Hello again! Two days ago we used some sample budgets to help us brainstorm our own rough draft of spending, saving, and giving. To do that, we worked on adding Envelopes with no amounts. Today, we’ll work on filling out that budget with the amounts we plan to budget.
- Take a look at your budget and review the Envelopes you’ve added so far in your Goodbudget app. Did you think of another category you need? If so, be sure to add an Envelope for it now.
- Now that you’ve added all of the categories you plan to track, it’s time to write in the amount you plan to budget for each Envelope. These might just be guesstimates, and that’s okay. Check out How to Make a Budget (Step 2, Option A shows you how to base your guesses on your past spending). If you feel like it’s been hard to save, now’s the time to set aside money first. By planning ahead and setting aside money for things like repairs, you’ll be prepared to buy those new tires when you need to without using up that extra cash you would have set aside in a Savings Envelope. And if you’re currently living through a financial emergency due to job loss or something else, take a break from 101 and head over to the GB 911: Crash Course instead. There, you’ll see how you can survive, adapt and thrive through your emergency.
- Look at the total of all the Envelopes once you’ve put in these amounts. Is the total amount you’re budgeting equal to or less than your income? If it is, you’re done for now! If it’s more than your income, try adjusting your budget so that you plan to spend less than you earn. Once your budget amount matches your income, you can stop.
- Congrats on finishing a rough draft of your budget! In the comments below, tell us one thing you’ve learned about yourself so far this week.
Note for couples: If you’re having a hard time agreeing on the numbers, take a step back — shut off the computer and put away your phones. Turn off your math mind, and open up your listening ears. Lovingly ask your partner why a certain Envelope is important to them, or ask them what might be on their mind as you try to draft a budget together. Then listen deeply and get curious. And share your own thoughts too. Understanding what’s happening beneath the surface for each person can help you return to the numbers together later with a better sense of what’s important to the two of you, as a team.
And that’s it for this week! Foundation done! Next week, we’ll focus on tracking spending.
Until then, happy budgeting,
-The Goodbudget Team