A budget is a plan for your money. When you have a predictable monthly income  .The act of planning  and watching where your income  is going every month (or every paycheck). Where should I start ? Pay off one credit card, save for my needs of my family ( emergency , a pregnaxy , childcare , holidays , kids room makeover education of my children ) I can tell you many other ways for saving !!

  These are common questions many moms or  women  in general have when starting their budget. If you have decided to create (or recreating) your budget below you will find the 4 methods of budgeting .

 Calculate your monthly income  

A budget is a plan for your money. When you have a predictable monthly income

The first thing you should do is look at your income. If you have a regular paycheck, knowing how much you make each payday is easy. Write down what you make in a month based on your post-tax income.

If your monthly income is not steady then you have to create your baseline  minimum budget . The total amount of these expenses is the minimum amount of money you’d need to earn each month)Don’t forget outside income sources, like child support, unemployment, or Social Security.

 

Choose  Your Budget

1. Percentage Breakout Method

This method breaks your income into percentages. The most common breakdown is 50/30/20 where 50% goes towards needs and essentials (like rents , food, utilities), 30% goes towards wants and non-essentials (shopping, clothes , travel), and 20% goes towards savings and repaying debts. It’s important to remember that you can breakdown these percentages any way you’d like! This method helps you create a budget with some flexibility while being intentional with your money.

2. Reverse Budgeting Method

This is the simplest of the four budgets. It involves focusing on one goal, such as paying off a loan or credit card, or saving a certain amount of money. This method is my favorite because you can add money to some categories you think is most important. So for example you can pay your minimum payment of a loan but you can put extra money into a credit card.

3. Zero-based Method

This method is advocated by Dave Ramsey and involves allocating every dollar in your budget. This means everything you save, give, or invest should add up to your total income. When writing down your budget, every dollar has a job. This method lets you keep a close eye on your finances.

4. Envelope Method

This method is cash-based and involves putting physical money into envelopes that are divided into categories. These can be categories such as rents , food, utilities etc. Once your money from a specific category is spent, you can no longer buy things in that category. This method works well because psychologically, we spend less money when paying with cash.But for me this method is not convenient and safe . When all the exchanges are charged in your debit card it easier to track your expenses and also fix your taxes at the end of the year.

Next come tracking your expenses

 

When deciding your budget method, it’s also good to review your spending over the past few months. This way, as you plan your budget, you don’t put too much or too little into a category.

 Tracking your expenses can also help you see where you can cut back.

 

Talk About Your Money Goals

Women don’t talk about money enough. Not with their partners, not with their friends, and not with coaches .Many times when I asked for the basics number in their income many women never called back .It is crucial not to be afraid to talk about money and change your mindset ! Also may of us have limiting beliefs about our possibilities and we have low self esteem and this must change !

Last but the most important of all ( I will keep on posting on Instagram for this) is books! Education is a lifetime process ! 

Check out this list of great articles, worksheets, and podcasts to help you boost your confidence in money!

With lot of caring ,

 

Sophie