a thought to quality.

Frugal means assessing your desires and choosing to spend less money on the things that don’t really matter to you.

For example, you may choose to spend less on clothes to fund your next vacation budget.

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• 35 Delicious Frugal Meals For Every Food Category
• 8 Tasty Frugal Meal Plans To Try!
• Frugal Vs Cheap: Why Frugal Is Better!
• The 29 Best Frugal Living Blogs

Leverage these frugal living tips to save more money!

Living frugally doesn’t have to be a sacrifice. Make an effort to think of frugality as a way to fully enjoy what you care about in life.

When you have your money under control, it can be easier to spend on things that matter. Try out a few frugal living tips at a time to find out which works best for you. You can also get inspired by these great frugal living blogs.

Don’t forget to access our awesome and 100% free courses and worksheets to help with your “how to live frugally” journey and help you become financially successful!

The post 37 Frugal Living Tips To Save A Ton Of Money appeared first on Clever Girl Finance.

If you don’t feel like you truly have a strong handle on your finances, one possible cause for that is using a budgeting method that doesn’t work. While not everyone needs a to-the-penny balanced budget, some type of budgeting strategy or template is really important if you want to know where your money is going month after month.

The 70-20-10 budget is one of numerous budgeting frameworks out there, and it just might be the tool you’re looking for.

If you’ve attempted to make a budget in the past and “failed” due to budget challenges, maybe it’s time to rethink your plan. You can succeed in budgeting—you just need the right way to do it for you.

What is the 70-20-10 budget?

The 70-20-10 rule is excellent for someone who doesn’t want to watch every cent of spending across thirty-five different categories. It’s a pared-down, simplified version of budgeting.

If you’ve ever looked at a sample budget and thought, “This is just too complicated,” then perhaps this budget will be a good compromise. Maybe you’re someone who wants to know how to manage your money, but you don’t want to be bogged down by micro-management.

The 70-20-10 budget refers to the percentage of your take-home pay that you devote to each of three major categories: spending, saving, and giving. That’s it.

(If you’d like an even more streamlined budget plan, you could check out the 80/20 budget and apply it to your budget instead.)

If you choose this budget, you would allocate 70% of your monthly income to spending, 20% to saving, and 10% to giving. (Debt payoff may be included in or replace the “giving” percentage if that applies to you.)

Let’s break down how this budget could work for your life.

70% of your income is for spending

With this rule, you will live on 70% of your income. More accurately, 70% of your take-home pay, or net income after taxes, not pre-tax income.

So you need to fit all of your necessities in this category, along with any luxuries that cost money.

Once you know your weekly or monthly income, you can do the simple math of calculating how much 70% would be. That’s the figure you need to keep all of your life’s expenses under.

Types of expenses to include in the 70-20-10 budget

Anything you spend money on goes under this category. All budgeting apps and strategies address this, of course.

Here’s a starter list of the most common expenses to include with the 70-20-10 rule:

• Rent/mortgage
• Car expenses and payments
• Insurance premiums
• Utilities (electricity, water, garbage removal)
• Fuel/Transportation
• Groceries
• Child care
• Dining out
• Clothing
• Entertainment
• Student loan payments (minimums)
• Other debt payments (minimums)
• Gifts (unless you keep this exclusively for the 10% Giving category)
• Travel
• Subscriptions or memberships
• Hobbies

Feel free to add any other discretionary spending categories you wish.

Fixed vs. variable expenses

One way to break down your spending category is to look at your fixed and variable expenses.

Fixed expenses

Your fixed expenses are the ones that have a set amount to pay every month. These are the “easy” expenses to calculate because their cost doesn’t change when living month to month. 

You usually can count on your mortgage or rent staying the same every month, for example, unless your landlord has to raise the rent occasionally.)

Examples of fixed expenses include:

• Rent or mortgage payment
• Car payments or car loan
• Insurance premiums
• Membership fees (to professional organizations, gyms, etc.)
• Subscriptions (magazines, trade publications, etc.)
• Child care (this is a fairly fixed amount, though you might add more for an extra babysitting night here and there)
• Utilities (usually variable, but can be fixed if your utility company offers a program that estimates your average monthly cost so you pay a more regular amount)

Variable expenses

Variable expenses are those that can fluctuate depending on circumstances. You may spend more on dining out during the holidays, for example, even if you’re doing Christmas on a budget.

Your utility bills may decrease during more temperate seasons of the year and go up during extreme cold or heat. Variations may be due to your spending choices but sometimes are due to factors outside your control.

Examples of variable expenses include:

• Groceries
• Fuel/Transportation
• Dining out
• Utilities
• Entertainment
• Clothing
• Gifts
• Travel

The key to remember for all of your expenses is to keep the total at or below 70% of your total take-home pay in any given month. If you have any extra leftover, you can decide whether to spend it as fun money or send it to pad your savings or giving category.

20% of your income for saving

The second category is much smaller but no less important than your spending. With this budget, you plan to save 20% of your total income.

It is a great goal to set. American households do seem to prioritize some savings on average, but saving more is never a bad idea.

Although starting with saving 10% of your income as part of the 10% rule is better than nothing, increasing that amount to 20% gives you that much more wiggle room.

Of course, one of the major hurdles many people face in saving money is that they may not know how to save money when their income is low. It’s really tough to save when you’re living paycheck to paycheck.

So don’t beat yourself up if you haven’t been able to put any money aside in the past few years.

However, everyone should aim to save a decent portion of their income. We all need an emergency fund, and to save more long-term (think: retirement). Consider some of these ways to save.

Include an emergency fund as part of your 70-20-10 budget

Although there aren’t many hard-and-fast personal finance “rules,” having an emergency fund is always essential. You need to start with an emergency fund before any other savings. Your emergency fund is that sum of money that you can draw from in case of, well, emergencies.

Having to have your car towed after a breakdown on the highway would be one example. Calling a plumber to fix that leaky faucet, paying for a sudden medical co-pay, or buying a plane ticket to a beloved family member’s funeral may all be emergency situations.

In addition to emergency cash to cover you when one or two unexpected costs come up, you need to build what some call a “full” emergency fund.

For example, you might begin with a small fund of $500 or $1,000 as a first milestone. That’ll provide a bit of peace of mind.

But what if you’re concerned about losing your job? Or both you and your spouse get laid off? You might need money to cover your bills for weeks or months.

A more robust emergency fund is usually 3-6 months’ worth of basic living expenses.

When calculating how much you’d need for 3 or 6 months’ worth of expenses, your budget will come in handy. For this, you want to stick to a bare bones budget: mortgage/rent, transportation to work or job interviews, groceries, and any other non-negotiable expenses.

A note: be sure to keep your emergency fund in an easily accessible account. (Don’t put it into a retirement account where you won’t be able to get the money out for years.) A high-yield savings account is a good option for your basic emergency fund.

Sinking funds (for future expenses)

A different type of savings account to consider in your 70-20-10 budget are what we call sinking funds. These are for the various larger expenses that can crop up from time to time. You don’t always need $50 a month, but you might have to cover an expense of $500 six months from now.

It’s usually not a wise idea to funnel all of your sinking funds into your regular emergency fund, either. That might make it too easy to spend it on the wrong things. You can set up different types of bank accounts at the same bank for different types of sinking funds.

Then, simply set up automatic deposits into each one. Over time, whether it’s $5 a month, $50 a month, or even hundreds a month, that sinking fund will grow. The goal is to have enough money to cover costs you can reasonably expect but can’t always calculate exactly in advance.

Sinking fund examples

• House sinking fund (for regular repairs and updates to your home and appliances)
• Car sinking fund (save for the next car you’ll buy as well as for future auto repairs)
• Self-employment tax sinking fund (freelancers and self-employed people must pay quarterly taxes on their own)
• Wedding sinking fund (for hosting a wedding or the costs of attending future weddings)
• Gift sinking funds (you might save all year for sustainable Christmas gifts, for example)
• Kids’ activity sinking funds (save year-round for those summer camps and club fees, as well as experience gifts for kids)

Sinking funds may seem like a lot to handle after filling up your emergency fund, but they’re worth the effort. They’ll make it less likely you’ll dip into your emergency fund because you’ve prepared for these types of expenses. Plus, the expenses that happen “every so often” won’t come as such a surprise.

Retirement savings

Within the 70-20-10 budget, you can also put some of your 20% into retirement funds. Once you’ve set up your emergency fund and a few sinking funds, get to work on retirement.

Retirement is a huge goal to prepare for, but the sooner you can start learning tips for retirement planning, the better off you’ll be. Time is one of the most powerful tools in retirement savings. You want to give your investments time to grow through compound interest and stock market returns.

401(k)

The 401(k), 403(b), and 457(b) are some of the most common retirement accounts. These are excellent retirement savings tools, but you must have the option of one through your employer.

401(k)s offer the opportunity to save for retirement before taxes. The money goes directly from your paycheck into an investment account, reducing your taxable income. Some employers even offer 401k matching for your contributions, which is basically free money!

Keep in mind that these accounts are tax-deferred, not tax-free. So you save on taxable income now, but when you retire and begin withdrawing the money, you’ll pay taxes then.

In addition, there are 401k alternatives, and we’ll talk about some of the best in the next section.

IRA and Roth IRA

Along with a 401(k) or similar employer-sponsored plan, many people in the U.S. can save in an Individual Retirement Account (IRA). There are traditional IRAs, in which you can save yearly for tax-deductible contributions.

Roth IRAs are another option, which works similarly. The difference between traditional and Roth IRAs is that the Roth IRA is taxed upon contribution, but you can withdraw the money tax-free once you retire.

Other types of IRAs exist, including the SEP-IRA, for those of us who are self-employed.

For Roth and traditional IRAs, the government limits how much you can contribute per year. In 2024, the maximum is $7,000, or if you’re 50 or older, you can contribute up to $8,000, according to the IRS.

College savings for kids

Another major savings “bucket” to keep in mind when starting a family is that you may want to start a college account for your children. Remember that paying for college is generally not mandatory for parents, but as a parent, you probably want to help your kids out if you can.

After covering all of your expenses and other essential savings (and don’t neglect retirement), you can move on to college savings. Help your kids get a great education and also learn how to avoid student loans.

As with any type of savings, when it comes to college planning, the earlier you begin, the better. That doesn’t mean you shouldn’t save anything if your child is already in high school, but starting when they’re younger is best.

Custodial accounts and 529 plans are two of the best options for parents of kids who may someday attend college.

Custodial accounts

One strategy parents can use for college savings is a custodial account. It’s an investment account that a parent or other adult can start on behalf of a child in their life. The child will take over the account at a certain age—usually either 18 or 21.

You should read all the details of a custodial account before opening one for your child. There may be gift taxes involved, and the child may also need to pay taxes on earnings eventually. But one great thing about custodial accounts is that they don’t need to be used only for college.

A custodial account can be great if you want to keep options open for your child.

In case they decide to pursue an alternate path like the military or opening their own business right after high school, this might be more useful than a 529 plan.

529 plans

A 529 plan is often considered the top investment vehicle for parents to help send their kids to college. If you’re a parent, you can open a 529 account for your child very early and let the funds grow until they’re ready to hit the campus.

There are great tax advantages to 529 plans. The earnings in the account are federal income tax-free as long as you only withdraw the money for eligible educational expenses.

The longer your money is invested, the better the returns you can earn on your money, meaning your savings will stretch farther.

So, a part of your 70-20-10 budget can involve saving for your kid’s college education. Remember, in this budget, you’re contributing from the 20% bucket to the college fund. You might only use 5% of your income here, but stick to that 20% maximum.

Stock investments

Investing in the stock market is another avenue for you to start building wealth. It’s best to focus on other steps first, such as your emergency fund and investing in an employer-sponsored retirement account. But investing on your own in the stock market is another option if you’re at that point.

You can try your hand at more stock investing by signing up with a robo-advisor, which picks your bundle of stocks to buy based on the information you give them. You can check out the best stock research websites to invest money in the stock market.

Another means of getting some money into the stock market is with index funds. Investing with index funds is a way of investing in a basket of stocks or bonds that are meant to perform similarly to the overall stock market.

In other words, you invest in the fund to hold a piece of multiple companies, hoping to earn good returns on your money because you have a variety of companies’ stock.

As you prepare to dive deeper into the work of stock market investing, check out these investment terms you should understand!

Real estate investments

If investing in real estate sounds intimidating, it doesn’t have to be that way.

Although real estate investing for beginners can include buying a property to rent out for income, people can now invest in real estate in smaller ways.

Real estate appeals to some investors because, unlike the stock market, real estate is a tangible asset. It’s an actual piece of property that will theoretically always have some value.

As you begin with real estate, you might put some of your saved money into a real estate investment trust or REIT. It’s quite similar to investing in the stock market but in companies specifically working in real estate. The process for you as an investor is much like that of buying index funds, which is easier than buying a property and becoming a landlord.

Crowdfunding is another easy way to dip your toes into real estate syndication investments with your 70-20-10 budget.

Of course, you may be ready to pursue buying physical real estate, which can be a good option as well. Be sure to do plenty of research, as it’s not a truly passive form of income and not for everybody.

However, owning property can be a lucrative way to start wealth accumulation over time.

10% of your income is for debt payoff or giving

In the 70-20-10 budget, the final 10% of your money is earmarked for extra debt payoff. Or you may choose to use this 10% for giving. It may mean donations to charity or gifts to loved ones for weddings, graduations, and the like.

Debt payoff

Depending on your finances, you could include debt repayments within this 10% category.

However, this doesn’t mean you can only spend less than 10% of your income on debt. You might remember that student loans and other debts were included in the 70% expenses category.

Your student loans and other debts are obligations, so you want to include the minimum required payments in your spending.

In addition, if the minimum payments aren’t getting you out of debt fast enough, you can send extra money to speed up that process.

You can choose how to calculate this final 10% of your income. If you are facing a lot of debt, you could focus on how to pay off credit cards fast rather than giving. In particular, if your debt comes with a high interest rate, it’s a good idea to pay it off quickly.

If you’ve carried a lot of debt, you probably have experienced some levels of debt stress. Figuring out the right game plan for you with the 70 20 10 rule can help you get on the path to living debt free.

Debt snowball method

One popular method for debt payoff is known as the “debt snowball worksheet.” Popularized by many a personal finance influencer, the debt snowball means you pay off your debts in order, from smallest to largest.

The magic of the debt snowball is that you start with the smallest of all your debts, no matter what the interest rate is. That may mean paying off a $75 parking ticket first. That may be small, but that gives you a feeling of accomplishment.

The snowball is all about emotional wins. When you have a large amount of debt, it can feel suffocating. You might think you’ll never break free. But each time you pay off a debt, you can be proud of yourself, gain motivation for saving money, and face the next debt.

It takes time, but those little wins can fuel your drive to keep going as the debts grow larger.

Debt avalanche method

Some people praise the debt avalanche vs snowball method of debt payoff. It’s similar to the debt snowball, except that it focuses on the interest rate of each debt versus the amount of each debt.

Your interest rate on a debt is how much you’re being charged by the lender to borrow their money. The higher the interest rate, the more you’ll pay overall.

With the debt avalanche, you want to look at all of your debts and check the interest rate on each one. Then, focus any extra money you can on paying off the highest-interest debt first. For many people, this is credit card debt.

With the debt avalanche, you should end up paying less overall.

However, you might grow discouraged if it takes a long time to pay off your highest-interest debt. Which debt reduction strategy to use can depend on your personality and what method will help you to succeed.

Keep in mind, when using the 70-20-10 budget, your minimum debt payments come out of your spending category. The extra 10% category for debt involves extra payments to get out of debt quickly.

Giving or sharing

A part of your final 10% category can go towards giving to something meaningful to you. It can be a formal type of giving, with regular monthly amounts to the same organization, or you might like to vary your giving monthly.

Religious tithing or giving

Many people make giving to their house of worship a priority. Some religious traditions call this a “tithe” (which simply means a tenth of your money). But whether you give a full 10% to one church or religious organization is really up to you.

Donating to charitable causes

Another part of your giving may be in the form of donations to charities or nonprofit organizations.

You can choose one with a mission that resonates with you, whether that’s helping victims of domestic violence, digging wells in Kenya, feeding the hungry in your hometown, or one of the hundreds of other causes.

Advantages

So, what are the main benefits of using this budget to learn how to manage your money? Let’s discuss some of the primary reasons you might like this budgeting method.

The 70-20-10 budget is simple to use

The 70-20-10 budget is pretty simple to understand and use. Keeping only three basic categories can make budgeting feel less like a chore and more doable, especially if you hate budgets.

Spending, saving, and giving are generally the three main categories people talk about when discussing why personal finance is important. Sure, there are plenty of ways to divide up those areas, but starting from those broad sections might make budgeting feel manageable to you.

Less restrictive than other budgets

A budget like this might work for you because it can feel less restrictive than other budgets. Other budgeting tools or programs may require you to make thirty different categories for your money and keep track of every single penny you spend.

This budget gives you a general framework that can help you with organized finances. But it gives you a lot of freedom within the framework. Spending 70% of your income, you can divide up the spending categories any way you like.

Disadvantages

As with most things, the 70-20-10 budget might not work for everyone. Here are a couple of negative aspects of this kind of budget strategy.

Some prefer a more detailed budget

You may have read the above section and thought the 70-20-10 budget is just too simple for you. You may prefer breaking down all of your income and spending in a much more detailed and specific manner.

If you think your personality fits better with stricter, detailed planning, then try a more complex budgeting template. The goal here is to create better budgeting with your money, not to fit yourself into a mold that isn’t right for you.

Not everyone can live on 70% of their income

Now, here’s a tough truth about finance: for some of us, 70% of our income isn’t enough to live on. If your income isn’t at a level that allows you to pay the bills at 70%, then this budgeting rule won’t work.

You could also try to adjust this plan slightly if income is tight. Perhaps an 80-10-10 budget would be a good alternative (spend 80%, save 10%, give 10%).

The 70-20-10 budget can be good for many people, but when you’re struggling with bills piling up, you likely won’t be able to save 20% or give 10%. And that’s okay.

70 20 10 Budget example

Knowing how this budget works and understanding the pros and cons is great. But maybe you want to see what this budget looks like in a real-life scenario. Here’s an example:

Let’s say your income is $5,000 a month after taxes. By this rule, $3,500, 70% of your income, would be for all expenses. Then 20%, or $1,000, is for saving. Last, $500, or 10%, is for giving or debt payoff.

So your budget might look something like this:

Essentials: $3,500

• Housing cost $1700
• Utilities $200
• Insurance $200
• Transportation and car payment $500
• Groceries $600
• Subscriptions $50
• Minimum debt payments $200
• Fun money $50

Saving: $1,000

• Emergency fund $300
• IRA $300
• Saving for child’s college $200
• Sinking fund for travel $200

Giving: $500

• Giving to religious organizations $250
• Giving to a charity $250

You can use whatever budget categories make the most sense for your income and lifestyle. But this example gives you an idea of what this rule might look like.

Expert tip: Calculate your income before setting up your 70-20-10 budget

A good first step to take before breaking down all of your spending, saving, and giving? Figure out how much money you make in after-tax income. You can look at pay stubs if you’re not sure of the precise amount.

If you’re practicing budgeting for couples, be sure to factor in a spouse or partner’s income if you share the household income and expenses. If your income is variable—for example, if you take on freelance gigs or work in an unpredictable field—make your best estimate for an average monthly income. You might err on the low side of that income range just to be on the safe side.

How is the 70-20-10 rule similar to 70-10-10-10 rule?

The 70-10-10-10 rule for money is very similar to the the 70-20-10 rule. But 70% of your income is for expenses, and the other three 10 percents (10-10-10) are for various categories, including giving, investing, and saving. You may choose to focus on different things in each of your 10% categories, including an emergency fund, retirement accounts, etc.

So, as you can see, this rule is very similar to the 70-20-10 rule. It’s just that the way you break up the percentage numbers is slightly different.

Articles related to budgeting methods

If you learned more about percentage budgeting from this article, read these next!

• How To Use Budget Categories
• Sinking Funds: Why You Need Them. How To Set Up Yours!
• 21 Sinking Fund Categories to Consider In Your Budget
• The 50-30-20 Rule: How It Works + A 50 30 20 Budget Template
• 10% Rule: Is Saving 10% Enough?

Give the 70-20-10 budget a try!

By now, you probably have a good idea of whether you like this 70-20-10 budget. It’s a fairly simple and straightforward method of budgeting. Consider the type of budgets you may have tried in the past, and think about your financial goals and examples of financial goals as you decide.

Going through your current financial situation can help you to create a financial planning process. Your money is too important to leave up to chance, so give it a shot and try some new budgeting ideas.

You might also find a different approach to managing your money. There are several other different budget rule ideas to try out, including the following:

• 80/20 budget
• 60-30-10 rule
• 60-20-20 rule
• 50-30-20 budget
• 30-30-30-10 budget

Learn how to create a budget that’s best for you with our completely free budgeting course! Remember that budgets are personal, and even if it takes some time to find the right one, it will be worth it when your finances are in good shape and you feel more in control of your money.

The post What Is The 70-20-10 Budget? appeared first on Clever Girl Finance.

Turning 40 is a time to celebrate all that you’ve accomplished in life so far, live your best life, and look forward to all the adventures still ahead of you. And one of the best ways to celebrate a milestone birthday is to throw an amazing, unforgettable fiesta! If money is tight, don’t worry, there are plenty of 40th birthday party ideas on a budget you can use to throw a fabulous bash without spending a fortune!

Let’s get into these awesome ideas for a 40th birthday!

1. Picnic in your backyard

What’s one of the simplest 40th birthday ideas on a budget? Host a picnic in your backyard! You can keep costs down by providing simple food and drinks and asking guests to bring their own chairs or blankets.

And don’t forget the games! A few classic picnic games like frisbee or tag will keep you and the kids entertained.

If you’re looking for 40th birthday party ideas on a budget that don’t cost the earth, this one is a no-brainer.

2. Barbecue party to grill your favorite foods

Everyone loves food on the grill! Burgers, hot dogs, steak tips… you name it. Throwing a barbecue party is a great birthday party idea since it’s relatively easy to organize, and everyone is sure to have a good time.

All you need is some food, drinks, and 40th birthday decorations, and you’re ready to go! Plus, you can save money by making it a frugal meals potluck and asking your guests to bring some food, snacks, or dessert.

3. Movie night

If you’re thinking, “I need money desperately,” but still want to treat your guest to a personalized 40th birthday party, you can host a movie night at home and watch some of your guests’ favorite classic films.

Top Gun? Back to the Future? Dirty Dancing? You betcha!

All you need is a projector and some movie snacks! It is definitely one of the most awesome ideas for 40th birthday celebrations if you prefer more intimate and chill parties.

4. Gaming or board game night with friends and family

Monopoly, Scrabble, Settlers of Catan, Uno… the list goes on! Gather up all your gaming supplies and have a good time trying out game night ideas with the closest people in your life. These 40th birthday party ideas on a budget are easy to arrange.

If you’re looking to spice things up, make it a drinking game and take a drink every time somebody loses in cards.

5. Sip and paint night

A sip and paint night is a unique and fun birthday idea that you should definitely consider. You can invite all your friends over, have them bring their favorite bottle of wine or two with them, then give everyone a canvas and let the painting commence!

Sip and paint is not only an excellent idea for what to do for 40th birthday celebrations for yourself, but it’s also a great way for everyone at the party to have fun, too.

6. Karaoke your heart out

Hosting a karaoke night is one of the most fun 40th birthday ideas on a budget and is the perfect way to celebrate! You can invite all of your friends and family to join in on the fun. Karaoke is a great way to get everyone up and singing, and it’s sure to be a night you’ll never forget.

Put together a list of 40 of your fave karaoke songs for your 40th so you’ll love the playlist for the whole evening. Whether you love pop, rock, or alternative music, this will be a real blast.

7. Bowling night

When you’re looking for an affordable birthday party idea, consider bowling. It’s inexpensive but also a great way to get people involved in conversation while they wait their turn at the lane.

Plus, there are plenty of places that offer both discounts and group packages, which can make your life easier if you’re on a budget.

8. Escape room exploration

If you want an unforgettable experience, consider exploring an escape room. These interactive puzzles provide a unique challenge that is perfect for groups of friends or family.

You and your guests will have a blast working together to solve the clues and escape before time runs out!

9. Amusement park trip

For many people, turning 40 is a time to reflect on the past and plan for the future. It can also be a time for celebration, and what could be more fun than spending a day at an amusement park with friends and family?

Whether you’re young at heart or just young enough to enjoy the rides, an amusement park is one of the most thrilling 40th birthday ideas on a budget. Be sure to use sites such as CityPass to save on tickets!

10. Adventure day

Still looking for 40th birthday party ideas on a budget? One of our favorites is to go on an adventure day!

Visit a new city, go camping, or explore a new area of town with your family and friends! What’s better than taking off into the great unknown?

Whether you’re driving to another town or exploring a local park, the exploration of an unknown place is always exciting. Be sure to take lots of photos to reminisce on the beautiful memories for years to come. You can find all kinds of fun things to do for free in a new town by checking online!

11. Masquerade ball

Nothing says celebration like a good old-fashioned masquerade ball. Put on your best mask and enjoy a night of intrigue and mystery. You can decorate with gold balloons, candles, and table centerpieces for a festive flair.

Moreover, there are so many budget-friendly possibilities for costumes. You can go as anything from royalty to a Venetian gondolier. I’m sure your guests would have tons of fun!

12. Hollywood glamour Party

Think glamour, glitz, and old-school Hollywood. Get inspired by classic movies like “Casablanca” and “The Great Gatsby.” You can have everyone come dressed in vintage outfits from their favorite Hollywood costume or an outfit from any era.y

If you want to go all out, you can even rent some props and set the scene like a movie studio backlot. When it comes to 40th birthday party ideas on a budget, this has to be one of the most stylish. Go on — add a little pizazz. 

13. Throwback 90s hip hop party

Anyone celebrating their 40th birthday will remember the classic 90s hip-hop tunes we grew up listening to. So why not host a throwback 90s party for your birthday? It’s a great way to celebrate in style.

You can have all of your guests over and listen to music from the 90s, dance the night away, and enjoy snacks and drinks. And don’t forget to wear your best baggy jeans or tracksuit to show off how you can be fashionable on a budget.

14. The 70s disco fever

It’s time to get your groove on! A 70s disco dress-up theme party is the perfect way to celebrate everything that is funky, cool, and groovy about this decade.

From dancing in the streets to bell bottoms, polyester suits, and afros, there are so many options for this theme. You can go all out with a full costume or just rock some of your favorite ’70s attire.

Perhaps you could start upcycling fashion to make a sweet ’70s outfit. This party will be one for the books!

15. Carnival party

If you’re looking for a unique way to celebrate your birthday, why not throw a carnival-themed dress-up party?

Make it even more fun by decorating your home with circus-themed 40th birthday party decorations and serving classic carnival food like hot dogs and popcorn. You can also have fun games and activities for your guests to enjoy, such as ring toss or balloon popping.

16. Year of birth retro party

Celebrate 40 years of being alive by reminiscing about the year you were born. Granted, you won’t actually remember it! But it’s a fun theme to play around with.

Have your party guests dress in costumes from that year, get your party playlist on, and maybe even play around with a nostalgic menu. Vol au Vents and Chicken Française, anyone?

17. Concert viewing party

Do you love live music? Taking all of your friends to a concert may be out of reach.

However, that doesn’t mean you can’t have the same experience at home. Invite your besties over to enjoy a special screening of your favorite artist for your 40th birthday. 

Not sure where to start? You can purchase Beyonce’s World Tour on Amazon.

Simply search for the concert you have in mind, rent it, and host a night to remember. 

18. Create your own photo booth

When you’re coming up with new ideas for 40th birthday celebrations, don’t miss this one. You want to ensure you have loads of snaps of the big event. Why not create your own photo booth from scratch?

The good news is that you don’t need a ton of money to get this right.

Start out by getting some props online — you can buy a range of photo prop packs on Amazon. Next, get a Polaroid camera and some film.

If that is too expensive, take the pictures on your phone!

19. DIY casino night

Is luck on your side? If you can’t quite afford to take a trip to Vegas for your birthday, a better way is to bring the casinos to you instead. 

You can buy roulette games online for less than you might expect. Invite your friends around for a casino-themed party, and don’t forget your costumes.

20. Cocktail-making at home

If you’re a fan of fancy cocktails, here’s one of the best 40th birthday party ideas on a budget. Why not host a cocktail-making session at home? 

There are two main choices here… You can make one cocktail or ask your friends and family to bring their own recipes and ingredients. 

If you throw a themed party, you might even want to have themed cocktails. It’s a fun activity that your party guests will enjoy. 

Tip: Make some mocktails for anyone who is pregnant or doesn’t drink! You need to cater to everyone’s needs. 

21. 40th birthday dinner party on a budget

There’s no shame in getting to 40 and preferring more of a traditional meal than a buffet. A small dinner party is a great chance to get together with your nearest and dearest to enjoy sumptuous food and fabulous company.

It still doesn’t need to be expensive, even if it does look fancy pants! You could have each dinner party guest bring a different course or perhaps invite them all to bring a bottle while you handle the food. If you love a bit of fizz, then Prosecco is a brilliant alternative to champagne.

Expert tip: When in doubt make a list of themes and activities

With a bit of creativity, throwing a birthday party without spending a ton of cash is easy! Simply think about what type of event you want and your interests, and then get creative with the planning to save money.

One of the best ideas for 40th birthday celebrations is to make a list if you don’t know where to start. Write down themes and activities you like, and see if something stands out. Then start planning your party from there.

Ideas to make a 40th birthday more affordable

When it comes to throwing a 40th birthday party on a budget, creativity is key. We promise you’ll have a fantastic time even if you only have a few dollars to spend. Here are a few tips for how to save money fast while still having an amazing birthday experience on your big day:

Have your 40th birthday party at your home instead of renting a space

One easy way to save money is to hold your 40th birthday party at your home instead of renting a venue. That way, you can control the food and drinks that are served, and you won’t have to pay for a location.

You can also decorate your home to match the theme of your party, which can add to the festive atmosphere.

Ask guests to bring food or drink to your 40th birthday party

When you’re wondering what to do for 40th birthday celebrations, hosting a party can be expensive, but there are ways of cutting the budget. One way is to ask guests to bring food or drink to the party. It saves you from buying everything yourself and can help keep costs down.

There are many different types of food and drinks that guests can bring, so everyone is sure to find something they like. Plus, it’s a great way for guests to get together and socialize.

Serve simple snacks and drinks rather than a full meal

Instead of serving full meals that take quite a bit of time and budget to make, you can instead set up a buffet table where your guests can help themselves to simple snacks.

It will help you to save money on food costs and make it easier for your guests to find something they like to eat.

Use decorations you already have around the house

One of the other creative ways to save money for your party is by using decorations you already have around the house.

For example, you can use tablecloths and tableware, ribbons, streamers, balloons, and posters to create a festive atmosphere. And don’t forget the confetti!

You can also make your own party decorations by using materials like cardboard, construction paper, and paint.

Provide your own 40th birthday party entertainment on a budget

Another fun way to save money on your birthday bash is by providing your own entertainment rather than paying for a band or other professional service. You could get a Bluetooth speaker and create your own music playlist for the party. You can also decide what games will be played, if any.

That way, you can have more control over the type of music or games that are played and who is involved. Plus, it’s a fun way to get everyone in on the celebration!

What items are needed for your 40th birthday party ideas on a budget?

The items needed for your party could differ depending on what type of party you’re hosting.

However, to ensure that your party goes smoothly, here are the most essential items and factors to consider during your party planning process.

A venue

Almost every party needs a venue. The perfect place to celebrate this momentous milestone is somewhere with plenty of space for guests to spread out and have fun.

It should also be private enough so that the guest of honor can enjoy their special day without interruption.

However, you can keep it budget-friendly by having your party at your home, a friend’s house, or a park if possible.

Food

A big part of planning what to do for 40th birthday celebrations is the food. For food, it’s customary to serve a mix of savory and sweet dishes. Finger foods are perfect for parties, as they can be eaten without utensils and don’t take up too much time or space on the table.

Last but not least, don’t forget your 40th birthday cake! Whether it’s shaped like the number 40, has 40 candles on top, or you serve 40 individual cupcakes instead of a multi-tiered centerpiece, it’s your call!

Drinks

Guests will also need drinks, so make sure there’s a variety of alcoholic and non-alcoholic options available. Also, don’t forget to prepare plenty of cups and wine glasses so you won’t have to worry about buying them last minute.

Music

Music is also important for a birthday party, as it sets the mood and helps guests get into the celebratory spirit.

The best way to make sure that you’re prepared is to make a Spotify playlist beforehand and also take into consideration the music taste of your guests or the theme of your party.

Decorations

Last but not least, decorations. To keep things cohesive, make sure that your party decor matches the theme of your party and makes the guests feel welcome and excited for a whole day of fun!

You can even search for decor inspirations on Pinterest to help you create amazing decoration ideas for your birthday. Remember to check places like the Dollar Store or Goodwill to save cash on decor!

How to save up money for a 40th birthday?

If you want to have a fun 40th birthday party but need to save up money, there are lots of ways to prepare, like a spending freeze. You can also try out a savings club or find other ways to save money on a tight budget. Even a side hustle or a couple of extra hours a week at work can help you throw the birthday party of your dreams!

What is a good menu for a 40th birthday party? 

A good menu for your 40th birthday party depends on your taste and the type of event you’re hosting.

For example, if you are going for a formal dinner, you might want to choose a classic, such as French or Italian food. Should you host a larger event, you may want to go for sharing dishes, such as charcuterie boards. 

Alternatively, you could make your event a potluck and have your friends and family each come with a special meal!

How do you throw a big birthday party on a small budget? 

To throw a big birthday party on a small budget, consider what you spend on. A large guest list can still be inexpensive when you’re mindful of the venue and food, which are two big costs.

Pick a free or inexpensive (but large) venue like a park or community center. Then, save by planning an inexpensive meal or asking guests to bring sides and desserts.

What makes a good 40th birthday party?

So long as you’re celebrating with the people who matter to you, you should have an amazing birthday bash. Remember, this is your event, so you make the rules.

You don’t have to go overboard if your budget is slim. There are plenty of ways to have fun, relax, and share in this milestone with your loved ones.

Articles related to inexpensive birthday ideas

If you enjoyed reading about 40th birthday ideas on a budget, you’ll love these articles:

• 18th Birthday Ideas On A Budget!
• Turning 40? Key Financial Steps To Take
• 22 Fun And Inexpensive Ideas For Days Out With The Girls
• 40 Fun Things To Do For Free With Friends

Try these 40th birthday party ideas on a budget and have a blast!

Hopefully, these 40th birthday party ideas on a budget have provided you with some inspiration for your upcoming birthday bash! Your birthday is a time to celebrate all that you have accomplished in life so far.

It’s also a time for looking ahead to the future, finding out how to plan for the year, and setting new yearly goals to have. And, of course, it’s a time for having fun with friends and family.

So make sure to have fun and enjoy this special day while also avoiding money leaks and overspending!

The post 40th Birthday Party Ideas On A Budget appeared first on Clever Girl Finance.

Budgeting isn’t just about making sure you have enough to pay the bills each month. It’s also about planning ahead for future expenses. While you should have an emergency fund, a smart way to save money each month is to set up different sinking funds categories.

Sinking funds allow you to put money aside each month for specific things.

In this article, you’ll learn about the different types of sinking fund categories. These can help you build out your budget and live debt-free.

Why do sinking funds categories matter?

According to PR Newswire, 80% of Americans have a budget.

But many don’t have enough money saved. In fact, YouGov claims that 12% of surveyed Americans said they have no savings, and 27% had less than $1,000 in savings. 

The purpose of a sinking fund is to save cash for specific expenses. That can include one-time or irregular expenses. The cash ideally should be broken up into categories.

For example, if you have a wedding coming up, instead of using your credit card, you can figure out how much you’ll need for related expenses. Divide that amount by the number of months until the event. Then aim to save that sum every month in your “wedding budget breakdown” fund. 

Setting up a few options from our sinking funds list may help you avoid spending money on the wrong priorities. You can focus on saving a specific amount for a specific purpose every month. 

One benefit of sinking funds is that you don’t have to pay for things all at once. Spreading out the cost can reduce the pain of major expenses and stop you from going into different types of debt. 

You set aside money from your paycheck each month (or whatever frequency you decide) toward a specific financial expense. That’s to ensure you don’t go over your budget when a big event, repair, or other expensive item comes up.

Rather, you’ll save the money slowly for upcoming expenses and save yourself from taking on long-term debt. The alternative for many people is paying by credit card, and high-interest rates then compound the amount you owe. 

Setting up a sinking fund with specific categories can help you take your budgeting skills to the next level. It forces you to itemize your monthly budget even further, rather than just dumping leftover cash into a savings account. Every saving goal can have its own sinking fund. 

You know you need to create sinking funds but are you clear on the sinking fund categories you need? Here’s a list to help you plan!

18 Sinking fund categories to review

There are many sinking funds categories to choose from. And you’ll probably think of a few more besides what we’re including here. 

They aren’t just for parties and can include recurring yearly expenses, emergency bills, car expenses, appliance updates, wedding expenses (which can be costly), and more.

Keep in mind that sinking funds are just one part of your overall budget. Your budget will likely have several different budget categories to help you plan your finances overall.

That said, here are some of the more common sinking funds categories that you could incorporate into your budget:

1. Transportation

One of the biggest expenses besides housing is transportation. Whether you own a car, take public transport, or use Uber on the weekends, it’s important to budget for your transport costs.

If you own a car, you can set up a sinking fund to pay for car expenses, maintenance, and unexpected car repairs. New tires or other replacements for your vehicle can set you back hundreds of dollars (at least). 

Your car sinking fund could include money intended for vehicle registration fees, parking permits, and car insurance. You might even set aside money to purchase a new-to-you car eventually (find out: what car should I buy?).

And for those who use public transport, you can set aside money for train or bus passes or ride-sharing apps.

2. Medical expenses

Another of the sinking funds categories to establish is medical expenses. Going to the doctor is expensive, especially during an emergency.

In fact, according to Affordable Health Insurance, over half of Americans surveyed have medical debt.

Even with good health care insurance, it’s important to set up either a medical Flexible Spending Account (see “What is a flexible spending account?) or a Health Savings Account (HSA). You can use it as a medical sinking fund so you don’t end up in debt due to medical expenses.

3. Christmas and the winter holidays

Christmas is a good example of sinking funds categories that come every year. Unfortunately, many people don’t prepare ahead of time, eating into their budget or savings to pay for the holidays.

No matter how much money you spend for Christmas, Hanukkah, or other major holidays, a sinking fund category for them can ease the pressure of that time of year. It’s a saving goal with a specific deadline each year. So you can follow a sinking fund savings plan all year long or use Christmas clubs. 

Determine how much you plan (or will be able) to spend for the holidays. Then divide that amount by 12 if you plan to save money every month. (If you start later than January, simply divide the amount of money by the number of months remaining.) 

Don’t forget about things like decorations, office gifts, Christmas dinners out, and travel expenses if you go to see family. Those can go above and beyond your general holiday gift budget. 

You may still encounter unexpected costs. But by setting up a sinking fund specifically for Christmas, you can incorporate Christmas on a budget into your monthly budget all year long.

4. Vacation

Another good example of sinking funds categories is vacations. Whether you hit the road every few months, plan a big annual trip or some other vacation pattern, planning is key. By budgeting for your time off months ahead of time, you can be even more prepared and avoid taking on debt. 

If you are planning a trip to Disney World on a budget or even Europe, it can be a big life event. And you probably don’t want to put it all on a credit card. 

Create a vacation budget and, as with many items for sinking fund ideas, divide the amount by the number of months until the trip. That will allow you to take your family vacation or girls’ trip without worrying about money, so you can truly disconnect and relax.

5. Childcare

Unfortunately, the average family spends about 27% of their household income on childcare, according to Care.com. (And 59% of parents said they expected to pay more than $18,000 per child in 2023!) 

The cost of childcare will be a factor if you’re a parent. So that’s another one of the categories you might consider. You can also include other costs of raising a child, like preschool fees (find out “how much does preschool cost?”), sports and activity registration, clothes, dental and eye care, summer camps, and more. 

While some childcare-related expenses are unexpected, like when your child has a sudden growth spurt, you can prepare ahead of time for many by setting up a sinking fund.

6. Braces

Not every child needs braces, but many do. Braces are very expensive, costing thousands of dollars.

You may spend even more if you have more than one child. So it’s worth it to add this expense as a financial goal.

If you have any children or are planning on starting a family, start saving early.

7. Utilities

It might not be the most exciting item of sinking funds categories, but utilities are a necessary expense that usually fluctuates throughout the year.

For example, if you live in an area with harsh winters, your electricity bill will likely be more expensive in the winter than in the summer. However, you can consider how to lower electric bill payments.

You can plan ahead for these moments by setting up a sinking fund in your budget. Figure out the average you paid last year and split it between 12 months. That way, you’ll already have the money in your account when your bills are more expensive.

(Some utility companies arrange this for you. They’ll estimate your total bills and divide up the estimated total equally among your monthly bills for the year. You can do this yourself within a sinking fund, though, if it’s not offered by your utility provider.)

8. Self-care

While a self care Sunday here and there doesn’t have to be expensive, if you like to get specific hair or spa treatments, then it might make sense to set up a self-care sinking fund. 

Massages, nail care, laser hair removal, and more are all expenses that can add up. So, incorporate your favorite ways of treating yourself into your budget by setting up a sinking fund.

When it’s not a necessary expense, it can make you feel better to save a little bit each week or month for that specific purpose. Then, you’re less likely to neglect those special treatments or activities due to money. 

9. Special occasions

Special occasions like a major anniversary or wedding might not happen every year, but when they do, they’re often expensive.

For example, retirement parties, bar mitzvahs, quinceaneras, or the average wedding cost might be tens of thousands of dollars. Depending on your family and societal expectations. Don’t feel that you have to blow your monthly budget to impress anyone, but do consider how you want to contribute to those big moments. 

You can start saving for these events several years in advance to help spread out the cost of these one-time expenses. (If you’re like me and have a lot of college-aged nieces and nephews, those graduations and potential weddings are future expenses to consider!)

10. Annual renewal expenses

Some bills are recurring expenses that happen every year, such as annual renewals.

For example, perhaps you have subscriptions to software or other memberships. Even if you pay them in a lump sum each year, you can make sure to have the money set aside each month to spread out the budget burden. 

Write in your calendar when the payments are made. Then, you can prepare well ahead of time for anything that is a recurring expense.

11. Clothing

Unless you’re doing a no new clothes challenge, you might want to make a sinking funds category for clothing. That can include general clothing, seasonal clothing like coats or shoes, or clothing for special occasions like weddings or work events.

While you likely won’t need to buy new clothes every month, setting money aside every month can help you be prepared whenever it’s time to replace worn-out clothing. That also goes for kids’ clothing. Since they outgrow items quickly, a sinking fund for their clothes is a good idea as well. 

12. Gifts

A birthday party or anniversary presents can show your loved ones you care. But they also can rack up bills and debt if you’re not careful. Plus, you may like to give gifts for other occasions like Valentine’s Day, Mother’s Day, Father’s Day, and other special occasions.  

Thankfully, this category is usually easy to save for. The amount of money you’ll need for gifts may be lower than for other sinking funds categories. 

However, this depends on the number of people in your life, so no matter what, a budget item for gifts can help. Sustainable Christmas gifts and experience gifts for kids are great options, but that doesn’t always mean they’re free!

13. Home maintenance

If you’re a homeowner, you will definitely need to do some maintenance eventually. Home maintenance is one of the best categories because it works like an emergency fund but for the specific purpose of your home. 

A sinking fund lets you plan ahead for inevitable home maintenance bills. Unexpected bills for plumbing, windows, garage doors, or even a sinking foundation (ask me about that one!) can put a dent in your finances. 

It’s typically suggested to save between 1- 4% of the value of your home each year for maintenance. With any luck, you won’t need to spend it every year. But the flip side is that some years, you might face multiple big home expenses at once. 

Making a sinking fund for specific home repairs you know you’ll need is smart planning. It’s also something to factor in when deciding, “Should I buy a house now?” as it’s another ongoing expense.

14. Home furnishings

Sinking funds categories may also include home decor like furniture or new appliances. A new couch or bed can be very expensive. Instead of wondering where the money will come from, plan ahead.

Setting aside a bit each month in advance is much less stressful and better for your credit score. This type of sinking fund is fantastic for homeowners to have because retailers put appliances and furnishings on sale at certain times of the year. 

By planning ahead as a homeowner, you can take advantage of sales and offers while respecting your budget. 

15. Charity

One of the sinking fund ideas you might not have considered is one for giving to others. Whether you give to a church, another charity, or both, you might want to have some cash saved for a good cause in a sinking fund account.

Even if you’re not currently giving to a charitable organization, a charity sinking fund can ensure that you have the funds if you come across an organization or cause you’d like to help out with. 

Some people save a certain amount of money each month in their “giving” or “charity” sinking fund. Then, any time during the year when a GoFundMe or other giving campaign occurs, you’ll have an account to draw from when sharing your generosity. 

16. Tuition

Some sinking fund categories can include education expenses like tuition. Education is expensive, especially for private schools. Once the person reaches college, the annual cost of attendance at a four-year school is over $26,000 for in-state colleges. 

Obviously, this is a massive expense to try to plan for. While student loans may be an option, and scholarships and part-time work can help, a sinking fund started years in advance will ease a lot of headaches. 

If you send your kids to private school or are saving for their college, then a sinking fund like a 529 college savings plan might make sense, rather than a traditional savings account. (Find out, “Is a 529 plan worth it?”)

17. Pet care

Your sinking funds list might include caring for your beloved pets. Our canine and feline companions may also need some care at some point in their lives, so this is another sinking fund example. 

Besides the obvious monthly food costs, you should also plan for yearly vet visits, vaccinations, and emergency veterinary care. While some people take out pet insurance, many prefer to incorporate the cost into their monthly budget by saving it instead. 

Having a sinking fund set up for your cat, dog, or other animal can help you care for them without added financial stress. Then, if your pet becomes sick or injured, it can be much easier to manage the added expense. 

18. Emergency fund

If you do not already have an emergency fund, you should definitely set one up.

In fact, you should start to fund this category before any of the others.

Emergency funds are types of sinking funds categories that can help you pay for any unexpected expense that you weren’t planning for.

In general, it’s recommended to have about three to six months of living expenses saved up. But you can save more or less depending on your personal circumstances. Some people, like freelancers, may prefer having a 12-month emergency fund in case of volatility in their field of work. 

You should only draw from your emergency fund when financial emergencies and costs come up that you didn’t know were coming. If you need new tires or brakes on your car, that’s an emergency. If you find out you are losing your job, use your emergency fund to pay essential bills while you look for a new one. 

19. Pregnancy or adoption

Growing your family can be super expensive, whether by pregnancy, fostering, or adoption. Even in the “ideal” circumstances, pregnancy comes with a lot of additional costs. 

If you’re at the stage of your life where you’re thinking of becoming a parent, it’s not a bad idea to begin saving for that specific purpose. A sinking fund for having a child can ease a big financial burden. 

Consider not only the medical costs that you’ll incur through pregnancy but also the cost of missing work for childbirth, even if you’re considering how to make money on maternity leave. Since U.S. employers aren’t required to pay you for family and medical leave, missing several months of work can be a hardship. 

There could also be complications with fertility, which aren’t always covered by health insurance. If you decide to pursue adoption, that also can be quite costly: private adoptions range from $30,000 to $60,000. 

20. Technology upgrades

You could include this in a more general sinking funds list as “life upgrades.” Still, since technology and electronics are so integral to modern life, you can make it a separate savings category. Whenever you need to replace a smartphone, laptop, e-reader, or other tech device, you might use a sinking fund to do so. 

In particular, remember this if you rely on certain electronic devices for your job. If you are working from home or work remotely, your job almost certainly requires a reliable computer and related devices, so be ready to replace those things regularly. 

21. Fun and entertainment

Here’s one of the more fun ideas: a literal “fun” fund. You can save in an account just for things in the entertainment realm that you know you’d enjoy. You might not know exactly what event will come up, but by saving even a couple hundred dollars for it, you can be ready when something exciting is available. 

Is your favorite band from your youth going on a once-in-a-lifetime reunion tour? You could use your sinking fund to purchase tickets. It enables you to enjoy this opportunity rather than pass it up. 

Expert tip: Use sinking funds to see your savings progress

Sinking funds are an excellent way to plan ahead for costs that you know are coming up in the future. By separating your savings into individual accounts, you can gain an accurate picture of your progress toward each savings goal. 

Although budgeting in general is awesome for planning and tracking your expenses, sinking funds can provide you with specific savings guidance. You can make as many sinking funds as you wish, depending on what makes sense for your current phase of life. 

Figure out a savings target for each one and contribute something toward that saving goal on a regular basis. Seeing that balance increase each week or month in your separate savings accounts can help you anticipate the accomplishment of reaching the amount of money you need. 

What is the best way to organize sinking funds?

It’s a good idea to organize and stash the money for all your sinking fund ideas in a high-yield savings account or interest bearing account. That way, the money is easy to access and will earn interest as it sits in the account. 

Keep an eye on the balance in each sinking fund. You might set up automatic deposits from your paycheck and then start tracking savings growth monthly. Your bank may even offer an easy way to organize sinking funds within a single savings account, so be sure to check whether that’s an option. 

How much should I put in my sinking fund?

The best way to determine how much to put into a sinking fund is to decide on the total amount of money you’d like to see in the account. It may be several hundreds or thousands of dollars, depending on the type of sinking funds category. 

If you have several months to reach your saving goal, you can divide the total by the number of months to figure out how much to save monthly. This tactic works for many categories, from vacations to events to holidays.

For others, like home maintenance or the “next new car” sinking fund, you might simply settle on a dollar amount each month until you actually need the money. 

What are the sinking fund expense categories?

Basically, sinking fund expense categories are expenses that you can plan for. They’re typically not emergencies, but that doesn’t mean they’re unimportant. And they can help you to “save money live better“!

Things like annual recurring expenses, one-time occasions like weddings or vacations, and replacements of things that wear out (cars, furniture) are great options. 

What number of sinking funds should I have at one time?

There isn’t a fixed number of sinking funds to recommend because it’s a personal finance decision. You get to decide how many sinking funds would be helpful for you. 

The key to the “right” number of sinking funds is, what can you handle? If you had a dozen sinking funds, that might be an awful lot to keep track of. For some people, three to five sinking funds may be the sweet spot. 

Another option, if you have too many things on your list, is to create one large sinking fund for everything. It doesn’t help as much in terms of visualizing your progress toward a saving goal.

However, it may be better to have one sinking fund to dip into instead of stressing about organizing 15 different sinking fund ideas at once!

Articles related to saving money for specific things

If you learned more about the various savings categories and want to find out more information, check out these articles next!

• Sinking Funds: Why You Need Them. How To Set Up Yours!
• How To Use Budget Categories
• Building An Emergency Fund: A Quick Guide
• Are You Financially Fit? 6 Ways to Tell—And What To Do If You Aren’t

Sinking fund categories can help you prepare for the future!

Having a few sinking funds categories can help you manage your finances and ensure you remain debt-free.

You can save your sinking funds in a high-yield savings account, a checking account, or whatever you prefer. The main thing is that you make the calculations in advance for how much things will cost and then save accordingly.

Depending on your needs and lifestyle, you can set up a sinking fund for just about any major expense that you can reasonably anticipate. Pet care, vacations, college funds, self-care, and gift-giving are just some items that might fall on your sinking funds list. 

To take this a step further, learn more about handling money with our articles about budgeting best practices and money mindset.

The post 21 Sinking Fund Categories to Consider In Your Budget appeared first on Clever Girl Finance.

Often, living on one income requires you to get creative with your budgeting and learn to prioritize your needs over your wants. However, it can also help you find joy in the simple (and free) things in life. Check out these 15 tips to help you live well on one income.

There are a lot of different people who can benefit from learning how to live on one income.

For example, you may be looking for financial advice for single ladies, or you may need ideas on how to survive financially as a single mom. Or perhaps you’re in a partnership where you made a conscious decision to have one parent stay at home to care for the children.

You may even be in a partnership where one of you is experiencing losing your job or difficulty finding employment.

No matter your lifestyle and no matter how many paychecks you bring home, you can find a way to live a happy, fulfilling life—without breaking the bank.

From practical budgeting best practices to money mindset shifts, here’s a look at how to live on one income.

15 Tips for success when living on one income

If you’re living off one income, you know how difficult it can be to pay the bills. But don’t worry, you’re not alone!

With these 15 practical steps, you can learn how to stretch your income.

1. Build a sustainable budget for your single income

When you have only one source of income, you need to be more intentional and strategic with your spending, as there may be less margin for error.

And it all starts with building a sustainable budget.

Here’s an overview of better budgeting when living off one income:

Calculate your average monthly income

First, add up your income over the past three months. Then, divide this number by three to get your average monthly income.

Calculate your average monthly spending

Similarly, you can figure out your average monthly spending with a quick equation. Just add up your spending over the past three months and then divide by three.

Get to know your monthly expenses

The first step in minimizing your monthly expenses is identifying your monthly expenses. After all, as the old saying goes, You don’t know what you don’t know!

Start learning your monthly expenses list by organizing your spending into different categories, like savings, fixed expenses (such as rent), and discretionary spending (such as nights out).

Compare your monthly spending to your income each month

The cold, hard numbers don’t lie. Once you’ve determined your average monthly income and your average monthly spending, you can see whether or not your current budget is working for you.

Pro tip: If your monthly spending is equal to or greater than your income, it’s likely time to reevaluate your monthly budget.

Adjust your budget as needed

Are you spending more than you’re making each month? Don’t get caught up in a spiral of shaming or blaming yourself.

Instead, take action to change your spending habits now.

You can start by learning more about how to navigate money spending problems. It’s also a good idea to create new habits for how to spend money wisely.

Remember that a sustainable budget for a one-income household looks a little different for everyone, so avoid the comparison game by focusing on what’s right for you and your income.

Track your budget every month

If it helps, you can consider your budget a living, breathing being. In other words, you want to keep track of your spending every month (or even every week) to ensure you stay on track with your spending and saving goals.

One way to help you keep track of your spending is by starting a spending journal where you record and reflect on every penny you spend. Building a budget can be challenging, but by staying positive and motivated, you can achieve your financial goals.

2. Cut back on expenses

Don’t beat yourself up if you’re spending more than you earn.

There are many ways to embrace extreme frugal living to spend less on expenses and stretch your dollars further.

For example, to cut back on expenses, you can:

• Cancel subscriptions you no longer use
• Shop store brands instead of name brands
• Eat out only once or twice a month
• Embrace couponing
• Suggest free activities when you hang out with friends, like going for a walk or having a movie night at home
• Negotiate with your phone, internet, and cable provider for a lower rate

With a little effort and some smart strategies, you can cut back on your expenses and make your single-income household budget work for you.

3. Build an emergency savings fund

Building an emergency fund is vital for achieving financial stability, especially when you have a single-income household.

Here’s a step-by-step guide on how to get started:

Set a savings goal

Creating a clear savings goal is the first step toward building a robust financial foundation. After all, it’s much easier to work towards a clearly defined goal than a rough idea.

Best practices for emergency funds suggest saving at least three to six months of living expenses.

So, to determine your savings goal, you can simply multiply your monthly expenses by three, four, five, or six. For example, if your monthly expenses are $3,000, your savings goal should be between $9,000 and $18,000.

It’s also a good idea to consider your lifestyle and job stability when calculating your goals.

For instance, if you have a stable, relatively secure job, then you may feel comfortable saving just three months’ worth of expenses. Conversely, if your income fluctuates month to month, you may choose to save up to six month’s worth of expenses for greater peace of mind.

Start small

To build your fund, begin by setting aside a modest amount of cash each paycheck or month. Remember that every little bit is important, even if it’s just $20 or $50.

By adding to your savings accounts slowly but surely, you can confidently grow your emergency fund over time. Plus, starting small allows you to ease into the process and adjust your budget as needed without feeling overwhelmed.

A good rule of thumb for saving is to follow the 10% rule, where you save 10% of your monthly income. Then, as you get more comfortable with saving, you can slowly increase the amount you set aside each month.

Make saving automatic

One of the easiest ways to grow your emergency fund stress-free is to make it automatic. Automating your savings means setting up automatic transfers to send money from your checking account to your fund every month, twice a month, or however often you want. The best part is that automatic transfers are completely hands-free, so you don’t have to worry about “forgetting” to save.

Importantly, by sending money to your savings whenever you receive paychecks, you’re establishing a habit of saving that can serve you for the rest of your life.

Keep your savings separate

Keeping your emergency fund completely separate from your regular savings or checking account is a crucial step in ensuring that the money is only used for emergencies.

By having a separate account, you’ll be less likely to use your emergency fund for non-emergencies, such as impulse purchases or vacations.

Additionally, having a separate account can help you track your progress toward your savings goal and make it simpler to manage your finances overall.

An emergency fund may also help reduce stress in emergency situations, as you’ll be able to protect your peace knowing you have a designated fund to rely on.

4. Factor in debt

Debt can be a burden, especially if you’re living on one income.

But with a solid plan and discipline, you can tackle your debt and take control of your finances.

The first step is to factor your debt payments into your budget. This means allocating money from your monthly income to pay at least your minimum payments—on time. Above all, make sure you prioritize your debt payments over non-essential expenses.

Another helpful strategy is to look for ways to reduce your debt.

Reducing debt could include learning how to negotiate credit card debt with creditors for lower interest rates or setting up a debt repayment plan, such as the debt snowball worksheet method.

It may be a long journey, but every payment brings you one step closer to financial freedom and that glorious, living debt free feeling.

To help you stay disciplined, motivated, and consistent in your debt repayment plan, check out these inspirational debt free quotes.

5. Maximize your income-earning potential

While it can certainly take time to navigate the job market and find ways to increase your income, remember that it’s not impossible.

Here are several tips to help you create multiple sources of income:

Invest in yourself

Learning how to invest in yourself by taking some courses or obtaining certifications is a great way to enhance your skills and increase your value as an employee.

By staying current with new technologies and industry trends, you will be better equipped to handle challenges and develop new ideas. An investment like this can lead to greater opportunities for career advancement and increased income.

Negotiate your salary

When starting a new job or during performance reviews, it’s important to negotiate your salary and benefits package to ensure that you are being fairly compensated for your skills and experience.

Be bold, and don’t be afraid to ask for a higher wage or additional benefits such as flexible working hours or increased vacation time.

Do your research and come prepared with specific examples of your contributions to the company. Remember, negotiating your salary is not just about earning more money but also about ensuring that you are being valued and respected for the work you do.

If you want to increase your income without changing your job, you can also learn how to ask for a raise.

Start a side hustle

Exploring different side hustles for women can be a smart way to earn more money and develop new skills outside of your full-time job.

Whether it’s freelancing in your area of expertise or starting a side business based on a passion or interest, these opportunities can provide additional income streams and potentially lead to new career opportunities.

However, be sure to carefully consider the time commitment of your potential side hustle before getting started. That way, you can make a plan to effectively balance your new project alongside your full-time job so you can avoid burnout.

Finally, it’s also important to ensure that any side hustle does not conflict with your employment contract or company policies.

Grow your professional network

Love it or hate it, networking is an important aspect of career development that involves making connections within your industry and building relationships with like-minded professionals.

By attending networking events and joining industry groups or associations, you can meet new people and learn about potential job opportunities or clients that may benefit your career growth. It’s important to be genuine in your interactions and show interest in others’ work to build trust and rapport.

If you can’t attend these groups or events in person, you can also find ways to network online if meeting in person isn’t possible.

To help you get started, check out these networking tips for a career boost.

6. Seek out free resources and services

There are plenty of resources and services out there that can help you save money and stretch your budget while living on one income.

One excellent option is to look for free community resources.

For example, consider heading to the library to check out books or magazines instead of paying for online subscriptions or going to the bookstore. You can also propose a clothes swap with friends instead of cashing out at the store.

And remember, for financial help, there are plenty of free online resources for budgeting, saving, and investing.

Another way to save money is to explore government programs that can assist with healthcare and housing.

However, be aware that some of these programs have income thresholds, so check if you’re eligible.

Finally, ask for help from friends and family if you need to. You’d be surprised how many people are willing to lend a hand or offer support during tough times.

7. Plan for unexpected expenses

Facing unexpected expenses is never fun—and it can feel even more stressful when you’re living off a single income.

The best thing you can do to help ease the burden of unexpected expenses is prepare, prepare, prepare!

Check your insurance

Sure, making regular insurance payments is never fun. But you’ll be happy if you have the right coverage in place in the event of an emergency!

To help safeguard yourself against financial emergencies, be sure you purchase the correct types of insurance coverage for your lifestyle, such as:

• Health
• Home
• Renter’s
• Car
• Life
• Pet

Take preventative measures

Remember: It’s almost always cheaper (and often easier) to maintain and care for your belongings than replace them.

For example, you can care for your car and help prevent future expensive repairs by regularly changing your oil. Similarly, you can help avoid expensive damage to your home by doing routine chores like cleaning your gutters.

These projects may not be fun, but they sure beat paying a hefty, unexpected bill!

Of course, surprise expenses are a part of life, but with some planning and preparation, you can minimize their impact on your budget.

8. Create a financial plan

If you’re trying to live on one income, having enough money can be a challenge sometimes. But creating a solid financial planning process and sticking to it can make a world of difference.

Start by setting clear financial goals, and then make a plan for how to achieve them.

Remember, it’s all about finding a balance that works for you and your family.

9. Prioritize needs over wants

If you really need to trim the fat from your monthly budget, it’s important to prioritize your needs vs wants.

Understandably, it can be tempting to splurge on things that make you happy at the moment, like ordering take-out or buying a new pair of shoes. But if you’re committed to long-term financial wellness, then you’ll likely need to take a more disciplined approach to your spending.

Take the time to evaluate your expenses and distinguish between what you truly need and what you simply want. Doing so will help you make more mindful spending decisions and prevent overspending.

And remember, it’s okay to treat yourself occasionally. (And there are plenty of budget-friendly ways to treat yourself, too!) Still, when it comes to budgeting and living on one income, needs should always come first.

10. Find affordable ways to enjoy leisure time

It’s easy to feel like you can’t do anything fun without breaking the bank, but that’s not true!

Truly, you can find many ways to save your pennies while still relaxing, having fun, and spending time with friends.

For example, you can go for a walk in the park, have a picnic with your family, or visit a local museum or art gallery. You can also look for free events or classes in your community or get creative with DIY projects at home.

The key is to prioritize self-care and socialization without sacrificing your financial goals.

Need some inspiration? Discover 40 fun things to do for free with friends.

11. Stay motivated and focused on financial goals

When you’re dutifully saving every month, making your debt payments, and staying away from fancy restaurants and expensive stores, it can be all too easy to lose your motivation to save.

To stay inspired and focused, it’s important to remember why you set financial goals for yourself in the first place. You may hear this referred to as “find your why.“

You can also check in with yourself regularly and reflect on how you feel about your financial situation by money journaling.

Above all, don’t be discouraged if you experience setbacks. We all overspend sometimes.

12. Communicate openly with your partner

If you are in a relationship where you share one income, it’s important to remember that you and your partner are a team.

And it may seem obvious, but it can’t be overstated: Communication is vital.

If you haven’t already, sit down with your partner and have a real talk about money. By openly discussing financial goals, concerns, and budgeting for couples, you can be sure you and your partner are on the same page so you can make informed decisions together.

13. Stay flexible and adjust your plan when needed

Life can be unpredictable. Sometimes, no matter how much you budget and plan, unexpected expenses still come your way. That’s why it’s crucial to stay flexible and be ready to adjust your budget and financial plans when needed.

For instance, your income may change, you may decide to start saving for a house, or you may be expecting a child and need to create a baby budget. Whatever the case may be, remember—your money is supposed to work for you, not against you.

That means your budget should change and evolve throughout your life as you do.

There are plenty of different budgeting methods you can try, so don’t be afraid of changing your financial plan as you grow.

14. Teach your kids to embrace frugal living

Trying to figure out how to live on one income is particularly challenging if you are also raising a family. But there are ways to stretch your family’s income with frugal living tips.

For example, to make your family’s income work for everyone (from you to your partner to your kids), you can organize budget-friendly family night ideas, look for ways to save with your back to school shopping list, and figure out some at home date night ideas for you and your partner.

This is also a great time to start teaching your kids about money so they can learn financial literacy from a young age.

15. Learn to meal prep

It may sound silly, but changing up your eating and cooking habits can go a long way in helping you save money.

For example, when you create a monthly meal planner, you’ll know exactly what you need at the grocery store weekly. This helps keep you focused so you don’t randomly fill up your cart with food items you don’t need.

Plus, learning budget meal planning just makes cooking easier. In turn, this translates to fewer nights where you call in expensive take-out because you don’t know what to cook for dinner.

Get started meal prepping right now by picking next week’s meals from this list of 25 of the cheapest meals.

Expert tip: Make it easier to live on one income by hitting unsubscribe

A tip like this won’t make you extra money—but it sure can help you save. First, unsubscribe from all subscriptions that you don’t use, even those $5 subscriptions that you don’t think are a big deal. After all, $5 every month adds up!

Next, head to your email inbox and unsubscribe from as many marketing emails as you can. The fewer advertisements, sales, and coupon codes you see, the less you’ll be tempted to click “Add to cart”.

Try it—you may be surprised by how much smaller your credit card bill is at the end of the month.

How can I afford a home on a single income?

To afford a home on a single income and to prepare for first-time home ownership, the preliminary steps include determining what you can afford, building your credit score and saving for a down payment. Importantly, you must also know what you can afford so you don’t end up house poor.

If you are living on one income, you can also research relevant government programs to help you more easily afford a home.

How can you afford life on one income?

Knowing how to afford life on one income can be challenging, so the best thing you can do is to learn to live frugally. In the future, you can also take steps to increase your income, for instance, by building passive income streams.

Remember to be aware of your budget and your financial goals at all times so you don’t spend unnecessarily.

Why is it hard to live on one income?

It is hard to live on one income because it basically means you have to support multiple people without getting multiple paychecks. This can be especially challenging if you have kids or lots of debt.

Whether you’re supporting just yourself, a partner, or an entire family, you can help ease the burden of living on one income by creating a budget that fits your lifestyle and cutting the budget if necessary.

Articles related to living on one income

If you enjoyed learning how to make the most of living life with one income, read these posts next:

• How To Plan Your Finances If You’re Getting Paid Monthly
• Budget Not Working? Here Are 5 Tips For Better Budgeting!
• 33 Creative Ways To Save Money Right Now
• Living Beyond Your Means? Here Are 10 Signs

Living on one income will require consistency and dedication, but you can do it!

Living off one income can be challenging, but it is achievable with careful planning, prioritization, and flexibility.

By taking these steps, you can reach financial stability, reduce stress, and focus on what truly matters. Don’t be afraid to seek resources and support along the way, and remember that small steps can lead to big changes.

The post 15 Key Tips For Living On One Income appeared first on Clever Girl Finance.

Most of us have heard of various ways to save cash that can really work. And something like saving can be easier if you make it fun. That’s why so many people love finding weird ways to save money, like funny and crazy money-saving challenges.

My mom was famous for being frugal and finding odd ways to save cash. After all, having three kids makes you learn how to spend your money wisely.

Things like buying clothing secondhand, shopping for groceries at discount grocery stores, and repurposing leftovers were just a few things she did to save money for a vacation budget and such.

If she hadn’t been so frugal, we wouldn’t have had so many fun experiences. Saving money wherever you can will help you build up your savings accounts for more important things.

40 weird ways to save money

Whether you are a working mom or a career-oriented lady, saving money is a must. Check out these weird ways to save money.

1. Sell empty toilet paper rolls

You may scratch your head at this one, but people actually buy empty toilet paper rolls. They are used for crafts and other projects, and you can sell them on eBay.

So, rather than tossing those empty rolls in the trash, box them up and make some money moves now.

2. Sell your eggs

We’re not talking chicken eggs here, but your actual female reproductive eggs. It’s not an easy process, and you have to qualify to become an egg donor, but the average compensation for egg donors ranges from $5,000-$10,000, according to Egg Donor America.

It’s one of the most extreme frugal living ideas to save money—but a high-paying one at that. If you have frozen your eggs, this may also be an option.

3. Get paid for plasma

Selling plasma is a great, crazy thing to do to make money if you’re not afraid of needles. The average payout for a plasma donation is around $50, claims Business Insider. They also explain you can donate about once a month.

4. Make your own soap

If you enjoy money making crafts, then making your own soap and making your own laundry detergent is a fun way to save cash. Be even more frugal and buy your ingredients in bulk to make larger batches to save time.

5. Rent out your car

Move over Air B&B; now folks are renting out their cars for money. Some people earn several hundred dollars a month renting their vehicle on Turo. An idea like this is perfect for anyone working from home.

6. Live in a bus

Living in a bus can be one of the weird ways to save money. Skoolies are old-school buses that have been transformed into tiny homes or recreational vehicles. You can own your home and travel the country while saving money.

7. Cans for cash

Recycling is terrific for the environment, but you can also get some cash back for your good deed. Set up recycling bins at your friend’s and family’s houses too, and sell aluminum cans for cash.

8. Skip Christmas

You’ve heard of Christmas on a budget, but you could save a ton by skipping it altogether. A weekend getaway can even be cheaper than spending tons on gifts.

It doesn’t mean you’re a scrooge; you’re just preventing racking up credit card debt from guilty purchases.

9. Unplug your appliances

Did you know that some appliances still draw energy even when they aren’t in use? They are known as “energy vampires,” and they cost you money.

Simply unplugging appliances can save $100-$200 a year. These days, there are also energy-efficient appliances you can invest in. These appliances use less energy without decreasing performance.

Not that you should go out and buy one now, but it’s something to keep in mind when it’s time to replace your old appliances.

Bonus: Finding ways to save energy isn’t just good for your wallet—it’s also good for the planet, too!

10. Save money at the movies

I have to confess that I started saving money at the movies as a teenager. There is an 800% markup on those tasty treats! A drink and a box of candy will most likely cost over $10.

I always carried larger purses, so I opted to bring a can of Diet Coke and a bag of candy from the Dollar Store. Skip the popcorn and save that hard-earned cash instead!

11. Cancel cable

I saved over $1,000 in a year by canceling cable. Cable bills are a big expense, and it’s an unnecessary one. There are cable alternatives you can use to slash your entertainment bill and save cash.

12. Cut the air conditioning

You can save up to 10% a year on your electric bill by turning back your thermostat by 7-10 degrees.

Of course, it’s possible to save more by cutting off the air conditioning completely on days that aren’t unbearably hot. Open the windows, turn on the fan, and make this another one of those weird ways to save money.

13. Stop using paper towels

You can save a bit of cash by going green and ditching paper towels. Use a reusable sponge or cloth instead of throwing away money on paper towels.

If you still can’t quite cut them out, then at least opt for a cheaper brand.

14. Grab up condiments

Rather than tossing those extra condiments from your to-go order, start saving them so you don’t have to buy them as often. You can even grab a few extras when you eat in to take with you. Stocking up on condiments is one of the simplest funny ways to save money.

15. Save on gas

Intentional living can reduce frivolous spending. You can save on gas by running all of your errands on the same day if possible. The less you drive, the more money goes into your piggy bank instead of your gas tank.

16. Reuse plastic bags

Save cash and the planet by reusing your plastic bags. You wouldn’t believe all the fun ways you can reuse plastic bags!

Use them for crafts or storage. You can also replace expensive trash bags with old plastic bags, too.

17. Scope parking lots for loose change

My dad would pick up pennies while walking through parking lots. I thought it was hilarious, and he would say every penny leads to a dollar. Well, there is definitely truth behind this theory—even though it may sound like one of the crazy ways to save money.

Every bit of loose change is more money than you had before. Keep a piggy bank in your car, and scope parking lots for loose change whenever you’re out and about.

18. Dumpster dive

Dumpster diving is definitely one of the most interesting weird ways to save money.

However, I had a friend who would dive the dumpsters at retailers such as T.J. Max and find brand-new items in the trash! She would collect these items and sell them to pawn shops or online to make money. It’s insane the stuff people will throw away.

19. Repurpose leftovers

Americans waste 120 billion pounds of their food every year. Prevent waste and save on your grocery bill by repurposing leftovers or using a monthly meal planner. Taking last night’s dinner and recreating it with rice, beans, or other budget-friendly items can save cash and make a delicious meal.

20. Clean with vinegar

Cleaning supplies can get expensive. Buy white vinegar to clean your appliances, bathroom, and other household items.

It can be used for personal care, too! The best part is that it’s non-toxic and cleans amazingly well!

21. Potty-train your cat

As a first time cat owner, I’m not sure if this is the best idea, but some people have decided to opt out of buying expensive kitty litter by learning how to potty train their cats instead.

It’s one of the more unusual, funny ways to save money—but it may be worth the try!

22. Paint your roof

According to Horn Brothers Roofing, painting your roof white reflects heat rather than absorbing it, which results in lower energy bills. They also claim that a lighter-colored roof reflects sunlight back into the atmosphere, which may lessen global warming.

23. Freeze your credit cards

Do you struggle with impulse spending? If so, freezing your credit cards is one of those weird ways to save money that may just actually work for you. We aren’t talking about placing a freeze on them online—but literally freezing them in water.

Some people will put their credit cards in a plastic bag, fill them with water, and put them in the freezer. This keeps them from being easily accessed, which can help you with how to stop spending money.

24. Live in a tiny house

How much room do we really need anyway? Tiny homes are going mainstream—and with good reason.

Downsizing your home means you pay less in utilities, mortgage payments, and store less stuff. Some people own their homes free and clear, which is true financial security.

25. Meatless Monday

There are many yummy recipes that are meatless. Save cash by eating no meat one day a week and opting for the cheapest meals instead with beans or legumes.

These food items are not only great meat alternatives, but they also contain lots of protein and fiber. Plus, we could all use a few more veggies in our diet, right?

26. Stop wasting water

Leaky faucets and malfunctioning toilets aren’t the only ways we waste water. Think of how much water goes down the drain while you wait for it to get hot for your shower or while you wash your dishes in the sink. One of our funny ways to save money is to make use of that wasted water!

For example, keep a few pitchers and buckets in the bathroom to catch the cold water while you’re waiting for your shower to warm up. Then, re-use that water to clean your house or water your plants.

27. Repurpose jars

Glass jars can be repurposed for many uses. You can clean them out and use them as drinking glasses, storing items, or for craft projects. Like toilet paper rolls, you can sell empty jars on eBay for money.

28. Snack on food samples

My sister-in-law does this with her siblings. They head to Costco and snack on food samples instead of eating out for lunch. It’s one of her family’s favorite crazy ways to save money.

29. Get a roommate

Moving out on your own can strap you financially. Fortunately, a rent split with a roommate can free up quite a bit of money. More than likely, you will also split the bills, such as power, water, and cable.

30. Look out for free stuff

Refurnish your home for free by searching Craigslist and your neighborhood. People give away furniture all the time; all you have to do is go get it.

Sometimes you can find stuff by your neighbors’ garbage cans with free signs on them (definitely one of the weird ways to save money, but could be worth it!). You may even be able to find clothes, books, and other items too.

31. Heat half your house

My partner and I did this a lot when we were both working full-time. Since we weren’t home most of the day, we would cut the heat off in most of the rooms and shut the doors to save on our electricity bill. It might sound like one of the crazy ways to save money, but it works!

32. Eat ramen noodles for lunch

Okay, it’s not one of the healthiest things to do, but it’s a cheap lunch idea. A 24-pack of ramen noodles costs less than $10 dollars. You can eat lunch every day for almost a month with this purchase!

33. Discount days at Salvation Army

When I was little, my mom and I would go to the $1 day at Salvation Army. All clothing was only $1 per item! Check with your local Salvation Army for discount days to save on clothing and more.

34. Try a no-spend challenge

Want to become a super saver? One of the best weird ways to save money is by trying a no spend challenge. This is when you don’t spend any money on anything other than bills and necessities.

Start with a no-spend week, then work your way up to a month. Then, if you’re feeling really ambitious, you can try an entire year!

35. Walk or bike to work

Walking or biking to work is a super frugal way to start living a healthy lifestyle and save money. Even going one-way walking or biking will save gas money.

Worried about getting caught in the rain? If the weather is bad, you can walk there and hitch a ride with a co-worker home.

36. Cut out alcohol

Even if you only indulge in a few cocktails or glasses of wine a week, those charges can still add up. After all, $18 or $20 cocktails are becoming the norm—and that’s before adding tax or tip!

Imagine, if you normally treat yourself to two after-work cocktails per week, that adds up to $160 in a month! Simply ditching the alcoholic beverage is an easy (and healthy) way to save cash.

37. Hide your wallet

If you like the idea of freezing your credit cards but you’re a little wary of doing such an extra hack, try this one: Instead, hide your wallet.

When you get home at the end of the day, tuck your wallet somewhere that’s annoying to reach—like under the couch or on top of the fridge. With your wallet out of arm’s reach, you’ll be less likely to give in to impulses to do some online shopping.

38. Take a cold shower

Okay, you might not want to do this one in the dead of winter—but it should be fair game on most days of the year.

Another one of our favorite weird ways to save money is to take a cold shower. You’re consuming less hot water—and lowering your monthly bills.

Plus, many health experts even like to tout the benefits of cold showers, so it’s certainly worth a try!

39. Pay your bills on time

Hopefully, you’re already paying your bills on time. But if you tend to procrastinate when it comes time to pay your internet or phone bill, here’s some more motivation for you: paying your bills on time helps you save cash.

How? By avoiding hefty late fees.

Sure, these $20 fines here and there may not feel like a lot. But if you frequently pay your bills late, this expense can cost hundreds of dollars in the long run.

Pro tip: Make sure you’re never behind on a bill again by linking your bills to your bank accounts with auto-pay.

40. Give homemade birthday gifts

Naturally, you want to spoil your loved ones on their birthdays. But if you’re in a tight spot and trying to save cash, sometimes these events can add undue stress to your life.

Instead, consider giving your loved ones homemade gifts for their birthdays. Often, these made-with-love, straight-from-the-heart gifts are much more meaningful than what you’ll find in a store, anyway.

For example, your grandma would probably love to spend a half an hour on the phone with you or receiving a handwritten letter in the mail. And that only costs a few cents!

You could also surprise your friend with a memory journal detailing all your favorite hang-outs and funniest moments from the past year. After all, who doesn’t love a walk down memory lane?

Expert tip: Ditch the plastic and pay with cash

In today’s day and age, it can actually seem like one of the really weird ways to save money: paying with cash.
Seriously, a Forbes survey reveals that only 9% of Americans primarily pay with cash. But credit cards, debit cards, and contactless payment make it all too easy to load up your shopping cart with junk you don’t need or worse—impulsively shopping on Amazon.

If you want to challenge yourself to save cash, try only paying in cash for one month (except for bills like rent, internet, electricity, etc.). You’ll probably be surprised how much less often you make purchases!

What are the best ways to dramatically save money?

One of the best ways to dramatically save money is to do a money-saving challenge. For example, you can commit to a no spend January challenge, where you don’t buy anything but essentials for that month. This challenge can also be done during any month of the year.

If you’re a big coffee drinker, you can also dramatically save more money in a year by doing a coffee break challenge, where you save all the money you would otherwise spend on a latte or cappuccino.

How can I save $10,000 easily?

The easiest way to save $10,000 easily is to break it down month by month. In other words, to save $10k in a year, you would need to save $833 per month.

Next, look at your lifestyle and determine what you can cut from your monthly expenses, such as eating out, take-out coffees, unnecessary subscriptions, manicures, etc.

Finally, to help you reach your saving target, look for ways to increase your income by starting a side hustle, asking for a raise, or trying to find a new job.

Are weird ways to save money worth it?

Leveraging weird ways to save cash can help you take home some big bucks, but these methods aren’t for everyone. Selling your eggs, donating plasma, and living in a tiny house are some seriously weird ways to save money. It’s okay if these ideas aren’t for you. Keep in mind that weird doesn’t mean bad, it just means different!

You can also save money with more conventional methods, e.g., eating at home, making your own coffee, selling old clothes, using a coupon when you make a purchase, etc.

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Make your paychecks last longer with these funny ways to save money!

Applying some or all of these ideas can help you save cash to bulk up your emergency fund or even learn how to start investing.

Most importantly, living a frugal lifestyle can set you free from massive debt and help prevent you from busting your budget. Check out more crazy ways to save money with our extreme frugal living hacks.

The post 40 Crazy Weird Ways To Save Money! appeared first on Clever Girl Finance.

When you’re trying to save money, it can feel like you have to put your life on hold. But just because you’re tightening the purse strings doesn’t mean you have to cut into your social life. Actually, you can still enjoy girls day out ideas and have lots of fun, even when you’re on a tight budget.

You can do many things that are inexpensive (or even free!) to spend a fun day out with your girlfriends. Let’s take a look at 24 girls day out ideas on a budget. You’ll want to try these fun ideas! 

1. Volunteer together

The only thing better than a day well spent on fun is a day well spent on fun when you can do some good, too. When it comes to girls day out ideas, it doesn’t get more wholesome than this one.

So for your next day out with the girls, consider doing volunteer work together.

Whether that’s helping out at your local animal shelter, lending a hand in a soup kitchen, or spending time at a nursing home, you’ll finish the day knowing you found nice things to do for people and made a difference in your community.

2. Indulge in afternoon tea

Feeling posh? Unlike a bar crawl that can leave you feeling tired and worn out the following day, afternoon tea is an elegant activity you’ll love.

Indulge in pastries, finger sandwiches, scones, and other mid-day delectables while feeling fancy in your most sophisticated outfit. If you have a sweet tooth, you can even order extra snacks, such as popcorn and chocolate, for the table. 

3. Make inexpensive bouquets

Unleash your inner creativity and try this idea. Making bouquets can be one of the fun and inexpensive ideas for girls day out.

Try getting a group together and heading to a local flower shop or the grocery store. Everyone can purchase some flowers to share.

Then, head back to your house or a friend’s and create your own unique bouquets by sharing the flowers you bought. You’ll each end up with a design you love!

Good items to have on hand for this include vases, ribbons, and scissors.

Additionally, you’ll likely have some great conversations, and you get the chance to be creative. Plus, now you have a bouquet to take home and admire! Nothing helps you start loving your home more than flowers!

4. Take a cooking class with the girls

Whether you’re a total foodie or admittedly lost in the kitchen and thinking, “I hate cooking!”, you can always learn something from a cooking class. You and your girlfriends can get the best tips, tricks, and insider know-how directly from a professional chef.

Best of all, you’ll all walk away with something delicious! Rather than just sharing drinks at the bar, taking a cooking class with your girlfriends gives you something tangible (and tasty) to show for your time together.

I love taking cooking classes and have found that I continue to use what I learn about making specific dishes. Plus, getting together with my friends and cooking is a unique way to catch up and have fun!

5. Go bowling

Believe it or not, this retro pastime is having a moment. However, if memories of stinky shoes and kids’ birthday parties are turning you off, it’s time to get back out by the lanes again.

Not only is a day of bowling a fun, low-key way to relax with your friends, but it’s also a great workout! According to DoveMed, bowling can also help you work on strength, coordination, and flexibility.

6. Awaken your inner child at an amusement park

When did you last go to an amusement park? Even if roller coasters were never your thing, there are still plenty of ways to feel like a kid again at your local amusement park.

Whether you want to show off your arcade gaming skills, catch a great view from atop the Ferris wheel, or enjoy some cotton candy, going to an amusement park is a great way for you and your friends to relive some of your best childhood memories.

7. Start a girlfriends book club

Undoubtedly, life gets busy. And that book from the New York Times Best Seller list on your nightstand? It gets forgotten about.

Reignite your love for reading by starting a book club with your girlfriends.

First, tell everyone to meet up at your favorite bookstore (bonus points if it’s a local business).

Then, take your time browsing the aisles until you all find a book you can agree on. Most importantly, don’t procrastinate!

Next, head to your favorite coffee shop, fuel up on lattes, and get reading together. If you’re looking for girls day out ideas that don’t cost much, this one is a real winner.

8. Visit a museum

You know what they say: “Be a tourist in your own city.”

Too often, we reserve museum days for our best family vacations on a budget and forget about the great museums in our own backyard. For some great girls day ideas, head to your local museums—whether that’s art, history, science, or something else entirely—and learn more about what your local community has to offer.

9. Feel fancy at the theater

No, not the movie theater. The actual theater.

That’s right. We’re talking red curtains, ushers, and (if you’re feeling ostentatious) opera glasses. Why not?

I enjoy going to the theater a few times a year with friends. And to me, one of the best parts of going out at night is getting dressed up, so it’s one of my favorite girls day out ideas. Because when it comes to the theater (even local theater), the invitation calls for cocktail attire!

10. Wake up and watch the sunrise

Looking for girls day out ideas that are free? Look no further.

Rather than staying up all night and sleeping in over the weekend, wake up early with your girlfriends to catch the sunrise.

Pro tip: Head for nature.

You might be near the coast, the mountains, or just near the edge of downtown. But the further you are from the hustle and bustle, the better you can appreciate the calm stillness of the morning sunrise.

Need to motivate a few of your night owl friends? After it’s over, head out for breakfast together, or try some cheap breakfast ideas at home.

11. Picnic with your girls in the park

When looking for girls day out ideas, sometimes it pays to keep things simple. 

Instead of going out to an expensive restaurant or a bar, pack up your picnic basket. Then, head to the park for lunch in the sun.

Better yet, why not spend the whole day lounging outdoors? Bring a book, a Frisbee, and a Bluetooth speaker to turn your local park into a relaxing getaway.

Need some picnic inspiration? Check out these 25 cold lunch ideas your budget will love.

12. Visit your local farmer’s market

There’s nothing better than a fresh, healthy meal. And when it’s bought locally, it tastes twice as nice.

Next weekend, invite your girlfriends to your local farmer’s market.

Nowadays, farmer’s markets often sell more than food. Usually, you can also find fresh flowers, plants, soap, beauty products, pottery, knitwear, and much more.

13. Take a pottery class together

Ready to get your hands dirty? Make today a good day and try signing up for a pottery class with your girlfriends.

You can learn how to make coffee cups, bowls, plates, candleholders, and plant cups… Once you get good at it, there’s no limit to what you can cook up in pottery class!

Even if you don’t walk away loving your creation, your lopsided coffee mug will always remind you of a fun day spent with your girlfriends—and doesn’t that sound better than a plastic Starbucks cup?

14. Host a swap day

Let’s face it. We all probably have more old, unneeded clothes lying around the house than we’d like to admit.

Here’s a way to clean your house, spend the day with your friends, and do good all in one: host a swap day.

Tell your girlfriends to do a closet purge and bring over their unwanted clothes, shoes, bags, you name it. Then, get to swapping!

Trade that dress you bought but only wore once for your friend’s jacket that you’ve always loved but she never wears. Win-win.

15. Watch a local sports game

When it comes to sports, it doesn’t have to be the major leagues for it to be exciting. Days out with the girls are the perfect time to check out the local sports teams.

Is there an amateur hockey game you can attend? A baseball game? A tennis match?

Not only are the tickets cheaper and the crowds smaller (win), but you’ll also have fun cheering for local teams and supporting your community.

16. Start a scrapbook

Of course, everyone has a million photos stored on their phone—but how often do you sit and scroll through your photo library?

Compare that to thumbing through the pages of a photo album, and you know that the nostalgia just feels more real when looking at an aged, printed photo.

You may have a family photo album. But do you have a friend photo album? Now’s the time to get one started!

Head to the craft store with your girlfriends to stock up on supplies. Print pictures at home or a local print shop. And then get to cutting, pasting, and bedazzling your heart out to decorate your new book.

17. Go for a hike

Whether you and your girlfriends are nature lovers or fitness freaks, hiking will satisfy everyone in the group. You can pick a hiking trail based on your desired difficulty level so everyone can participate. No matter how much they feel like sweating it out that day!

Best of all, hiking isn’t just great exercise for the body—it’s great for the mind, too. In my experience, hiking is a great way to meditate. Plus, I find it’s a super easy weekend activity to plan.

18. Discuss your goals

Sometimes, we all need a little push to work towards our goals. And who better to give you the support and encouragement you need than your closest girlfriends?

Meet up at home, at your favorite coffee shop, or out in the park with your friends. Come armed with a journal—and get brainstorming!

Whether you’re checking out examples of financial goals, personal goals, or want to set a professional goal, talking it out with your girlfriends will get you inspired, motivated, and focused to see your goals through to the finish line.

19. Go to a ladies’ Sunday brunch

Let’s call it like it is: Breakfast out is way more fun than dinner out. Better yet, it’s usually cheaper, too!

Next on our list of girls day out ideas, we recommend Sunday brunch. You can go fancy by booking a place at an upscale restaurant.

Or you can go old-school and rustic by heading to your local diner for trusty eggs, bacon, toast, and coffee.

20. Relax with a girls’ spa day

Craving a mani-pedi? There’s no better spa companion than your trusty troupe of girlfriends. For a bonding day that you won’t soon forget, sign up for a day of luxury and beauty at your local spa.

If spa prices have got you startled, don’t worry—you can still enjoy plenty of pampering and R&R at home. Manicures, facials, and pedicures don’t have to cost the earth.

Check out these DIY facial recipes. Take turns painting each other’s nails. And let your stress melt away with relaxing music and aromatherapy—even on a budget.

21. Talk about money

What? Yes, talking about money is actually one of the best ways to spend the day with your girlfriends.

Too often, we’re hesitant to talk about money or are worried about finance—especially women. That’s got to change.

I make it a point to discuss money and finances with my friends, as I think it helps us to learn and encourage each other with saving, budgeting, etc.

For your next day out with your girlfriends, get cozy at your favorite café and get personal! Ask questions, share resources, and discuss finances, like:

• Sharing finances with partners
• How to ask for a raise
• How to invest with little money
• Ideas for better budgeting

22. Go on a girls’ road trip for the day

Who said you can’t take a road trip in a day? Rather than heading to the bar or spending money shopping, treat yourself and your girlfriends to a one-day vacation with a road trip.

Pick a nearby landmark, a museum, or an interesting new coffee shop, and hit the road with your favorite playlist blaring. Or, just get in the car, pick a direction, and start driving. Who knows where you’ll end up?

23. Take a fitness class together

Why not meet up with the girls while getting fitter? One of the best girls day ideas is to get your sportswear on and head to a class together. 

There are plenty of options out there. You may want to attend a yoga class together, go to a Pilates class, or even join a sports team. Think about what type of activity you all enjoy and give it a go. 

24. Host a cocktail-making session

Do you love tasty, classy cocktails? If the answer is yes, why not host a cocktail-making session with your best friends? It’s one of the most creative girls day ideas out there. 

Invite your friends over for an evening and ask each of them to bring ingredients for a cocktail. Take turns whipping up delicious cocktails and sharing them with the group. 

Expert tip: Spending time with your girls helps you bond

Ideas for a girls day out aren’t simply about having a good time. When you spend quality time with your best friends, you have a chance to bond. Research suggests that strong female friendships can improve your mental and physical well-being. 

While you, like me, may have a busy schedule, it’s important to make time for your best friends. I prioritize planning days out and time together, because it helps me create stronger long-term connections! 

What is a good girls day?

There are plenty of ways to have a good day with your girlfriends. Whether you have a movie marathon, give each other manicures and pedicures, head to the farmer’s market, or go wine tasting at local wineries, there’s a whole host of options out there. 

How do you plan a girls outing?

Planning a girls outing can be a fun way to bond. It takes a level of creativity to create a plan that works. First things first, you need to choose the activity and the destination. 

Think about what your best friends like first.

For example, if they are music lovers, you could catch a concert. If they enjoy dining, you can get desserts or snacks at a cafe. 

When you have decided where to go, planning your next girls day should be easy. Make sure everyone is free, set a date in the calendar, and then meet up with your gal pals.

What are some creative girls day out ideas?

If you fancy getting creative, you might want to try something different. You can have a paint party and create your own murals. Think about how you can unlock your inner creativity when looking at girls day out ideas.

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Leverage these ideas for girls day out without breaking the bank!

Sometimes, you just need to spend a few days out with the girls. Surprisingly, you don’t need to break the bank to enjoy a day of fun with your girlfriends.

There are also plenty of ideas for fun things to do for free with friends! You can take this a step further for your budget by finding other ways to save and earn, as well, such as the best money-making apps and knowing how to ask for a discount!

The post 24 Fun And Inexpensive Girls Day Out Ideas appeared first on Clever Girl Finance.

So you’re newly engaged. Congratulations! After you’ve announced your relationship status and had your fair share of celebrating, it’s time to start planning for your big day with a wedding budget breakdown!

This means putting together a wedding budget spreadsheet with percentages and categories.

It’s no secret that weddings are expensive. And you’ve probably already looked up “planning a wedding on a budget” to see what’s possible.

While you probably laid out the wedding of your dreams in your mind — the amazing venue, the designer dress, those gorgeous florals — it’s important that you set a realistic wedding budget to ensure you don’t derail your long-term financial goals.

Why a wedding budget breakdown matters for your finances

Lending Tree found that 30% of engaged couples will leverage debt to fund their wedding. That’s definitely not a good way to start out your finances in marriage.

Being clear on what you can truly afford will help you avoid being a part of those statistics. Plus, you can still have a wedding on a budget that’s fun and elegant.

To avoid your wedding day becoming overly expensive, here are some guidelines to help you create a realistic wedding budget while still keeping your long-term financial goals intact.

Tips for creating a realistic wedding budget breakdown

Wedding Wire’s Newlywed Report found that, on average, couples expect to pay about $16,000 on their wedding but instead spend closer to $29,000! Why? Most couples set a rough budget before doing any research, so they underestimate how much the venue or catering costs (sometimes by a lot).

Just like your monthly budget, you’ll need to make a plan for how to spend your money on your wedding.

It’s so easy to go overboard trying to plan your destination wedding and obsess over tiny details that add unnecessary costs. This is why it’s essential to make a wedding budget spreadsheet.

You should also focus on what matters to you and how much you’re willing to pay for specific things. Do this instead of just figuring out the average cost of a wedding and assuming yours will be the same.

So when you’re searching the internet with the words, “planning a wedding on a budget”, know that all results will be different and based on individual experience.

You CAN have a beautiful wedding without hurting your financial health. A realistic budget helps you do just that.

1. Determine how much of a wedding you can afford

As you outline your wedding budget checklist, it’s a good idea to first sit down with your significant other to discuss your long-term financial goals and what amount makes the most sense to pay for your wedding based on those goals.

Having this conversation will allow you both to set realistic expectations and avoid unnecessary disagreements down the line. It’s also important to have a conversation with your families if you will be receiving financial support from them to pay for your wedding.

Some questions you’ll want to answer together include:

• Will you be getting financial support from your parents or family? If so, how much?
• Are you and your partner paying for the wedding yourselves, or are you contributing to your wedding expenses in addition to your family’s help? If so, how much will you each be contributing?

Once you know what these numbers are, you’ll want to add them up and use that final number as the basis for your wedding budget breakdown.

2. Layout your wedding guest list size

Determining your wedding guest list size is an important step in creating a realistic budget breakdown.

The number of guests you invite can significantly impact your overall wedding expenses, as each additional guest adds to the cost of food, drinks, favors, and other wedding-related items. 

To determine your guest list size, start by creating a preliminary list and consider factors such as:

• Close family
• Extended family
• Family friends
• Your friends
• Plus-ones

And for the budget-conscious, you may want to limit the guest list to just your immediate family and closest friends.

3. Determine the time of year for your wedding

Time of year is a factor often overlooked when setting a budget for a wedding.

But wedding costs often vary based on the season, with peak wedding months, such as spring and summer, having higher prices for venues, vendors, and other services. 

Alternatively, off-peak seasons like fall or winter may offer more budget-friendly options. 

So as you prepare your wedding budget, consider the weather, availability of venues and vendors, and any potential discounts that might be available during specific times of the year. 

4. Choose a venue or destination (One of the biggest costs in a wedding budget breakdown)

And we can’t forget one of the biggest, if not the biggest, wedding expenses: the venue.

The venue not only sets the tone and ambiance for your special day but also plays a major role in your budget breakdown. 

Different venues have varying price points, so it’s essential to research and compare options, such as:

• Size
• Location
• Indoor or outdoor space
• Amenities (i.e., restroom, dressing rooms, kitchen, dance floor)
• Included services (i.e., venue coordinator, serving staff, cleaning, set up)
• Accessibility 

Keep in mind that popular or sought-after venues often come with a higher price tag. But if you’re open to alternatives, you might explore less conventional venues, such as public parks, community centers, or even hosting your wedding at a private residence.

Additionally, destination weddings can provide unique experiences but may require additional costs for travel and accommodations. 

5. Download our free wedding budget breakdown spreadsheet

The way to stay on budget is to set an amount and track your expenses throughout the wedding planning process. As you get started with planning, here’s a great free wedding budget spreadsheet to help you lay out the costs we mention below! 

Click the image below to download this worksheet in PDF & Excel formats!

Wedding budget breakdown example (In percentages)

After determining your “number,” it’s time to set up a typical wedding budget breakdown. Let’s say you plan on spending about $20,000. (This doesn’t include the cost of the honeymoon.)

Remember this is just to use as an example. You may decide to spend more or less on your big day.

Below are different categories that you’ll want to include in your budget. We’ll go over them in detail as well as discuss the average budget percentage you could allocate for each one.

Reception: 40% to 45% (The largest cost in your wedding budget breakdown)

The main category on your wedding budget spreadsheet will be for the reception. The cost of the reception will likely take up the bulk of your budget, which is about 40% to 45%. Reception costs will include the cost of the venue, food, wedding cake, rentals, etc.

So, to get the wedding budget breakdown, you would take your total budget of $20,000 and multiply it by 40% to 45%, which is between $8,000 and $9,000.

Ceremony: 2%

Calculate about 2% of your wedding budget breakdown towards ceremony costs. This includes your officiant and marriage license fee.

Some people plan to have the ceremony at the same location as the reception. So the venue is included in your reception costs mentioned earlier.

Otherwise, you will need to pay for a ceremony venue, which is not included in this percentage.

Wedding attire: 8% to 10%

A lavish wedding dress, tuxedo, makeup, and hair can get costly. Not to mention accessories! It usually runs between 8% to 10% of your wedding budget breakdown. So, based on our example budget, the total cost would be between $1,600 and $2,000.

Wedding rings: 3%

When creating your wedding budget checklist, don’t forget to include your wedding bands. Of course, this isn’t the cost of the engagement ring; that’s a whole other expense.

But the wedding bands are a symbol of eternal love that represents your union, so it’s an essential part of your checklist! The average is about 3% of your budget if you’re frugal.

Photography and videography: 12 to 15%

The next biggest expense in your wedding budget breakdown is the photographer and videographer. You can plan on this costing about 12% to 15% of your budget if you’re very frugal, which would be about $2,400 to $3,000, though the cost can be much higher.

Try to find a photographer with excellent reviews to ensure they capture the memories of your big day in the best way possible!

Flowers and decorations: 7% to 8%

Whether you want a beautiful display of red roses or twinkling lights adorning the venue, the average cost for flowers and décor is about 7% to 8% of your total budget. So include about $1,400 to $1,600 in your wedding budget spreadsheet for decorations and floral arrangements.

Entertainment and music: 6% to 7%

Are you thinking of a DJ or a band for your wedding? Either one has different costs and expenses. However, you can block off about 6% to 7% or $1,200 to $1,400 in your wedding budget spreadsheet for entertainment.

Wedding invitations and stationery: 3%

Invitations, stationery, and menus, oh my! There are many types of wedding stationery you will need to account for on your wedding budget checklist.

Between save-the-date cards, wedding invitations, ceremony programs, and more, this will cost you about 3% of your budget. Be sure to check your guest list to see how many invites you’ll need and calculate costs from there.

Transportation: 2%

If you decide to offer transportation to your guests to ensure everyone arrives on time, it will cost you about 2% of your budget in fees. So be sure to allocate around $400 or so if you go this route. You can also only supply transportation to your wedding party to cut back costs.

Bridal party gifts: 2%

Another expense to keep in mind for your wedding budget breakdown is bridal party gifts. You may opt to get keepsake gifts for your guests, too, so be sure to budget accordingly. It will run you about 2% or around $400.

Wedding insurance: 2%

Don’t let unexpected events ruin your big day. Be sure to add wedding insurance to your wedding budget spreadsheet! The insurance covers lost pictures, deposits, rings, and other items.

At the very least, be sure to get liability insurance to cover accidents if they were to occur. These policies can run around 2% of your budget.

Wedding planner: 10% to 15%

Hiring a wedding planner can help alleviate the stress of wedding planning and make sure things run smoothly on your big day. 

A wedding planner can assist with vendor coordination, timeline management, and overall event design.

The cost of a wedding planner typically ranges from 10% to 15% of your budget, which amounts to $2,000 to $3,000 based on our example budget.

Wedding Favors: 1% to 2%

 Wedding favors are a thoughtful way to thank your guests for celebrating your special day with you. 

These small tokens of gratitude can range from personalized keepsakes to edible treats. 

Allocate about 1% to 2% of your budget, which amounts to $200 to $400 based on our example budget, for purchasing or creating wedding favors. 

Miscellaneous and unplanned expenses: 2 to 5%

It’s also a good idea to assign 2% to 5% or so of your total budget to cover any miscellaneous, unplanned, or surprise expenses. So a buffer of about $400 to $1,000 should be set aside for this category.

Examples of things that could come up are deciding you need a day-of wedding planner or opting for an extra hour for the photographer. These are expenses you may not be aware of until closer to the wedding.

Remember when creating your wedding budget breakdown that costs will vary depending on the wedding location, time of year, day of the week, etc., but you can find average wedding costs online to get a general idea.

17 Ways to leverage your wedding budget breakdown for the most savings

It’s natural that your big day reflects your tastes. Fortunately, that doesn’t require an arm and a leg, but it does require some extra work on both of your parts. Here’s what you can do to get more out of your wedding budget without actually spending more.

1. Negotiate with vendors to lower your wedding budget

The first tip that might seem obvious is negotiating prices and contracts with the people you employ for your wedding.

Caterers, photographers, florists, and DJs will often work with your specific budget. Be willing to negotiate and walk away if you cannot afford a rate being offered to you.

For example, ask your caterer for sample menus and prices per person, then see which areas you can cut back on (i.e., perhaps you only need two passed hors-d’oeuvres instead of five).

It will help you to go back and negotiate the price down for their services. Photographers, florists, and DJs will also usually be willing to come down on prices to close the deal. It can save you big bucks or can free up money on your wedding budget checklist for other categories!

2. Don’t go crazy with expensive wedding stationery

Letterpress, gold foil, jeweled boxed, feathered… It’s easy to go crazy over your wedding stationery, and those costs can add up fast.

Some fancy letterpress invites go as high as $5 to $7 per invitation — yikes. Instead, choose to print simple, less costly invitations; you’ll be amazed at the beautiful options that exist.

One of my favorite online printing presses is Minted, where you can choose beautiful wedding invites for an affordable price.

3. Skip the catered, sit-down dinner to maximize your budget

Skipping the fancy catered dinner is how to plan a wedding on a budget easily. Most wedding venues offer in-house catering services because they make a ton of money on the huge markups involved.

If you can find a venue that allows you to bring your own caterer, you can find one that not only makes great food but also fits your budget.

A frugal alternative is to choose a family-style dinner with shared platters that can be passed around the table. Doing this can save you up to 20% off your catering cost.

Although formal catering is nice, it’s definitely among the pricier options. A family-style dinner creates a warm atmosphere for people who would like to have smaller, more intimate weddings.

Another consideration? Dinner is typically the most expensive meal when it comes to planning a wedding on a budget. Brunch or lunch is a somewhat lighter meal, and people tend to drink less alcohol in the daytime, so you can save a ton of money there, too.

4. Consider a second-hand dress

If you’re a bride who finds that your dream dress is out of your budget, try finding it online from second-hand wedding dress sites such as OnceWed.com or StillWhite.com. You can save up to 75% off wedding dresses that have been pre-loved, dry cleaned, and preserved for their next owner.

Another alternative is renting out formal wear. You can rent a dream wedding dress instead of dropping thousands of dollars to wear it for one occasion.

The same goes for the suit for the groom. Suits can also be rented and it’s a great way to cut costs on materials that do not have long timelines in terms of how often they will be worn. Buying preowned or renting is a big part of having a wedding on a budget!

Alterations and accessories can be costly as well. But you can still add a personalized feel, you can sew on lace details, beads, or appliqués to a simple dress, or design and make your own veil or hair accessories.

5. Get married any day but Saturday

Saturday is the most expensive day to get married, especially in the summer and fall. Why? Because everyone wants to get married on Saturday!

You may be able to book your dream venue at a considerable discount (anywhere from 10% to 40% off) by getting married on a Sunday or a weekday.

And if you choose a date that is off-peak (like in the winter or early spring), you might be able to save even more! Opting for a cheaper day to get married is how to plan a wedding on a budget without much effort!

6. Serve signature cocktails to save on alcohol costs

Serving signature cocktails is an awesome way to show your personality at your wedding. It helps you manage the amount of money you spend on alcohol (if you choose to serve alcohol) because the varieties available are limited. You’d still be serving great drinks, though.

7. DIY your decor and use seasonal items

An easy way to have a wedding on a budget is to do your own decor! Take advantage of the talents your friends, bridesmaids, and family may have! Enlist their help in creating your wedding ceremony and reception decor.

Pinterest is great for getting inspired, and you can find a ton of great decor items from your local craft store at a fraction of the cost that you’d pay to a florist or event designer.

And since floral arrangements can be a huge budget-buster, consider buying flowers, boutonnieres, and corsages in bulk from Sam’s Club and Costco. Doing so can save you thousands when compared to working with a florist.

Figure out your wedding colors, then watch a few YouTube tutorials on how to put together an arrangement. It’s totally doable!

8. Choose a cheaper photography package

As you saw in the wedding budget breakdown, the second most expensive cost is the photographer.

Many people are very particular about their wedding photography, so if there is a photographer that you absolutely must have for your wedding, consider choosing their cheapest photography package.

Do you really need a photographer at your wedding for 10 hours when your friends and family will also be taking pictures as well? Once people start dancing, 30 minutes of those photos are good enough, as, after that, it’s just a bunch of repetition. Plus, those photos rarely make it into the wedding album.

9. Skip the fancy wedding cake

Everybody loves cake, but that doesn’t mean you need to splurge on a three-tier wedding cake. An elaborate confection can set you back hundreds of dollars. And more often than not, guests are having too much fun to even notice what kind of cake you served.

Save money by opting for a single, six- to eight-inch tier cake atop a Styrofoam base. If you want to serve cake to your guests, purchase a few sheet cakes from Costco or your local bakery for about $40 apiece. Your guests will never know the difference, and you can still get those glamorous cake-cutting photos.

10. Forget the wedding linens or bring your own

If your venue has wooden tables that don’t need to be covered, opt for a rustic look without linens. You could save between $500 and $1,000.

If the provided tables need to be covered, buy a pretty fabric in bulk online or at your local craft store and DIY your own linens for major cost savings. Online tutorials like those on YouTube can help you get started on customizing your own linens.

11. Ask a friend to officiate

You can save between $200 and 400 by asking a friend to officiate your wedding. A friend can easily get ordained online for around $50.

Also, if you don’t feel comfortable with asking a friend to officiate for the first time, asking someone you are close to who has experience with officiating weddings is another alternative.

12. Consider a smaller wedding to save money

Simply opting for a smaller wedding is how to plan a wedding on a budget. Small and simple weddings can be just as beautiful as large fancy weddings.

The big difference is the amount of money that you’ll save. At the end of the day, your wedding celebration is only for one day, and your marriage is for a lifetime!

So it makes more sense to step into your marriage financially sound than to blow a ton of money if you cannot really afford it for a one-day wedding party.

13. Extend your engagement timeframe

Assess the wedding budget spreadsheet you’ve created. If it seems like paying for your wedding will be a stretch, consider extending your engagement. It’s a great way to lower the amount you’ll need to save each month while still enjoying that exciting planning phase.

14. Track your spending in your budget breakdown

It’s important to track your wedding spending to ensure you’re staying in line with your budget. Use your wedding budget spreadsheet to account for all expenses. Little expenses like hair accessories, place cards, and cake toppers tend to add up, so use caution!

15. DIY and get creative

And here’s some great news — there are tons of clever ways you can save on your wedding. From DIY options to simply re-thinking the day you exchange vows, today’s weddings can fit nearly any budget.

16. Plan for unexpected and last-minute costs

Another smart wedding budget trick is to set aside money for unexpected expenses and last-minute costs that may arise.

Despite your best efforts to account for everything, there might be unforeseen expenses like alterations to your dress, additional decorations, or unexpected vendor fees. 

To plan for unexpected costs, consider allocating a buffer amount—around 10% to 15% of your total budget—to account for unforeseen expenses.

17. Get appropriate insurance

Many forget about wedding insurance when planning their big day, but it can provide valuable protection and peace of mind.

While no one wants to think about potential mishaps on their big day, having appropriate insurance coverage can help mitigate financial losses and alleviate stress.

Wedding insurance typically covers a range of scenarios, such as cancellation or postponement due to extreme weather, illness, accidents, or venue bankruptcy. 

And some policies also offer liability coverage in case of accidents or property damage during the event. 

Expert tip: Take your time while making wedding budget decisions

The wedding planning process can be overwhelming. So many decisions to make, so many people to talk to!

First off, take your time. Second, trust that you can make the smart decisions with preparation and right information.

Lastly, be yourself. You don’t have to put yourself in debt to have the wedding of your dreams. Get clear on what you want and use the resources you have here.

Create a wedding budget checklist. And make sure to track your spending on a wedding budget spreadsheet or a wedding budget calculator.

How can you save for your wedding and also keep your emergency fund intact?

Once you know what things will cost you and have your wedding budget checklist squared away, it’s time to start saving. Build a line item into your existing budget to start putting money aside for your wedding.

Keep in mind that you may need to forgo certain things to meet your big day’s savings goals. Things like daily coffees, gym memberships, vacations, shopping, etc., might need to be placed on the back burner while you save for your big day.

If you choose to put your long-term savings on hold while you put aside money for your wedding, it’s important to keep your emergency fund intact. Because life happens regardless of whether you are planning a wedding on a budget or not. Your emergency fund should not be used toward your wedding expenses.

What is a reasonable budget for a wedding?

A wedding budget depends primarily on the personal preferences of the couple, the location of the event, and how many people are on the guest list. All of which can vary widely from person to person.

So a reasonable budget can range from a few thousand dollars to tens of thousands or more. It all depends on you.

The budget should be realistic and manageable for you and your partner, taking into account your financial situation and priorities.

Is $5,000 enough for a wedding? 

While $5,000 can be a tight budget for a traditional wedding, it is absolutely possible to plan a beautiful and meaningful wedding with $5,000. 

You can do this by leveraging cost-saving strategies, such as opting for a smaller guest list, choosing a non-traditional venue (e.g. a backyard or public park), or DIY-ing certain elements (e.g. decor and food).

Is $10,000 a good amount for a wedding?

With todays resources and DIY options, you can work with any budget. That said, $10,000 is a good amount for a wedding.

The key is to be realistic with your expectations and spend only on what’s important to you. Take time to figure out how envision your special day and keep that in mind throughout the wedding planning process.

How do you budget for a $30,000 wedding?

As it happens, $30,000 is the average cost for a wedding nowadays in the US. So, you are in a good place to have a traditional wedding if that’s what you’re going for.

Put together a wedding budget spreadsheet using the percentages and categories mentioned in this article. You can take out some expenses and adjust the cost for others based on your priorities, of course!

Make sure to track your spending with a wedding budget calculator.

What should be included in a wedding budget spreadsheet?

A comprehensive wedding budget spreadsheet should include various categories and items to track spending. 

Here are some essential elements to include:

• Venue and catering costs
• Wedding attire (bridal gown, groom’s suit, accessories)
• Photography and videography
• Flowers and decorations
• Entertainment and music
• Stationery (invitations, save-the-dates, programs)
• Transportation
• Wedding cake
• Officiant fees
• Wedding rings
• Hair and makeup
• Wedding favors
• Wedding planner fees (if applicable)
• Marriage license
• Miscellaneous expenses (tips, unforeseen costs, contingency fund)

Allocate a realistic budget for each category and track your actual spending against the budgeted amounts. This will help you stay organized and make informed decisions.

Articles related to planning a wedding and marriage

If you enjoyed this article on creating a wedding budget, check out this related content:

• How Much Does The Average Wedding Cost?
• How To Stick To Your Destination Wedding Budget
• Keys To A Successful Marriage: The Money Edition!
• Finances In Marriage: How To Make It Work In 9 Steps

Leverage this wedding budget breakdown to save on your dream wedding!

The wedding budget breakdown can serve as a template for your customized wedding budget. You don’t have to spend the average amount on a wedding if you don’t feel it’s best for your finances. Remember, your marriage is for more than just one day of celebrations!

It’s important to be financially smart about your wedding costs so you don’t impact your financial future. Use your wedding budget checklist to ensure you remember all of your expenses and financially prepare for all of the costs. You can also get help wih planning your dream wedding on a budget with our free course!

The post A Wedding Budget Breakdown + Tips To Plan Your Dream Wedding appeared first on Clever Girl Finance.

For many people, budgeting is just not any fun, and it means limits or lack of or even punishment. But if you choose the right budgeting method, you can be financially successful, and budgeting doesn’t have to be such a chore. Find out about the best budgeting methods so you can decide which one to use!

I personally prefer the word “plan” to the word “budget” because it doesn’t sound so constraining. But a budget broken out into budget categories in some form is really important for your financial success.

Ever heard the saying from Benjamin Franklin, “Failing to plan is like planning to fail”? Well, if you don’t plan, you can’t win and your budget is there to help you win.

That said, the process of budgeting doesn’t have to be difficult or complicated, either.

There are several advantages and disadvantages of budgeting, but it’s generally a positive thing. You just need to create a system that works for you. And this means the right budgeting method.

In this article, you’ll learn all about the various types of budgets and how to win with your money! But first, let’s discuss why understanding the different budgeting methods even matters.

Why it’s important to understand budget methods

There are some pretty solid reasons why you should understand and be using some or one of the methods of budgeting. It helps keep your spending in check, tracks your expenses, and teaches you to control your money — and not have it control you!

It’s also the first step in helping you build wealth.

Having a budget allows you to enjoy life without the stress of how to pay for it later. Because “later” rarely comes. Paying for things in the present instead of the future allows you to truly enjoy yourself and live the life you want.

I was able to save $100,000 in just 3 years by making a budget and sticking to it. And you can find out how to save 100K, too! Imagine what you can accomplish with a little planning.

People will often allow their emotions to cloud their judgment when it comes to planning their finances.

However, if you look at your money objectively for what it really is, a tool, then it’s easier to make your plans! Once you decide what your priorities are, the different budgeting methods you choose should reflect them.

4 Different budgeting methods to consider

The method you choose is entirely up to you; the most important part is picking a style that works for your life. Trust me, even if you currently hate budgeting and need a better budgeting system, there’s a style out there for you!

Finding what works for you is the most important step because not everyone’s brain processes information the same. You may like one of these methods or a hybrid of a couple of them. You may choose to start budgeting weekly or prefer a biweekly budget or monthly.

The most important thing is just to do it. If one doesn’t work, try different types of budgeting methods. That said, below are four different ideas that you can try.

1. Envelope or cash system

The cash-based budgeting system is simple. You subtract your expenses from your income and then put the amount of each expense into its own envelope. These envelopes are your categories.

Using cash may also make it easier to stick to your budget. Studies have shown that you spend less when using cash. But you don’t have to use cash for all of your bills when using the envelope system.

You can set up the money for your big bills using a digital envelope system. Then, track them through a budget worksheet or an app. Then, put actual cash for your smaller expenses or day-to-day transactions in actual physical envelopes.

The cash envelope system works best for categories which you can use cash for on a daily basis. So, things like clothes, food, eating out, fun, kids’ expenses, etc. Do not make it overly complicated, or it will be hard to follow and stick to.

Learn more about getting started with the cash envelope method. And be sure to check out our reviews of the best cash envelope wallet options.

2. Percentage breakouts

Another way to examine your budget is to break down your household income into percentages. Once you do this, you can organize your spending and savings accordingly where you allocate percentages to your:

• Needs
• Wants
• Savings and/or debt.

Keep in mind that the percentage allocations in your budget can change and that’s ok. Remember this is YOUR budget, and you can choose to spend less on one category to put more in another, like savings or debt repayment if needed.

So, for example, you can select a 35/30/35 breakout, a 35/35/30 breakout, or even a 25/25/50 breakout. The goal is to set percentage breakouts that make sense for you.

Just be mindful of how much of your income you spend on housing alone. A good rule of thumb is to keep your housing costs to less than 30% of your income.

Otherwise, you won’t be able to put as much money towards your other goals. Things like saving and investing or becoming debt-free.

It’s helpful to maintain a budget worksheet for this method, too. Using one of the best budget templates or a worksheet is helpful to see where your money is going. It can help you create your budget easily from month to month.

Here are some common percentage budgets you can try:

70-20-10 budget

The 70-20-10 budget method helps you break your income down as follows: 70% to your expenses, 20% for savings, and 10% to pay off debt (or for charitable donations).

Included in your expenses are essentials like groceries, personal care, and housing costs, but also non-essentials like gifts for weddings or fun money. Then you save 20% towards your goals, including your retirement investing. Last, you’ll pay off any credit card debt or personal loans and give to others with the remaining 10%.

50-30-20 budget

The 50-30-20 rule is fairly straightforward. You spend no more than 50% of your income toward your needs and essentials (things like housing expenses, rent payments, home repairs, transportation costs and car payments, your food budget and groceries, etc.) It also includes debt repayment.

Next, no more than 30% of your income goes toward wants and non-essentials (cable, entertainment, subscriptions, vacations, presents for an anniversary or birthday, etc.)

Finally, at least 20% of your income goes toward savings (your retirement account, emergency fund or rainy day fund, health savings account, saving for college tuition, etc.)

It’s one of the easiest methods of budgeting because it works for a variety of incomes and allows you to save and spend freely.

60-30-10 budget

The 60-30-10 rule is a very unique budgeting method. It works best if you have either a very high income, low expenses, or both. 

With this approach, 60% of your money goes toward savings, debt payoff, and investments. Then, 30% is budgeted for your essential costs, like your mortgage, renters insurance, property taxes, school supplies, food, etc. Last, 10% is left over for whatever you want to purchase, like birthday gifts for friends, dinners out at restaurants, etc.

Even if you can’t use the 60-30-10 budget yet, you can always use a percentage method that allows you to save more. Maybe try for 30 or 40% savings to start, and work up to saving more over time.

80-20 budget

The 80-20 budget is a simple approach that can be very effective. 20% of your money is for your savings goals. The other 80% is for your essentials and discretionary spending. 

So you would budget 20% of your wages towards your emergency fund, investing, and other goals. Meanwhile, you divide the rest for your expenses and anything else you want or need to buy.

For example, essentials like rent, homeowners insurance, groceries, life insurance, internet, etc., are paid for from the 80%, as well as discretionary spending like Netflix and movies, tickets for events like a concert, or gifts for birthdays.

30-30-30-10 budget

Another common percentage is the 30-30-30-10 budget. It’s a method that makes a lot of sense if you want to be careful about how much money you spend in important categories.

With this approach, you spend 30% on your housing costs. Another 30% goes towards your savings goals, like retirement and paying off any debt you have.

In addition, another 30% pays for your other essential expenses like internet and groceries. Last, the final 10% is for discretionary spending.

A budget like this means you’ll be careful that your housing costs don’t get too high, which can be helpful, and you’ll save a significant amount.

3. The reverse budgeting approach

As the name implies, reverse budgeting is the opposite of most methods. With most budgets, you subtract your expenses from your monthly income, but the reverse budget is different. It is also known as the “pay yourself first” method.

In this method of budgeting, you focus on savings and financial goals, such as saving a certain amount of money each month, in addition to paying your essential bills, like mortgage payments and utilities.

Then, as long as you meet your monthly goals and pay your bills without exceeding your income, you can do what you like with the money leftover. Reverse budgeting can be one of the best types of budgeting methods because it’s easy, and you don’t have to overthink your money goals too much.

4. Zero-based budgeting

Another form of a budget is the zero-based budgeting example. Zero-based budgeting is the method that Dave Ramsey advocates using. Basically, a zero-based budget is planning for every single dollar in your budget.

So, instead of having $X amount left over at the end of the month, you have $0 left (on paper anyway). When you are planning out your budget, you account for everything you can think of in the budget so that every dollar has a purpose.

You won’t really have zero dollars at the end of the month because you have accounted for different savings funds in the budget. The method is effective because it creates intentionality with every dollar so that what is “left” doesn’t disappear every month.

So no matter what you spend your money on, from essentials like health insurance and debt payments to discretionary spending like going to a concert or money for a hobby, you plan it in advance with the exact amount of money you need.

Budgeting using a spreadsheet vs. an app: Which is best?

Some people love an organized chart for their money — they don’t have to worry about bank security or what’s happening with their personal information. And using a budget spreadsheet allows them to get really close to their numbers.

Do you like this approach but are worried about being able to access it when you’re not home? Google Drive is free and makes it easy for you to upload your budget worksheet for easy access on your mobile devices.

Apps, on the other hand, can make it really simple to budget, especially if you can connect your bank accounts to them so your transactions can be tracked automatically. These days, most apps have extra levels of security.

But sometimes, there can be delays in transaction updates. And apps are not always as intuitive when it comes to categorizing transactions, which will require you to spend some time setting things up.

That aside, for the most part, all you’ll really need to do once things are set up is check in frequently. It will help you ensure your transactions are tracked correctly. You can also set up alerts to keep you on top of your budget.

Whether you choose a budget worksheet or an app, you can set up your budget to be reflective of any of the above methods. Be sure to check out our example of a budget.

6 Tips for succeeding with your chosen budgeting method

Budgeting doesn’t have to be scary and overwhelming. Once you get the hang of doing it, it gets easier and easier every month to have organized finances. Following these simple steps will help you streamline the process and actually stick to your budget.

1. Call it something fun

Call your budget something that you like and that motivates you to keep up with it. Who says it has to be called a budget?

Give it a nickname and a personality. The word budget is boring anyway!

2. Create a budget in advance of each month

Creating a budget in advance of each month means you kick off the next month with a plan, and you aren’t scrambling to figure out what to do. After all, new month new goals, right?

Plan to create your budget a few days before the month starts. You’ll have time to lay things out and figure out what your finances will look like in the upcoming month.

Once you get in the habit of creating a budget, you will even be able to plan out your budget for several months at a time.

3. Don’t assume every month will be the same

Every single month should be planned for separately. No two months will be exactly the same financially, so you want to prepare in advance for things like one-time bills or expenses, travel plans, events, etc. So, creating a new budget specific for each month is essential.

Similarly, budgeting for life-changing events requires extra attention and a budget review. Whether it’s a new baby or you’ve paid off debt, sometimes you need to take a hard look at your monthly budget and accommodate those changes as needed.

4. Create your budget based on your projected income for that month

If you get paid one time a month, twice a month, or every two weeks, base your budget on that projected income so you know exactly how much you have to budget.

Remember that if you get paid every two weeks, there will be a month when you get three paychecks. So plan accordingly.

On the other hand, if you’re budgeting with an irregular income, you may have some challenges getting it right at first. You’ll have to be even more diligent with tracking your spending and estimating your income, but it can be done!

5. Pay your expenses before splurging

Paying expenses first means paying for your essentials, debt, and goals (savings and investments) first before you do any splurging or miscellaneous spending.

The last thing you want is to find that you have overspent on what isn’t necessary and don’t have a way to pay your bills.

However, that being said, it’s okay to splurge and have some fun money. Just make sure you are building your splurges into your budget so you can enjoy them guilt-free.

6. Track your transactions

Tracking your transactions allows you to make sure you stay within your budget and keeps you conscious of your spending habits. You can track your transactions in a spending journal, spreadsheet, or with an automated app or online tool.

If you are just getting the hang of budgeting, it’s a good idea to track your transactions and check in with your budget every day. It will only take a few minutes, and it will help you stay on top of your finances. Plus, you’ll be building up one of the essential money habits of checking in on your finances frequently.

Expert tip: Budgets can change your life for the better

Budgeting may not seem like a lot of fun, but if you find the right method, it can really help your financial wellness. If it seems difficult, try out another method until you create a system that makes sense for you.

And remember that you aren’t budgeting for no reason, you are doing it so you can build a better future for yourself.

Budgeting ensures you can pay bills, pay off debt, and invest money. Remind yourself of how budgeting helps you if you feel like quitting, and don’t give up!

What are the most common budgeting methods?

The cash envelope system, percentage budgets (e.g., the 50/30/20), reverse budgets, and zero-based budgets are some of the most common budgeting methods. They are all different from each other. So the chances are you’ll find one that is right for your lifestyle, and it’s important to find one that works for you.

However, if you don’t want to keep searching for another method, you can create a hybrid of different budgeting methods to come up your own unique budget!

Which budgeting method should I try first?

If you want to know which budgeting method to try first, try out a percentage one like the 50-30-20 rule. It will give you a good starting place with your finances. Then, you can change the percentages as needed depending on your lifestyle and goals.

Keep in mind that there are several other budgeting methods you can try out, too. For example, the reverse budget or the zero-base budgeting method.

What are 5 budgeting methods?

5 budgeting methods that are likely to work for most people are the 50-30-20 budget, reverse budgeting, the 70-20-10 budget, zero-based budgeting, and the envelope system. While there are other types of budgeting methods, these five are likely to be easy to implement for the majority of incomes.

There are plenty of ways to plan your money to make the most of it. As long as you use a method that allows you to pay your expenses and save for the future, you can’t go wrong.

Articles related to budgeting methods

The best types of budget are the ones that work for you! If you enjoyed this article, check out these other great articles on budgeting methods.

• How To Use Use Budget Categories
• How Does The 30-30-30-10 Budget Work?
• Budget Not Working? Here Are 5 Tips For Better Budgeting!
• 10% Rule: Is Saving 10% Enough?
• How To Use The Cash Envelope System To Master Your Budget

Leverage these methods of budgeting today!

The budgeting method you choose can help you succeed financially. If you slip, brush yourself off and get back on track. Take the lessons you learned about budgeting from the previous month and apply them to the next.

If you find that the method you want to use isn’t working, you can adjust it to suit your preference or try an entirely new method. No matter what, keep trying until you find the right way to budget your money and reach your financial goals.

The post How To Budget: The 4 Best Budgeting Methods To Try! appeared first on Clever Girl Finance.

Love it or hate it, if you want to be financially successful, you need to budget your money and success with budgeting means understanding budget categories. Knowing about the different kinds of things you might spend money on can help you figure out which ones apply to you and your financial situation. So, let’s talk about the various categories that you might need, including a budget categories list!

Sometimes, the easiest way to decide on budget categories for yourself is to see a big list and then choose the ones that apply to you. You may not need every category, and that’s okay. It’s all about which items you need to include in your personal budget.

4 Main budget categories and sub-category lists

Below is a list of 4 main expense categories for a budget as well as a list of sub categories for each one. I also elaborate on the importance of each category and how to clearly layout your sub categories:

1. Finances for your future self

Your financial future is affected by what you do now. And so it’s important to have a category in your budget that caters to our future self. This group of categories includes:

• Retirement account contributions e.g. 401k/403b/IRA
• Non-retirement investing (e.g. index fund investing)
• Health savings account (HSA)
• Emergency fund
• Credit card payoff
• Student loan payoff
• Other loan payoff

Why having a plan for your future self is important

Ever heard the words “pay yourself first“? It should be a consistent part of any plan you make. Because of this, the “finances for your future self” category is all about thinking ahead.

But what does pay yourself first mean? Before you pay any bills or do any shopping, a portion of your earnings should be diverted into your retirement account, if possible, for your future self and your emergency savings accounts for a rainy day.

Time goes by so quickly, and planning for the future version of you will ensure that you can enjoy your retirement and not have to depend on the government or your children to take care of you. 40% of elderly Americans are dependent on social security during retirement, according to the National Institute on Retirement Security, so it’s important to save for the future now.

Having an emergency fund, or even a rainy day fund, will also provide you with a buffer in the event of an unexpected cost so that you can rely on your emergency savings instead of a credit card or other debt.

Almost 50% of Americans want to focus on saving for emergencies, according to Nerd Wallet. So it’s incredibly important to add this to your budget in case anything unexpected comes up that you need to pay for.

Also included in this group of categories is the money to pay off any debt you have (e.g., your credit card debt, car loan, personal loans, student loans, etc.) because it is essential that you pay off your debt as soon as you can so you can focus on building wealth. It may not seem this way, but debt payoff is actually future-focused because it will offer you more security and money later.

2. Essentials

Your essentials are items that can’t be taken out of your budget or put off for a later time. They are things you need to pay for in order to have a good quality of life, so they should be one of the first things on your budget categories list. Your essentials category would include:

• Mortgage payments or rent
• Utilities (e.g water, electricity, internet)
• Groceries and food budget
• Transportation costs and/or car payments
• Renters insurance
• Homeowners insurance
• Property taxes
• Health insurance
• Auto insurance
• Life insurance (e.g. Term or Whole life insurance)
• Disability insurance
• Dental care
• Childcare costs
• Pet food
• Necessary personal care items

Getting really clear on what your essentials are

As mentioned, your essential are the things you need to live your life. However, this category does not include money for shopping or getting your nails done — those are not essentials.

Instead, essentials focus on the categories that you need to get by. Meaning your basics such as rent money and any housing cost categories, transportation, insurance, and food.

Your essentials are your non-negotiable costs, and they should be one of the first things you take care of when you get a paycheck.

3. Life goals

Your life goals include things like saving for the future outside of retirement and other things that you may want to pay for to enhance your life.

Although not as essential as a car payment or groceries, “life goals” is a really important expense categories to have in your budget.

• Tuition savings for a child’s college education
• Certifications or training to help with your career aspirations
• Savings to start a business
• Savings to move to a new city or country
• Home down payment
• Home repairs and projects
• Donations to charities you believe in

Defining your life goals

Your life goals might include things like your midterm savings and investments for the next 10 to 15 years, business savings, saving for a home purchase, saving money for college, and so on.

I recommend creating separate accounts to save for each of your different life goals. I personally have automated deposits set up for different goals, and it’s helped me stay on top of my savings!

4. Everything else

Anything that isn’t essential and isn’t saving for a specific goal is considered unnecessary. But this category is usually the most fun, and it makes life more enjoyable!

• Entertainment e.g. concert tickets, movies, etc.
• Gym membership
• Eating out e.g. fast food, coffee shops, and restaurants
• Vacations
• Gifts e.g. for extended family and friends, weddings, anniversaries, or birthdays
• Cable subscriptions or cable alternatives
• Streaming services e.g. Netflix, Hulu, Amazon Prime
• Hobbies e.g. gardening, crafting
• Self care e.g. getting your nails done, going to the spa for a massage, etc.

Everything else should include fun money

The “everything else” category is your splurge money. It’s the money you would spend shopping or saving for a wish list item, traveling, entertaining yourself, and whatever else it is that you would typically do as a part of enjoying the life you have.

Having a category like this matters because you want to be able to enjoy your money sometimes, even as you pay your bills and work towards your goals. So it can boost your morale and allow you to reward yourself for working hard.

You might include things like going to the movies, dinners out, birthday gifts for friends, and other items in this category.

Using percentages for your budget categories

Once you are clear on your list of budget categories and sub-categories. It’s a good ideas to assign each category a percentage. You likely won’t be spending the same amount on each category. Some categories will require more of your income than others.

However, knowing approximately what percent of your income should be assigned to each category is a big part of organized finances and can help you with improving your spending habits.

For each of the 4 main categories mentioned above, below is a general guideline of how your money can be allocated. However, based on your individual expenses and goals, the percentages may look a bit different for you.

• Finances for your future self: At least 20%
• Essentials: 50%
• Life goals: 15%
• Everything else: 15%

Keep in mind that you can adjust these budget category percentages according to your goals and timelines. Remember, your budget is your blueprint for how to manage your money so you can build wealth, and it should work well for you personally. Be sure to check out our example of a budget.

Expert tip: It’s ok if your budget categories change

Choosing budget categories is not a one-time process. Budgets are ever-evolving and might need to change to meet your current needs.

Although you will probably always need to include the four main budgeting categories, you may find that you may need to adjust or change the sub-categories.

So make it a habit to continue to check in with your expenses, goals, and list of budget categories to make sure your spending reflects them.

How do you plan your budget categories if you are focused on paying off debt?

If you are focused on paying off debt, you should plan to pay as much as you can towards your debt each month rather than the minimum payment. And so paying off debt might mean lowering the amounts you contribute to your different budget categories.

For example, you might need to spend less on things like entertainment or vacations and instead reallocate the difference to paying off your debt as fast as possible.

Like with everything money-related, sticking to your plan requires discipline. If you struggle with your plan initially, having an accountability partner is a great idea!

Reach out to a friend for support. We all need a cheerleader sometimes.

How many categories should I have for a budget?

The number of categories you choose for your budget depends on your expenses, goals, and splurges. That said, it’s a good idea to have categories for:

• Long-term savings goals for your future self and debt repayment
• Your essentials and needs
• Other life goals,
• Non-essentials like travel, splurges or fun money

You can then break these main categories into smaller sub-categories. Although there is no perfect number of categories, it’s a good idea to start with these four main categories at the very least.

What are the four main categories in a budget?

The four main category groups in a budget are finances for your future self, essentials, life goals, and everything else. You may choose to call each of them by different names e.g. “retirement and savings,” or “discretionary spending” but the main idea for each category is the same.

You will likely need all four of these categories to create a balanced budget, though your sub-categories under each of the main categories you choose will vary depending on your expenses and even your goals and lifestyle. For instance under your main category, “Finances for your future self” you might have sub-categories for your 401k/IRA, emergency savings, and student loans payoff.

Articles related to budgeting

If you liked this article about budgeting with budget categories, check out these other great articles:

• 20 Cash Envelope Categories For Your Cash Budget
• The 50-30-20 Rule: How It Works + A 50 30 20 Budget Template
• How Does The 30-30-30-10 Budget Work?
• How To Create A Family Budget That Works For Your Family

Leverage these expense categories in your budget today!

Like any art, budgeting takes time to master. Additionally, part of budgeting well is defining your budget categories. Knowing what category something belongs in can help you decide if you save for it or purchase it now or later.

Budgeting can be difficult, but categories can help! If you need hands-on budget counseling, that’s okay, too. The most important thing is to start and just keep going even when it gets tough, knowing that making a plan is going to help your finances.

The post How To Use Budget Categories appeared first on Clever Girl Finance.

Does it feel like the holiday season sneaks up on you every year? Instead of getting caught with a cash shortage come year-end, it’s a great idea to put money aside earlier in the year for gifts and travel. That said, you can leverage Christmas Club Accounts to automate your savings to make the holidays a lot more affordable!

With Christmas season/holiday debt continuing to grow year over year, saving money has never been more important. In fact, 4 in 10 people say they expect to go into debt over the holidays, according to a U.S. News & World Report study.

That said, by using a Christmas club, you’ll have a chance to experience less stress and enjoy the holidays more by avoiding credit cards, saving money, and using cash instead.

Do people still use Christmas clubs?

The short answer is yes, people do still use Christmas clubs. While Christmas clubs may have had more popularity in your parents’ (or grandparents’!) generation, they still exist.

According to AGFinancial, the 1950s and 60s were the most popular times to have an account like this, with less popularity in the 1970s.

But they’ve stood the test of time because the holidays return every year. And seemingly with more elaborate celebrations and wish lists and a more expensive holiday shopping season.

It makes sense to siphon off a little of your paycheck every month rather than blowing your budget out of the water once the holidays roll around.

What is a Christmas club account?

A Christmas Club, also called a holiday club account, is a type of savings account that’s been specially tagged for your holiday fund. It’s essentially there to help you with how to prepare for Christmas, similar to how vacation clubs can help you pay for travel.

Most people use their Christmas club savings on Christmas gifts, travel, and other holiday spending. Things like more expensive meals, outfits, and outings, as well.

The Christmas club savings is just one type of savings club. Another popular example is the Susu (find out “what is a Susu” here).

How does a Christmas club account work?

Many community banks and credit unions offer Christmas club savings accounts where you can start saving money for Christmas. The idea is to open an account as early in the year as possible so you have time to save for the upcoming holiday season.

You can then make consistent payments when you choose (weekly, bi-weekly, monthly, or quarterly) into the account with the intention of withdrawing the cash from the account around November 1 of each year.

Many accounts have a low minimum opening deposit to get started, as well. That said, it’s a good idea to make automatic deposits as you budget by paycheck in order to save for the holidays.

However, if you find that you need to make a withdrawal before the set time, you may get an early withdrawal penalty. Think of this penalty as a way to ensure you don’t get tempted to spend the money you have in the account before the holidays!

Why should you use a Christmas savings account?

Using a Christmas savings account can save you the stress of feeling like you don’t have enough money when the holidays approach. Your Christmas shopping is easier if you plan for it all year.

When you open your Christmas savings account, you can generally choose to have your contribution as a direct deposit from your paycheck.

Setting up this direct deposit can help you save without “feeling” the deduction or handling any transactions. Often, you can even set up an automatic transfer from the Christmas club account to your normal account on November 1st.

Now you have a general idea of this account type, let’s get into the pros and cons.

Pros of Christmas clubs

Contributing to a Christmas club is a hands-off way to build positive money habits of saving. You’ll quickly see that every little bit adds up.

Additionally, spreading out the expenses across the entire year makes the holidays much more manageable.

A Christmas savings account is perfect if you (or your partner) lack self-restraint or lose track of your money goals and prefer set-it-and-forget-it style savings.

A Christmas club account might even help you avoid credit card debt if you have a tendency to overspend around the holidays. Plus, it feels like a bonus at the end of the year. You’ll access all this cash you probably didn’t feel was missing in the first place.

In addition, Christmas savings are a great way to know in advance how much you want to spend on the holidays and force yourself to stick to a budget. You can know exactly how much you have to spend by checking your account balance.

Cons of Christmas clubs

Most Christmas clubs don’t earn great interest.

Additionally, in most cases, your money is tied up until around November 1, making it unavailable if you need emergency cash. Otherwise you might have to pay a fee to access your money early.

Plus, just because you open a Christmas savings account doesn’t mean it’ll be enough to cover all your holiday expenses. If you didn’t budget correctly throughout the year, you might still feel some holiday financial strain.

Additionally, if you have an irregular income or are on a strict budget, you may find that the money you want to deposit to your Christmas fund needs to pay for other things. In this case, a direct deposit each month may not be the best choice.

Expert tip: Stretch your Christmas budget with inexpensive ideas

Christmas clubs can help you save a good amount for the holidays. But remember that you can also stick to a budget and find inexpensive ways to celebrate.

For instance, can you bake cookies for your co-workers and friends instead of buying expensive gifts? Or perhaps you can send homemade cards rather than spending a fortune on holiday cards.

If you cut back on certain things, then there will be more money left for the more expensive items on your list, such as travel or a costly Christmas present.

Where can you open a Christmas club account?

You can open a Christmas club account in a couple of different places. Check out these options:

Credit unions

When it comes to Christmas clubs, credit unions are your best bet. 

What are some of the differences between credit union and banks? Well credit unions are non-profits and generally community-focused, have accessible customer service, and low fees. Banks, on the other hand, are for-profit.

If you bank at a credit union, ask them what they offer as far as Christmas savings.

Community banks

You can also check with your community bank and see if they offer Christmas savings accounts. Community banks usually focused on serving customers in the community where they live and work. This allows the community to grow.

As a result, it is not uncommon for community banks to offer Christmas savings accounts. If not, they will certainly have regular savings account options that you can use instead. Remember, there are many ways to save up for the holidays.

Other types of Christmas Savings Accounts

Having an account that is labeled as a Christmas fund isn’t the only way to save. Here are some other smart solutions:

Cash envelopes

Christmas savings accounts are like an automated digital envelope system. The principle of allocating funds to specific causes extends beyond the holidays.

If you prefer to work with cash or find it easier, then try out the cash envelope system. Keep an envelope labeled “holiday expenses” and add money to it each month. Or do a digital version of this by setting money aside each month.

Certificate of Deposit

You can also do a “DIY” Christmas savings account by putting your money into a Certificate of Deposit (CD).

A Certificate of Deposit locks your money away for a set amount of time, after which you can receive a higher amount of interest than a standard savings account.

High-yield savings account

Even a non-specific high-yield savings account could be a useful option for your holiday savings if you know you’ll be able to let the money grow and resist the urge to take it out before the holidays. (Because, in this case, the account itself won’t block you from withdrawing early like a Christmas club or Certificate of Deposit does.)

Traditional savings account

Another option is to simply use a regular savings account. If you aren’t overly concerned about earning interest (and since it’s a short term savings goal, interest isn’t the main factor), you can try this out instead.

Just open a regular savings account at your bank and then mark it for holiday expenses. Even utilize direct deposits if you want. It will help you do Christmas on a budget.

Are Christmas Clubs worth it?

Christmas clubs can be worth it if you want an easy way to save for the holidays. They enable you to save up money almost without thinking about it, which can be great.

Then, by the time you’re ready to consider a holiday budget, the funds are already there.

However, there are also many other ways to save for the holidays, and this idea doesn’t work well for everyone, particularly if your bank or credit union doesn’t offer a holiday club option.

What can I use instead of a Christmas club?

You can use many other accounts instead of a Christmas club, including a savings account, a CD, or even try saving money in a jar that you add cash to throughout the year.

There are a variety of ways to save up money. The most important thing is to be consistent with your savings rate and budgeting so you have what you need when December rolls around.

Do Christmas club accounts still exist?

Yes, these accounts do still exist. They are not as popular as they were decades ago, but you can still use them to fund your holiday goals.

Opening an account like this is a great way to save and can also make your other short term savings goals easier. When you automatically deposit money, you won’t miss it, and you can focus instead on other expenses.

Do banks have Christmas club accounts?

Yes, many banks have a Christmas club option, specifically community banks and credit unions. That said, it never hurts to ask your traditional bank about this.

Find out if your financial institution offers this holiday savings option that can help you save money, or if not, consider their other savings account options.

Articles related to saving for Christmas

If you enjoyed reading about Christmas clubs and would like to hear more, check out these other posts!

• Christmas On A Budget: How To Save Money For Christmas!
• Are You Ready For Christmas? How To Avoid The Last Minute Rush!
• What Are Savings Clubs And How Do They Work?
• How To Build A Holiday Fund!

Leverage Christmas club accounts to save stress-free!

There are plenty of sources of stress in life—celebrating the holidays with your loved ones or taking part in impulse spending at Christmas shouldn’t be one of them. Regardless of how you choose to save, don’t let the holidays derail your budget.

Close out the year thankful for what you have and what you’ve earned. In fact, why not try a 30 days of gratitude challenge in December? Then head into the new year feeling grateful and with your budget on point!

The post How Does A Christmas Club Account Work? appeared first on Clever Girl Finance.

The words “frugal” and “thrifty” come loaded with quite a bit of baggage. A lot of people have strong feelings for or against those terms, but both can offer a lot to improve your lifestyle. Have you ever thought about what being frugal and thrifty really means and how they might differ? Let’s discuss this in more detail!

If you look up both frugal and thrifty in the Merriam-Webster dictionary, you’ll find that they’re pretty close in meaning. Their definitions are as follows:

Frugal: Characterized by or reflecting economy in the use of resources.

Thrifty: Given to or marked by economy and good management.

So you can see that “economy”, or “being economical” is a primary focus of being frugal and thrifty. Both frugal people and thrifty people don’t like to spend money if it’s not necessary. 

However, for a lot of people, we tend to associate certain behaviors with being frugal and thrifty. You might believe frugality is living stingy or that someone who’s thrifty would never splurge on something just for fun. 

As an overall framework for comparing the two personalities, let’s say that “frugal” is more about getting the best value or deal for your money, while “thrifty” involves utilizing what you have.

That said, there’s a lot more to it, but that’s a good place to start. 

What does being frugal vs. being thrifty mean?

While thrifty and frugal aren’t terribly different (both have the goal of saving money), frugal and thrifty people may go about saving money in different ways.

Being frugal

For a lot of people, the art of being frugal means developing a mindset. To me, the word “frugal” has no negative connotations — in fact, it actually brings freedom from guilt because it means I’m mindfully deciding how to spend my money. 

Being frugal means determining what matters the most to you and being willing to spend more money to receive the most value. However, the flip side is that you try to minimize your spending on things that don’t matter. 

Living a frugal lifestyle doesn’t have to mean you never spend any money! You can be a frugal person on a $30,000 income or a six-figure salary. Being frugal largely comes down to how you prioritize spending. 

Being thrifty

I like to think of being thrifty as the ability and desire to make the most of what you already own. You might be someone who is crafty and can find creative uses for old items. Maybe you’ve learned how to stop buying clothes by shopping your closet first rather than hitting Amazon. 

When it comes to being frugal and thrifty, people often believe “thrifty” is closer to “stingy” or “cheap.” But being thrifty is really just another way of being frugal. 

Examples of being frugal and thrifty

One one hand we’re examining frugality from the lens of prioritizing yourself and your spending and sometimes paying more for a better value. On the other hand we are examining thrifty as “using what you have” before buying more.

That said, let’s take a look at some examples of how to live frugal and thrifty because, you can absolutely do both!

5 Ways to be more frugal with your finances

When it comes to being more frugal with your finances to make the most of your time and money, here are some key ideas:

1. Create a budget to prioritize spending

One of my favorite examples of living frugally is creating a budget by paycheck to follow. Budgets get a negative reputation at times, but they don’t have to be restrictive. 

When you use a budget, you’re telling your money where to go each and every month. A frugal person wants to know how much money they’re making and how much they’re spending on each category. Budgets work well for being frugal and thrifty.

Whether you focus on the advantages of zero based budgeting, the 50-30-20 rule, or another budgeting tactic, the key is awareness and focus. A frugal person can analyze their budget at the end of each month and decide where to cut expenses and where to dial up their spending. 

The fantastic thing about a budget is that it can give you permission to spend your money on what you love. As you meet your financial obligations, like paying your bills (including knowing the best way to get out of debt), you may also find you have room in the budget for luxuries. 

2. Do your research to get the best value

Here’s another common trait associated with frugal people: they tend to do a bit of research before buying. If you’re living frugally, you probably consider bigger expenses by doing price comparisons, checking multiple retailers, and reading customer reviews. 

When you’re being frugal, you don’t want to just spend money willy-nilly. You look up product reviews to find out whether that new treadmill will last for years or sputter to a halt in six months. You don’t want to start overspending, but you’re okay with paying more for a high-quality item instead of a junky one that will break instantly. 

Being frugal and thrifty may be fairly similar, but when I think of a frugal person, I think of someone who spends more sometimes. And that’s perfectly okay!

3. Know what matters to you and when to spend on it

Another characteristic associated with being frugal is an awareness of your priorities. Frugal people know when spending more money will yield a better experience, but they also know when to go the cheapest route. 

As financial educator Ramit Sethi explains in his I Will Teach You To Be Rich materials, you can turn up your spending in some areas while reducing spending in other areas. This usually has to fit within your budget, of course, but the beauty of it is that you are in control. You get to say what matters and what doesn’t. 

For example, if clothes don’t matter much to you, don’t bother spending more on designer brands. If you like to travel, then pour more of your budget into your next trip instead of on something that won’t bring you joy. 

If you’re living frugally, you may find you’re not sacrificing your needs and wants. Instead of a lack of contentment, you’ll find joy by refusing to spend money on what you don’t want.

4. Focus on the value of time as well as money

A key difference between being frugal and thrifty regarding time and money is that frugal people often value their time even more than their money. 

Living in frugal way centers on money, but frugal people can also recognize when spending money might be worth it to recapture time. This is the magic of outsourcing. It’s not free, but it can be worth much more than the expense for the time you get back. 

I’m not saying you should hire someone to handle all domestic skills from cooking to laundry, but if there’s one that’s taking up too much time, think it over. Could you use your time in a better way? Is it worth spending some cash?

Outsourcing is also a great tactic if you’re setting goals for a small business. You’ll need time to devote to building and growing it, so you might hire a virtual assistant to handle some of the administrative load. Or pay for childcare, especially if you’re creating a side hustle outside of your full-time job. 

5. Look at the long-term

Being frugal could mean you think more about the long-term consequences of your money choices. Not that a thrifty person doesn’t, but sometimes people adopt a frugal lifestyle in service of a larger goal. 

For example, people can choose to live more frugally in order to invest for an early retirement. That level of frugality may not continue after retirement, but it can help them get there. 

A frugal mindset could also mean spending money in order to reach higher earning potential (i.e., getting a degree for a better career). It’s not always the cheapest option today that holds the greatest long-term benefits.

6 Tips to be more thrifty with your finances

Now let’s get into how to maximize the use of the things you already have and spend your dollars in a way that allows you to repeat repurposing what you own!

1. Reuse items as much as possible

One of the first things that comes to my mind for thriftiness is reusing everything you can. When you’re living thrifty, you aim not to throw things away without trying to use them again. 

Those Depression-era values come to mind again: people learned to use up what they had, reuse items like clothing over and over, and not buy unless absolutely necessary. Although some items have their limits, it’s a great tactic to try. 

Next time you’re thinking of replacing an older item with a newer model, consider how necessary it is. Could you keep using your old blender for another year? Wear the same dress to multiple weddings? Save food packaging for other uses? 

Not only is reusing easier on your wallet, but it’s also much gentler on the planet. Reusing whatever you can helps you with how to live sustainably instead of being wasteful. 

2. Repurpose what you already own

A skill that goes hand-in-hand with reusing is the art of repurposing. A big part of being thrifty is using what you have, and often if something has outgrown its initial purpose, you can find a new purpose. 

For example, the blog SixDollarFamily suggests ways of repurposing old clothes you no longer wear. You might:

• Create reusable fabric softener sheets
• Turn them into cleaning rags
• Make an upcycled scarf
• Cut jeans into a DIY dog rope toy

Even if you don’t think you’re a creative person, the possibilities for repurposing are a lot of fun. Just search online for ways to repurpose whatever you have, and the internet will reward you with oodles of suggestions. 

3. Secondhand shop

I definitely associate secondhand shopping with thriftiness. After all, we don’t call them thrift stores for nothing! 

Whether you see this as being frugal or thrifty, shopping at thrift stores is a way to live a luxurious lifestyle on a budget.

Although you want to avoid overbuying just because items are cheaper, overall, it’s less expensive to buy secondhand than retail. 

You can get a ton of things at a bargain and give items a new life. Whether you love purchasing a pre-owned designer handbag, picking up kids’ sports equipment secondhand, or always buying used vehicles, these are all great examples of thriftiness. 

The flip side of secondhand shopping: it could lead you to find the best items to resell for extra cash! Some thrifty folks shop at consignment stores, where not only can they buy things for less, but they can also sell their own items. 

4. Enjoy the thrill of a deal

One of the hallmarks of thrifty people is that they tend to love a great deal. You might enjoy perusing the best coupon websites, checking out the dollar aisle at your favorite store, or visiting garage sales on the weekend. 

Getting something for less than its original value is always exciting. The thing thrifty people may want to watch out for is being blinded by the so-called discount. If you’re buying things only because the tag says they’re 50% off, not because you need them, that could be a problem. 

I love saving money, but I do catch myself sometimes, about to fork over my money for a “great deal” that I don’t even want.

A good example of how to be thrifty and smart is to use coupon websites but avoid buying items you wouldn’t normally buy. Be sure you’re getting good value. 

5. Maximize your budget

As a thrifty person, you work to maximize your budget, whether in terms of the cheapest grocery list, housing, entertainment, or other costs. This may involve figuring out what you can do without and then shopping mindfully. 

When being thrifty, you’re aware of your income and your expenses. That enables you to make wise choices about how to spend any extra money after bills are paid. 

6. Spend time to save money

Thriftiness often means taking time to clip coupons, repurpose your old things, and handle all of your home and work tasks yourself. For thrifty people on a bare bones budget, cost may be the most important factor. 

Being thrifty might look like putting a lot of time in to save as much money as possible. This can be great if you enjoy all of those tasks, but it can get tedious in the long term. 

Expert tip: Being frugal or thrifty means nurturing a good money mindset

Although many people consider being frugal and thrifty to be two sides of the same coin, one term or the other might bring up feelings of embarrassment or a cycle of shame. 

If you have a money mindset that thinks of frugal or thrifty as “stingy” or unable to spend money at all, it’s time to rethink that perspective.

Both frugality and thriftiness are positive qualities that can help you reach your financial goals. 

How can you use being frugal or thrifty to reach your financial goals?

Knowing how to be frugal or thrifty is good, but knowing how to use this knowledge for your finances is great. Here are some ideas to help you get started:

Define which method you prefer: Being frugal or being thrifty

There’s not a very clear difference between someone who is frugal and someone who is thrifty, to be honest. Depending on how you interpret the terms, you might prefer one over the other. 

I’ve focused on “frugal” as being about setting priorities for your money and a willingness to spend more for better value. Then “thrifty” is maximizing what you already have and perhaps spending as little as possible. 

Decide if being frugal or thrifty aligns with your personality better. Maybe you’ll even adopt both. Neither “frugal” nor “thrifty” is inherently better since both philosophies could guide you to your own financial goals. 

Know why you want to save money and make it a habit

When you’re figuring out how to apply ideas of frugality and thriftiness to your finances, you should consider your reasoning.

Why do you want to be frugal or thrifty? Is it born of a financial need or a desire to “win” the game of finances? Are you aiming for an aggressive savings plan? 

If you’re living paycheck to paycheck and therefore have to be thrifty or frugal to survive, that’s useful to know. Understanding why you are behaving a certain way with your money can make all the difference.

In addition, once you understand why you are being frugal or thrifty, make sure that you make it part of your daily life. Forming frugal and thrifty habits like repurposing items or being conscious of your spending can help you make real changes.

Are thrifty and frugal the same thing?

Frugal and thrifty can be very similar things. But for many people, thrifty means using up what you have, while frugal means spending money to get the best.

In other words, a thrifty person may avoid spending money unless it’s a clear “deal,” always wanting to save. But a frugal person often is thought to consider life priorities when spending money and may be willing to pay more for the best (or longest-lasting) value.

How can you be frugal and thrifty?

There are plenty of ways you can be frugal and thrifty every day, but you should focus on how to save and get the most value from your money.

You might make a budget each month and stick to your maximum spending for each category. Or maybe you’ll start walking to work to save on gas. Being frugal and thrifty might mean going on a shopping ban for a while and repurposing items in the meantime. 

However you choose to be frugal and thrifty, be sure it matches your financial goals. Remember that sometimes being frugal means forgoing fun things temporarily in order to save for short term savings goals. 

What is a thrifty person like?

When I picture a thrifty person in my mind, it’s someone much like my grandparents, who gained frugal living tips from the Great Depression. My paternal grandmother, for example, always saved wrapping paper to fold up nicely (for reuse) after opening holiday gifts—so thrifty!

In general, a thrifty person might be someone who hates to waste anything. When it comes to spending decisions, the bottom line is often the most important factor. 

In this way, being thrifty might mean having a scarcity mindset. If you view the world as having limited funds, you might be afraid to spend money. But thriftiness also has a lot of positive qualities.

Articles related to being frugal and thrifty

If you liked learning about the differences between frugal and thrifty finances, you should check out these articles next!

• 35 Frugal Living Tips To Save A Ton Of Money
• The 29 Best Frugal Living Blogs
• 15 Extreme Frugal Living Ideas And Frugal Hacks!
• Frugal Vs Cheap: Why Frugal Is Better!

Being frugal and thrifty are both good ways to save money!

Being frugal and thrifty may be pretty similar terms to a lot of us, and that’s okay. In current society, some people have negative feelings about both types of people, especially if they interfere with or judge other people’s money habits. 

Being frugal is an admirable trait, though—and so is being thrifty! You can make the most of the items you already have and avoid lifestyle inflation while also managing your money well to be able to spend on what matters most.

Next time anyone uses either “frugal” or “thrifty” in a negative way, you can share the positives that come from a money-conscious type of lifestyle!

The post How To Be Frugal And Thrifty: Differences And Why It Matters appeared first on Clever Girl Finance.

Whether you’re working for yourself or have an irregular job schedule, budgeting on an irregular income can be tough. You still have to pay your bills, but you aren’t always sure how much money you’ll have. But creating a budget for this type of income is easy to learn!

Perhaps you would like someone to describe irregular income and give examples. According to American Progress, there are millions of Americans who are self-employed. If this is you, or you work as a freelancer or a contractor, your income is dependent on how much work you do, which makes your income irregular.

And sometimes the work you’re doing now won’t pay for another 30 to 45 days!

If you work in the service industry or another hourly job with a rotating schedule, your hours and income can vary from week to week.

Similarly, if you have a sales job where you earn a commission, it can be hard to determine what your actual income will look like at the end of each month. Entrepreneurs and people who work in the gig economy may also face irregular income challenges.

So how do you budget when you don’t have steady paychecks? It may seem that budgeting with a fluctuating income is impossible. But there is a way to best approach your finances that will allow you to be successful with managing your money and give you peace of mind.

Budgeting when you have an irregular income

A budget is a plan for your money. When you have a predictable monthly income, creating a budget with budget categories that work for you is a little more straightforward (though it still has its challenges).

When your income varies, making a plan for your money can be more work, but it can be done. Here are five tips to help you create a successful budget on an income that changes.

1. Create your baseline budget

You can also call this your bare bones budget. The total amount of these expenses is the minimum amount of money you’d need to earn each month.

The expenses include necessities like your rent/mortgage payment, utilities, food, and car payment. It does not include going out to eat, shopping, or entertainment — remember, it’s the bare minimum amount of money that you need to get by.

For some of these, you’ll know exactly how much you’ll be spending every month (e.g., rent/mortgage). For others, you may have to do some digging to figure out how much you should expect to spend.

By doing this, you’ll be able to determine how much you need to have coming in at the very minimum. Additionally, if you earn more than your baseline expenses you can put the extra money aside for any lower income months you might experience.

Budgeting tools and strategies

You can use a number of the best budget templates and tools to categorize past expenses and determine how much you’re spending every month.

Additionally, you can use expense tracker apps to figure out how much you’ve been spending. Then you can use those numbers in your baseline budget for the current month. But you can also use a simple spreadsheet or a spending journal that helps you keep track of your money.

Once you know how much you’re spending, put all the information into a monthly budgeting strategy that lists all your necessities and their costs. Add up the total, and you have the amount you need to get by each month.

You may choose a budgeting app or simply write your budget down. Just make sure you know your numbers and you choose a method that works well for you.

Pro tip: A calendar can also be very helpful to remind you when specific bills need to be paid.

2. Prioritize your essential and non-essential expenses

Your expenses need to be listed in order of importance so you know what to pay first. For instance:

Essential spending

All of your essential expenses should come first with an irregular income, but you can prioritize them. Prioritizing means determining what bills need to be paid first, second, third, etc.

For instance, housing, food, and transportation could be items 1, 2, and 3 on your list. Having this priority in place ensures that you are properly allocating your money to your top budget items first when you get your paycheck. 

It’s also important to note that your emergency fund and any other savings are essentials that should also be taken care of before discretionary spending.

Discretionary spending

Once you create your baseline budget with your necessary expenses, you can add to the list your non-essential expenses or discretionary spending. Things like eating at restaurants, going to the movies, and gym memberships are considered non-essential spending habits.

Prioritize your discretionary spending in order of importance for times when you have extra cash.

Doing this may involve making some difficult decisions and cutting things that you can’t currently afford to avoid overspending.

For instance, going out to eat or that Netflix subscription. While you’re figuring out your budget, it’s important to remain focused on your goals and learn how to stop spending money on non-necessities.

3. Save for future months during the months you earn more

Having an irregular income means you’ll have good and not-so-good months. You can hope that your income will increase over time, but that’s not always the case. Lots of things, like seasons, can factor into how much you’ll be making.

Have a specific account to draw money from when needed

If you happen to earn excess money in a certain month, pay for your most important expenses first (as discussed above). This includes all your necessary expenses and saving goals.

Then, whenever you have a month that you make more money, add some extra funds to a separate account.

These savings will help you in future months in the event that your income declines again. Or if you have unplanned life circumstances that require you to spend a lot of money at once. Saving can help you cover your expenses during those months without having to leverage credit cards, leading to debt stress.

Sinking funds

It’s also a good idea to establish sinking funds. A fund like this is specifically for large upcoming expenses that you know you’ll need to pay for.

You should contribute to this as often as possible. That way, you will have the money you need when the time comes to pay annual expenses or one-time costs.

To find out how much to save, consider all of your upcoming expenses. Both those that are recurring and those that will only happen once.

You can add up the cost of all of them and then divide that amount by several months or divide it up through the whole year.

4. Earn extra income

If you find that your earned income doesn’t pay for as much as you would like it to, there is another option: earn more!

Ideally, your irregular income provides for your living expenses. But if you want more discretionary or saving money, try some of these ideas:

Side hustle

You might try starting your own business or easy side hustles in order to earn more. It can be something that you do in addition to your full-time job that doesn’t take up too much time. The great thing about this is you can potentially earn as much as you want!

A side hustle could be walking dogs, cleaning houses, taking on freelance writing jobs, etc. Anything that you have the talent or time to do.

Second job

Side hustles don’t work for everyone. So you can always take on a part-time job in addition to your regular one. Work weekends, evenings, or whatever schedule works for you.

You may be able to take on a job where you’re already familiar with the work, or you can branch out and try something entirely new.

But is working two jobs worth it? Make sure you have the time for this before taking on another job.

5. Define your money goals

Even though your income varies, it doesn’t mean that you shouldn’t plan for the future! Come up with a couple of money goals, then consider how much you want to save.

Even if it takes a while, getting started with your goals will help you to build momentum and know that you are moving in a positive direction with your money. 

Including saving for your goals before discretionary spending in your budget is also a good way to make sure that you make progress.

Here are some examples:

Prepare for retirement

There are quite a few ways to do this, from a 401k if you have the option to IRAs or regular investing. While retirement planning can seem overwhelming, it’s actually not too difficult to get started.

Try using a retirement calculator to find out how much you should save each month and year, and then start contributing now!

Plan your vacations

Just because you have an income that varies doesn’t mean there’s no room in the budget for fun! If you love to travel, start planning a vacation to somewhere you’ve always wanted to go.

Be sure to total up the cost of the trip in a vacation budget and then set aside money with each paycheck or whenever possible.

Save up for education

If you are saving for your kid’s college education, or you plan to go back to school yourself, start saving up money and learn how to avoid student loans.

You may also wish to save for a professional goal. For instance, taking classes or gaining certifications in your career, may cost money and/or time.

Determine what time frame you’re working with (how many years until you need to use the money), as well as the full cost of the education. Then you can make a plan for your savings.

Expert tip: Determine how best to manage your irregular income

Although some people can work easily with an irregular income and don’t struggle with the paycheck uncertainty, you may find that it isn’t for you. If you find that even with a budget you feel concerned about your finances, it may be time to look for alternative solutions.

While having a varying income is completely fine, it’s totally okay to change this if you would feel more financially secure with a more stable amount of money each month. Look for a career that will allow for a steady paycheck, and continue with your budget and financial goals.

What is an irregular income with an example?

An irregular income is simply one that doesn’t pay the same every paycheck.

For instance, you might make $3,000 one month and $5,000 the next.

An income like this means that you will need to be diligent about budgeting and saving up your money for lower income months, or you may feel like you’re living paycheck to paycheck.

What is an example of an irregular income job?

An example of a varying income job is one that has varying hours, such as working in a restaurant that is much busier in the summer than in the winter. There may be times when there is more work to do and others when there is less.

Another example is if you have a job that takes on various projects, such as a freelance writer. If you are paid per project, your income can change quite a bit from one month to the next.

Can you budget with an irregular income?

Yes, you can budget with an irregular income. You simply have to prioritize and stay organized. It’s also very important that you create your baseline budget by factoring the minimum amount you need to spend on bills and also by using an average of your past income e.g. An average of how much you earned over the last 6 months.

By budgeting based on your minimum expenses and average income you can put away any earnings over your average income to accomodate for any low income months in the future.

Be sure to pay your essentials first, then your savings goals, and then consider spending on non-essentials. Following this method will help you to pay your bills without worry.

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• Budgeting For Couples: How To Budget As A Couple

You can budget successfully on an irregular income!

Putting a plan in place, regardless of your income, is the foundation of financial success in life. It’s all about managing your monthly expenses, whether there are fluctuations in your income or not.

Plan to revise your budget every single month, and if you fall short, each new month is an opportunity for better budgeting. Remember, you can be successful with your budget, create goals, and plan for the future!

The post Budgeting With An Irregular Income: 5 Success Tips appeared first on Clever Girl Finance.

Like many, you might shudder at the word budget, or perhaps it sounds too boring or challenging to figure out. But the 50-30-20 rule and the 50 30 20 budget template prove it doesn’t have to be difficult. If you’re looking to simplify your budgeting process or are new to budgeting, then this might be the perfect match!

Using budgeting best practices means planning out exactly how you’ll use your money, and this can be tailored to suit your specific lifestyle and situation with the 50-30-20 rule. This particular budget involves three easy steps that will help you prioritize your monthly financial commitments.

The 50-30-20 rule is comprehensive and covers all bases. And don’t worry if math isn’t your thing because we’ve included 50 30 20 budget spreadsheet ideas to help you stay on top of your budgeting strategies.

That said, let’s take a close look at this budgeting rule, including what it is and how it works.

In addition, we’ll include calculators so you can jump right in and get started immediately.

What is the 50-30-20 budget?

In its simplest form, the 50-30-20 budget rule divides your after-tax income into three distinct buckets, which are:

• 50% to needs

• 30% to wants

• 20% to savings

A plan like this helps simplify finances and is also easy to follow.

Who invented the 50-30-20 budget?

U.S. Senator, Elizabeth Warren, came up with the 50-30-20 budget. In a book called All Your Worth: The Ultimate Lifetime Money Plan, Elizabeth Warren and Amelia Warren Tyagi described this simple way to budget.

And not surprisingly, it has stuck. People love how easy it is to understand and follow!

Why this rule works

You might be wondering why this budget works and how it will impact your life and financial plan. There are a few reasons it can be great for your finances.

Simplicity

Firstly, the budget is really simple. So if you’re not into details or if you’re just starting out, this budget is fail-safe and easy to implement.

You only focus on three buckets – needs, wants, and savings which are pretty easy to figure out.

Every dollar has a purpose

Secondly, it helps you account for every dollar.

You start off with your after-tax income, which represents 100% of what you have to work with, and then you work out the different spending groups from there.

Financial goals

Lastly, the 50-30-20 rule can help you stay focused on your financial goals and save up for large expenses such as a house or car.

Alternatively, it can also help you create a debt reduction strategy if that’s one of your initial goals.

Percentages for your budget

The 50-30-20 budget is divided into three parts. 50% for needs, 30% for wants, and also 20% for savings. And remember, you can always use a 50 30 20 calculator or even a 50 30 20 budget template to create yours.

Category 1: 50% needs

The 50% needs category is for all your monthly essentials. Essentials include things you simply cannot live without.

For instance, rent or mortgage payments, healthcare, groceries, car expenses and payments, utilities, and also debt payments.

So as you can see, when budgeting for needs, you only include the necessities you need to survive. It would not include entertainment, take-out, or fine dining.

How to save to stay within the 50% rule

You should be able to comfortably meet your needs with 50% of your monthly income after tax. If you’re spending more than this, you may want to re-evaluate.

Are you paying too much for rent? Are you spending more on transport than you can afford?

Do you spend a large chunk of money on weekday lunches? These are all good questions to ask yourself.

Whatever the case, you can make immediate changes to your spending and also improve your budget with the 50-30-20 rule.

For instance, consider moving to a more affordable home or using public transport to keep costs down. Additionally, you can use cold lunch ideas and make your food at home to bring to the office.

Category 2: 30% wants

Wants are all the “nice to haves” that you spend money on with the 50-30-20 budget. These are items you definitely don’t need, but perhaps they are fun, or they add to your life in a positive way. And that’s OK!

The aim is to keep a detailed budgeting plan so your spending habits and fun money don’t get out of control!

The list of wants is endless and also differs from person to person, depending on your lifestyle.

For example, your personal list might include going out to the movies, eating in restaurants, buying new electronic gadgets, buying a pre-owned designer handbag, or tickets to a big game.

Another person’s wants might include cable TV or a Netflix subscription, going to concerts, and paying for gym memberships.

Consider alternatives to large expenses

Remember: there are many good substitutes for wants that cost little to nothing.

For example, you might want to buy the latest iPhone but can’t afford it. Instead, buy an earlier version, and you’ll still get the same benefits.

Alternatively, fitness fanatics who can’t justify the cost of signing up for the gym could work out at home instead.

There is almost always a cheaper alternative available when you’re looking to purchase an item. But feel free to balance your needs vs wants so you still enjoy some of these activities from time to time.

Wants may sometimes include premium experiences that are beyond reach financially. Decide what you can afford using the 50-30-20 rule.

For example, someone may want a new BMW when they can easily have a nicely equipped Toyota that would cost much less.

Be mindful of your wants, as it can be easy to justify spending if you really want something. This idea is tricky to master.

Category 3: 20% savings

Arguably the most important category in the 50-30-20 budget is savings, as this can determine your future. Savings, in this case, refers to both savings and investments.

Savings can take many forms ranging from your emergency cash to your savings account. It can also include any money market investments you have.

Keep in mind that investments refer to any money you have set aside to generate income. It can include investing in the stock market, purchasing real estate, or setting up your retirement accounts.

Priorities for saving

Your top priority should be your emergency fund. It is important to have 3 to 6 months’ worth of living expenses saved in your emergency fund.

Beyond that, focus on your retirement savings. These can include putting money into your company-sponsored 401(K) plan or an IRA. You might ask yourself, “Do I need a financial advisor?” and you can consider hiring one to help you set this up.

How to use the 50-30-20 rule to create your budget

The 50-30-20 budget rule is very simple, and it only has a couple of steps to get started. Here are some tips to make sure the budget works well for you.

Know what your income is

To get started, you need to figure out your after-tax income.

After-tax income is simply the amount of money you have left over after taxes are paid. These taxes include federal and state, in addition to Medicare costs, and don’t forget about social security.

Note: Don’t be confused by your gross income, which is the salary you earn before tax deductions have come out. We’re looking purely at how much money you have left in your bank account to divide it into your three main categories.

If you want a quick and easy way to figure out your take-home pay, simply look at your paycheck stubs.

If you run your own business or are starting a side business, you’ll still calculate your after-tax income. All you have to do is take your gross income and subtract your business expenses and also any state and federal taxes.

Split your income into the three categories

Once you’ve figured out your after-tax income, the fun begins. It’s time to split your income into the three spending groups.

You can do this by creating your own budget or by using the 50 30 20 budget template.

And then you’re all set! All you have to do is keep track of your money and also make sure you stick to the budget.

A quick note on paying down debt

Do you have credit card debt, a personal loan balance, or perhaps student loans to pay back? Debt payments fall across both your needs and your savings categories with the 50-30-20 rule.

Why? The minimum payment you owe on your outstanding debt is a need in that you must pay it back and also pay it on time each month.

But only paying back the minimum amount is a slow and expensive way to tackle your debt.

Instead, we recommend contributing to your savings so you save money to pay off your debt faster and start living debt free.

The saved money can go towards the principal, effectively saving you money in paying future interest payments down the road.

Expert tip: Customize your percentages

While it’s important to stay close to the percentages of the 50-30-20 rule, it doesn’t have to be exact for it to work.

For example, if you actually spend 53% of what you make on necessities, this budget will still work relatively well for you.

On the other hand, if you find that your percentages are very different, you may want to consider another percentage budget that will work better for your income and lifestyle.

Examples include the 80/20 budget, the 60 20 20 rule, the 70-20-10 budget, and the 30-30-30-10 budget!

A 50 30 20 budget template you can use

If you haven’t already set up your budget, this 50 30 20 budget template is easy to use. Simply add your own budgeting amounts.

Below is an example with possible amounts included.

Total net income per month: $5000

As you can see, you can add whatever amounts you want to this 50 30 20 budget template and then use the percentages listed to create your own version of this budget.

You can also add different budget categories if needed, but this works well as an example.

Additionally, here is an actual budget worksheet to download. You can lay it out based on the 50-30-20 split discussed. Just click the image below!

DIY 50 30 20 budget spreadsheet

Another option is to set up your own 50 30 20 budget spreadsheet.

If you’re great with Excel or Google Sheets, you’ll enter your post-tax income into a single cell and set up calculations to convert this into corresponding 50%, 30%, and 20% categories.

50 30 20 calculators

Figuring out your budget doesn’t have to be difficult.

Here are some examples of a 50 30 20 calculator.

Banzai calculator

The Banzai calculator will ask you to enter your post-tax income, and it does the rest for you!

You’ll easily see how much to allocate to each of the three categories for the 50-30-20 budget.

Credit Karma’s budget calculator

This option from Credit Karma is also helpful. It doesn’t calculate percentages, but rather, offers an overall picture of your budget.

Simply enter your income, along with your living expenses, other costs, etc. You will be able to easily see how much you have leftover each month and your amounts for spending, investing, and more.

Money Fit calculator

The Money Fit 50/30/20 budget tool is also a great resource.

It includes category ideas to help you see what you spend money on, and you can change the percentages to suit your needs.

Does the 50-30-20 rule apply to every budget?

The 50-30-20 rule does not apply to every budget, rather, it is based on your income and expenses. It can work very well for people whose expenses are approximately half their income.

However, if you find that your expenses take a larger portion of your income, then you may want to try a different budget.

Is the 50-30-20 budget gross or net?

The 50-30-20 rule is based on net income, not gross. You make your budget with the money that you have after taxes.

Otherwise, your numbers won’t be accurate because money still has to come out of your income for taxes, so you are overestimating the amount you have to spend.

What are the flaws of the 50-30-20 rule?

The flaws of the 50-30-20 rule mostly have to do with preference and income.

Your preference may be to spend more on savings and less on fun money, in which case you might not like the 30% wants category.

Even though it does have flaws, you may find that it works well for your lifestyle.

Is the 50-30-20 rule weekly or monthly?

The 50-30-20 rule applies to your monthly income and monthly expenses list. So the entire budget is based on what you make in a month.

Doing this budget weekly would be time-consuming and confusing, so it’s best to do this once a month and calculate your entire monthly income at one time.

Articles related to the 50-30-20 budget

If you enjoyed reading about the 50-30-20 rule, learn more about budgeting by checking out these articles next!

• 10 Of The Best Budget Templates And Tools
• 7 Money Ratios Every Clever Girl Should Know
• What Is The 60-20-20 Rule And How Does It Work?
• 10% Rule: Is Saving 10% Enough?

Leverage the 50-30-20 budget today!

Budgeting doesn’t have to be difficult, and this option is a great way to start your money goals quickly and easily, especially if you decide to use the 50 30 20 budget template.

Remember to use your post-tax income as your base and divide your money from there. Now that you have all the steps in place go ahead and get started!

P.S. Here are other budgeting methods to explore. The 80/20 budget, the 60 20 20 rule, the 70-20-10 budget, and also the 30-30-30-10 budget!

The post The 50-30-20 Rule: How It Works + A 50 30 20 Budget Template appeared first on Clever Girl Finance.

In personal finance, where income, expenses, dreams, and aspirations converge, the budget emerges as a crucial tool. It’s not just a set of numbers, rather, it’s a strategic plan that empowers you to navigate the complexities of financial decisions. And when you have a family, creating a family budget becomes even more important.

In this guide, we’re diving into how to create a family budget that works for your family and its unique circumstances.

From understanding fundamental principles to mastering practical steps, you’ll acquire the skills to start a budget that goes beyond being a mere spreadsheet to being a financial tool guiding you toward your financial goals. 

So let’s get into creating a budget for the family that genuinely suits your needs!

What is a family budget?

A family budget is a tool that makes managing money for an entire household easier. 

The budget helps you decide how to allocate income so that you are not only taking care of your bills but also making progress toward your goals. 

In short, this budget guides your decision-making, helping you balance present obligations and future aspirations for a well-rounded lifestyle for you and your household.

8 steps for how to create a family budget that actually works

Now for the nitty-gritty of crafting a family budget that’s not just a piece of paper but a practical roadmap to financial success. 

In these eight steps, we’ll learn how to budget effectively, ensuring your family’s goals and aspirations are at the forefront of every financial decision.

1. Gather your financial information

Start by piecing together your current financial position. 

Gather your recent bank statements, utility bills, pay stubs, and credit card statements. These documents provide a clear view of your income sources and expenses, and then offer essential pieces of the financial puzzle. 

This step is about awareness—understanding where your money comes from and where it goes. By gathering this information, you’re arming yourself with the tools and insights needed to make informed financial decisions.

2. Define your short-term and long-term goals

Now that you’ve got a grip on your financial picture, it’s time to plot your course. 

First, outline your short-term goals—those you’d like to achieve within the next year or so. Maybe it’s tackling credit card debt, going on a family vacation, or a home renovation project.

Then, set your sights on the long term. 

These are the bigger dreams that might take a few years to accomplish—think of buying a forever house, funding your child’s education without taking out student loans, or having a long and comfortable retirement.

In addition, your goals will shape where you allocate your money, ensuring every dollar takes you closer to what matters most to your family.

So, take a moment to reflect on and define those goals. You can even use examples of financial goals.

3. Include savings goals

Now, let’s talk about one of the most important players in your budget game: savings. These goals are all about securing your future.

For instance, savings goals might include:

• Unexpected events and emergencies
• Starting a business
• Professional development
• Estate planning
• Funds for aging parents’ care and support
• Charitable donations
• Starting a family or growing the one you already have

In addition, by making savings a non-negotiable line item in your budget, you’re essentially saying, “Hey, future, we’re ready for you!” 

This disciplined approach strengthens your financial foundation and ensures you’re prepared for life’s surprises and opportunities. 

4. Be realistic

If you want to have a family budget, dreaming big is fantastic, but it’s crucial to keep things doable when it comes to your budget. 

Your goals should push you forward without knocking your financial stability off balance. 

This keeps you motivated and steadily moving toward your financial aspirations. 

For instance, let’s say your current monthly savings are $200. A realistic goal could be to boost that to $300 per month—a challenging yet attainable step forward.

In contrast, an unrealistic goal might be to save $1,000 per month, which could strain your finances and cause frustration.

Remember, the key is to stretch yourself without snapping. By setting goals that match your financial landscape, you’re ensuring steady progress and avoiding burnout. 

5. Identify needs vs. wants based on your family values and goals

With your goals in sight, it’s time to sort out priorities. 

For example, think of your budget as a filter, separating needs from wants. 

List your essential needs—housing, groceries, utilities, and healthcare. These are the must-haves that keep your family running smoothly.

Then, consider your wants. These are the extras, the nice-to-haves that enhance your lifestyle but aren’t necessities. This includes eating out, equipment for hobbies, seasonal home decor, and entertainment subscriptions.

Most importantly, at the end of the day, you want to get your spending and monthly expenses list aligned with what matters most to your family.

And cut all other expenses as much as possible. 

6. Plan ahead for special occasions

Life is brimming with moments that deserve a celebration, whether birthdays, holidays, or other milestones. 

But let’s not forget that these festivities can sometimes come with extra expenses. 

That’s where your budget comes to the rescue. So be proactive by including these special occasions in your financial plan. 

For instance, to include these special occasions in your budget, set aside a separate category for the “Special Occasions Fund.” Allocate a specific amount of money each month to this fund so that you’re prepared financially when these events come knocking. 

For example, suppose you know your child’s birthday is in six months, and you anticipate spending $300 on gifts, decorations, and a party. In that case, you can set aside $50 monthly in your Special Occasions Fund. 

By thinking ahead, you can relish these joyful times without worrying about their impact on your wallet.

7. Track and review regularly

You’ve crafted your budget—now it’s time to maintain it.

Set aside time each week to track your spending against your budgeted amounts, or consider budgeting weekly. This practice isn’t about perfection, however, it is about staying aware and accountable.

As you review, look for the following:

• Consistent overspending in “want” categories, such as dining out or entertainment
• Unexpected costs that may have cropped up during the week and how they impact your budget 
• Progress toward your savings and debt reduction goals
• Expenses that may vary throughout the year, like back-to-school shopping or holiday-related costs

Adjustments are a natural part of the process. 

It’s like fine-tuning a musical instrument to produce harmony. The key is to make those tweaks and keep your budget aligned with your family’s evolving needs and aspirations. 

For example, let’s say you’ve been consistently overspending on entertainment, allocating $100 per month but spending around $150. This trend could lead to an annual overspend of $600. 

By identifying this pattern during your weekly review, you can decide whether to adjust your entertainment budget or find cost-effective alternatives to manage your expenses better.

8. Get your kids involved

This step isn’t just about teaching—it’s about empowering the next generation with financial know-how by teaching financial literacy for kids. 

For example, start by having age-appropriate conversations about money. Share stories, discuss saving and spending, and let them make small decisions within limits.

As they grow, involve them in budget discussions. 

Show them how you allocate funds, prioritize needs, and save for goals. This hands-on experience lays the foundation for responsible money management as they approach adulthood.

Other ways to involve your kids in the family budget may include:

• Having them pick which of their “wants” to prioritize
• Having them set their own savings goals
• Giving them a small grocery budget and teaching them how to compare prices, stick to the list, and look for discounts

When you involve your kids in the family budgeting process, you’re not just building financial skills but nurturing a lifelong sense of financial responsibility. 

Teaching budgeting for kids helps them be confident and capable of handling their own financials. 

Expert tip: budget for irregular expenses

Have you ever been caught off guard by unexpected expenses that mess up your budget? It happens to all of us.

But here’s the good news: there’s a smart way to handle these surprises and keep your finances on track. Review prior years’ financials and identify any recurring irregular expenses.

Look for: car repairs and maintenance, medical expenses, home maintenance, membership renewal, seasonal utility increases, vehicle registration renewal, back to school supplies and field trips, tax preparation fees.

You’re already a step ahead by recognizing these possibilities and quantifying them. Now, set aside some money each month to build a buffer against these unexpected costs.

Why should you specifically have a “family budget”?

A family budget puts you in the driver’s seat regarding your spending. 

No more puzzling over where your money vanished to or how to stop spending money—instead, you’re in charge, dictating where each dollar goes and also turning spending into a deliberate and informed choice.

But there’s more to it. Think of a budget for the family as a shared playbook. 

It’s a platform where every family member gathers, understands the financial game plan, and gets on the same page about financial objectives. Additionally, this unity can go a long way in fostering a clearer understanding of financial priorities and a collaborative approach to managing money.

In addition, perhaps the most impactful aspect is the conversation it sparks.

A budget for the family dismantles the barriers often surrounding money discussions. It creates an environment where money becomes an openly discussed topic—no more hushed conversations or avoidance. 

Instead, financial matters become approachable and open, facilitating candid and productive exchanges.

Categories to include in your family budget

A typical budget encompasses various categories that cater to the unique needs of a household, especially when children are part of the equation. Tailor your budget template to suit your family’s lifestyle, and adjust as your circumstances change.

However, some essential categories should be included in a comprehensive budget.

Housing

This category covers your mortgage or rent payments, property taxes, insurance, and home maintenance expenses.

Additionally, family-sized homes often require budgeting for utilities like water, electricity, and gas. Quicken explains that this is often the most expensive budgeting category.

Groceries

With growing appetites and nutritional needs, families typically allocate a relatively large portion of their budget to groceries. This category includes everything from food essentials to household supplies. However you can try out the cheapest grocery list to save on costs!

Childcare and education

Families with children need to budget for childcare, school tuition, books, uniforms, and extracurricular activities. These expenses vary depending on the age of your children and the educational options you choose.

Healthcare

Medical expenses are a critical consideration for every family budget. These include health insurance premiums, doctor visits, prescriptions, and potential emergency medical costs.

Transportation

Transportation costs can add up with multiple family members potentially commuting to work, school, and activities. This category includes car payments, fuel, maintenance, and public transportation fares.

Savings and investments

Prioritizing savings and investments for your family’s future is crucial. This category might include retirement contributions, college funds for your children, and emergency fund savings.

Debt repayment

Allocating a portion of your budget to debt repayment is essential to maintain financial stability. Especially if you have personal loans or if you want to reduce credit card debt.

Entertainment and recreation

Families also need to enjoy quality time together. This category can cover family outings, vacations, hobbies, and additionally, leisure activities.

Clothing and personal care

Children’s growth spurts and changing fashion trends mean this category needs to be included in your budget. Also include personal care items like toiletries and haircuts.

Charitable giving

Many families allocate a portion of their budget to charitable donations, teaching children the importance of giving back to the community.

Expenses unique to families with kids

Additional costs you may incur in support of your children should also be included in your family budget.

However, these costs will fluctuate as your kids get older.

So let’s break these down by age:

• Newborn to 3 years old
• 4 to 12 years old
• 13 to 18 years old

Newborn to 3 years old

In this phase of rapid development, careful financial planning becomes essential to ensure that you can provide your child with the best possible start in life. 

From the basics of diapering to the complexities of childcare arrangements, this is the time to lay a solid foundation for both your child’s well-being and your family’s financial health.

So be sure to include the following in your budget, especially when preparing for a baby:

• Diapers and baby wipes (and lots of them)
• Formula and baby food
• Strollers, cribs, car seats
• Toys
• Medical expenses from the frequency of doctor’s appointments 
• Daycare, nanny, night nurse

4 to 12 years old

During this dynamic phase of childhood, your kids are developing their personalities, interests, and a deeper understanding of the world around them. 

They start school, build friendships, and also find hobbies.

From education-related costs to extracurricular activities and their evolving social lives, each aspect demands careful financial consideration. 

If your kids are within the 4 to 12 years of age group, include these in your budget:

• Frequent new clothes as they grow quickly at this stage
• College fund
• Snacks
• Extracurriculars like sports, singing, musical instruments, dance, and art
• Travel
• Preschool
• Birthday party gifts for your kids’ friends and birthday parties for your kid
• School field trips
• Summer camp
• Allowance
• School supplies
• Medical expenses for cold and flu bugs brought home from school
• “Big kid” beds and other bedroom supplies

13 to 18 years old

As your children approach the final stretch of childhood, the years from 13 to 18 emerge as a period of remarkable self-discovery and preparation for the exciting journey into adulthood. 

By understanding and preparing for the financial commitments that come with this phase, you’ll be better equipped to foster your child’s development, exploration, and pursuit of their dreams. This is also a good time to teach investments for teens!

For these final few years of childhood, you will want to budget for the following:

• Phones, laptops, iPads
• College applications
• Tutors
• School supplies
• A car
• Car insurance
• Field trips and social events
• Lessons and equipment for hobbies

What is a reasonable family budget?

A reasonable family budget is highly personal and depends on your expenses.

For instance, if you have a larger family, your budget may need to allocate more resources to expenses like groceries, utilities, and possibly larger housing.

On the other hand, a smaller family might have different priorities, with more flexibility in certain areas. 

Similarly, where you live plays a significant role. Urban areas often come with higher housing costs and transportation expenses.

In contrast, rural areas may offer more affordability.

That said, no matter your circumstances, a good rule of thumb for a reasonable budget is to follow the 50-30-20 budget template guideline. Approximately 50% of your income is for necessities, 30% for wants, and 20% for goals.

How does a typical family budget look?

A typical family budget splits your money into different categories of income, goals, needs, and wants.

This includes what you spend on where you live, like rent and utilities, as well as money for food and going out to eat. You’ll also set aside cash for getting your family around, like car payments, gas, and insurance. 

The budget covers school stuff, too, as well as savings for the future (college fund, anyone?) and having fun together on family vacations. 

By checking and adjusting the budget, you can stay in control of your money and reach your individual and joint goals.

What is the average family monthly budget?

The average household monthly spending budget in the United States is approximately $5,111, Value Penguin claims.

For instance, it could be broken down as follows:

• Rent, mortgage, interest, property tax, maintenance: $1,884
• Utilities: $800
• Groceries: $627
• Car payments, gas, insurance, maintenance, and public transportation: $800
• Health insurance and care: $450
• Eating out: $200
• Clothing and shoes: $150
• Entertainment: $200

You will also spend on income taxes and social security, often taken out before you receive your paycheck, and thus not necessarily a needed category in your family budget.

Articles related to budgets

If you learned a lot from this article, check out these other great posts about families and budgets!

• How Does The 60 30 10 Rule Work For Budgeting?
• How To Budget: Budgeting Methods And Budget Categories
• Budgeting For Kids: How To Get Them Started
• Rules Of Loaning Money To Family (And Friends)

Build a bright financial future with a budget for your family!

Creating a family budget is an evolving process. 

It provides a structured framework that allows everyone to work together towards common goals while ensuring financial stability and avoiding family financial problems.

As you navigate the process, the steps outlined in this guide offer a roadmap to success, and you can also use one of the best budget templates. 

Involving your children in family budgeting fosters financial literacy and open communication about money matters from an early age. By taking charge of your finances through a budget, you’re building a bright future and getting your financial house in order.

The post How To Create A Family Budget That Works For Your Family appeared first on Clever Girl Finance.

When it comes to food, frozen sometimes gets a bad rap. But healthy frozen meals are not only achievable, they’re easy to make! In fact, they provide a convenient and affordable way for families to have a better diet quality. 

Don’t worry, you don’t have to compromise taste. There are so many choices for simple freezer meals, you’ll have many opportunities to find something you like. Let’s get to it. 

14 Healthy frozen meals to try

In this list, we’ll give you some easy recipes to try because making your own food is still the best way to meet your dietary needs and taste preferences, whether you intend to freeze them or not. But since we recognize that not everyone has the skill, or maybe you even think, “I hate cooking!” we have some ready-to-heat options as well.

1. Freezer bag chicken fajita stir-fry

Get the chicken fajita stir-fry recipe courtesy of the Food Network Kitchen. It’s easy to prepare. You may also add other ingredients, like chili flakes or mushrooms, according to your taste. 

It makes for an easy weeknight meal as well. To have enough for easy freezer meals, simply double the recipe. Freeze the leftovers, and voila, you’ve made dinner for two nights.

2. Stamp-of-approval spaghetti sauce

This spaghetti sauce recipe from Taste of Home is easy to make and has received lots of praise for its flavor. It’s truly one of those classic freezer meals. This recipe can be frozen for up to three months. But surely you’d have eaten it by then. 

As always, add ingredients as you like and tweak the recipe to your taste. You can also try swapping the ground beef with other proteins, such as ground turkey. Serve it with spaghetti, as a sauce for lasagna, or eat it with salad.

3. Freezer bag chicken primavera

With little prep time, this chicken primavera recipe from the Food Network kitchen gives you a flavorful chicken and vegetable meal. It’s another easy freeze recipe you can try out without spending a ton of time cooking.

Simply follow the directions for prep, freezing, and thawing. Although it calls to pair it with a baguette, you can also serve it with pasta or rice. 

4. Golden butternut squash and chickpea curry

If you’re looking for a sweet and savory flavor, try this butternut squash and chickpea curry from the Full Helping. It’s one of the best healthy frozen meals that is easy to make ahead.

The instructions say it can be frozen for up to six weeks. The recipe also offers many ideas to play with the ingredients. So you can substitute, swap, or add in different vegetables. Go try it, it’s one of the best frugal meals.

5. Easy homemade lasagna

Try this freezable and easy-to-make homemade lasagna for the ultimate comfort food anytime you want it. A combination of pasta, cheese, bubbly tomato sauce, what else can you ask for?

You’ll love this recipe from the Happy Money Saver. Visit her website for the step-by-step process with photos.

6. Freezer meatballs recipe

Meatballs are always a favorite with kids and adults alike. You can eat them on a sandwich, serve them with pasta sauce, or just by themselves.

For an alternative to store-bought, try this easy freezer meatballs recipe from The Forked Spoon. It’s another delicious recipe and you can make the meatballs and freeze them raw until you’re ready to eat them. Or cook them first and then freeze them. 

7. Darn good chili recipe

I’m always looking for a good chili recipe, so I’m excited for this one from Tasty. More so because I can just toss all the ingredients in the crock pot. Who doesn’t love crock pot cooking with only 15 minutes of prep time! 

Like all the recipes mentioned in this article, you can freeze this recipe either cooked or raw. Mix all raw ingredients in a freezer-safe bag. Freeze. Then, thaw and cook the meal in a crock pot. Make sure to label the bag with the appropriate cooking time. 

8. Life-changing Instant Pot beef stew

Do you like having a comforting and hearty stew on chilly fall and winter days? Then, you’ll love this beef stew recipe from Pinch of Yum.

Plus, you can make the stew in an Instant Pot or slow cooker. It doesn’t get any better than that. 

You could freeze this stew before or after it cooks. Follow the instructions for the freezer meal version. If you’re freezing leftovers, store them in a freezer-safe container or bag, and it should keep for up to six months. 

9. Creamy homemade chicken noodle soup

Soups are versatile meals you can have as a snack, lunch, or light dinner. You can also pair it with a sandwich or a salad for a hearty meal. With this homemade chicken noodle soup recipe courtesy of Tastes Better From Scratch, you can have tasty and filling healthy frozen meals in a pinch. 

Make sure to use full-fat ingredients if you’re making the recipe to freeze so your soup retains its consistency. You can leave the noodles out or cook them a little firmer.

When stored in an airtight container, the meal should keep for up to six months.

10. Amy’s Kitchen Pad Thai

Pad Thai is one of those meals that are easy to make but, at the same time, easy to mess up. Boil the noodles too long, and you’ll end up with a mushy pad thai. You have to be careful not to overcook the veggies as well. 

That’s why Amy’s Kitchen Pad Thai is a great alternative when you have a craving for the dish but don’t have the time to cook. Amy’s Kitchen offers over 250 vegetarian-friendly frozen meals, many of which are gluten-free and made from organic ingredients.

11. Tortilla crusted fish

If you love a good seafood dish but don’t have the kitchen skills to attempt making frozen meals using fish, try the Tortilla Crusted Fish by Lean Cuisine.

The package contains tortilla-crusted Alaskan Pollock with a mix of corn, poblano peppers, and rice in sour cream sauce. The product has received many great reviews, and it’s an easy, affordable way to add fish to your diet. 

12. Chicken tikka masala with basmati rice

Saffron Road is a company known for making tasty and healthy frozen meals free of GMOs, artificial ingredients, and hormones. Many of their frozen products are also vegan, vegetarian, and certified halal.

So the next time you’re out frugal grocery shopping, pick up a Chicken Tikka Masala With Basmati Rice and try it for yourself.

13. Korean-inspired beef

Healthy Choice is one of the most affordable brands producing healthy frozen meals. Even though prices can vary depending on where you live, most of their items cost between $3 to $5 per serving. 

The company also specializes in making frozen products that are free of artificial ingredients. One of their best-reviewed items is this spicy treat, the Korean-Inspired Beef bowl. 

14. Lightly breaded chicken breast chunks

Having kids in your house means having chicken nuggets in your freezer. Because no matter what healthy, elaborate meals you put in front of your kids, they’ll ask for chicken nuggets at least one night a week.

Anyway, serve them the Just Bare Lightly Breaded Chicken Nuggets with a side of carrots, celery, or steamed broccoli and call it a day. You can get this brand from Costco, and they’re known for making frozen products with no preservatives and no artificial ingredients. 

Expert tip: Start small when making frozen meals

In your first attempt to make frozen healthy meals, start small. Your first try could be doubling your family’s favorite pasta sauce or soup recipe for dinner and freezing half for another night. 

Learn what works best for your family lifestyle and taste preferences. Maybe you like having pasta meals once a week, so you’ll know to always have sauces in the freezer.

Once you get the hang of putting together easy freezer meals, you may work up to batch cooking several recipes in one afternoon.

Benefits of buying or making easy freezer meals

There are many benefits to making healthy frozen meals at home, including easier prep time for busy days and a longer shelf life by putting food in the freezer.

It’s also an easy and affordable way to include items from every food group in your cooking. Frozen meals are a great alternative to fast food for busy families and new moms.

Additionally, frozen food also helps reduce waste and helps you if you’re trying out a money saving challenge. If you’re throwing out uneaten fruits and vegetables regularly, consider buying frozen fruits and vegetables.

At times, they have more vitamins and minerals because freezing preserves nutrients, and they’re picked and frozen within hours to lock in all the nutrients and flavor. 

How to make healthy frozen meals at home

Below are some tips on making and preparing simple freezer meals for those busy days when you don’t have the time or the energy to cook. 

Include healthy frozen meals in your meal plan

It’s easier to make frozen healthy meals at home if they’re already part of your budget meal planning. This way, you can get your grocery shopping on a budget done in one go. Meal planning also allows you to schedule batch cooking or meal prepping. 

Following a meal plan also makes it easier for you to make your favorite healthy frozen meals. Simply double or triple the recipe, eat a portion for dinner that day and store the rest.

Lastly, check your freezer before you create a monthly meal planner to make sure you eat what you have. The Food and Drug Administration says food is safe to keep indefinitely at 0℉, but quality decreases the longer it’s in the freezer.

Pick the right recipe

Unfortunately, some recipes can’t withstand freezing and defrosting and retain their flavor.

For instance, pastries or creamy sauces don’t make easy freezer meals. 

So, try lasagna, hearty soups, stews, casseroles, chilis, sauces, and burgers instead. Cookies, muffins, and slices of bread can be easily frozen as well. The recipes don’t have to be complicated either, choose ones with little prep time. 

Store frozen healthy meals using the right supplies

When making freezer meals at home, it’s important that you have the right supplies to store them. Otherwise, it would be a waste if the food gets freezer burnt and doesn’t retain its flavor and nutrients. 

For this, you’ll need heavy-duty aluminum foil, thick freezer bags, and foil baking pans. You can also look for freezer-safe metal or glass baking pans and reusable freezer bags if you’re interested in how to live sustainably and want to create less waste. 

In addition, get masking tape and a marker or pen to label your jars and freezer bags. Don’t rely on your memory, it could and will fail you. Write the name of the dish, the date of preparation, and any reheating instructions if needed.

Schedule meal prepping

Meal prepping means organizing your food to make it easier for you to have food at home, readily available. It could involve chopping vegetables, batch cooking, or putting together simple freezer meals.

Scheduling meal prepping on a Saturday or Sunday afternoon can save you time on busy weeknights. Not to mention that it helps you save money on your grocery bill.

With a little bit of time, planning, and preparing your menu for the week, you minimize waste and eat healthier too. Make meal prepping part of your daily routine schedule!

Make sure you have all the ingredients

Whether you’re batch cooking or putting together raw ingredients for healthy frozen meals, make sure you have everything you need before you start. You also don’t want to freeze recipes with missing ingredients.

It won’t really help you in the future to be running to the grocery store in order to make your freezer meal. That’s why it’s best to create a meal plan before you go grocery shopping.

What to look for when buying ready-made frozen healthy meals

Not all frozen foods are created equal, but there are a lot of healthy options available now. So, here are some guidelines you can use when shopping in the frozen food aisle.

Choose nutritious packaged meals

When buying frozen meals, check the nutrition facts labels. Preferably, look for healthy frozen meals that have adequate nutritional value.

Choose meals with lower saturated fat and higher fiber, vitamin, and mineral content. Avoid those that have added sugars, sauces, and salt. 

Remember to consider the serving size as well. If the entire package is equal to two servings, it means you’re actually eating double the salt, sugar, and saturated fats listed.

Go with less sodium

Sodium generally adds flavor and improves the texture of our foods. It’s also used as a preservative. That’s why it’s present in packaged and prepared foods like canned soups and frozen meals. 

But most people can benefit from less sodium in their diets. The American Heart Association states reducing sodium intake by just 1,000 mg per day can significantly improve blood pressure and heart health. Hence, it’s best to choose products with the lowest amount of sodium you can find.

Check the ingredients list

Most of us have jam-packed schedules that don’t leave much time for cooking. But we also want the cheapest meals that are also healthy. The good news is there are many food companies stepping up to the plate. 

Many are coming up with frozen healthy meals with fresh ingredients and less sodium. So, make sure to compare the Nutrition Facts label and check the ingredients list of the products you buy.

What are the healthiest frozen dinners to eat?

The healthiest frozen dinners to eat are the ones you make at home. When you make your own food, you have complete control over what goes into it.

You can use fresh ingredients and put less sugar or salt than what the recipe calls for. You can also add more veggies or even substitute rice and pasta with whole wheat options.

However, as mentioned there are frozen meal products prepared with organic ingredients and less sodium. You can also find meals specifically for people with diabetes or additional dietary needs, like vegan or gluten-free. 

So, you can still find healthy alternatives to cooking at home. Just make sure you read the ingredients list and understand the nutrition label.

Is there such a thing as healthy frozen food?

Yes, fortunately, there is such a thing as healthy frozen food, as many food companies are responding to consumer preferences. You can find frozen products at the grocery store made with organic ingredients and less saturated fats and sodium. 

Not to mention, you can ensure you’re living a healthy lifestyle with what you eat by making your own at home with the ingredients that you choose.

What foods are easiest to freeze?

The foods that are easiest to freeze include meats, seafood, fruits, and vegetables, which can all be kept in the freezer for long periods. You can also freeze cooked rice, corn, quinoa, and beans.

Additionally, you can preserve fresh herbs by putting them in ice cube trays with some water. Once frozen, store the herbs in a freezer-safe bag, and they’ll be good to use for a year. 

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If you liked reading about healthy frozen meal ideas, check out these articles next!

• 25 Of The Best Cheapest Meals
• What To Buy At The Grocery Store To Maximize Your Budget
• Living A Healthy Lifestyle On A Budget
• 35 Delicious Frugal Meals For Every Food Category

Simplify your dinners with healthy frozen meals!

Deciding what to make for dinner every day can be tiresome, let alone making meals after a full day of work and wrangling kids.

But a little bit of meal planning and prepping means you can still eat affordably and healthily even when you don’t have the time and energy to cook. Start living consciously and saving more, and improve your dinner options with easy freezer meals! 

The post 14 Easy And Healthy Frozen Meals appeared first on Clever Girl Finance.

Managing your budget is essential, and there are plenty of ways to do it. The cash envelope system is one of the most useful tools you can use to get on top of your finances. However, if you want the best chance of success, you have to choose the right cash envelope categories, and luckily, you’ve come to the right place. 

In the following guide, we will take a look at some example cash envelope system categories to give you some inspiration. Here’s what you need to know to get started!

Benefits of leveraging cash envelope categories

While you can use either a cash envelope wallet or a digital envelope system, the fundamentals of this approach are the same.

And if you’re ready to get started with this budgeting system, you will need clear cash stuffing categories. So let’s take a look at the key reasons planning your categories works: 

Avoid impulse spending

Are you guilty of impulse spending? This habit can drain your finances quickly and leave you wondering where your paycheck went.

However, having solid cash envelope categories helps you decide where to spend your money in advance, giving you total control here. 

Improves your ability to save money

For many of us, saving money can be challenging. If you have struggled with this in the past, using cash envelope categories may be the answer. You have total control over the cash stuffing categories, and so you can create envelopes that suit your lifestyle and help you spend less.

When you feel as though saving is all work and no play, you can account for spending money on fun things in advance with this system and start to live richer.

For example, you may choose to have a “fun” category or an “entertainment” category. 

Better understand your finances

A massive 77% of Americans are anxious about their finances, and failing to understand them plays a major role in that. Deciding on which cash envelope system categories to use will make you think more deeply about the money that you spend. 

Going through this process means that you will have a cold, hard look at your income and also your outgoings. When you do that, you will begin to have a better grasp on your finances. 

Learn where the bulk of your money goes

Do you know where your money goes? When we categorize our spending, it’s easier to visualize our spending habits. There’s an element of trial and error here. 

Once you start using cash envelope categories, you will have to guesstimate how much you spend on each thing.

However, the longer you use this system, the better you will understand your finances and how much you spend in each area.   

20 cash envelope system categories to consider

The cash envelope categories you choose will depend on your lifestyle and how you prefer to spend your money. If you are not sure where to start, we’ve got some inspiration for you. So let’s take a look at 20 of the most common example categories you could use: 

1. Rent or mortgage

Before you start thinking about your other cash envelope categories, here’s one non-negotiable. Chances are, your mortgage or rent payment is the same each month. So, you can set aside the same amount for this ongoing outgoing. 

2. Utilities

On the other hand, your utility payments will fluctuate throughout the year. You may pay more for gas during the winter as your usage goes up. Dealing with the ups and downs in how much you pay can be difficult — that’s where this system comes in. 

Putting an average amount into this cash envelope every month means that you will have some cash left over (though it’s also important to work on how to lower electric bill costs). So, when the cooler months come around, you are well-prepared. 

3. Food and groceries

Many of us have zero idea how much we spend on food and groceries each month. It’s not simply about the main shopping trip you do. You also need to account for the extra items you buy throughout the month.

Having a cash envelope category for this spending is essential in addition to practicing budget meal planning. 

4. Cleaning products

While spending your money on cleaning products may not be fun, it is important.

You need to top up your stock of items every now and then. Setting aside money for this pesky cost will help you with your overall budget management. 

5. Household items

Household items may include toilet rolls, paper towels, plants, ornaments, or even new blankets.

While I won’t always need to buy new things for my home, I know that having a budget for these costs means that my spending never comes as a nasty surprise. 

6. Transport

Are you a jet setter? If you’re always on the go, you’re going to need to put aside some money for travel or a vacation budget.

This cash envelope may cover your fuel costs, train tickets, bus tickets, and also airfare. Whether you commute or just like to get around, make a budget for it. 

7. Eating out (or in!)

The average American family spends $2,375 per year on eating out. If you’re a foodie and love sampling dishes, you need to include this as one of your cash envelope categories.

You can either do separate envelopes for eating out and takeout or combine the two. 

8. Kids fund

If you have a family, there’s no doubt that a large portion of your budget will go to your children. Having a separate cash envelope for your little ones is the way to go.

This money may cover their childcare, days out, clothing, food, and any extras, such as clubs. 

9. Garden

Should you have green fingers, this next cash envelope category is for you. Gardening tools and furniture are not cheap.

Personally, I like to consider how much I spend on this pastime on average. Then I may need to adjust how much I set aside as I go with this one. 

10. Personal care

You can’t put a price on self-care… Okay, maybe you can. When you’re choosing which cash envelope categories to use, don’t overlook this one.

This part of your budget covers haircuts, massages, beauty treatments, an occasional self care week, and also hygiene products.

11. Clothing and shoes

Learning how to stop buying clothes that you don’t wear takes time, but it’s a habit that will drain your finances. To help you stay on track, create a clothing and shoes cash envelope category.

Put the same amount in this envelope every month, and you will find that the budget soon starts to pile up. 

12. “Fun” spending money

We all deserve to have some fun now and then. You work hard, and so you should spend some of your money on enjoying yourself.

That may mean having a day out with the family, doing an activity, or buying a new game. The choice is yours. 

13. Vacations

Want to leave your troubles far behind you? Heading to a remote beach or taking a city break may be the answer.

In a survey from Forbes, almost half of people said they plan to spend $4,000 a year on vacation. Start planning your next trip by saving money in a cash envelope. 

14. Makeup and beauty

When you look your best, you feel even better. We all have unique makeup and beauty routines that work for us. When you are planning your cash envelope categories, it’s smart to include this one in your list. 

15. Pet fund

Do you have a furry friend that you love? Pets are a wonderful addition to any family, but they can also be expensive.

Figure out how much you spend on vet bills, pet food, and pet-related products. You will need to find an average here to create your envelope. 

16. Entertainment

Whether it’s a night out at the movies or attending a Taylor Swift concert, we all need to be entertained.

However, splurging thousands on tickets without having a budget is a mistake. When you set aside money for this particular cost, everything becomes easier. 

17. Events

Next up, let’s talk about events and how much they cost you. That may be your cousin’s bachelorette party, a wedding, or even someone’s 60th birthday party.

All of the above can put a serious dent in your wallet unless you have budgeted for them well in advance. 

18. Date nights

When was the last time you and your partner spent some quality time together? Setting aside both the time and money for this is important.

Think about the type of dates you enjoy and how much they typically cost when planning your budget, and consider at home date night ideas. 

19. Gifts

Giving something special to a loved one is priceless.

While there are plenty of inexpensive thank you gift ideas as well as birthday and holiday gifts, you still need to budget for them. Including this as one of your cash envelope categories means you will have the money to treat your nearest and dearest. 

20. Emergency

Emergencies can arise when you don’t expect it. You might find that your car breaks down or your roof needs fixing. These problems cost a lot to solve, so you need to plan ahead for it. 

More than 50% of Americans cannot afford to spend $1000 on an emergency situation. Set aside a decent amount of money in case of unexpected costs in an emergency fund. 

Expert tip: Switch up your envelopes as needed

As many people start to use the cash envelope system, we will each learn where the majority of our money goes. We can change the amount we use in each envelope depending on what we learn along the way. This way, we can switch up our envelopes as needed.

How should I label my cash envelopes?

You can label your cash envelope categories in a couple of different ways. If you’re using a digital system, you can use a banking or budgeting app to manage your money and divide it into categories digitally.

When you’re using physical envelopes, you can use a marker pen to label each category and put cash in envelopes. 

How do you organize cash envelopes?

You can organize your cash envelopes with a filing system or cash envelope wallet.

Once you have filled each of your cash envelopes, you need to store them. You can keep them in a filing drawer and take out the ones that you want to use. Storing them away could also help you stop spending money in categories you’re not using. 

There are also cash envelope wallets you can buy to keep things organized.

And if you’re using an app or digital device, be sure to check in on it each day and keep it updated when you spend. That way, you’ll know how much money is left in each category.

What is an example of a cash envelope?

Some of the most common cash envelope categories examples are food and groceries, rent and mortgage, utilities, entertainment, fun, gardening, personal care, and emergency funds. 

You may also choose very specific cash stuffing categories based on what you want to buy.

For instance, “shopping for handbags” or “money for books.”

Articles related to cash envelope categories

If you enjoyed reading this article about the cash envelope system and cash envelope categories, try reading these next!

• How To Use The Cash Envelope System To Master Your Budget
• Save $5k With The 200 Envelope Challenge!
• How To Budget: Budgeting Methods And Budget Categories
• How To Use A Digital Envelope System

Choose your cash envelope categories now!

If you are going to use the cash envelope system, deciding which categories suit your lifestyle and needs is the first step. You can take a look at the category examples we have highlighted in this guide and use them or simply come up with your own. 

Each of us has a different income and varying commitments. So, what works for you may not work for someone else, and you can do things differently based on your budget. Take the time to consider your money habits when choosing your cash envelope system categories. 

The post 20 Cash Envelope Categories For Your Cash Budget appeared first on Clever Girl Finance.

Budgeting is one of the most important financial habits to develop. There are so many budgeting methods out there to choose from, but it’s not just creating a budget that will set you up for financial success. Instead, it’s important to learn how to budget well by using a monthly expenses list so you don’t forget about any costs.

In order to budget well, it’s essential that we include all of our monthly bills and costs in our budgets. Unfortunately, this is a little harder than it sounds. And this is because there are so many monthly expenses list items that we tend to forget to include in our budgets.

Hardly anyone would forget to include their rent or mortgage payment in their budget, but there are so many spending and money habits that tend to slip our minds. Not to mention variable expenses! When you forget to include them, it can wreak havoc on your budget.

Whether you already have a budget that is in need of updating or you are creating your first one, here we’ll go over some of these often-overlooked purchases that you should include in your budget so that you, too, can budget well.

Monthly expenses list: 29 Commonly overlooked items

Do you have the items from this commonly overlooked monthly expenses list in your budget? Review the list below to determine what’s applicable to you and incorporate them into your budget starting today!

1. Emergency fund

Just because a third party isn’t billing you monthly for it doesn’t mean you can afford to forget about your emergency fund. Build a contribution to your emergency fund into your budget. That way, you’ll be able to afford any unexpected (and not budgeted for) costs that may arise.

The commonly accepted amount to save is 3-6 months of your living expenses. But you may choose to include more money in your emergency fund, depending on how stable your financial situation is.

2. Retirement fund

Like your emergency fund, nobody is going to force you to contribute to your retirement, but you still should if you can. By adding this amount to your monthly budget, you’ll hold yourself accountable. Plus, you’ll set yourself up to be in the best financial position when it comes time to retire.

There are 401ks and 401k alternatives, IRAs, and other options for investing. There are plenty of tips for retirement planning if you aren’t sure where to start.

Choose the one that works best for you, or combine more than one retirement savings method.

3. Extra debt payments

If you have credit card debt, you want to pay the minimum payment every month, at the very least. If you want to reduce credit card debt, you will want to make more than your monthly minimum payments.

Don’t forget to include these extra debt payments in your list of monthly bills. And if I have debt to pay off, it helps me to come up with a plan to pay off my debt, including a timeline for when I will pay off everything I owe.

4. Quarterly or annual bills

The majority of bills come monthly, but not all. Comb through your past payments and take stock of all bills that you pay less frequently.

For instance, a quarterly water bill or annual professional association membership dues. Then, calculate how much that amount costs on a prorated, monthly basis, and include that figure in your monthly budget.

5. Home or renter’s insurance

Most homeowners choose to insure their belongings with homeowners insurance, and many apartment buildings require renters to carry renter’s insurance.

If you think you might forget or you want to simplify, you can combine your homeowner’s insurance with your mortgage payment.

Renter’s insurance costs are typically quite low, less than $20 per month in most cases. You can think of it as part of your monthly rent payment.

6. Medical visit co-pays and HSA

Your health insurance should cover the cost of most medical appointments, but it is important to budget for co-pays. At around $25 (or more) per visit, these co-pays can add up, even if you only go to the doctor for routine appointments.

If you visit the doctor often, be sure to estimate how many times a month you go. Be sure to account for these costs in your budget.

You may also choose to save money in an HSA (health savings account). There are specific amounts you can contribute, and whether this is an option for you also depends on your health plan. But if you do contribute to an HSA, don’t forget to budget for it.

7. Dental and/or vision costs

Even if you have health insurance, vision and dental expenses are often not covered under that health insurance. Sometimes separate vision and dental insurance will cover part, but not all, of your expenses.

Make sure to include charges such as teeth cleaning, new glasses, and contact lenses as monthly expenses list items in your budget.

First, determine is dental insurance worth it for you, as well as vision insurance, and if not, plan for the costs in advance.

8. Prescription medication

Another one of the medical-related monthly bills that many often forget is prescription medication.

Prescription drugs cost the average American over $1,000 a year! While your health insurance will likely pay for much of that, remember to account for your out-of-pocket costs in your monthly budget.

9. Parking and toll fees

Most people don’t forget their car payments in their monthly costs, but that’s not all it costs for car expenses. Especially if you commute to work, you will likely pay tolls and or parking fees.

Add up the total you spend on all extra fees for your car each month to get an accurate estimate.

10. Subscription renewals

Whether it’s your daily newspaper, a beauty box, Spotify, Hulu, Amazon Prime, Netflix, or gym memberships, there are seemingly endless subscription and membership options.

$12.99 might not seem like a ton of money, but, in my opinion, it can throw off your budget if you forget to include it. Know how much your subscriptions cost and when the money is due, and be sure to get rid of any subscriptions or memberships you don’t use.

11. Beauty expenses

Reports vary widely on how much women spend on makeup and beauty products, but needless to say, it can be a lot. 

One survey found that the average woman spends $300,000 on face products over the course of her lifetime! Even if you are on the low end of the average, you likely replenish a beauty product or two or personal care products every month.

If so, be sure to include those monthly expenses list items in your budget.

12. Cleaning supplies

Grocery store items that don’t need to be replenished every week or month are often overlooked when it comes to a monthly expenses list. Cleaning supplies, laundry detergent, and the like can really add up.

Be prepared for an extra expensive grocery shopping trip once a month or every couple of months to account for these costs, and try frugal grocery shopping during the other weeks.

13. Backup childcare

If you have children you probably pay for childcare of some sort. Or you may count on school to watch your kids for a large portion of most days.

But things interfere with your regular scheduled childcare all of the time. When they do, and you need to find and pay for backup childcare, you’ll be happy when you have anticipated this cost and budgeted for it.

In addition to saving money for backup childcare, you should also save for extra expenses that come up throughout the year, other than regular daycare costs.

For instance, extra costs for school events or tuition payments that cost more than expected.

14. Dry cleaning

Depending on your job and your wardrobe, dry cleaning might be something you do every week, every month, or only occasionally. No matter what, you’ll likely have at least a couple of items that will require a trip to the dry cleaners, and these should be included in your budget, too.

Try to reduce your dry cleaning costs, but plan for them when needed.

15. Formal occasion clothes

You might not need a new formal dress or suit very often, but an occasion will probably arise every so often that requires one. While you can be fashionable on a budget, formal events sometimes call for a splurge or a new pair of shoes, and it’s always best to budget for this in advance.

In addition, you may want to save up a bit of money each month for regular clothing purchases as needed. You won’t need to spend money on this every month, but maybe a few times a year, so it’s good to be prepared.

16. Hobby supplies

Are you an avid gardener, knitter, baker, or something else? Hobbies can keep us sane (especially stress relieving hobbies!) and are definitely worth the cost.

Just remember to account for how much it costs to keep up with your hobby in your budget.

Add up the individual costs that you spend on your hobby each month (supplies, classes, etc.), and then add all of those together to know how much to set aside monthly.

17. Donations

Giving is popular around the holidays, but many people make charitable giving a part of their budget all year long.

Whether you like to support your alma mater, friends participating in half-marathons and the charities they are running for, or any other worthy cause, be sure to remember this when you prepare your budget, too.

18. Gifts

Christmas and birthday gift expenses are big-spending holidays for many people. If they are for you, you should take into account everyone you plan to buy a present, even if you’re planning to do Christmas on a budget.

Don’t forget about other holidays where you might give gifts, too.

For example, that Easter basket doesn’t magically arrive on your kid’s doorstep for free, right (or does it)?

19. Holiday extras

In addition to gifts, there are plenty of other ways to spend money over the holidays. From hosting a cocktail party for friends to decorating my home, I like to be sure to include whatever “extras” I like to spend during the holidays as part of my monthly cost calculation.

Don’t forget about baking and cooking supplies, a Christmas party at work, wrapping paper, etc.

20. Fun money

Lastly, what would a budget or life be without some room for unexpected fun?

By putting aside a fun money amount dedicated to spontaneous events, like a day trip to the beach, drinks with friends, or a date night with your husband, you’ll be able to enjoy these activities without stressing over whether or not they’ll break your budget.

Things like entertainment, shopping purchases, or anything else that comes up during the month are important to include in your budget.

21. Specific utilities

There are several specific utilities you should add to your monthly expenses list. Some of them may be bundled together in one bill, or they may arrive separately. Either way, don’t forget about them!

• Water
• Cable (or cable alternatives)
• Electricity
• Heating and air conditioning
• Cell phone bill
• Internet

22. Gas

Does the amount of money you spend on gas for your car change from month to month? If your commute changes, you start carpooling, or you travel, then you need to account for the changes in your budget. Transportation costs are easy to overlook, but they are unavoidable.

Costs also apply if you take public transportation. You may still have different costs for the bus, subway, or Uber from month to month.

23. Life insurance

If you’re familiar with the importance of life insurance, then you will likely have a monthly cost for this. Depending on the type of insurance you have, your monthly rates will vary quite a bit.

Find out what you are spending each month for your life insurance premium, and don’t forget to include it in your expenses.

24. Pet care and supplies

If you have pets, your list of monthly bills is not complete without adding in this cost. Account for the cost of pet food, vet bills, supplies, etc.

You may want to set up a separate fund just for your pets. That way, you can afford to buy your dog a new toy or leash every now and then.

And keep in mind that pet care costs may vary by month. Especially if you buy pet food in bulk and only visit the vet once or twice a year. Plan in advance for the months that cost more.

If you are a first time dog owner or a first time cat owner, research costs in advance so you can add them to your budget.

25. Traveling funds

If you are someone who travels frequently for work or you just have a vacation coming up, you’ll need to include traveling funds in your vacation budget plans. Traveling costs can end up being quite expensive, so you can split the savings over a few months, that way, it doesn’t seem like as much.

Keep in mind that traveling can often cost more than you think, with airfare, hotel costs, dining out during your trip, etc., so it’s best to overbudget rather than budget less money.

26. HOA fees and property taxes

Since these types of costs are not always monthly costs but sometimes every quarter for HOA fees or even once a year for property taxes, it’s easy to forget them.

Instead, you can set aside a bit of money for them each month so you’ll be ready when the fees are due.

HOA (homeowners association) fees don’t apply to everyone, but if you have them, make sure you’re aware of the amount.

Property taxes apply to all homeowners.

27. Home repairs and costs

Home repairs can be anything from pest control to saving up for unexpected costs like plumbing repairs. Save money each month for your home for both large and small costs.

Consider things like painting, remodels, a new roof, or your a/c or heater breaking that you may need savings for.

28. Sinking funds

For me, a list of monthly expenses would not be complete without sinking funds. If I have a big expense coming up in the next year or the next few years, it’s important to me to start saving now.

You can add a specific amount of money to your sinking fund each month so you are prepared when the charges come up, such as an expensive vacation, buying a home or rental property, etc.

Alternatively, create sinking funds categories and save for several different things.

29. Auto insurance

If you have a car, then you need to have auto insurance. The typical cost for car insurance is about $168 for full coverage each month, though costs can vary.

There are a lot of options for how often you pay car insurance, from monthly to a couple of times a year or even once a year. You can decide what works best for your budget.

Expert tip: Check your bank statements for accuracy often

There are many costs that it can be easy to overlook in your monthly budget. As you look through this list, think about which ones apply to you. Not all of them will and there may be others that aren’t on the list.

To avoid being caught unprepared for extra monthly costs, I recommend looking back over your bank and also credit card statements to see if there is any spending you didn’t account for.

Budgeting tips to stay on top of your monthly expenses

All of these costs are essential to remember in your budget and monthly expenses list.

But don’t forget the most important thing – you need to make a budget to begin with! Here are some tips to help you create a great budget and plan for the unexpected.

Choose the right budget for you

There are several ways that you can make a budget, from the 80/20 budget to using the best budget templates. Find a method that is easy for you to use, even if this takes some trial and error.

You’ll need to divide your expenses by budget category, and then you can figure out your average monthly cost of expenses. A worksheet, budget calendar, or budget calculator can be immensely helpful in this situation. 

Don’t forget to include the financial goals you’re working toward, all your expenses, and make a plan for what you’ll do with any extra money.

Account for changes to your budget

Remember, your budget is not going to look the same every month. After all, you have different obligations, responsibilities, and different plans and events to attend each month.

Use the ideas above to determine what you might normally forget to add to your budget, and spend some time thinking about what your month looks like before you create a budget you want to stick to. 

What are examples of monthly expenses?

There are plenty of examples of monthly expenses, such as rent or a mortgage, utilities, and groceries.

However, there are many less obvious costs that are easy to forget about and will then create budget challenges. These include prescriptions and health costs, birthday gifts, and expenses that are quarterly or annual.

Rather than forgetting about these expenses, you can build them into your budget each month with sinking funds and a detailed plan for your spending.

How do I plan for variable vs fixed expenses in my budget?

You can plan for variable vs fixed expenses in your budget by utilizing an organized spreadsheet or budgeting app and also saving up for variable expenses.

Fixed costs are the same every month, and variable ones may cost different amounts each time.

For instance, your rent payment is probably always the same, but your water bill or light bill may vary each month.

To account for variable costs, you can set aside the average amount that each category costs and assume you’ll spend that amount.

However, it is safer to plan for the charges to cost more than expected, so you’ll have enough money.

Wondering what to do with savings when you overprepare? You can save any excess in a savings account for your variable expenses. When things cost more than you thought they would, you can use the money in that account to cover the difference.

What are average expenses for a household?

The average monthly expenses for a household total about $5,111 a month. There’s a lot to pay for each month for the average household, from housing to food costs, etc.

Although your individual costs may vary for your own household, it’s a good idea to know the average cost that you spend on necessities and extras each month. That way, you can make plans for how much to save and what you can afford in the future.

What is the average person’s monthly expenses?

According to the consumer expenditures report from the U.S Bureau of Labor Statistics, average monthly expenses are about $3,405 each month for a single person. That said, your own spending may or may not match this.

One way to be sure is to total up how much you spent in the last year or so and then see what you typically spend each month and what you spend in more expensive months, such as in December for holidays.

You can try to lower your expenses by spending less on non-essentials and also being prepared for commonly forgotten expenses in advance so you don’t turn to credit cards to pay them.

How can you create a more accurate budget using your list of monthly expenses?

To create a more accurate budget using your list of monthly expenses, think about what’s not working well for you.

It’s easy to forget about certain expenses when calculating your monthly budget. Why? One reason expenses can slip your mind is if you don’t write down your budget, item by item.

If you think you are following a budget, but it’s not written down, you very likely are not sticking to whatever it is you think you are following.

People also often forget to include the full cost of certain expenses because they rely on mental calculations about how much something costs. When you do this, you can end up underestimating the true amount you spend.

Lastly, many people don’t account for sporadic spending or things that aren’t billed monthly. Quarterly or annual fees can surprise you and add up if you forget to prorate them and include them in your monthly budget.

If you are struggling with creating a budget, there are numerous tools available to put you on the right track.

As a first step to creating an accurate budget, review the commonly overlooked expenses we cover in this article. If you remember to include these in your budget going forward, you’ll be that much closer to having an accurate and useful budget.

Articles related to a monthly expenses list

If you enjoyed reading this, you’ll love these other articles about expenses and budgets!

• 10 Of The Best Budget Templates And Tools
• Example Of A Budget To Help You Craft Your Own
• How To Plan Your Finances If You’re Getting Paid Monthly
• The Best Way To Keep Track Of Bills And Payments

Overlook these monthly bills no more!

Budgeting is an art. It takes time to fine-tune your budget so that you’ve properly accounted for all of your expenses at the end of the month.

Hopefully, with these reminders, you’ll remember to include all of your monthly expenses list items in your budget. Even these often overlooked ones. Doing this will help you to achieve more financial success and help you know how to stop spending money on things you don’t need and make room for buying important things.

The post Don’t Forget These 29 Monthly Expenses In Your Budget appeared first on Clever Girl Finance.

In times when the price of food seems out of control, it can be tough to buy all of the groceries you need. If you’re finding the price of groceries hard to handle, you need to go shopping with a strategy. Think ahead about what to buy at the grocery store to maximize your budget. Let’s get into some great ideas!

Prepare and make a list of what to buy at the grocery store

Instead of getting to the checkout line and discovering you don’t have the money to cover what’s in your cart, use these planning tips for the supermarket. A bit of time and preparation can ensure you make the most of your funds. 

One way to prepare is to make a grocery list. The most list-averse person may still want to start the habit of making grocery lists. With inflation making overall food costs higher with each passing year, everyone could stand to save on their meals. 

In addition, there are other ways to prepare for grocery shopping, including using tools like apps and making a meal plan. Here’s how to get ready for a grocery shopping trip.

Create meal plans to help make your grocery list

You can use budget meal planning to build your grocery list and spend more intentionally. There are even free online meal planners to follow, or you can just brainstorm your household’s top meals each week. 

When I’m meal planning, I like to be efficient. So I check my pantry, fridge, and freezer first to see what I have to use up. Then I look at grocery store sale flyers to help me pick items that are on sale. 

Focus on staples good for multiple dishes

As you make your meal plan and grocery list, think about the staple items—ingredients you can use more than once.

For example, Shape magazine suggests staples like peanut butter, frozen produce, and canned beans to keep in the house all the time. 

Pasta, rice, oats, flour, and similar items can form the base of many dishes. What you deem a staple depends on your family’s diet, too, so think of the most common meals you eat. Then, make a grocery list that utilizes similar ingredients. 

Focusing on food staples can also save you time!

For example, if you’re using ground beef for your famous tacos one night, you might cook extra meat at the same time to use in a casserole the next night.

Use tools to simplify grocery shopping

Don’t be afraid to try a new app or tool that can simplify your grocery shopping on a budget. When you need to know what to buy at the grocery store, technology can help!

Check out supermarket websites

Your supermarket’s website is a free tool that can help you make the cheapest grocery list. Many grocery stores like Kroger, Meijer, and Walmart enable online shopping, which is useful in a ton of ways. 

Shopping online helps you to stick to your list since you’re not wasting time strolling around the store and seeing surprise items. It allows you to pick up groceries conveniently (or have them delivered). Plus, you can save your “favorites” online for quick and easy shopping. 

Use grocery shopping apps

When you need to know what to buy at the grocery store, grocery shopping apps can save a lot of hassle. Using an app like Ibotta or even Mealime could help you save money and time at the supermarket. 

Some apps help you locate the best coupons, or you might price-compare different stores. Some apps provide you with discounts to specific retailers.

Think about what you need the most and search for the best free grocery apps (and also the best coupon websites). 

Time your grocery shopping carefully

Remember how key timing can be in saving money.

In addition to knowing what to buy at the grocery store, you need to know when to go. 

This can be as simple as visiting the store on their sale days. You can also probably save money by not shopping when you’re hungry, which could lead to more costly impulse spending. 

How to find the best foods to buy at the grocery store

When it comes to grocery shopping for the best food on a budget—maybe even a bare bones budget—a few basic habits can save you tons of money and time. Here are some general guidelines to save money and still eat well. 

1. Start with generic or store brands

If I had a mantra for grocery shopping, it would be to try store brands or generics first. With so many generic options available on supermarket shelves, why not try these versions that can cost significantly less? 

According to CNET, store brands could save you about 40% on average versus name brands. Some won’t save you quite that much, but the bottom line is that you’re almost guaranteed to save money on store brands. 

Yes, some store brands don’t taste exactly the same as their name-brand counterparts, but chances are you can get fairly close. Give them a try, and you might be pleasantly surprised!

2. Shop at multiple stores to get the best deals on all food

If you have the time, try multiple stores so you can take advantage of each store’s best prices. This is when it’s handy to look at those paper mailers announcing weekly sales. You can buy your meats at one place while you stock up on nonperishable snacks at a different store. 

If store-hopping isn’t possible, you can just stick to the store where you normally find the best grocery prices. Discount retailers like Aldi can save you money on pretty much everything, meaning you don’t need to coupon-clip or drive to different supermarkets. 

3. Avoid prepared foods

Here’s another cardinal rule: you’ll almost always save money buying raw ingredients instead of ready-to-eat foods, and it’s sometimes a healthier option. Sometimes it’s unavoidable to get something from your grocer’s prepared foods section, but whenever possible, steer clear. 

You can probably chop your own vegetables and assemble your own one-pot meals rather than buying stuff already in various states of readiness. Even if you’re thinking, “I hate cooking!” that doesn’t mean you can’t save some cash by doing simple food prep yourself. 

Stock up monthly or bi-weekly on these groceries to maximize your budget

Think about how often you need to replenish certain grocery items. Here are a few that you can likely buy on a monthly or bi-weekly basis. Use this monthly meal planner for additional guidance.

Frozen foods

Frozen foods are good to stock up on, perhaps every two weeks or even once a month. Of course, you’ll need freezer space to store frozen vegetables, meat, and other items, but if you can, buy those less frequently to save money per unit.

Plus, you can make some of the cheapest meals with lots of these ingredients. 

Boxed pantry staples

Those items you buy in a bag or box that go in the pantry? If you’re able to, buy enough for at least two weeks at a time so you have them ready. Cereals, baking staples like flour, and uncooked beans or pasta will last a long time. 

Plus, you can save money by cooking easy meals at home instead of ordering takeout. 

Canned foods

Much like boxed foods, you can buy canned foods on a monthly or bi-weekly basis. Of course, this is tough to do if you’re living paycheck to paycheck, but in the long run, it can save you money. 

Buy these foods weekly for your meal plan

In your plans for what to buy at the grocery store, these are the foods you’ll most likely need to pick up at least once a week. 

Fresh fruits and vegetables

Of course, fresh produce is something that you’ll want to buy more frequently.

Whether you go to your farmer’s market or the supermarket, be ready to buy what your family eats each week. 

Some fruits and vegetables are cheaper than others and still healthy, such as bananas, apples, and potatoes.

Dairy or dairy substitutes

For those who love cheese, yogurt, and other dairy products (that’s me!), you’ll need to pick these up fairly often. Include your favorite dairy items in your weekly shopping list to ensure things don’t go bad.  

Eggs and meat

Similar to dairy products, eggs and meat might land on your list of items to replenish weekly. This is especially true if you prefer to cook everything fresh. Eggs and meat, as well as other refrigerated items, can be a weekly purchase. 

But remember that meats can also be a great ingredient to pick up on sale and freeze extra portions for later use, especially if you’re trying to make frugal meals for families! 

Keep certain ingredients on your “as-needed” list

Besides your monthly and weekly grocery needs, there are bound to be a few surprise grocery items that pop up in between trips. Meal planning and making a list don’t have to mean you get rid of those last-minute trips altogether. 

Other items like olive oil or salad dressing might only run out occasionally, so try to set aside a little money when you budget by paycheck for miscellaneous groceries.

Snack foods and soft drinks might also fall into the category of things you buy only when and if you can spare the money. 

Basic list of what to buy at the grocery store

As a starting point to help ensure you won’t miss any essential ingredients, you can use this general list. Tweak it to suit your family’s favorites, and add whatever you need to this basic grocery list.

• Dried beans/lentils
• Pasta and rice
• Bread, tortillas, baked goods
• Milk
• Eggs
• Cheese
• Yogurt
• Meat and seafood
• Cereal or oatmeal
• Soup
• Canned beans 
• Canned vegetables
• Frozen fruits and vegetables
• Fresh fruits and vegetables
• Tea or coffee
• Oils like olive or canola
• Condiments like ketchup, mustard, barbecue sauce
• Peanut butter
• Nuts and seeds
• Treats

Of course, your list will depend on your dietary needs and preferences, but this should give you a solid base of groceries.

Expert tip: Always plan your meals ahead

Even if supermarket prices have been a source of financial strain, you can use planning and shopping strategies to save money. Paying attention to what to buy at the grocery store will help you maximize your budget without sacrificing more than you can handle. 

I find that a lot of what it comes down to is planning ahead. By planning most meals and sticking to a frugal grocery list, I can stretch my grocery budget as far as possible.
Being savvy about when and where we shop, as well as buying store brands, will also help.

What groceries do people buy the most?

Staple items seem to be the groceries people buy the most. According to Instacart, the number-one grocery item purchased in the U.S. and Canada for eleven years with Instacart has been bananas.

Other top American grocery purchases, per How Stuff Works, are bread, packaged meats, peanut butter and jelly, eggs, and milk. 

What foods should be on your grocery list?

When it comes to deciding what foods should be on your grocery list, try to buy items that will help you fill your hunger, first and foremost. Here’s a quick basic list:

• Bread
• Cereal
• Meat
• Seafood
• Pasta
• Rice
• Frozen foods
• Dairy
• Eggs
• Produce
• Canned goods
• Snacks

Pick from the items that suit your diet and start from there. 

How do I make a grocery list for one person?

If I need to make a grocery list for one person, I only need to consider my own diet and favorite meals, and I can end up with money leftover in my budget. Meal planning is important no matter what, though.

Decide whether you’ll buy only what you need for the week or stock up and keep items in the freezer or pantry until needed. If you don’t have a lot of space to store extra groceries, another possibility may be to go shopping with a buddy and split bulk items.

Articles related to what to buy at the grocery store

If you enjoyed reading this article about grocery shopping, read about these ideas next!

• 18 Frugal Grocery Shopping Tips
• 20 Smart Tips For Grocery Shopping On A Budget
• 35 Delicious Frugal Meals For Every Food Category
• 25 Of The Best Cheapest Meals

Understanding what to buy at the grocery store will help you make the most of your budget!

Hitting the grocery store aisles doesn’t have to be a routine you dread.

In fact, you can make a few basic plans for what to buy that will maximize your budget.

When things are tight due to a sudden job loss or inflation, great supermarket strategies can help you stretch your money further and also help you learn how to stop worrying about money. As a bonus, living below your means with grocery shopping can help you achieve financial success!

The post What To Buy At The Grocery Store To Maximize Your Budget  appeared first on Clever Girl Finance.

Let’s talk about grocery shopping on a budget. You can cut lattes and your cable bill, but the one thing you can’t cut from your budget? Food. Food is expensive. Whether you’re a student on a low budget or a parent trying to keep the food bills at bay, we could all use some tips on managing our grocery budget properly so we can save more money.

The average American spends around $7,300 on food each year. And, your grocery spending can eat up anywhere from 14% to 34% of your household income.

That said, grocery shopping on a budget doesn’t mean you have to sacrifice your health. It’s about shopping smarter to make the most out of your monthly grocery budget. It’s also very easy to do if you carve out the time. You’d be surprised at how simple it can be to cut your grocery bill in half!

20 Ways to start grocery shopping on a budget

So what can you do today in order to save money on your next grocery run and minimize impulse purchases?

Here are 20 ways to get more out of your monthly grocery budget. (Be sure to check out our frugal meal plan ideas as well!)

1. Review what you have in your pantry

The easiest way to reduce your grocery bill is to simply buy less food. And no—we’re definitely not suggesting that you let yourself go hungry to save a few bucks.

Instead, give your pantry (and fridge/freezer) a double check so you know what to buy before you head out to the grocery store. Do you really need everything on your list? You may have already written “almond milk” on your grocery list—but turns out you bought in bulk last time and still have another box in your pantry.

Or maybe you wanted to buy beans to make tacos for dinner. But checking your pantry reveals that you already have a few cans of chickpeas on hand—and those will do just fine for tacos, too!

Bottom line: Before you head to the store (or even make your grocery list), take stock of what’s already in your pantry. You may need to buy fewer groceries (and spend less money!) than you thought.

2. Create your grocery budget

If you want to save money on groceries for the long term, then you need to create a budget—and stick to it.

I like to start by figuring out how much I currently spend on groceries. I review credit card statements and receipts from the last 2 to 3 months. Then I’ll ask myself, what is my average amount spent on groceries each month?

If this number is above my target grocery budget, then it’s time to make some changes.

An easy way to redesign your grocery budget is to work backward.

First, decide how much you want to spend on groceries each month. For example, let’s say you’re comfortable spending $250 per month. That equals $62.50 per week.

Next, make your weekly grocery shopping list—and make sure it does not top your weekly budget (in this case, $62.50).

If you tend to lean on credit cards and have a hard time holding yourself to a budget, try going to the grocery with just the $62 in cash. This way, you can be sure that you won’t buy more than you can afford—and you’ll stay true to your ideal grocery budget.

3. Plan your meals

A big part of grocery shopping on a budget is planning your meals. Meal planning is the key to saving money, as well as saving time. Start off small and plan your meals for the entire day.

Once you’ve mastered that, proceed to plan your meals for the entire week, then work up to creating a monthly meal planner. Meal prep is easy, and everybody can do it! Cook your meals in bulk and store them for later in the week. For example, you can plan casseroles, pasta dishes, sandwiches, side dishes and more!

This process not only ensures that you save money by making sure that you’re able to distribute your ingredients over several meals evenly, but it also ensures that you’re able to conveniently heat up your food and eat it immediately.

By the way, there are tons of creative and frugal meals you can try out!

4. Create a grocery list

We often spend more than we need to when we’re shopping for our groceries. We buy more than we can eat, and we often lose track of what we intended to purchase in the first place.

Much like how a to-do list keeps us on track with our tasks, a budget grocery list is imperative to keep us on track with what we must buy.

While it may sound basic, this factor must not be overlooked. How many times have you made a quick trip to the shops to buy one thing, but you end up buying a lot of other items you didn’t really need?

Writing up a quick budget grocery list — or on your phone, if pen and paper are a little too ‘old school’ for you — before leaving for the store will effectively prevent you from buying any unnecessary items as it keeps you on track.

5. Don’t limit yourself to one store

Sales don’t just happen at one store. Every store is different, and each of them is constantly competing to provide consumers with the best prices. Take advantage of this and shop for the best prices.

You’re not constricted to purchasing your groceries at just one store so take the time to scout out the varying prices and follow the cheapest prices. Shopping at different stores is one of the simplest ways to save money on groceries.

6. Shop for store-brand goods

Store-brand items are indisputably cheaper than commercial goods, and usually, I can’t tell the difference, apart from the packaging. This is due to store-brand goods being independently produced and packaged by the store itself. It’s no wonder that they’re cheaper.

While not all foods have a store-brand counterpart, items such as canned foods, condiments, and other processed foods are definitely guaranteed to have store-brand versions.

7. Bargain hunt

A huge part of grocery shopping on a budget is bargain hunting. Sometimes all the planning in the world can be fruitless if that one head of lettuce you need is $6.99.

When you head to the supermarket, take note of what fruits and vegetables are on sale. Most likely, it will be things that are in season and in excess.

If you see something on sale in the shops, make the most of it. Notice that 2 lbs of pumpkin are only $.50? Why not grab a couple? Vegetables can be so diverse and used in so many different recipes.

It might be just pumpkin soup, or you can get creative and make things like pumpkin cornbread, pumpkin beef, black bean chili, or pumpkin cannelloni.

See some cheese, eggs, ground beef, chicken breast or pork chops on sale? These can be stretched across multiple meals in your meal plan.

You might also see an abundance of cabbage or corn. You can preserve these foods and enjoy them at a later time, saving you tons of money down the road.

8. Prioritize your food needs

Defining your needs vs. your wants isn’t just for items you buy. This method can be used when you are making your budget grocery list too. It’s easy to buy up a bunch of random food that we really don’t need just because it sounds tasty.

For instance, do you NEED to buy steak every week, or could you find a cheaper option for dinner? Finding ways to save money on groceries by defining what you truly need can lead to big savings every month.

9. Pay with cash

People tend to spend more money when using credit and debit cards. Paying in cash can help you stick to your monthly grocery budget easier. The cash envelope budgeting system can be a great way to switch from cards to cash.

This is where you have dedicated envelopes to put specified amounts of cash in to pay your bills. For example, you would have an envelope specifically for your groceries for the month. This helps you stick to your budget and prevents overspending.

10. Use store rewards cards

Most grocery stores have a free discount card, points card, or rewards card. These are cards that you can use to earn points and get sale prices and other discounts when you shop.

In many instances, unless you have the store card, you will not be able to get the items you want at the sale price.

That being said, it’s very easy to miss out on receiving the sale discounts. During checkout, items are scanned pretty quickly, and you may not realize it until after you get home and look at your receipt — that’s certainly happened to me many times.

To ensure you always get the discounts, put your points card next to your source of payment. If, for some reason, you were not asked for it, or you forgot to use it, be sure to head over to customer service for a price adjustment.

Keep in mind that you can also use your points card online too. Rewards cards can help you stick with your monthly grocery budget.

11. Sign up for your store emails

In addition to signing up for the store points card or rewards card, be sure to sign up for your store email newsletters. Many times stores will email additional discounts, including printable coupons or free grocery delivery or pick-up offers.

They may also make you aware of sales going on in-store that are based on your shopping habits or things you typically buy or have bought in the past (using information from your points card).

Be careful not to get caught up shopping every store sale you are emailed unless you really need the items and they fit into your monthly grocery budget.

12. Search online for manufacturer coupons

Use coupons! Many of your favorite grocery brands sometimes offer manufacturer coupons on their websites or on coupon sites (like coupons.com or redplum.com) that you can use in-store or online.

Just do a quick Google search before you go grocery shopping to see what you can find. (Here’s our list of best coupon sites!)

13. Buy in bulk

Heading to your local farmer’s market may be your favorite Sunday afternoon activity but it may not be the most friendly on your wallet.

We’re not saying you should stop supporting your local farmers (not at all!). But to trim down your grocery bill, consider buying some of your pantry staples in bulk.

For example, shelf-stable products are great picks to buy in bulk for the following reasons:

1. Buying in bulk means you can score bigger discounts
2. Focusing on non-perishable bulk goods means you can shop once and have enough food to last weeks or even months.

Want to watch your grocery bill shrink? Head to warehouse stores like Costco or BJ’s to stock up on must-haves with a long shelf life, like:

• Flour
• Canned fruits and vegetables
• Canned tuna
• Nuts
• Grains
• Rice and pasta
• Peanut butter (or other nut butters)
• Pasta sauce
• Oatmeal
• Spices & dry seasoning

14. Shop discount grocery stores

If you need to get groceries on a budget, another easy way to reduce your bill at the check-out counter is to stay away from boutique grocery stores.

After all, food is food, right? So head to discount grocery stores like Aldi, Trader Joe’s, Lidl, and Market Basket for your weekly shopping run. These stores often sell grocery staples at just a fraction of the prices you’ll find at fancier shops, like Whole Foods.

So give discount grocery stores a try—your tastebuds won’t be able to tell the difference, but your wallet sure will!

15. Buy generic vs. brand name

We all have some brands we’ve been loyal to for years … but if you want to trim down your grocery budget, it may be time to evaluate your long-standing favored brands.

If you’re skeptical about switching from name-brand groceries to generic, here’s some food for thought: A study from CNET reveals that generic groceries are about 40% cheaper than name brands.

Let’s do some quick math: That means that if your current grocery bill clocks in at $400 per month, switching to generic brands could end up saving you $160 a month or $1,920 per year!

16. Learn how to store your food

It’s important to learn how to store your groceries properly (and safely). And storing your food properly will prevent food from getting spoiled and in turn save your money.

While canned goods, seasonings, and noodles aren’t necessarily a problem when it comes to shelf life, it’s a whole different story when we’re talking about other foods.

Dairy products like milk, cheese, eggs and yogurt are highly perishable and should be refrigerated as soon as you get home. The same applies to salads.

Vegetables and fresh fruits should be replenished every one to two weeks because they don’t last very long, even if they are stored in the fridge.

However, the shelf life of foods can definitely be prolonged by placing them in the correct location of the fridge and freezer.

Make sure that you store all meats in the freezer immediately after you get back from the store. Freezing meats will definitely make them last for weeks so buy them when they’re cheap and don’t be afraid to stock up. The same can be done for bread.

17. Get the store flyer when you walk in

Ever noticed that pile of papers as you walk into your local grocery store? The next time you walk by these, grab one!

You might just find a few cutout coupons in there, and they are a great way to get a summarized view of what’s on sale in the store. This way you can determine what items on your list are discounted.

18. Buy your groceries online

Personally, I think online grocery shopping is a great way to save money because I’m not distracted by yummy smells or product placements; I can simply search for and purchase what I need.

In addition, I have time to think about whether or not I really need the items I have added to my cart because I’m shopping online.

Yes, the delivery fees might be pricey — typical fees are from $10 to $20. However, you can find promotions offering free or low-fee deliveries if you try a new service.

And how many times have you spent much more than the delivery fee in-store after falling into the temptation of buying things that you didn’t plan for?

You may be able to save money on the cost of delivery by opting to pick up your online shopping at the store. You basically place your order online, and then your store provides you with a pickup time to come and get your pre-packed groceries.

Often, the cost of a pickup can be cheaper than delivery by up to 50 or 75%. If online shopping is something you have available to you, you should definitely consider taking advantage of it! Shopping online makes grocery shopping on a budget much easier.

19. Learn how to cook 

It’s not a secret that home-cooked meals are cheaper than eating out at restaurants.  However, the process of cooking may seem daunting for those who aren’t used to it.  Anyone can cook. You just have to start off with simple recipes with simple ingredients.

Cooking at home ensures that you know exactly what you’re putting into your body. Also, if you have bought your ingredients on sale, the cost of your meals will definitely equate to less than what you pay for at restaurants, about $20.37 per meal. Learn a new skill and save money while you’re at it.

20. Use leftovers

One of the easiest ways to save money on groceries is to utilize your leftovers. Repurposing dinner from the night before into lunch or another dinner idea can stretch out your food longer.

For example, if you have beans from the night before, you can use them in another main dish, such as tacos.

Rather than letting food go to waste, get inventive and make more cheap meals. Make a goal to use everything you cook. Check out Pinterest for ideas on how to use your leftovers.

Expert tip: Create a grocery budget you can stick to

Sometimes, it can be a little too easy to get carried away when creating a new budget. Don’t get us wrong—if you’re enthusiastic and motivated about improving your financial health, this is a good thing! But sometimes those moments of inspiration can lead to biting off more than you can chew.

For example, say I currently spend $400 per month on groceries and I want to cut my budget down to $100. That’s quite a big jump! And it may be harder to pull off in a one-month turnaround than I’d think.

For long-term success in learning to shop for groceries on a budget, start small. If your current spending is $400, maybe aim for $300 for this month, $200 for the next month, and $100 for the month after that.

Often, slow-and-steady baby steps help turn big goals into regular habits so you can commit to them for the long term.

How do I start a budget for groceries?

To start shopping for groceries on a budget, there are three key steps to follow.

Step 1: Review the last two to three months of your groceries expenses. How much have you been spending at the grocery store?

Step 2: Determine where you can make cuts. Are you buying more pre-made meals than you need to? Are you making a lot of small, frequent grocery store runs … that amount to a big monthly total?

Step 3: Add some structure to your grocery shopping routine. Decide how often you’ll head to the store—once a week? Twice a week? Give yourself a weekly spending cap on groceries—and stick to it.

By being aware of your spending, trimming the spending fat, and holding yourself accountable to a shopping schedule, you can keep your grocery spending in check.

What is a reasonable amount to budget for groceries?

According to the U.S. Department of Agriculture’s Thrifty Food Plan, the average woman between 20 and 50 years old can expect to spend $55.8 per week on food—or $241.90 per month.

Note that this Thrifty Food Plan considers that ALL snacks and meals are prepared at home. To give yourself some wiggle room for dinners out and coffee runs, you may consider raising your grocery budget to between $250 and $350 per month.

Can I spend just $25 a week on groceries?

While spending just $25 a week on groceries may be a bit limiting for the long term, it is certainly possible.

To drastically reduce your grocery spending, look for low-budget staples that you can turn into many different meals, such as chickpeas, rice, lentils, potatoes, etc.

Also, learn how to get the most out of every piece of food! For example, you can easily get three meals out of a whole chicken: 1) Dinner the first day; 2) Lunch the second day; 3) Homemade soup from the bones and scrapes.

You can save money grocery shopping on a budget!

Cutting your food budget in half is easy. And though I know it requires a little effort and discipline, it doesn’t have to be time consuming and the savings are well worth it!

Finding ways to save money on groceries can help you save towards other goals too. Let’s say you start saving $50 a month on groceries; that’s $600 in just a year!

Learning how to be frugal in all aspects of your finances will help you stop wasting your hard-earned money and bulk up your bank account! Learn how to save even more with our FREE savings challenges bundle!

The post 20 Smart Tips For Grocery Shopping On A Budget appeared first on Clever Girl Finance.

A cash envelope system is a useful budgeting tool for anyone that needs a visual budget to stay on track. Not only will this method help ensure your spending is controlled, but it has also been shown that cash envelope budgeting may lead to spending less money!

Although the envelope money system will not work for everyone, it can be a great option for anyone that needs to see exactly where their money is going.

In this article, will dive into explaining what the cash envelope system is and how it can be used to stay on top of your budget.

What is the cash envelope system?

The cash envelope system is exactly what it sounds like. You put your cash into different envelopes based on your choice of budget categories. Next, it’s time to figure out how much will go into each cash envelope based on your spending goals.

For example, I might put $300 in the grocery budget and $150 in the fun budget. The key is that I’d only be able to use the cash from these envelopes to pay for expenses that fall under each category.

The cash envelope categories are designed to encompass your variable spending. So, you would have a groceries envelope, one for beauty, another one for household supplies and an envelope for fun. You could also try a cash envelope challenge for a fixed time period!

However, your fixed expenses such as your mortgage or car payment are not meant to be included in your cash envelope budget. You can continue to pay these fixed expenses as you normally would.

Does the cash envelope system work?

Yes, the cash envelope system works and it can transform your finances. That said, it needs to be a good fit for you. With the cash envelope system, you’ll be able to easily see how much you are spending in each category based on the cash you have on hand.

Instead of simply swiping your debit or credit card and forgetting about it, you’ll be forced to part with your cash in exchange for your purchase.

The physical action of handing over cash can make you stop to think about exactly how much you are spending in the checkout line. It is a more tangible process to spend cash as opposed to plastic funds. As you spend the money in each cash envelope, you’ll be forced to watch your cash funds dwindle.

Simply seeing where your money is going can be a transformative process. You might be less likely to overspend when you can see your cash flying out of the envelope.

For example, you might skip an impulse buy towards the end of your shopping trip because you know that you only have so much money to spend on that category before the end of the month. If you have a habit of overspending, then the cash envelope system might be a useful budgeting strategy to try.

Is the cash envelope system the same as cash stuffing?

Yes, cash stuffing is a more modern term that is used to describe the envelope system. You’ll probably come across references to cash stuffing more on social media, but it works in exactly the same way as the cash envelope wallet.

Cash stuffing refers to the part of the budgeting method where you physically withdraw money from your bank and stuff it into pre-labelled envelopes that cover your spending. You then use this cash to pay for your expenses for that month.

If you don’t fancy stuffing cash into envelopes, some people use jars, binders or any type of container to hold your money.

Who is the cash envelope system ideal for?

The cash envelope system works best for anyone that needs to visualize where their hard-earned money is going and take control of their finances.

So, should you use the cash envelope method? If you answer yes to any of the questions below, it’s definitely worth a go!

• Am I new to budgeting?
• Do I need help sticking to my monthly budget?
• Am I a person that likes to visualize things?
• Do I regularly overspend?
• Am I unaware of where my money goes each month?
• Do I want to control where my cash goes?

How to use the cash envelope system

When you first start to develop your cash envelope money system, it is important to remember that every budget is unique. You have the ability to choose your cash amounts for each category.

With that, the amount of cash you place in each envelope is a reflection of your personal values. So it will likely be different than anyone else’s. For example, I might put a large portion of my cash into my ‘hobby’ envelope while others may put a large portion of their cash into a ‘pet envelope.’

Don’t compare yourself to others because you are the person who will need to stick to the budget. Also, don’t try to restrict yourself too much at one time because you might be more likely to break your resolve.

It can feel like a complicated process for the first couple of months. But once you get the hang of it, you might find it infinitely more effective than your previous budgeting methods. The key is to stick to the plan and work out the kinks for the first couple of cycles.

If you are intrigued by the idea of cash envelope budgeting, then read on. We will show you exactly how to get started with this budgeting strategy.

1. Create your budget

The first thing you need to do is create your budget. In order to successfully use your cash envelope system, you’ll need to create a meaningful budget. If you put too much or too little cash into your envelopes, your whole financial life might go haywire.

It’s not difficult to build a budget for yourself, but it is important to understand that you’ll likely need to tweak it over time. Life changes as you grow and you’ll need to adapt to new expenses as they arise.

To start building a budget, you’ll need to track your spending. If you have no idea where your money is going each month, then you’ll need to start here.

I recommend tracking expenses by combing through bank statements and credit card statements or saving your receipts for later. It is a good idea to track your expenses for a minimum of a month. For a full picture of your variable expenses, you may want to track your expenses for three months.

In addition to tracking your expenses, you need to find out what you can actually afford to spend each month. Take a closer look at your income after taxes to ensure that you are creating a budget that you can actually afford. After determining your post-tax income, determine how much of your income needs to cover your fixed expenses such as your mortgage.

Once you’ve subtracted your fixed expenses from your post-tax income, you’ll know exactly how much money you have leftover for variable expenses. You can make envelopes to encompass each of your variable expenses.

2. Look at your spending categories

After you have tracked your spending for at least one month, it’s time to split your spending into separate cash envelope categories. This will tell you how much you have spent in each area.

A few variable cash envelope categories that you may want to include are:

• Food
• Restaurants
• Gas
• Fun
• Beauty
• Pet
• Vacations
• Clothes
• Hobby
• Miscellaneous – anything else that needs to come out of your variable outgoings

After you’ve determined how much you’ve spent in each category, make sure that you can actually afford this level of spending. It might surprise you to find out that you’ve spent more than you’ve earned in a given month.

If you’ve spent more than you’ve expected, then the cash envelope system could be the best solution for you. It will force you to think about your spending before you make the purchase.

As you move forward with the cash envelope budgeting system, think of it as a fresh start. Don’t beat yourself up over past spending mistakes. Instead, look towards the future and work towards your financial goals.

Whether you want to pay down credit card debt or build your savings, a cash budgeting system can help you to achieve those goals.

3. Set limits for all categories

Next, set spending limits for each of your cash envelope categories. Start with what you are able to spend in a given cycle, then take your previous spending into account. Base your spending limits on how much you can actually afford, not what you think you can spend or would like to spend in a given category.

When setting limits for my own budget, I found that my new spending limits seemed harsh. However, I learned that living within my means was critical to long-term financial and total well-being, so it was important to be honest with myself about this.

If you cannot stick to the spending limits, then it might be time to start thinking about a flexible side hustle to supplement your income.

4. Fill your envelopes with cash

After you’ve set your spending limits for each cycle, now comes the easy part of filling your cash envelopes. Either fill your envelopes with your next paycheck or once a month. Find a cycle that works best for you and try to stick to it. Make sure to avoid any unnecessary ATM fees while taking out cash.

Once the money is in the correct cash envelope, you’ll need to diligently spend out of the appropriate cash envelope categories. If you have extra cash at the end of a cycle, then I’d recommend rolling it into the next month or putting it into your savings.

If you are saving money, you can try out the 100-envelope challenge or the 200-envelope challenge!

5. Adjust as needed

As you continue to use the envelope money system, it is important to realize that you may need to adjust along the way. In fact, adjusting your budget along the way should be an expected part of the process. Don’t expect to nail your spending restrictions in the first month.

Some spending categories might seem overly stuffed while others are ambitiously slim. Although it is all variable spending, you should set spending caps for each category relatively close to what you need each cycle.

Throughout the process, you might uncover a bad trend or hidden spending habits that are destroying your budget. You may also find that you are more thrifty than you thought! When you are pressed against the cash restriction, you might find that you are suddenly more willing to try a DIY fix instead of throwing cash at your problems.

If you find that the cash envelope system is not working for you but the budgeting categories are helping then consider another option. You may want to switch to a ‘virtual envelope’ system instead of a cash system. Be aware of your own preferences and build a budget that will encourage you to stay on track.

Expert tip: It’s ok to repurpose your cash envelopes if you need to

It’s ok to repurpose cash from other envelopes occasionally if you’re running low in a spending area. Personally, I’ve done this several times. But only if you’re 100% sure that you’ll have enough left in the envelope that you’re taking from to cover your expenses for the month.

If you do find yourself taking cash from other envelopes, it’s a good idea to rethink how much you are allocating to that particular category and even the labels you are using.

The cash envelope system takes some time to perfect, so don’t give up straight away!

Where to find your cash envelopes

The cash envelope budgeting system is a very popular approach to getting a handle on your budget. Due to this popularity, you have many choices when it comes to carrying your cash in these envelopes. They can even make great gifts for your financially-astute friends.

Here are a few places to look: (Note –This section contains some affiliate links from brands we use & love that help us grow Clever Girl Finance! Please see our disclosures for more information.)

Plain white envelopes

Of course, you can go with the standard white envelopes. After all, if your ultimate goal is to save money then this is an affordable option. You can get 500 plain envelopes for around $20 on Amazon.

Amazon

Many Amazon sellers offer colorful envelope options to keep your budget cheerful. Our favs are these cute reusable cash envelopes for under $15 which also come with budgeting sheets.

Etsy

Etsy offers a multitude of fun cash envelope options to make sure your budget stays fun. Choose an option that suits your style.

Make them yourself

You can also make fun cash envelopes yourself, and this is my favorite idea. After picking out some fun paper from the craft store, you can fold your own envelopes and decorate to your heart’s content. Don’t be afraid to enjoy the crafting process. Plus, I find that I’m more likely to stick to the cash system if I’ve put in the effort to make my own envelopes.

Be sure to check our detailed list and review of the best cash envelope wallets.

If you are worried about how to carry your new envelopes in a fashionable way, don’t worry! You don’t have to leave these envelopes full of cash loose in your purse.

Many stores offer cash envelope wallets that will allow you to stash your envelopes in addition to your other wallet essentials. You can still have a functional wallet that offers an organized way to keep track of your cash.

As an alternative, you can also use digital cash envelopes too!

What are the pros of cash envelopes?

There are lots of different budgeting techniques out there, so it’s important to find one that works for you. The benefits of using cash envelopes are:

Take control of your spending

The cash envelope system will highlight which areas you’re overspending on, so you can easily identify what you need to cut back on. Impulse purchases are also much less likely to happen because a transaction needs to be planned to ensure you have enough cash.

Gain insights into your spending habits

Lots of people don’t actually know where their monthly income goes. If this applies to you, creating an envelope for each spending area will highlight exactly what your money is being spent on.

Flexibility

It doesn’t matter how old you are or what your financial goals are, the envelope system is a great way to budget. You can easily change your spending categories and limits in each area as your priorities change.

What are the cons of cash envelopes?

If you’re thinking about using the cash envelope method, there are some things you need to be aware of first.

It can be difficult to track family spending

If you have a family budget, it can be hard to keep an eye on where your money is going if different people are taking cash out of the envelopes. If you do decide to use cash envelopes, you’ll need to keep track of where the money from each envelope goes with a list or spreadsheet.

Holding cash carries some risk

Keeping large amounts of cash at home can leave you vulnerable to theft or loss. Likewise, withdrawing cash at an ATM and carrying it home can be risky compared to just making online purchases.

Cash won’t improve your credit score

Dealing purely in cash does have its downsides if you need to borrow money in the future. Making purchases in cash doesn’t demonstrate to lenders that you are responsible with money like having a credit card does.

How do I start using cash envelopes?

First things first, you need to make the time to set up and organize your spending categories, cash and envelopes. The best time to do this is at the end of the month, so you can get everything ready for the start of the next month.

Do this when you don’t have any other distractions and you’re positive and motivated. You need to be focused and in the right mindset to achieve the best results. 

Next, follow these steps:

1. Create your budget
2. Look at the categories of your spending
3. Set limits for each category
4. Fill your envelopes with cash
5. Adjust your envelopes as needed during the month
6. Review and reset for the next month

It may take a few months to get used to this budgeting technique, but it’s worth sticking with it if you want to take back control of your spending. As the months go by, it will become second nature and you’ll have a detailed insight into your spending habits-both good and bad!

How do you categorize cash envelopes?

Everyone will categorize their spending areas differently, and that’s ok! The most important thing is that the categories you use work for your individual spending habits and lifestyle. Start by considering what areas you spend money on each month.

Here are some suggestions for how to organize your categories effectively. You don’t need to use all of them, just pick the ones that suit you.

• Mortgage/rent
• Groceries
• Utility bills (including cell phone bills)
• Medical
• Car (payment, fuel, gas, insurance, maintenance)
• Household items (necessities such as cleaning supplies and toiletries)
• Clothing and shoes
• Children
• Pets
• Leisure and entertainment
• Hobbies
• Travel and vacations
• Gifts
• Miscellaneous (to cover anything that doesn’t fall into another category)

Before you decide on a budget for each area, I recommend writing a list of the types of things that will come under each category. You can then refer back to this at a later date if you’re not sure what category to put an item into.

What do I do with money left over in my cash envelopes?

If you find yourself with extra money in your envelopes at the end of the month, there are a few things that you can do with it.

Save it

Give your savings fund a boost and get one step closer to achieving your next goal.  Whether you’re working towards having enough funds to take a vacation or buy a new car, every little will help you smash your target.

Pay off debt

The sooner you pay off debt, the less interest you will pay over time and the more financial stability you will have. So using leftover money from your envelopes is a smart financial move.

Carry it over to next month

If you have a tight budget, putting leftover funds into next month’s envelope is a great way to keep control of your spending. This will work particularly well if you’re new to the cash envelope budgeting system and still figuring out how much money to allocate to each of your spending areas.

Treat yourself