Hey there!
I’m Leah, and I’m excited to share my cash stuffing journey with you on how I manage my finances using the cash envelope budgeting system.
If you’re new to this, buckle up because I’m about to dive deep into my process.
I’ve always believed in the power of budgeting.
It’s not just about counting pennies but understanding where every dollar goes.
This month, I decided to focus on budgeting my side hustle money for October.
I get paid twice a month from my full-time job and have a couple of side hustles that supplement my income.
If you’re familiar with the “knock knock” method of cash envelope budgeting, give me a shout!
One thing I’ve learned over the years is the importance of creating a positive and enjoyable environment for budgeting.
I make it a point to visit my budget at least once a week or every other week.
This helps me stay on top of my finances.
To make it more enjoyable, I decorate my workspace with things that uplift my spirit.
I also use a digital planner, which is available on my website, to keep everything organized.
Starting with a monthly calendar is crucial.
It doesn’t have to be anything fancy, but it’s essential to keep track of bill due dates and income.
I remember the days when I struggled with late fees and overdrafts simply because I lost track of when my bills were due.
Having a calendar changed all that for me.
Next, I write down all my bills and expenses.
I then divide them by the frequency of my income to create a budget.
For instance, I budget for my mortgage and other recurring expenses.
Depending on your income frequency, you can choose to budget weekly or monthly.
I find bi-monthly budgeting easier since most of my income comes in twice a month.
Debt is another area I focus on.
A few years ago, I managed to pay off $50,000 in debt in just four years.
It felt liberating!
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However, life happens, and I recently had to take out a loan for house repairs.
It’s essential to understand that sometimes, you might need to take on debt, but it’s all about managing it responsibly.
Speaking of debt, I’m proud to share that I’ve paid off all of my consumer debts and now only have a 401k loan to focus on (and my mortgage).
The beauty of a 401k loan is that the interest goes back into my retirement account.
So, in a way, I’m paying myself!
To keep track of my expenses, I use a weekly tally.
This helps me understand my spending habits.
For instance, I realized I was overspending on eating out.
So, I set a budget for it and used my cash envelopes for different spending categories.
I have envelopes for groceries, gas, subscriptions, and even debt.
I also use sinking funds to save for more significant expenses.
This method allows me to save for things I want without the immediate pressure of needing them right away.
For example, I’ve been setting aside money for school and other future expenses.
Lastly, I have specific financial goals.
I aim to save $15,000 and have a fun method to track my progress using a savings tracker.
Every time I save money, I color in a section of my tracker.
It’s a visual and engaging way to stay motivated.
In conclusion, budgeting has transformed my financial life.
It’s not just about numbers but understanding the value of every dollar.
If you have any questions or want to learn more, don’t hesitate to reach out.
And if you found this helpful, consider subscribing to my weekly videos for more insights!
