I’ve always been a planner. I love organization and knowing what’s next in life for me. Oh, and I’m a writer so I prefer to write things out. I work online for a living, but for some reason, physically writing things down makes it all feel more official for me.

As you can probably tell by now, this is why I’m obsessed with planners. I’ve been using planners for several years now. I started by purchasing a random $1 planner at the dollar store out of frustration. I had so much going on at the time and felt like my life was an absolute mess.

Some days I had no idea what I was doing, when I was doing it, what I was going to eat that day, or what my overall goals were. It was frustrating to go through life feeling like a hot mess. So I started with the cheapest planner I could find.

Each year, I got a new planner and they kept getting better and better. But it wasn’t until I bought the Living Well Planner last year that I became obsessed.

I purchased the Living Well Planner during a holiday sale and it’s one of the best purchases I’ve made to date. I’ve used the planner every day this year and it’s pretty much changed my life. I don’t write a ton of reviews on this blog, but this Living Well Planner review is much needed even if it can help one person get organized and gain clarity on their life.

In this Living Well Planner review, I’ll cover:

• What the planner includes
• What makes it different from ANY other planner I’ve come across
• How to use it
• Bonus extras you don’t want to miss out on
• What I like about it
• What I don’t like about it
• Who the planner is best for

Why This Isn’t Just Any Old Day Planner

The Living Well Planner was designed by Ruth Soukup who is a popular blogging and organization guru who runs the site Living Well Spending Less. She’s also authored tons of books including one of my favorite, How to Blog For Profit Without Selling Your Soul.

If you have a blog, you’ve probably heard of Ruth as she is a top authority figure in the blogging space. I mention this because Ruth’s expertise shines through with the Living Well Planner.

She’s a super successful blogger and businesswoman who’s figured out how to juggle multiple responsibilities all while still prioritizing family, health, and financial security.

Here are just a few categories on her blog that demonstrate how she helps women make their lives simpler, richer, and more organized.

Another thing that helps this planner stand out from others is the fact that it’s geared toward helping you reach your goals. Goals are exciting to set in the beginning, but they are often hard to stick to over time.

Other planners simply help you organize and plan out your day. The Living Well Planner does this and more because it comes with goal planning worksheets to use each month. This planner is different because it helps you:

• Get organized
• Plan out your goals and prioritize them
• Improve your overall life

I’ve used these worksheets to plan ideas for my business and life that eventually came to fruition throughout the year.

What the Living Well Planner Includes

The planner definitely gives you a lot to work with for your money and the way I see it, the more features, the better.

First, you have your typical calendar view pages for the year and the month. You can preview dates for the current year as well as future years. There’s also space to store important information and phone numbers and to jot down important dates to remember each month.

There’s also a classic Notes section at the end of each month – a must for me because I love to jot down random things throughout the week and need a space to do it.

Core Features:

• Year at a glance
• Monthly goals section – set your top three goals along with goals to achieve in different areas of your life like personal growth, health and fitness, financial etc.
• Goal Crushing Worksheet for each month
• Project Planning and Brainstorming worksheet for each month
• Monthly Budget Pages
• Weekly planning section where you can break down your schedule by the hour
• Space to plan out your meals for the day  – no more wondering what’s for dinner!
• Thoughts and Thanks – a space to record reflections and gratitude

How to Use the Living Well Planner

So, now that you know all the features and pages that come with the planner, it’s easy to feel overwhelmed. Don’t be.

I was pleasantly surprised to see that the planner came with a warm welcome from Ruth along with instructions for how to best use the pages to get organized and have an amazing year.

I’ve used the planner to meet so many goals this year. Some of which included:

• Planning and executing my first webinar
• Reading 10 books whereas I couldn’t find the time or motivation to read just 1 during previous years
• Decluttering my apartment and actually buying our first house! – planning that move was a beast!
• Saving $15,000+ in 10 months (for our house and to top off my emergency fund)
• Losing 15 pounds
• Practicing intuitive eating
• Creating my course, Love Your Budget in just 2 months
• Going on a cruise with my husband to celebrate our 2nd wedding anniversary
• Completing a 13-week class at my church
• Partnering with a youth organization to speak to high school students about entrepreneurship
• Teaching my son how to ride a bike over the summer
• Getting my life insurance broker license (which required passing a state exam) in just 1 month
• Attending 2 conferences
• Crossing a major bucket list item off by seeing my all-time favorite artist in concert in California
• Rebranding this blog
• Creating new 2 new freebie offers for blog readers
• Writing my first fiction ebook

Related: How We’re Avoiding Becoming House Poor

Why and How to Create an Annual Budget

How to Make Money With a Blog or Niche Site

Writing all of those things out was a pleasant surprise because I didn’t even realize I’d accomplished that much this year. I simply just flipped through my planner and viewed my monthly goal sheets to gather all of these accomplishments.

I’ve improved my life in so many different ways from professional and huge milestones to personal growth, health and fitness and finance.

This is another reason why I love the planner. When you use it correctly, it’s difficult to feel like you didn’t make any progress for the year. So how do you use it exactly?

How I Use the Planner

I start at the beginning of the month with the Monthly Goal worksheet. I jot down my top 3 goals for the month and sometimes this requires some thought because I need to narrow down my ambitions. Then, I categorize smaller goals into various different areas of my life.

Next, I narrow down a top goal and get straight to work.

I often use the Goal Crushing Worksheet if I’m going after a goal that requires a lot of work or determination. If I’m planning a project for my business, I use the Project Planning and Brainstorming sheet as well.

• I don’t use the Monthly Budget sheet much as I use my own budget worksheets since I find them more versatile, but I do like that this is an option.
• I use the Month at a Glance page to plan out my month and highlight important dates. This is more of a general section so I don’t get too specific with anything on this page.
• The section that I use the most is the Weekly Planning section. This is where I write out my daily schedule. There is space to plan out your day by the hour which is one of the top things that attracted me to this planner. I love to be intentional with my time because time is a valuable resource that we can’t get back.
• With planners I used in the past, sometimes I’d get frustrated at the small space allotted to list out your tasks for the day. Once I filled in the white space, I was still confused because I didn’t know what to do first.
• With the Living Well Planner, I take advantage of being able to plan out my day by the hour so I know what I’m working on in the morning, when I’m taking breaks, and why I transition to another task. Below the hourly planning section is a space where you can list your top 3 priorities for the day. Below that, there is space to plan out your meals.
• Using the meal planning section when I was trying to lose weight was helpful because knowing I had food prepped and ready to go helped me avoid the temptation of eating unhealthy stuff.

Bonuses

I can’t finish this Living Well Planner review without sharing some of the bonuses that even most people who use the Planner don’t know about.

The planner comes with Weekly Wizard and Daily Do It sticky notes FREE. I got these last year with my planner and they are helpful for people who really want to narrow their focus down and accomplish one major thing for the day or focus on meeting a deadline.

For example, let’s say you were racing against the deadline for open enrollment (which just ended by the way). These sticky note sets would be great for organizing what you need to do in order to lock in the healthcare plan you wanted in time.

Ordering this planner also gives you access to a private Facebook group along with video and email content providing you with more instruction to help you get the best use out of this planner.

I love that Ruth provides this instead of just selling the planner and expecting you to make it work. She really wants you to use this planner to help you succeed.

What I Like About It

Here are some of my top pros for the Living Well Planner:

• Fun and colorful appearance
• Structured and organized – it comes with plenty of instruction to make sure you use it properly
• Goal setting worksheets to help you stay on track – encourage you to improve every area of your life
• Can plan your days by the hour for better daily task management
• Available space to prioritize your goals and plan out meals

What I Don’t Like About It

There are a few things I wish could be improved about the planner, including:

• The size – I use my planner every day and take it with me but sometimes the size of it has been inconvenient as I can’t fit it into a smaller purse, so I have to carry it or keep it in my car. It’s not heavy at all but it’s about the same size as a notebook so probably not travel size friendly.
• The calendar weeks start on Monday – This actually doesn’t bother me much, but it may throw some people off if you’re used to Sunday – Saturday weekly planning
• You have to set the planner up yourself – The planner comes as a blank slate. You have to use the stickers and labels provided to create markers for the months, and you must write in the dates on the monthly overview and weekly planning pages. Again, I don’t mind this given all the pros, but it can seem tedious to do this every month so you may want to just fill out the dates and months for the entire year in one sitting.

Who Is This Planner Best For

Overall, I’d still give the Living Well Planner a 10 out of 10. That’s because I feel it’s the best planner I’ve ever purchased and that could be because I’m the right type of person for the planner.

So who would best benefit from using this planner?

I’d say it’s someone who’s goal-orientated, but has a lot going on. Perhaps you’re tired of setting goals you never reach, or you’re just overwhelmed with your daily schedule and need direction.

This planner is also best for creatives (bloggers, entrepreneurs, side hustlers) and people who like to plan out projects and go after huge milestone goals.

I can also see busy moms getting good use out of this planner. You can plan out every aspect of your day, meals and even your personal development and leisure goals to create a well-rounded lifestyle.

There are always sales going on for  the Living Well Planner if you’re interested in grabbing one for yourself or a friend.

I asked my hubby to get me another one for Christmas This particular planner is also the priciest one I’ve ever purchased but it’s worth it for the results I got. I used it every single day of the year so that averaged out to just $0.10 per day for the value.

Are you using a planner for the new year? Why or why not?

The post How to Use the Living Well Planner to Meet Your Goals first appeared on My Debt Epiphany.

The post How to Use the Living Well Planner to Meet Your Goals appeared first on My Debt Epiphany.

Back in 2013 when I started thinking about improving my finances, I had a very low income. The idea of making a budget and actually using it seemed pointless. Then, I hit rock bottom and had nowhere to go up. After realizing I’d much rather be in control of what little money I had at the time vs. letting it control me, I decided to start budgeting.

From there, I went on a journey of truly understanding my relationship with budgeting and developing healthy money habits. It took time to learn how to budget best for my situation.

One of my favorite budgeting styles to this day is the reverse budget. Reverse budgeting is easy, effective, and you can add it to any existing budgeting method you’re currently using.

What is a Reverse Budget?

A reverse budget is when you basically switch the order of handling your money. Traditional wisdom teaches us to start paying bills and covering other important expenses as soon as we get paid. Then, if there’s anything left over, some money can go toward savings or debt payoff.

In reality, this method rarely works. Most people I talk to (and myself included) struggle to actually set aside ‘leftover’ money toward the end of the month. Most times, there’s nothing left over to use. Life happens, expenses come up and your money usually finds a way to spend itself on one thing or another.

With a reverse budget, you start paying yourself first and putting money toward your goals. This could involve adding money to your emergency fund or investment account right when you get paid. 

Afterward, you budget with the rest of your money for the remainder of the month.

Related: Budgeting With a Low Income, Yes It’s Possible

How to Stop Living Paycheck to Paycheck Once and For All

How Does Reverse Budgeting Work?

Reverse budgeting isn’t meant to have you sacrifice your basic needs like food and housing. Rather, it helps you prioritize money and financial goals that will improve your life long-term. Personal finance and budgeting are very much multi-faceted. On one end, you want to make sure you can meet your basic needs and live comfortably.

But, you shouldn’t just stay at this point since it can lead to living paycheck to paycheck.

The next aspect we should all be focusing on is how to improve our situation and get ahead financially. There is where things like saving, accelerated debt payoff, and investing come in.

With reserve budgeting you:

• Still keep your existing budget and get clear on your expenses and how much they will cost
• Automatically or intentionally transfer funds to savings and investments first

In order to prioritize savings, you still need to budget for it.

Here’s an example of some financial goals that you can put first so long as it fits in your budget.

• Maxing out your IRA: $542 per month (2023 annual contribution limit is $6,500)
• Emergency fund: $300 per month
• Paying off credit card debt: $350 per month
• Saving for a down payment on a home: $400 per month

Total: $1,592 per month OR $796 per per paycheck if you get paid bi-weekly

Related: How to Stop Living Paycheck to Paycheck Once and For All

How to Start Investing in Stocks With No Regrets

5 Things That Helped me Find Money to Start Investing

How to Start Using a Reverse Budget (For the Best Results)

Using a reverse budgeting style is pretty easy, but these tips will help prepare you for success and results.

Determine Your Goals

Start by getting crystal clear on your goals and how you plan to use your finances to help you reach them. Do you want to buy a house someday or go back to school? Are you hoping to catch up with retirement savings or start a business?

Knowing exactly what your goals are will help you determine how much to save or put toward debt. It also gives you a clear focus and motivation to stick to a reverse budget.

Review Your Spending

Review your spending and budget line-items with a fine-tooth comb to see exactly where your money is going each month. This may sound overwhelming but doesn’t have to be.

• Set a timer for 15 minutes
• Log into your mobile banking
• Then start scrolling through transactions for the past 30 days and jotting them down

Make note of how much you’re spending on budgeted and unplanned expenses. If you’re using budgeting software or an app, the tool may even do most of the hard work for you and categorize your spending clearly.

This is an important step because you’ll need to ask yourself if and where you can reduce or adjust spending to make room for savings goals.

Related: How to Make Your Paycheck Last Two Weeks

Get Organized

Once you know exactly where your money is going and what your goals are, organize your budget to include all your necessary expenses AND saving, debt payoff, and investing.

If you don’t budget for your goals, it will be nearly impossible to prioritize or reach them. Given our example above, paying yourself $1,592 per month with a reverse budget may seem difficult.

However, you never know if you’ll be able to reach this goal or even save a portion of this money if you don’t get organized and run the numbers.

If you have debt, list out all your debts, including the minimum payment and interest amount. This will help you decide how you want to pay them off.

Make it Automatic

Make paying yourself first automatic and easy by setting up transfers to your savings account and investment account. For accelerated debt payoff, you can schedule transfers weekly or whenever you get paid to make sure you’re throwing extra money toward debt.

Remember, all your savings goals should already be included in your budget, so you don’t have to be afraid of overspending or overdrafts.

If you prefer,  keep some money in your checking account to serve as a buffer if unexpected costs come up and you have automatic transfers set up during the month to make sure you keep a positive account balance.

Keep in mind that getting organized is going to be key for reverse budgeting.

I provide a free printable bill calendar to all my email  subscribers to be sure to download your copy when you sign up for my list!

Maintain Your Budget Regularly

A budget is not just something you set and forget about. Make sure you’re actively managing your spending and reviewing your budget at least once per week.

Feel free to make any changes to your savings goals whenever you feel necessary. The beauty of budgeting this way is that you can be pretty flexible so long as you’re meeting your basic needs.

Take it Step-By-Step

Don’t feel that you have to become a master at reverse budgeting to benefit from this method. Start slow and develop a habit of saving money and throwing extra funds to debt when you can. Even if you can afford to save $100 per month and pay yourself first, this is a great start.

Get a handle on affording your basic needs first and paying any debt that’s creating a burden on your finances. You may find that your money gets freed up once you get rid of a few credit card balances.

Also, realize that you may already be practicing a reversed budget if you contributing to a 401(k), since a portion of your paycheck gets invested before anything else. If you want to boost retirement savings, see if you could increase your contributions by 1%. Every bit counts.

Related: How to Save Your First $1,000 This Year

Pros and Cons of Reverse Budgeting

Pros:

• Helps you prioritize saving and paying yourself first
• Easy to use with any budgeting method you’re currently using
• Helps you focus on the big picture and improving your financial situation long-term
• Easy to automate

Cons: 

• May require you to be stricter with other expenses in order to pay yourself first
• Some math and sacrifice may be required – (but it’s all for the greater good!)
• May not work for you if you don’t have the discipline yet to direct more money toward future goals

A Reverse Budget is Worth a Try

As you can see, I’m all for a reverse budget. If you’re serious about improving your finances and reaching certain goals, a reverse budget is well worth a try.

You’ll need to truly commit to it to see the best results, though. Use these tips to help you get started and let me know if you have any questions along the way.

Be sure to check out my other budgeting posts:

• The 50-30-20 Budget Plan: What Is It and How Does It Work?
• My Monthly Single Mom Budget & Living and Paying Off Debt on $32,000/year
• Why and How to Create an Annual Budget
• 4 Common Budgeting Mistakes You Need to Stop Making

The post What is a Reverse Budget? first appeared on My Debt Epiphany.

The post What is a Reverse Budget? appeared first on My Debt Epiphany.

One of my favorite singers from my childhood, Stacie Orrico, was having a one-time concert with a few other artists at a church in Covina, California. You probably haven’t heard of her, but she’s a contemporary Christian artist who was most active in her career from 2000 to 2006.

I grew up on her music so I was just as hyped up as a long-time fan of the Spice Girls would be. Luckily my sister convinced me to go and we agreed that the trip would be a frugal last-minute vacation. Hence why I just had to go.

Being in the middle of a debt repayment journey right now, I’m definitely learning how I can make financial progress and still take advantage of once-in-a-lifetime opportunities like this one.

Normally, California can be a pretty pricey place to visit. Here’s how we spent less than $400 each on the entire trip.

Southwest Companion Pass

Flights can be the most expensive part of a trip. Luckily, I earned the Southwest Companion pass last year which allowed me to book a Southwest flight and bring a companion along with me for free.

In order to earn this pass, you need to do either 100 one-way flights in a year or earn 110,000 Southwest Rewards points. I’m not a huge fan of flying and 100 flights sounds insane so I chose the latter to help me earn the Companion Pass.

To earn the points, I signed up for the Southwest Rapid Rewards personal credit card and the business version of the credit card. Both cards offer a sign-on bonus where you can earn a ton of points once you make a certain amount of purchases within the first 3 months.

The Southwest Rapid Rewards personal card had a 40,000 bonus and the business card had a 60,000 sign on point bonus at the time that I signed up. From there, all I needed to do was make a few regular purchases on the card to earn the remaining 10,000 points I needed for the pass.

I love this airline offer because you earn a ton of points to redeem for free flights. On top of that, you can earn the Companion Pass like I did.

Disclaimer: If you’re going to credit card hack for points like I did, it can be a great way to save money on travel. However, you have to control your spending and pay your balance off in full each month. If you keep a balance, you’ll pay unnecessary interest which will cancel out the benefits of any rewards you earn.

Related: Best Strategies and Tips to Crush Credit Card Debt

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So since my sister technically got a free flight, we just split the cost of my flight down the middle so we each paid only $153.48 for roundtrip flights to LA.

Airbnb

Lodging is the next largest expense most people run into when they travel. We decided to go with Airbnb. We actually found a super good deal via a private listing on the site.

My sister teaches ESL online and one of her students recommended an Airbnb host that was super affordable. We booked a private room in the house which was located in the suburbs of Los Angeles. It came out to $53 for each of us which was much cheaper than what we’d pay if we stayed in LA.

Yes, I know that’s SUPER cheap as it was only $25 per night and $106.13 total for both of us to stay there for a few nights. Her student really hooked up with that referral!

Our Airbnb host also lived in a subdivision that had its own clubhouse and outdoor pool and he gave us access so it was a nice perk.

Turo

Renting a car was a must for us while in California because the places we wanted to go were so spaced out and the prices for ride-sharing were super high.

Still, car rentals can add up to especially after you factor in mileage costs, gas, and insurance. LA has horrible traffic (I thought Chicago did but I was wrong).

I’m so glad my sister found out about Turo which is how we rented a car for cheap. I heard of Turo before and even wrote about it on this blog some years back.

It’s not as popular where I live and I’d never used it but I’m so glad we gave it a try. Turo is a site that allowed you to rent out your car to other people. You set your own prices and come up with your own terms.

Apparently in California, Turo is pretty huge and they have their own lot with valet workers. We were able to rent a basic compact car for only $166.27 for a few days. This was a steal and the car was really good on gas. We split the price so we each paid only $83.13 for the car rental. I think we only filled it up when we were wrapping up our trip and heading back to the airport to drop the car off. I probably put $20 toward the gas at that point so let’s round the car rental price up to $100 for my portion.

Related: 9 Ways to Make Money While Traveling

Groupon

I’ve been a long-time fan of Groupon. I use it all the time and I’ve found some awesome deals over the years. For our trip, we took advantage of this popular deal site to score discounts on most of our activities.

We visited the Planes of Fame Museum and used a Groupon to save money on admission. We also had a full spa day in LA which we found a Groupon for also.

It helps that I’m super flexible and open-minded when it comes to entertainment. I like trying new things and seeing new destinations so I’m usually up for one or more experiences that Groupon is advertising.

Plus, I’ve never been to a spa before – don’t judge me – and it was a pretty awesome experience. The museum was only $6.25 per person and I paid $25 to get into the spa.

Food Hacks

Food can easily inflate the price of your trip. Heck, even when you’re not traveling, food costs can eat up your budget and dining out is just one of those tricky hidden costs that you need to get a handle on.

It’s always a given that I’m going to dine out when I travel, so I like to find ways to cut the costs. I love breakfast, but I hardly ever dine out for it.

Instead, my sister and I just went to the grocery store and purchased some snack bars, fruit, cereal, and sausage. I’m literally obsessed with these smoked sausage sticks and they can sit without being refrigerated which is great when you’re on the go or traveling.

We got coffee for free at the clubhouse each morning instead of going to Starbucks. We also stayed with local restaurant recommendations.

My sister found a great empanadas place where they served a variety of huge empanadas for only $2 each. We also found a really good seafood/healthy eating restaurant that had daily deals and served large portions for such cheap prices.

The fish was some of the best we ever tasted so we wondered why the prices were so low for it to be in California, but then again, I actually didn’t care. We went to our seafood place at least 3 times during our trip and the portions were so generous we were usually so full that it covered lunch and dinner.

To find the best food places when you’re traveling, I highly recommend checking out sites like Yelp or even just use Google Maps over tourist sites. Some touristy restaurants are expensive and the food is not even that good.

I’d rather go where the locals go, eat good, and save my money. Overall, I probably spent about $50 – $6o on food and dining out during the trip which wraps up our $400 per person budget.

We paid for the concert separately and a few months prior to taking the trip. I spent about $100 on my concert ticket which included VIP seating and a meet and greet afterward. My hair was pretty much done by the time I got to meet Stacie unfortunately.

Final Thoughts

Overall, my first girl’s trip with my sister was nothing short of amazing. We got to attend the concert I thought I’d never make it to and actually meet my favorite artist so she now knows I exist Plus, we were able to create other great memories together without overspending.

Given that, I can’t complain at all about this frugal last-minute trip to California. Even though we didn’t have much time to plan, I love how we both operated on frugal autopilot and did some basic research to learn more about the area we were traveling to and find ways to save.

Do you have any trips planned for this year? What would be your go-to hack to save money on a frugal last-minute trip?

The post Best Tips and Tricks to Plan a Frugal Last-Minute Vacation first appeared on My Debt Epiphany.

The post Best Tips and Tricks to Plan a Frugal Last-Minute Vacation appeared first on My Debt Epiphany.

Going on vacation is not a necessity and you can definitely survive without one, but it’s a common luxury we all like to have and it can do wonders for your mental health. I love vacations, but I always used to think they were so expensive and I couldn’t afford one/had other priorities to take care of instead.

Eventually, I realized that going on a vacation doesn’t have to cost an arm and a leg and doing things like domestic travel, staycations, cruises, mini-vacations, and weekend getaways can be just as refreshing.

If you’re dying to go on a vacation but want to maintain your budget, consider planning a $1,000 vacation and trying some of these strategies to help you save for it.

1. Brown Bag It

If you order out for lunch each day, you could be wasting a ton of money on the regular. Back when I used to work in an office, everyone went out to restaurants or ordered takeout for lunch each day. The average amount a person would spend would be $6-8 on lunch alone per day.

If you add that up, it comes out to $30-$40 per week or over $1,000 per year. If you cut down on buying lunch each day and brown bag it instead, you could easily pocket the money you don’t spend dining out and put it toward a vacation instead.

By no means do you have to go cold turkey on buying takeout for lunch. Try cutting down to once or twice a week if you’re doing it every day and consider buying a wide variety of foods at the grocery store that can make up your home lunch.

Related: How I Save Money By Bringing My Lunch to Work

2. Use Your Tax Refund

If you get a tax refund, one of the wisest moves to make with the money is to use it to get ahead financially whether that means paying up some bills, making extra debt payments, or simply saving the money for a boring day.

I’ve done all these things with tax refund money in the past, but I’ve also used some of my tax refund for a vacation as well and I see no problem with that. If your finances are in order and you receive a lump sum payment like a tax refund, it can seem nice to do something for yourself for a change if you know you’re really going to value the experience.

If you want to balance out your needs and wants, you can split your refund up between funding part of your vacation and any other financial goals you have.

Related: 7 Smart Things to do With Your Tax Refund

3. Set a 6-Month Savings Goal

A pretty straightforward way to be able to afford a $1,000 vacation is to simply save up for one. The reason why you may feel like you can’t afford to travel is because you don’t prioritize saving for travel in the first place.

By setting a clear purpose for saving your money, you’ll be more motivated to save consistently and stick to your budget so you can reach your end goal. Saving up $1,000 doesn’t have to be that difficult either. If you start saving $166.66 per month in January, you’ll have the money you need by June.

Related: How to Save Your First $1,000

4. Sell Some Stuff

Selling items from your home is one of the quickest ways to make extra money. Realize that most people hold onto unnecessary items all the time and may very well have $1,000 in products just laying around their house collecting dust.

Start going through your home and selling items you no longer want or use. You can host a yard sale or sell the items on sites locally like Craigslist and the Facebook Marketplace. If you’re looking to sell stuff online, you can create listings on Amazon or eBay, or check out Decluttr.

Decluttr is a cool site that buys your old books, games, movies, and devices. I recently used Decluttr to sell a few things in order to get more spending money for my family’s vacation to Disney World earlier this month.

Related: How to Earn Money Selling Items on Amazon or eBay

5. Use Credit Card Rewards

If you know how to use credit cards wisely, be sure to take advantage of any rewards you earn when you’re thinking about traveling. Rewards points can often be applied for flights and hotel stays to lower your out of pocket costs. Or, you can use your cash back rewards to add to your savings stash.

I have the Citi Thank You cash back card and it’s great because you earn 1% cash back on every purchase (no exceptions), plus another 1% cash back when you pay off those purchases. I like how Citi rewards cardholders for paying off their purchases on-time and using their cards wisely along with the fact that there is no limit on how much cash back you can earn. CardRates compares some of the best credit cards for earning cash back rewards so you can find the best card for you.

6. Do Micro Tasks in Your Spare Time

Another option that could help speed up the process of saving $1,000 for your next vacation is to do small micro tasks online in your spare time. You can take surveys on sites like Vindale Research,  Opinion Outpost, and Survey Junkie and earn points on Swagbucks that can be redeemed via PayPal gift cards so you can get the cash.

Doing micro tasks online won’t make you rich, but it’s a flexible way to make extra money

Related: Earning Money Taking Online Surveys: An Honest Review of 7 Top Survey Sites

7. Start Driving For Uber or Lyft

If you have a 4-door car, a driver’s license, and are at least 21, you should consider driving for Uber or Lyft to make some extra money to fund your vacation.

Back in January, I went to Las Vegas for my birthday and my husband drove for Uber on the side and earned over $1,000 to add to the trip budget in just a few short weeks. He now drives for Uber and Lyft on the side and while Uber is more popular in our area, he still earns a nice chunk of money from both apps each month.

The best things about driving for Uber or Lyft is that you can create your own schedule and drive whenever it’s convenient for you. Plus, you get paid weekly and can earn up to 2 different types of bonuses each week.

Related: 5 Reasons Why You Should Start Driving For Uber

8. Get An Official Side Hustle

If you don’t like driving, get an official side hustle doing something else. You can write online, do virtual assistant work, babysit, walk dogs, test out websites, get a second job at a restaurant, etc.

Start by determining what your skills and hobbies are the choose something you can do to monetize them. If you want to brainstorm some additional side hustles that might interest you, be sure to check out this master list.

Related: 80+ Side Hustle Ideas That Don’t Suck

9. Lower Your Cell Phone Plan or Cut Cable

If you’re paying too much for either your cell phone bill or cable, consider cutting or reducing one or both in order to easily save $1,000 annually.

I’ve been using Republic Wireless for 2 years now and only pay $25 per month for my smart phone and my plan even includes data. By switching to Republic Wireless, I still got to keep my smartphone but I saved around $600+ annually as a result.

I’ve also been living cable-free for well over two years and I don’t miss it at all. I save over $1,000/year by not having cable and I still get to watch many of my favorite shows by using affordable streaming services.

10. Open Up a New Bank Account

Don’t like your bank? You can actually earn money for opening a bank account somewhere else instead. It’s called a signup bonus and many banks have them and will offer you hundreds of dollars just for opening your account with them.

In order to receive the bonus, you’ll need to meet a few requirements like setting up direct deposit and some banks even want you to have 2-3 deposits go through first before you receive the money so be sure to give yourself enough time to earn the full bonus amount.

Yet and still, this can be a super easy way to try out a new bank and earn some extra cash that could be added to your $1,000 vacation fund. Here’s a great updated list of the best bank account bonuses currently available.

Where would you like your next vacation to be? Have you ever done any of these things to save before?

The post 10 Ways to Afford a $1,000 Vacation first appeared on My Debt Epiphany.

The post 10 Ways to Afford a $1,000 Vacation appeared first on My Debt Epiphany.

I know that families with kids can very well drop hundreds of dollars on sending their children back to school with the latest gear. That’s just not me. My budget is always pretty moderate since I know there are tons of other expenses that I’ll need to be prepared for over the course of the year.

Below are some of my best back to school shopping tips that help me save big every year.

Start At Home

Before you even head out to the store, check your home for stray supplies lying around. I’m sure you’ll find pencils, pens and paper to say the least. If you overbought the previous year, you may have extra supplies lying around just ready to use.

We usually have pencils around the house though along with paper and a few binders. Back when I was in school, our supply budget got smaller and smaller in my household as we got older so I would successfully raid the house each year for paper, reusable folders that were still in good shape.

When it comes to backpacks, it’s best to buy one that’s made to last so it can be used for a few years instead of having to get a new one each year. My son will be using the same backpack this year as well, seeing as how I used the same backpack all throughout high school and college.

Locate Back-to-School Giveaways

Most cities have back-to-school events where volunteers and organizations grill out and give away basic school supplies and backpacks to the neighborhood. Events like these are open to anyone and everyone and you don’t need an ID or anything to receive the free supplies and other donations.

I went to one of these events last year and my little town really outdid themselves. In addition to handing out school supplies, household toiletries, and free barbecue, they also had a giant food truck that handed out meat, boxes of cheese, bread and other items along with a barber who gave all the kids free haircuts. I had so much provolone cheese in the freezer I was able to use it make sandwiches for lunches through the winter.

To find out if your area offers any of these events, search online, look for fliers or ask town officials or your local library. It’s still probably not too late!

Avoid Name Brands If It’s Not In Your Budget

I mean it on this one. When you’re shopping for school clothes for kids, your main focus should be the style and quality of the clothes along with the price. If an outfit happens to be a name brand then that’s fine, but if it’s just a generic Target brand that’s alright too.

With clothes, I tend to try to get enough to cover fall, winter and early spring before I have to go shopping again. That requires a lot of strategizing. You can save here by being open to receiving hand-me-downs and buying gently used clothing.

It’s super hot where I live during the month of August so my newest strategy is to send my son back to school in some of his summer short outfits, then take advantage of labor day sales in September if I need to buy anything new.

We will be stopping by a new Goodwill to check out their kids’ clothing this year before going to a regular retail store and I accept hand-me-downs year-round so I have jeans in our storage unit that he can wear three years from now. If you don’t have any good thrift stores near you, you can shop online with ThredUp.

ThredUp is an online consignment shop that sells gently-used clothing for men, women, and kids. You can even sell your clothes to ThredUp and they will pay you, or you can enjoy their low clothing prices for you and your family.

Purchase a back-to-school outfit for your child on me if you are interested in checking out their clothing. If you click on my referral link, you’ll get $10 to spend while I get $10 to spend as well

Use Coupons This Time

If you dislike couponing, this is the one time where you should push yourself to make an effort because it could save you a good amount of money. I love Target coupons because you can pull them up on your phone very easily and this year they have dollar store prices for many different types of school supplies.

Check the circulars that come in the mail to get leads on where the best deals will be and cut out a few coupons to use. You can also take the more modern route and use an app to help you compare coupons and deals and save.

I’ve heard really great recommendations for apps like Ibotta and Rakuten (formerly known as Ebates). You only have to do this once a year so might as well make this extra effort to rack up some savings.

Related: Rakuten (Ebates) Review: Earn Cash Back on Everyday Shopping

Start Setting Money Aside Early

Setting money aside during the summer is a must if you have more than one child, but it’s a great idea for all parents. Instead of having to drain your funds in August right before school starts, it’s better to have money set aside that you can use.

I started saving $30 here and there for school clothes in June and worked the cost of supplies into my budget after I saw the supply list.

You can start budgeting for back-to-school expenses as early as you want and set up automatic transfers to build your savings each month.

Shop during the Seasonal Rush

Sometimes it’s best to avoid the seasonal rush, but with school supplies and clothes I’d say jump right into fire and crowds of shoppers. Retailers offer amazing deals on items during this season and if you shop too early or too late, you may miss out on those deals.

The post Smart Back to School Shopping Strategies to Help You Stretch Your Dollar first appeared on My Debt Epiphany.

The post Smart Back to School Shopping Strategies to Help You Stretch Your Dollar appeared first on My Debt Epiphany.

If you’ve tried to budget before, you probably know it can seem exciting in the beginning. You sit down and track your income then organize all your expenses and set up a solid plan. A feeling of relief sweeps over you as you finally feel like you have some control over your finances and a winning strategy.

Then, life happens.

A rough and busy week leads you to order takeout several nights in a row. You go to Target for one thing but even up getting way more than that. Your child comes how with a book fair flyer and asks for $30 extra.

Before you know it. Your ‘perfect’ budget is crushed and you’re back to square one – feeling pretty down and hopeless about your ability to manage your money and meet goals.

What I love about the 50 30 20  plan for your money is that it allows you to break your spending up into three main categories instead of trying to juggle more than a dozen different expense categories.

Of course, budgeting requires some amount of self-discipline. However, it’s not that difficult and can really lead to you having more control and freedom over your situation. In this post, I want to explain how this budgeting method works in detail and explain the pros and cons of using it as your main budgeting strategy.

How the 50 30 20 Plan Works

The 50/30/20 budgeting method aims to break down your take-home pay into percentages or categories. Your basic needs make up 50% of the budget, 30% for your basic wants, and 20% for your savings increase and/or debt payments.

The 50-30-20 budget plan gives you a clear idea of how much you should spend in each category. It also motivates you to practice financial discipline. Yes, there are constraints like any budget, but you don’t have to track your purchases to the penny or beat yourself up if your grocery bill exceeds your expectations. Here’s how to get started.

Related: The Ultimate Guide to Budgeting

Determine Your Net Income

Your net income or take-home pay is the money you receive monthly after deduction of taxes. You can also think of it as the money you have to spend and/or save every month.

To determine your monthly net income, you can look at your paycheck or the amount deposited into your account by your employer. For freelancers, entrepreneurs, or independent contractors, determining and budgeting their income can be done using the irregular income method.

Basic Needs (50%)

Since the biggest percentage of your net income goes out to our basic needs, it’s only apt to know what are “basic needs.” Typically, this consists of expenditures, such as your food, rent, mortgage, utilities, insurance, minimum credit card payments, and what-not.

Many people find it challenging to determine their “needs and “wants.” So, allow yourself to ponder on this thought experiment: if you’ll lose your source of income, what are the things you would prioritize or need the most?

For sure, your answers would be your groceries or house or your electricity. Your “want” to buy an expensive pair of jeans or travel to another state will be out of the equation.

Related: How to Come Up With a Bare Bones Budget

Basic Wants (30%)

In this budgeting method, basic wants should be separated from luxurious wants. Examples of the latter are purchasing a new car, having an out-of-state vacation, or getting a pair of designer shoes.

Basic wants are ordinary things you want but you can still live without. Examples are cable, Netflix, your gym membership, or internet subscriptions. You may want these things and having them can make your life more comfortable, but you can be ready to give them up when you’re financially unstable.

Savings and Debt Payoff (20%)

After going through your basic needs (50%) and basic wants (30%), it’s now time to consider your savings and/or debt payoff, which makes up 20% of your 50 30 20 plan.

Building your regular or emergency savings is crucial for your financial health. Plus, what I love about this budgeting method it automatically factors in space for you to make extra debt payments or put money into savings. If you have loans , you and other types of debt, developing a budget is key to help you avoid late payment fees and a negative impact on your credit.

When a 50-30-20 Budget Works

The 50 30 20 plan is a great option for anyone who’s new to budgeting and needs a simplified plan that works. No matter what your expenses or financial goals are, everything will fall into one of the three categories. There’s room in this budget to pay your rent or mortgage, utilities, groceries, make fun purchases and even use a little to pay off debt.

Another thing that I like about this budget is that it helps you learn how to keep your spending lower in certain categories. For example, if you bring home $4,000 per month, you know that you likely can’t afford a $2,000 mortgage because your house payment alone would take up 50% of your income. If you’re spending too much on dining out or expensive hobbies, you’ll need to make cuts where you see fit to keep everything within 30% of your take-home pay.

When a 50-30-20 Budget Might Not Work

A 50-30-20 budget might get tricky if you intend to be very specific with how you spend your money. A complaint that I often hear is that your debt payments may exceed 20% of your income or you may want to save more than 20%. This makes perfect sense. If you want to save more or make bigger debt payments, you should definitely do this.

For many of us though, we learn how to crawl before we can walk. If you’re not saving anything at all, then 10% toward debt and 10% toward savings can sound great. Once you feel like you can do more, you can always adjust the percentages to whatever you see fit. For example, you can switch it to 40% (needs) / 20% (wants) / 40% (savings and debt payoff) if that works better for you.

For me, I have many different types of savings goals and 20% often doesn’t work. Below are just some savings categories that might apply to you and can be worked into your budget:

Savings Account

Setting aside money into a savings account is important because it serves as your source for future financing. If you need to buy a car or a house, you can withdraw money from your savings account for the down payment of your purchase.

Emergency Fund

An emergency fund serves as your cushion when unforeseen events, such as work layoff or illness, happen. Since you will need money in such unfortunate circumstances, your emergency fund will be a big help for you to survive financially.

It’s advisable to set aside 3 or 6 months’ worth of expenses into your emergency fund. You can also save more to ensure that you’ll have enough when emergencies occur.

Related: Why Do You Need a Full Emergency Fund?

Emergency Fund Tips: How to Grow Your Account Fast and Where to Start

Retirement Savings

Saving for your retirement is another crucial strategy to achieve financial stability. For example, you can invest in a ROTH IRA so that you’ll have money to use in your retirement years. This type of retirement savings enables you to invest with your post-tax income.

Related: Have Debt But Want to Invest? Here’s What You Need to Know

Debt Payments

As mentioned previously, it’s essential to pay your loans in time to avoid getting a bad mark on your credit history. So, if you’re currently paying a debt, make sure to include it in your monthly budget.

Pro Tip: If you’re wondering whether the 50 30 20 plan is right for you, go back to the basics and create a line-item budget. I explain how to create a traditional budget step-by-step here.

Then, group all your expenses up into similar categories using the 50-30-20 model. Figure out what your exact percentages are whether they are 53-27-30. That way, you can still make this budgeting method work for you.

Also, you may want to consider creating an annual budget just so you can get a clear picture of your finances and expose any of those sneaky or unexpected expenses that you may not notice occurring month-to-month.

Related: Why and How to Create an Annual Budget

Takeaway

Now you know what a 50-30-20 budgeting method is. This way of budgeting can give you a clear idea about where to spend your take-home pay. This budgeting method helps you categorize your budgeting into basic needs (50%), basic wants (30%), and savings and debt payoff (20%). The 50 30 20 rule won’t work for everyone, but it’s worth considering especially if you are new to budgeting or need clear guidelines to help you organize your expenses.

What are your thoughts on the 50-30-20 budget?

The post The 50-30-20 Budget Plan: What Is It and How Does It Work? first appeared on My Debt Epiphany.

The post The 50-30-20 Budget Plan: What Is It and How Does It Work? appeared first on My Debt Epiphany.

One way that can be a big help in turning this around for financially feuding couples is making a budget.

It’s a great way to alleviate the stress of money-centered conflict and it offers an opportunity to build a strong financial foundation together.

It’s also no secret that when both partners are on board with making a budget and sticking to it. Reaching your joint goals is a lot easier. So how do you approach the subject of budgeting with a skeptical partner?

Here are some great strategies that can help you and your spouse create a budget game plan and finally get on the same page.

Ask Them Out On A Budget-Friendly Date

Although a difficult subject, there is no reason why talking about budgets can’t become a positive experience. Take your spouse somewhere that is cost-effective and fun for you both to discuss your finances.

This is also a great way to show your spouse that budgets don’t have to be strict and entertainment can be incorporated into it if that is something important to them. Fun activities are a great way to reward your budgeting commitment and it helps your spouse to see it as an upside to budgeting.

Some frugal budget date ideas include:

• Taking a walk
• Getting ice cream
• Roller-skating/ice-skating
• Going to the movies
• Bowling
• Hanging out at a coffee shop
• Riding bikes together
• Open mic night for comedy or karaoke
• Paint night

Demonstrating that fun can happen on a budget will help foster a positive connection to budgeting for your spouse.

Related: 30 Frugal Ways to Spoil Your Spouse (+30 Budget Date Ideas)

Highlight The Benefits of Making a Budget with Your Spouse

As you open up the conversation with your spouse, share some positive benefits associated with budgeting:

• Having a sense of security from being in control of your money
• Getting/staying out of and avoiding more debt
• Being able to work towards your dreams
• Creating a stable financial foundation for your family
• Opening other doors of opportunity
• Gaining more knowledge about finances in general
• Creating organization and order for spending and saving
• Open up the communication channel for you both
• Creates focus and awareness on your money goals and habits

You can also share key areas that you can save money to provide a real example of how this benefits you

Having positive points lined up can help hit home for your spouse. It will help them see that this is a great way to move forward on your financial journey.

Related: How My Husband and I Paid Off $14,354.81 of Debt This Year

12 Frugal Hacks You Can Use to Start Saving Thousands

Do Some Goal Work

Now for the really fun part: dreams and goals talk!

Discussing your future and dreaming big can be fun and rewarding for each of you and it builds your bond as you decide what is truly important in your lives. This is also a great opportunity for each of you to share your personal insights on how you view money.

When speaking with your spouse, be honest and open about your personal goals, your money mindset and why making a budget is important to you.  Then ask your spouse to share their views about the subject as well.  After this, discuss your joint financial goals, both short and long-term.

A deep discussion will give you a full view of your spouse’s concerns, fears, and dreams. This will help to deepen your bond together and set the stage for growth in your financial relationship as well. It also demonstrates why budgeting is a useful tool for your life goals together and eases you into the actual budgeting work –  which can be emotionally and mentally challenging.

As you generate ideas during your conversation, take notes and be sure to review them together at each budget meeting to make sure you are on track.

Work With And Grow Your Budget

After you both get an idea of your dreams and goals, this is a great time to think of where you can make changes to your budget. With a focus on your goals, you’ll be able to make choices together that you agree upon.

One way to do this is to set up monthly allowances. This introduces a new way to build trust and freedom so you don’t have to micromanage everything spent. An example is giving each person $150 to spend on whatever they want, no questions asked.

This way, if someone is more prone to spending, they will be able to without feeling restricted. The number you decide on for each person will be a conversation you both have and agree upon so you’re on the same page.

Bright IDEA: Budgeting software or a budgeting app can be a great way to get on the same page financially and take the pressure off both parties to closely track your spending in the beginning. My husband and I started using Simplifi by Quicken and we love it. 

Simplifi connects to all your financial accounts to help you manage your budget, track your net worth, set financial goals and more. Learn more about Simplifi here.

Bonus Idea: Earn Extra Money Together

Another great idea is earning more money through a side hustle! You can do this together or separately. It’s a fantastic way to add more cash flow to your budget and create more room for the spender in the relationship, minus the guilt.

Some great side hustle ideas to look into are:

Doggie Treats Bakery At Home – This is a super fun side hustle in a BOOMING industry.

Virtual Assistant – Another industry that is on the rise. Even if you have no experience you can grow this side hustle as a beginner.

Freelance Writing – This is a great way to earn extra income and there is always a demand for freelance writers!

E-Printables – If you love those awesome downloadable printables you get from Etsy shops, you can easily create you’re own and earn money!

Take Surveys – Earn gift cards and cash for taking surveys online.

Bring In The Advisor

Utilizing the services of a finance professional can add a deeper level to your support of budgets and sometimes this level of expertise can help make your partner feel more comfortable.

If visiting a professional one-on-one isn’t an option, taking an online course is a fantastic way to show your spouse why budgets are a great idea.

Related: Learn how to budget better and get on the same page financially as your spouse

Lead By Example

Spouse still not on board? Another great way to get your reluctant significant other on board with budgeting is by making a budget for yourself and following it daily.

As you stick to your budget and still enjoy your life, your spouse will see that budgets don’t have to be difficult to follow and maintain, nor do they have to suck all the joy from your life.

In addition, your spouse will see that money can be used in many different ways, and deciding how you make it work for you is empowering.

Remember, sometimes showing not just telling can be more effective in your pursuit to get on the same budget page.

Some other great tips are:

• Speak as a team by using “we”. You want to have your spouse feel included in the process in every way and if your perspective is one of togetherness, in the ups and downs of budgeting and life, they will be more receptive.
• Reassure them that while it isn’t always easy, reaching your goals is achievable with a budget that BOTH of you agree to.
• Find free budgeting tools and applications online to make the process even easier and more interactive.

Summary

Budgeting with your spouse truly has many benefits and although it may be hard getting them on board, using these tips above will help them recognize the highlights of working together on your finances with a budget.

What ways helped you to get your spouse on board with budgeting? How long have you been successfully budgeting together?

The post How To Get Your Spouse On Board With Budgeting first appeared on My Debt Epiphany.

The post How To Get Your Spouse On Board With Budgeting appeared first on My Debt Epiphany.

Don’t get me wrong, can be difficult to be a single mom. You have the only income coming into the household. Plus, you have to provide for your child and maintain the household. This load of responsibilities often does cause some single moms to not earn enough to meet their potential.

Still, you can pay off debt and get ahead if you’re a single mom with a low or average income.

The Key is to Budget

I started budgeting in 2014 when I got fed up with being broke and avoiding from my financial hardships. I used to always tell myself that I never made enough money to budget. I saw budgeting as a dreadful experience that I knew I wouldn’t be successful at.

After using the avoidance method to no avail, I finally decided to give budgeting a try as a last resort. What I learned was life-changing.

I learned that budgeting is not about limiting your lifestyle, it’s about planning how to avoid the life you want. I realized that my budget wasn’t the enemy, it’s actually a tool to help me plan my spending and eliminate stress around money.

Budgeting as a single mom helped me not only survive day-to-day, but it helped me thrive and pay down debt. Below, I’m sharing my very first single mom budget from when I first started my debt payoff journey. I was only making around $32,000 per year, but I still managed to live on less than I earned, save money, and pay off debt. I was even able to be generous and help pay my younger sister’s phone bill.

Related: Failing to Budget Has More Consequences Than You May Realize

Here’s My Monthly Single Mom Budget Explained

Rent: $315 – The benefits of living in a small town Rent for my 800 sq. ft. apartment was already pretty cheap, but I split it down the middle so I’d highly recommend choosing affordable housing or getting a roommate.

Fuel: $230 – This expense was more on the expensive side for gas. I worked 40-50 minutes away from my home and spent about $70/week in gas due to the commute.

Household/toiletries: $35 – This includes items like toilet paper, toothpaste, soap, etc. I stockpiled a lot since I had a Sam’s Club membership and also shopped at the dollar store when I could. In addition, I couponed occasionally but was never extreme about it as I didn’t want it to take up too much of my time.

Eating out: $30 – Yes, this is super low, but it’s something and allowed me the freedom to grab takeout to eat with friends during the month if I wanted to.

Credit Cards: $100 – I was in the process of building my credit so I had a CC and set a goal not to spend more than $100/month on it for miscellaneous purchases. I set this limit because it seemed like a reasonable amount for me to pay so I could pay the balance off in full each month and build my credit.

Clothes: $30 – Some months I didn’t even spend this money as I already had a ton of clothes. Other times, we shopped at thrift stores and resale shops.

Entertainment: $50 – Most of the time, I found free activities and entertainment for my son and I but it was nice to have this small amount available I ever wanted to do things like go see a movie, go bowling, or attend a festival.

Gym: $14- I received a discount on my gym membership with the YMCA.

Groceries: $200 – Learn all about how I stick to my new grocery budget here. 

Car Insurance: $107

Electricity: $50

Hulu: $8

Daycare: $151 – I did receive a subsidy from the state to help me pay for my son’s daycare at the time so this was my monthly copay.
Phone: $10- I used to have a service called Republic Wireless and at the time they have very cheap smartphone plans starting at just $10/month

Sister’s Phone: $50 –I was happy to help my teenage sister out with her monthly phone bill and looking back I’m super proud of myself for being able to do this despite my low income.

Car note/Student Loans/Savings (minimum):$700 – At the time, I had a minimum student loan payment of $150 per month and a minimum car loan payment of $233. As you can see, I had extra money leftover so this went to extra car payments and some went to savings.

Total: $2,080

Side note: These were my baseline expenses. Sometimes I got bonuses at work which increased my income but it wasn’t a guarantee. If I ever had any extra money, it usually went toward savings or debt. That way, I could cover myself if I ever slipped up with spending or was faced with an unexpected expense. Also, health insurance is not included here because my low income allowed my son and I to qualify for Medicaid. When I no longer qualified I started using Liberty Healthshare which is a Christian health sharing ministry.

How I Made It Work

There were quite a few things I did to help my single mom budget work.

Focus On the Big 3

When trying to live below your means, I always recommend people focus on their top 3-5 highest expenses. They are usually housing, transportation, and food. Childcare and insurance are other expenses that may make up a large portion of your budget.

For my situation, I made sure I found a basic but safe affordable apartment. Having such a low rent payment freed up a ton of money. I also did most of my cooking at home and brought my lunch to work each day. At the time of this budget, I did qualify for Medicaid so I didn’t have to worry about medical expenses. However, once I no longer qualified, I switched to Liberty Healthshare for a while.

There wasn’t much I could do to lower my fuel costs since I had to commute to work. I did however, focus on paying off my car loan by making extra debt payments. By doing this, I was able to pay my 5-year loan off in 1.5 years while saving myself thousands of dollars in interest.

Related: Budgeting With a Low Income, Yes It’s Possible

Find Ways to Save on Non-Negotiables

During this time in my life, I tried not to tell myself that I couldn’t afford something that was a basic necessity. If I couldn’t afford to pay full price, I always found a way to get a discount or save somehow. I was able to keep household expenses low because I was willing to stockpile and check sales ads for coupons and deals.

I didn’t want to pay for cable, but I still used Hulu to stream TV shows and movies for cheap. Having a smartphone and staying connected was important to me, so I found out about Republic Wireless and was able to get on a phone plan that fit my budget.

When it came to shopping for clothes, I’d already had plenty of clothes and my son would always receive outfits and hand-me-downs from friends and family. I shopped at Goodwill and utilized gift cards. For example, I love this accessories store called Charming Charlie.

Each year around Christmas, I’d get a gift card to the store and I’d go during their sale season. I’d shop the clearance section so I’d save on my purchase and get the most out of my gift card. This was a fun way to treat myself while sticking to my budget.

Realize Debt Is Not Worth It

You may feel tempted to overuse credit cards or take out loans if you’re struggling to make ends meet, but realize it’s not worth it. If you can’t use credit cards wisely, you should just avoid them altogether for the time being.

It may seem like a relief to pay for expenses with a credit card or loan, but it will only come back to bite you at the end of the day. You’ll be expected to pay for the purchase over time plus interest which means you’ll likely spend more money than what the item was worth.

When it comes down to it, single moms and consumers alike can’t really afford to get into debt. It’s expensive to pay back loans. You’d be better off by just sticking to a budget and saying no to something. It may seem like a challenge in the beginning but pay attention to my next point…

Remember It’s Only Temporary

You don’t have to live on a low budget forever. Over the years my income has increased and so has my spending as a result. I still save and pay more than the minimum on debt, but I can be so much more flexible now.

Use your first budget to help you make ends meet and get ahead, but realize that you can always take steps to enhance your life whether that means going back to school, starting a business, or growing your family.

My financial breakthrough happened when I started to improve my mindset and starting landing work online as a freelance writer. Now, I’m on a mission to help other people do the same to get more out of their money and their lives. It all starts with a solid budget that makes you feel liberated.

How do you budget each month? What are your favorite strategies that help you stick to your budget?

The post My Monthly Single Mom Budget – Living and Paying Off Debt on $32,000/year first appeared on My Debt Epiphany.

The post My Monthly Single Mom Budget – Living and Paying Off Debt on $32,000/year appeared first on My Debt Epiphany.

At the end of the day, my relationship with money didn’t get better and my situation didn’t improve much. I realized what I really needed to work on was my mindset. Mindset comes before money – hence why money mindset books are the best! It’s your thoughts and feelings that create your actions and results.

Don’t believe me. Think about everything you have and do today from your job and your hobbies to your home. All of these things existed in your mind first. It started with a thought, feeling, and a belief. I spent a long time still having a poverty mindset from when I had a super low income.

I’m not that person anymore so I can’t keep those same thoughts and feelings that I used to have when it came to managing money. Without the proper mindset, you can’t get far with your personal finances. Luckily, it’s not hard to change your mindset around. One of the easiest ways is by reading books.

I’ve been reading a lot more books lately and each month I give myself a theme. Last month was personal development, this month is personal finance, and next month will be self-care.

Here are 5 of the best books to improve your money mindset. I’ve personally been reading these money mindset books and they’ve helped a ton!

1. Overcoming Underearning

Barbara Stanny explains how underearners are self-saboteurs who don’t live up to their earnings potential. They tend to live paycheck to paycheck and have a high tolerance for low pay. Right off the bat, this sounded like me and a lot of people I surrounded myself with.

At one point, I claimed I really wanted to earn more money and I was tired of having a low income. Whenever the opportunity came around to earn more, I never took it and became comfortable with my mediocre situation and being an underearner.

In this book, Barbara teaches that underearning is a self-imposed condition and can be turned around. She includes stories and testimonies from everyday women who have taken her workshop, Overcoming Underearning. This book includes 5 essential steps to start declaring your worth and earning more to match your potential.

2. Secrets of the Millionaire Mind

In one chapter, he mentions that we all have a ‘money blueprint’ which is basically a collection of thoughts and experiences (usually from childhood) that determine our feelings and actions surrounding money. A person’s money blueprint can determine how hard they’ll work and how much income they will make throughout their lifetime.

When Harv mentioned that some people will never earn more than what they’re currently making due to their money blueprint, that just blew my mind. In fact, he claims that he can use this information to predict someone’s financial future in just 5 minutes. This book isn’t all just about making money, though.

In part 2, readers get to learn how the wealthy actually think and this insight can help you in many other areas of your life as you search for fulfillment.

3. 4 Financial Languages

This book reveals that there are 4 main financial languages just like love languages. Most people are drawn to one, but can have multiple financial languages and money management habits which are referred to as ‘dialects’ in the book.

I love how this book teaches you how to identify your top financial language and learn how to communicate with your partner in their financial language.

Related: How To Get Your Spouse On Board With Budgeting

4. Your Money or Your Life

Do you want to spend your whole life trading your time for money and buying “stuff” that literally costs hours of your life? Probably not! This book is geared toward people who are seeking financial independence, but it offers tons of insight and tips comes to determining your American Dream, being honest about what makes you feel fulfilled, and valuing your energy as well as your time.

I like how the book is broken down into 9 chapters for the 9 steps the author provides on transforming your relationship with money and achieving financial independence.

5. Worthy

The book unmasks the fact that money is often a source of anxiety for some people and the state of our net worth has a direct connection to how we feel about ourselves. Worthy does include a 10-step plan for readers which includes some great stories and thought-provoking questions.

I love books that include steps, plans, etc. because it’s easy to follow along and ensure you get results. That’s what improving your mindset is all about.

Bonus Book

6. Mindset Over Money

I wrote Mindset Over Money because throughout my financial journey I learned the importance of having a strong money mindset for financial success and I really want to help others who struggle with this now.

In the book I share all of my best mindset tips to help you build a new relationship with money and grow your confidence around earning it, saving it and spending it. It’s a complete guide that will shift the way you look at money and help set you up for a rich and abundant mindset, which is needed to level up in your finances.

And because I love books with steps and plans, I included actionable steps and examples that dive deep into what mindset is, how to overcome limiting beliefs, the truth about earning money and SO much more.

Final Thoughts

These 5 best books to improve your money mindset books only scratch the surface but they are some great reads if you’re looking for a serious change in your life. If you feel you don’t have a lot of time to read, consider trying out Audible and downloading audiobook versions of these books.

I’ve been an Audible member for two years now and I absolutely love it. I can listen to books when I’m in the car, doing chores around the house, or exercising. Plus Audible often has deals and promotions on books. New members can get a free book and 30-day trial to try it out.

What’s your favorite personal finance book?

The post Books I’m Reading to Improve My Money Mindset first appeared on My Debt Epiphany.

The post Books I’m Reading to Improve My Money Mindset appeared first on My Debt Epiphany.

Trust me, you’re not alone. Your budget is not meant to stay stagnant. It should change and adapt to your changing needs and lifestyle. One thing I like to do often when I want to gain a better perspective of my spending plan is to zoom out and create an annual budget.

Related: The Ultimate Guide to Budgeting

Why Having an Annual Budget is Important

An annual budget is just like it sounds – a 12-month projection of your expenses. Budgeting month-by-month is great, but it’s also nice to see a year-round picture of how much you’re spending, what your plans are and how they’ll directly impact your goals.

Plus, it’s so easy to get married to your monthly expenses and not double-check to see how you can adjust some of the numbers. For example, my husband and I pay $90 per month for auto insurance. This isn’t bad, but on our annual budget this comes out to $1,080 per year. It’s helpful to see how monthly costs add up.

You may felt like money was tight or there was hardly enough to save or invest during the year. Having an annual budget can help you pinpoint exactly where your money went.

Plus, having an annual budget is great for periodic expenses that may come up every year or twice a year. An annual budget can help you take expenses into account like taxes, annual car registration fees, holiday spending, vacations, insurance premiums and more.

Since we bought our house 2.5 years ago, our annual budget has helped us better gauge how much we’re spending on projects and maintenance. I’m always going to be a fan of monthly budgeting, but you may have realized by now that your numbers are not going to be perfectly balanced each month. It’s best to also compare your annual expenses to your annual income to get the full picture of your financial situation.

Related: How to Come Up With a Bare Bones Budget

How to Create an Annual Budget

So how do you actually create an annual budget? The best way to get started is to review your spending over the past 12 months. Since it’s later in the year, it should be easy to go over your 2020 spending numbers and estimate what you’ll spend over the next 2 months. Still, you can use numbers from previous years and even compare your spending year-to-year.

You can check your bank statements or use an app like Mint to pull up all your transactions and spending categories. It’s best to break up your spending by fixed (rent/mortgage, bills, debt payments, subscriptions) and variable expenses (groceries, gas, transportation, entertainment, personal care). 

Once you know what you’re spending monthly, just multiply it by 12 to get the annual number. Be sure to add in periodic expenses too for categories that you may not be using monthly. Here’s a breakdown of some of my annual budget numbers based on monthly expenses

Housing/Mortgage – $18,264/$1,522

Utilities – $2,040/$170

Groceries – $4,200/$350

Dining Out and Entertainment – $1,200/$100

Fuel – $2,400/$200

Car Maintenance and Repairs – $1,200/$100

Insurance (Health, auto and life) – $5,340/$445

Shopping/Household/Clothes – $1,200/$100

Personal care – $900/$75

Other fees and Misc. – $1,800/$150

Total the Numbers Up and Determine Your Budget Percentages

Based on my annual expenses for our main budget categories, it’s clear that we’re spending around $40,000+ annually just to live comfortably. Half of that is going toward housing.

One thing you’ll want to do when you have your annual budget numbers recorded is compare it to your income. While our housing cost is 50% of our annual spending, it’s not 50% of our income. This is because we live on much less than we earn.

A general rule of thumb is to keep your housing costs below 30% of your take-home pay. This is not a hard rule but I do like to follow it because I don’t want to become house poor. While I wish our housing costs were a little lower, they’re right around 20% of our income so I’m okay with that.

Related: 70 Ways to Save More Money While Living Paycheck to Paycheck

How We’re Avoiding Becoming House Poor

My Monthly Single Mom Budget – Living and Paying Off Debt on $32,000/year

The key is to live on less than you learn. That way, there’s money left for debt payments, savings, or whatever else you want to do. The best way to ensure this is to make sure you’re spending only a percentage of your income in every area. Those percentages should not exceed your income when added up together. While you’ll come up with your own percentages based on your numbers, here are some recommended budget percentages per category to consider.

Housing: 25 – 35 percent

Utilities: 5 – 10 percent

Food: 10 – 15 percent

Transportation: 10 – 15 percent

Health: 5 – 10 percent

Insurance: 10 – 25 percent

Personal: 10 – 15 percent

Recreation: 5 – 10 percent

Saving: 10 – 15 percent

***To calculate your budget percentages, divide the total annual amount by your total annual income.

Example: $1,200 in annual transportation costs divided by $50,000 annual income —> 1200/50,000 = 0.024 = 2.4%

Questions to Answer When Calculate Your Annual Budget

When you create an annual budget and calculate your budget category percentages, it can be a huge eye-opener. Here are some key questions to ask yourself during the process.

Am I spending too much on _____? How does this affect my goals?

Maybe when you run the numbers, you find out that you’re spending an overwhelming percentage of your income on takeout or online shopping. This is the perfect opportunity to put it into perspective and address how it impacts your goals. Say you’re spending $150 each month on your Amazon credit card. That’s $1,800 per year or 4.5% of your $40,000 annual income.

Determine if and how that 4.5% of your income could be better used to help you meet an important financial goal.

How much can I truly afford to save?

Once you create an annual budget, you’ll see that the numbers don’t lie. Either you’re spending less than you earn and need to find out what’s happening to the rest of your money. Or, your spending category percentages match your income and you’ll need to see where you can adjust your spending.

Related: How to Save Your First $1,000 This Year

Why Do You Need a Full Emergency Fund?

What Are My Most Important Periodic Expenses?

You may start to see your periodic expenses add up once you start reviewing your spending categories. You may have costs to cover for everything like insurance to your anniversary trip or a special Mother’s Day gift. It can seem overwhelming when you look at all your periodic expenses but this is the perfect time to break them down into chunks so you can set money aside monthly or quarterly.

One thing I like to do to manage planned periodic expenses is to assign most of them to a sinking fund.

Related: How I’m Rebuilding ALL My Sinking Funds

Summary

So in summary, an annual budget is great for you if:

• You often feel like you work hard and earn a decent amount of money, but have no idea where it’s going
• It’s difficult for you to track and categorize expenses
• You need a better way to pinpoint major financial issues
• It’s helpful to spend time thinking about spending that will occur even beyond the course of the year (You can budget for a car or an anniversary or any other important events/purchases more effectively in the long run)

Have you had a chance to create an annual budget yet?

The post Why and How to Create an Annual Budget first appeared on My Debt Epiphany.

The post Why and How to Create an Annual Budget appeared first on My Debt Epiphany.