Many people are feeling the crunch. We got “bills, bills, bills” and no one to pay them all for us. 

And our paycheck can only go so far. Yet, we need to have 3 – 6 months of living expenses put aside for a rainy day. Sounds familiar?

Don’t worry you aren’t alone. It is frustrating when your bank account goes negative or close to negative, so what can you do?

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Step 1:

Figure out every single expense that you pay for. Yes, that probably means spending a couple hours going line by line through your bank statement. 

It helps to print it so you can mark off what you’ve done with a pen. You’ll feel more accomplished that way.

Step 2:

Highlight all unnecessary transactions and see which ones you can afford to cut out. Remember, the goal is to reset mentally your financial habits. The goal isn’t to cut out all the joys in our lives. It is to do a reality check to cut out the unnecessary expenses for now so when you get your bag up, you can splurge responsibly.

Step 3:

Unsubscribe from all the unnecessary expenses. Yes, the Doordash, UberEats, Netflix that you hardly watch, all uncessary expenses. You can keep one or two for your mental health or opt for free streaming services.

Step 4:

Redo your budget. I have some simple templates that I use to manage my finances. Remember, the goal of making a budget is to mentally reset your financial habits. That way you think twice about what you are spending. You can find some of my templates here:

[insert screenshot of monthly budget]

Step 5:

Find one thing to spend your money on. The problem with totally cutting out stuff is you will miss spending like you used to. That cause’s withdrawal symptoms and bam! You fall back in the same rut.

For me, I treat myself to Starbucks three times on every thrid week every month. Join their membership to build points for free drinks and to transfer for hotel stays!

I don’t understand why Starbucks runs help to bring so much joy in my life. Find something that you can enjoy spending your money on. Think of it as a reward for how well you are adapting to the change in your spending habits.

Concluding Thoughts

Wait…. I thought we were supposed to talk about savings…

Yes! In your budget you can see after all your necessary expenses what can be allocated to savings. 

What if what you have isn’t enough to reach your goals like saving for a down payment on a car?

Find out in the article:

Practical Ways to Increase your Income