The Key To Creating And Living Your budget Is Your Mind Over Money. You must keep your mind on what you plan to do with your money to create a mind over money budget. When spending money, we should always be mindful of our budget. Begin thinking frugally. First, start allocating funds to savings. Always pay yourself first. Then move on to necessities all while keeping track of the desires for the nonessential things. This is for each of us to personally decide what things are necessary vs. nonessential things to have a good life.
The average American spends close to $500 per month on nonessential costs, per a survey from Charles Schwab. Close to 60% of those same respondents say they live paycheck to paycheck. If you are not accurately tracking your spending, you might feel like you have nothing to save. You could be spending hundreds of dollars per month on unnecessary expenses. Read my blog on creating a mind-over-money budget for beginners. This will get you started on living more frugally.
– Sabrina Anthony
If you’re not accurately tracking your spending, you might feel like you have nothing to save.
Financial Security Is Mind Over Money
I found that budgeting is key to living within or below our means to makes life worth living. Financial security requires sound saving habits and being debt-free. You need an emergency fund and life insurance to ensure the stability of your family should you lose your job, have a health crisis, or die. I know that the “buy now pay later” mentality is so overrated yet only 29% of the people in the U.S. are financially healthy. With 65% not sure when they will ever get out of credit card debt. Spending every dime, they make and living check to check is not having a budget and your mind over your money. Financial security starts with a plan that includes paying bills on time and saving money. I thought we had financial security because we had a job. We quickly learned that it requires having an emergency fund.
There have been many times my husband or I lost our jobs. But it was not until the Great Recession when we got serious about our emergency fund. We did have some savings and I received unemployment and a nice severance package to help us, but it was not enough for long-term unemployment. The saving grace, I was not out of work for more than a month and with my severance package, we were good.
This story could have ended differently if we were both out of work for an extended period. Once we were both working again, we both made our emergency fund a priority to save 6 months to one year of living expenses. Unemployment insurance coupled with a 6-month emergency fund can extend the time needed to find just the right job. This money can go even further by reviewing your budget and cutting out Non-essential Expenses. You can read more about Emergency Funds to get started.
For us, it meant cutting back on dining out, impulse purchases, and combing through our current expenses to see what was nonessential. I was surprised that by just looking over the cable bill what I could cut from our package because we do not have the time nor the interest in the programming. Check your credit cards and phone bills for any automatic subscription payments you do not use. Again, I was very surprised by how many things we sign up for and then forget to cancel. For instance, my radio subscription, I work from home and I am literally only in my car on Sunday for a few hours. Why do I need a radio subscription for my car? Canceled that!
Canceling non-essential expenses is key to living a frugal life. Therefore, spend the time to review all your current bills and statements. There is a wealth of expenses to cut. Make this simple budgeting tip part of your budgeting process. I review it yearly to make sure no additional hidden or forgotten charges are added. This is budgeting 101 to get out of and stay out of debt.
I wish that we were blessed with long-term job security, but we have not. I sometimes envy those who have been on their jobs for 30 plus years and retire with a pension. We are blessed that we have had many positions that have allowed us to grow, learn and make more money. We may not have been on each job for long lengths of time, but I am grateful to have consistently been employed with every opportunity. Therefore, we have had to learn to set aside any extra money just in case. Our “just in case” money is our emergency fund. Yes, it has come in handy and we always build it up again once we are gainfully employed. Keeping our focus on our financial well-being and planning with a budget has always been our saving grace.
Mind Over Money Budgeting
Changing your mind about how you spend your money requires discipline and patience. You also must want a desire for more freedom about where your money goes. You can stay in debt and continue to pay for things you may no longer own or need, or you can see your bank account grow. Hence, a budget will give you the freedom to spend your money debt-free on the things you want rather than paying for stuff from your past. I have always found that debt restricts your freedom to spend your money today. It basically ties up income in future payments. Start a budget today to get out of debt tomorrow. Get and keep your mind on a money budget for financial freedom. I would like to offer you a free budgeting worksheet to help you get started.
Steps To Keep Your Mind On Your Money:
#1 Set your mind on paying bills and saving
#2 Start your emergency fund
#3 Cut back on spending and non-essential expenses
#4 Maintain consistent employment
#5 Live within or below your means
Let’s budget, spend and live!