My “little treats” are blowing my budget–how do I get it under control?
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Dear Grace,
How do you get the willpower to avoid overspending? I’m two years into my first job and I’ve come to realize: I like buying stuff. Are they absolutely necessities? Not really and I’ve found myself reaping some consequences lol. Did I NEED a Gengar Squishmallow? Not really. But I don’t want to give up treating myself either. How do I find the balance of being responsible but still wanting to treat myself at least once a week? I need a budget plan sis!
– Not On A Budget, New Jersey
Dear Not On A Budget,
Welcome to adulthood!
We’ve all been where you are, some of us much later in life, so congrats on getting an early start on building some healthy $$$ habits. Learning how to manage money isn’t something we all naturally understand, nor are many of us taught as kids. Couple that with our constant stream of ads and the one—click ease of add to cart, and it’s no wonder many of us overdo it. I learned how to set and stick to a budget—and you can too! Recognizing that you need to tweak your habits is the first step.
Budget basics. There are a million apps out there to make budgeting easy, but most of them try to charge you something. The first rule of budgeting is not to pay for something you can get for free. Even if you later take advantage of the (free) apps out there, I suggest starting with the old-school approach of writing out your total monthly income and then listing everything you spend. Or type it out in a (free) Google spreadsheet. Don’t forget to include your subscriptions and any auto-pay bills. This is a great way to really see where all your money is going—and it’ll stick with you next time you think about buying a Squishmallow.
If that feels like too much responsibility right now, you can also use apps like NerdWallet (it’s actually free) to build a budget, check your credit score, and even plan for retirement (go future-you!). If you’re looking for ways to save after you’ve made your budget, check out WorkMoney for real tips on how to save on essentials.
Investigate your impulses. When you think about recent unnecessary purchases (like the Squishmallow) ask yourself where they tend to happen—and what you’re feeling when they do. Are you walking through Target, browsing Amazon, or scrolling Instagram? Are you feeling anxious, sad or bored? We are being blitzed with ads and images of “living our best life” all day long on our computers and phones.
Figuring out where and why you’re spending your money is the first step in changing that habit. It will help you to start hitting the pause button when it’s for the wrong reasons or going to blow that beautiful new budget of yours. Keep in mind: With practice, moving even small amounts of money into a high-yield savings account can add up to a big rainy day fund or finally getting debt-free!
Plan for treats! We all agree, life is sweeter with treats every now and then! Making a budget doesn’t mean that you never allow yourself to indulge. Rather, look at a budget like it’s the tool that will allow you to indulge in what’s really going to make you happy—and do it all guilt-free because you know you can afford it. Once you understand how much you need to set aside each month for essentials and savings, set an amount for spending money, aka the Treat Fund. Then spend some time thinking about what really makes you happy. Is it having a weekly sum for extras like lattes or ordering in? Or is it saving it for a massage or new item of clothing at the end of every month? You know your budget and yourself best, so pick what makes sense for you and stick with it.
Making a budget might sound like saying goodbye to fun and the treats that brighten up your day, but I’m here to tell you that is F-A-L-S-E. You’ve got this, (Soon to be) Not on a Budget!
With love (and some discipline),
Grace
