Budgeting tips for people who hate budgets
Let’s be realistic. Nobody likes to budget. Unless, of course, you’re an accountant or really like spreadsheets. But those numbers revealed a hidden secret. And that’s the benefit of creating a budget and sticking to it.
In this episode of From Military to Millionaire, former Marine David Pere explains how to budget, even if you hate budgeting.
Spoiler: You can even do this without tracking expenses!
Budgeting made easy
There are tons of tools out there for military members and military families to track their budget. USAA, Navy Federal, and even Veterans United offer all sorts of tips and tricks. So why does the precinct feel like the end of the world on payday?
Because no one really knows how to budget.
Luckily for us, David is here to help.
Budgeting should be a lifestyle you can sustain. The first step is knowing what you are spending. To get started, David recommends pouring a strong cup of coffee and sitting down at your computer. Once you’ve checked all your social media feeds, it’s time to get to work.
Step One: Log into every bank account you have and analyze the statements for the last two or three months. You can separate your expenses into categories such as groceries, restaurants, gas, entertainment, or whatever else you spend your money on.
Step Two: Here’s a bit of math. But you can do it! Now is the time to figure out how much you are spending on what you need versus what you want, and reduce wants as much as you comfortably can. That doesn’t mean you never spend on the things in life you love but don’t need. It just means finding a balance where you spend less. Any money you have left can start going to something like debt repayment or emergency funds, instead of sitting idle in your checking account where it’s easy to spend.
Finally, segment your cash expenses. Take the categories you’ve chosen and create an envelope for each. Write a predetermined dollar amount in each envelope and place the money inside. Use cash only, leaving your debit card at home, to avoid overspending. Plus, you don’t spend money once the money runs out, which forces you to stick to your budget. If you get a raise, instead of increasing your budget in your categories, start investing the extra money.
Ready to improve your finances?
David Pere is an active duty Marine who is on a mission to educate the military community about financial preparedness. Most people hear the term and roll their eyes, but Pere wants everyone to know that readiness can be achieved – without too much effort. He teaches personal finance and real estate investing to service members to help them increase their savings and increase their chances of achieving financial freedom.
Want to know more about Father? Discover the soldier to millionaire websiteand connect with him on instagram Where Facebook. Subscribe to his YouTube channel here! Take a look at David’s book – The No BS Guide to Military Life here.
Looking for other ways to be financially strong? Check out what’s new on our Mighty Money page.