Which route will you take?
To start planning our budgets, we turned our maps in the direction that’s most important to us. Now, it’s time to plan the journey! Straight shot or the scenic route? Get out the highlighters and plan your route to get you where you want to go. (Psst – it’s called making a budget!)
Karisa said a stable future is most important to her. So we asked, “How might you adjust your money habits to reflect your value for stability more?” And she said:
“I’m going to get really technical. Before, in Goodbudget, whatever money I had left over at the end of the month I would stash into my Debt Envelope. And I’d use that as my debt payment the following month. It was working, but what that communicated to me is that I can pretty much spend on whatever I want, and whatever’s left will be for debt, a.k.a. will be left for creating myself a stable future that’s secure and getting myself to be debt free.
So, I earmarked a large portion of my income to go to debt, and I’ll fill my Debt Envelope with that money at the start of every month. Now, I’m telling myself that my future is the most important thing to me. That’s the route that’s going to get me to debt freedom by the end of the year.”
- Remember what’s most important to you on your money map.
- How might you adjust your money habits to reflect what’s most important? Imagine some possibilities — you might not do them all.
- Make a budget that’s in line with what’s important, and include some of the changes you imagined. (This is where you get down and dirty with the numbers! Need help? Here’s how to make a budget.)
Share your plan. Comment below!
8 thoughts on “Plan Your Route”
J ha ow tu I make a budget link is broke above.
I’ve been creating my budget by dividing my yearly spending in each catagory by the number of paychecks I receive a year. Any excess I rollover in the catagory.
I’m going to change some of my catagories, if I can, to NOT rollover and place these extra $$ in my debt payment envelope.
Thanks for pointing out the link is broken! I’ve just gone in and fixed it.
I reduced my eating out budget by $50 a month, which is roughly one less meal out per week. I set that amount as an auto-deduction on each payday that goes into an IRA. To make this work, I’ve planned a cooking/prep session for each week on the weekend so I will have either something easy or leftovers for lunches and dinners throughout the week.
I’d like to spend even less on eating out, so I decided that any money left in that envelope at the end of the month will go into a new short-term savings account, and if I can save enough there I will treat myself to season symphony tickets in the fall. At that point, I can reassess my eating out budget again and hopefully reduce it even more.
As my priority is paying off debt, I have an envelope in Goodbudget for that. Whatever is left unallocated and not spent at the end of the month, is added to the monthly budget for debt, so I get to pay some installments in advance
I went through my spending and expenses, labeled them want or need. Wants are a backseat to my new budget. My goal is to pay off debt quickly and build my emergency fund to 6moths of my income. I am building a business and want to do it debt free. I also use whatever is left in my grocery, pet and incidental envelopes at the end of the pay periods and add that onto my next month snowball for debt reduction.
Thanks for sharing! It’s sounds like you’re really focused on paying down debt. Using your leftover grocery, pet and incidental cash will definitely get you there faster.
I plan on spending less on grocery for just one person.
My prio is to exchange for bigger apartment while keep the saving plan to stable my finances (for future need, marriage, kids, parents etc)
I was thinking to reduce cost for my skiing in the beginning, but I found it is so hard. I love it and this is not a hobby which I can develop when I aging. Why to give up? Instead down prio traveling: instead of expensive travel aboard, domestic travels and choose cheaper destinations. Also save for monthly eat out after I move to the new apartment. Cook more and have a slightly change in social life from eating outside to meet more at home and eat and talk. I feel like it is better change for me to adapt:)