Welcome to Day 8! {Click here to find the topic menu for the entire month along with links to each day.} Are you ready to get to work?
Yesterday we talked about setting goals for following a budget and how seeing the big picture helps with providing the discipline and motivation to stick to it.
Budgeting goals are somewhat fluid and will change as you meet them. In our case, we have already been through the steps of creating a $1,000 emergency fund, paying off all debt (except for our house), and saving 4-6 months of living expenses.
Over a year ago, there began a series of significant personnel and job title changes in my husband's department at work. In a short period of time, he found himself in a hostile environment. The job that he once loved caused dread instead of anticipation. He hung in there and tried to adjust to it and did his best to maintain a good attitude and do his job well, but it was incredibly stressful.
During that year, we just kept working toward our goal of saving a few months' work of living expenses. Although reaching that goal wasn't the only (or even primary) deciding factor, having that cushion gave us the financial freedom to finally step away from that job.
Our current goal is to live on as little as possible during the time my husband is looking for a new job. We don't feel we would be good stewards to maintain our previous budget and have to dip into savings unnecessarily, so we're trying to live frugally on the money that comes in from my business. But if there's a shortfall, we know that there is money saved and we'll be able to make our house payment!
Here are some examples:
- latte's or other purchased beverages
- eating out
- magazine or newspaper subscriptions
- movies
- cable
- services you pay for but could do yourself (lawn care, oil changes, etc.)
Now, before you get overwhelmed with thinking you have to cut out everything you enjoy, let me assure you that I'm not suggesting a life completely free of recreation or occasional splurges! Remember that these changes are personal, and in most cases you can start small. If there's something you're purchasing on a daily basis (e.g., a latte), choose one day of the week when you'll treat yourself. Or find alternate ways of getting the same item or service. Rent movies at Redbox ($1.20) or check them out from the library (free!). Swap services with a friend who cuts & colors hair. Or instead of getting your hair cut every four weeks, stretch it to six. Rather than paying someone to mow your lawn, do it yourself!
However, after you start seeing the money you save and are able to either put toward debt or into savings, you may be highly motivated to cut out the non-essentials entirely!
If you're working through these steps along with me, I'd love to know!
Please leave a comment and share how it's going.
The framework for this series is being used with permission from Inexpensively.
