Alright, folks, let’s dive into the world of finance. As a financial planner who grew up with very little in Alabama—raised by an amazing dad who had limited education, no financial literacy, and even less of an idea about how to manage money while raising four kids on his own for a few years—I can honestly say I learned a lot of the financial wisdom I’m about to share with you the hard way. From saving to spending, and yes, even budgeting (cue the collective groan), it took me years of trial and error to figure out what works.
But here’s the good news: I’m here to save you from that struggle. And the first step? Budgeting. Now, I know that word alone can send shivers down your spine, but trust me—it’s not as scary as it sounds. In fact, it’s one of the most powerful tools you have to gain control over your finances and start building the financial stability you deserve.
Let’s start with the hard part: budgeting. Yes, I promise it’s not as terrible as it seems. To create a simple budget, the first thing you need to figure out is where all your money is going. Do you have multiple accounts—checking, savings, credit cards? If so, start gathering all that information. I recommend beginning with your checking account, the one where your paycheck is deposited.
If you have online banking (and I’m really hoping you do in this day and age), take a look at your transactions from the last two months. Write down everything that’s coming out of your account—the bills, groceries, subscriptions, the works. If you're anything like me, you’ll probably discover a few double subscriptions or services you didn’t even realize you were paying for. Don’t worry—once you see it, you can always cancel those extras and save some cash.
Now that you’ve tackled the hardest part (congratulations!), take a deep breath and give yourself a mental high-five. You’re on the right track.
Next up, take the same approach with your savings and credit cards. Do the same thing—write down your transactions, and take note of when bills are due. Double-check these dates with the billing company, either by looking at your billing statement or calling them directly. Knowing the exact due date is crucial for the next step—figuring out when to pay based on when you get paid. And if you’re behind or have a late payment, don’t be afraid to reach out to the company to ask about setting up a payment plan or requesting an extension. Many companies are willing to work with you, especially if you communicate your situation.
Now, let’s talk timing. When do you get paid—weekly, bi-weekly, or monthly? If you’re paid weekly, you probably won’t need to adjust your payment dates. But if you’re on a bi-weekly or monthly pay cycle, it’s time to take a look at how your bills line up with your paychecks. Can you afford to pay all the bills that are due during a particular pay period and still have enough left for food, transportation, and—yes—savings? If not, look at your next pay period. If those bills fall into that window, consider asking the billing company to move the due date for some of them. A little tweaking can take a huge load off your shoulders and, hopefully, help you sleep a little easier.
Once you’ve gone through all of this, make sure to write everything down or type it up. This will be your go-to reference as you continue managing your finances.
In my next post, we’ll talk about what to do with the savings you’ll start to uncover as you fine-tune your custom budget. Stay tuned—financial freedom is closer than you think!
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