The Sweet Spot: May Edition
Let’s be honest. When it comes to budgeting, it can feel like there’s always another bill to pay. Whether it's school, rent, your phone bill, or groceries, the money often disappears before you even realize it. That’s why bank account accountability is so important.
Start by understanding how much money is coming in. Do you have a consistent job? If so, consider the take-home pay you get each month. Tip: If monthly budgets feel overwhelming, try budgeting by each paycheck instead. Sometimes a biweekly budget can give you a clearer picture of what you are working with.
Once you know what’s coming in, look at where it’s going out. Many people don’t realize how much they spend because they aren’t keeping track. Using credit cards or digital payments can make it even harder to stay aware of your balance. It seems the more automatic and effortless your spending becomes, the easier it is to lose sight of your financial reality. Therefore it’s important to track your habits to see what’s really happening behind your credit card’s swipe.
To do this, there are plenty of budgeting tools that can help. Apps like YNAB, PocketGuard, or Spendee link to your bank account and show you exactly where your money is going. These tools help break down your spending so you can make informed decisions.
Once you see where your money is going, you can ask the important question: where do you need to pour into, and where can you cut back? Essentials like food and shelter come first. Then take a close look at extras. One of the biggest drains is eating out. It’s convenient and fun, but it adds up quickly. Try cooking at home instead. Meal prepping and buying in bulk—especially non-perishable items—can make a big difference.
Beyond food, consider other recurring costs. Could you lower your phone bill or switch to a more affordable internet plan? Could a gym membership be replaced with home workouts or outdoor exercise? Every small change adds up.
Once you’ve covered your needs and made space for savings, you can still budget for fun. Decide in advance how much of your disposable income can go toward entertainment or dining out. That way, you get to enjoy life without losing track of your goals.
Ultimately, budgeting isn't about denying yourself. It's about being aware and intentional. When you know what’s happening with your money, you’re in control.