Sweet Frugal Life

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How To Budget With An Inconsistent Income

By: Sweet Frugal Lifecomment

How to budget when you have an irregular income.

Have you been trying to budget with an inconsistent income and keep falling short?  Do not worry!  You are not alone!  This is a very common problem that people with irregular incomes experience.  When incomes changes from month to month it can be very hard to know how to budget.  I mean, if you don’t know how much money you’ll be earning each month, how do you decide how much to spend?  I get it, and I am here to help!  There are a few tricks you can use to make budgeting with an irregular income not only easier, but possible.  Today I’m excited to share my tips to help you learn how to budget with an inconsistent income.

First Things First

Before we get ahead of ourselves, let’s first do a quick run through and how to make a budget.  When it comes to budgeting, I recommend making a zero based budget. 

Zero based budgeting is really just a fancy term that means that when making your budget your expenses will equal your income.  Every dollar you will be earning will have a job, a category it will be put in.  This doesn’t mean you will be spending every dollar, just that you will find a category for every dollar in your budget.

This form of budgeting has helped my husband and I find so much financial success and limit our impulse spending.  If it’s not in the budget, we can’t buy it!

If you are new to zero based budgeting, or budgeting in general, make sure to grab my free Budget Cheat Sheets below to help you get started!

How To Budget With An Inconsistent Income

There are a few different tricks you can do when learning how to budget with an inconsistent income.  I suggest trying a few of these methods out until you find what works best for you and your income.

1.  Make your budget based on your lowest expected income.

My first tip to budgeting with a variable income is to make your budget based off of your lowest expected income for that month.  It’s always better to have to much money, instead of not enough, right?  Right.

When you budget off of your lowest expected income you can be confident in knowing you have budgeted enough money for your monthly expenses.  And, if your income ends up being higher, well, than that’s just icing on the cake!

To find your lowest expected income you will first need to review your income statements from the previous year.  Compare each month until you find the lowest amount you earned last year.

Use that amount of money as your base income for your budget.  

If throughout the month you earn more money than you your lowest expected, you can use that money to:

2.  Budget off of the previous months income.

Instead of living off of the amount of money you will be earning this month, live off of your income from the previous month.

For Example:

Let’s say that you earn $5,000 in January, $3,200 in February, and $5,500 in March.

In February you will not budget or spend any of the $3,200 you will be earning.  Instead, you will be budgeting and spending the $5,000 you earned in January, and set aside your February earnings.  Then in March you will budget the $3,200 from February and save your March earnings until the next month.

Make sense?

Budgeting off of the previous months income can take some practice and self control, but it is a great way to ensure you have the money before you budget for the month.

If you find yourself constantly tempted to spend your monthly income, instead of the previous months, you might want to set up a separate bank account to store that money in until it’s time to use it.

3.  Create a Hill and Valley Fund.

A Hill and Valley Fund is one of the most effective ways to budget with an inconsistent income.

The Hill and Valley Fund is based off of the “Hills” and “Valleys” many people with irregular incomes experience.  Some months your income will be big, like a Hill; and other months it might be a lot smaller, like a Valley.

Creating a Hill and Valley Fund is a way for you to help even out these variable income months.  A Hill and Valley Fund is similar to a sinking fund.

*A sinking fund is a fund you save into regularly, but only use when needed.

The best way to grow this fund is to save some of your excess money during a “Hill” month into this fund, which isn’t always easy, but so important.   Then, on the months when your income is low, a “Valley” month, you can use some of the money you have saved.

You can track your Hill and Valley Fund, similar to a sinking fund, within your budgeting programs.  Or, set up a separate banking account to keep this savings in.  Whichever works best for you!

Stay Consistent

It can be stressful when trying to learn how to budget with an inconsistent income.  One of the most important things to remember is to not let that stress deter you from budgeting.  Keep working your budget, trying different methods, and using your Hill and Valley fund and you will see success.

Try these three steps when making your next budget, and remember to stay consistent.  Consistency is key to living within a budget, no matter how much money you earn.  You can do it!  I believe in you!

 

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I hope this article helps you know how to budget with an inconsistent income!

11 Things to do Today to Lower your Monthly Expenses

By: Sweet Frugal Lifecomment

Easy ways cut expenses from your budget.

Are you feeling stressed about your monthly bills?  The expenses keep coming in yet the income is staying the same?  I have been there!  I have felt the stress of not feeling like we will ever have any extra money.  It’s not fun!  I learned quickly, and a little begrudgingly that in order to eliminate this finance burden in my life I would need to cut some things from our monthly expenses.  And guess what!  It worked!  I was able to eliminate a few things and clear up some extra room in our budget!  Here are 11 Things you can do TODAY (yes, do them now!) to lower your monthly expenses and save more money!

Cut costs on your monthly budget so you can have more money. frugal living help | how to have more money | how to get out of debt | how to save more | budget help #budgeting #budgettips #savingmoney

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Why You Need To Lower Monthly Expenses

You might be wondering why you should take the time and hassle to lower your monthly expenses.  Maybe you feel like you are doing pretty good financially, and don’t want to add any extra stress to your life.

These are legitimate thoughts!

However, I want to present to you a few reasons why the effort and sacrifice just might be worth it!

Pay Off Debt Faster

Do you have debt?  Maybe it’s some lingering student loans, or perhaps a few extra charges on the credit card.

You might not realize it right now, but this debt is holding you back financially.  That extra money you have to pay towards interest each month is money that you have earned, and you deserve to keep it to use for something else!

Once you have paid off your debts you are able to begin saving, spending, and planning for expenses that are important to YOU!  Becoming debt free is one of the best ways to relieve financial burden and finally take charge of your money.

When you cut your monthly expenses you will be able to have extra cash to pay off your debt quicker, putting you one step closer to that sweet financial freedom you deserve.

Save For A Large Upcoming Expense

If you have any large upcoming expenses, such as paying for braces, buying a house, or a new child on the way, lowering your monthly expenses is a great way to save up for that expense.

When you make a few of the changes I suggest below you will have some extra cash that can be used for the big life events that you might have coming up.

Save For Something Fun

Another great reason to lower your monthly expenses is to be able to have more money to spend on something fun!

Maybe you like to vacation.  If you were able to have an extra $200/month, you could put that money into a vacation sinking fund and in a year you will have enough money to take a small vacation.

This didn’t require earning more money or putting the vacation on the credit card, all you had to do was cut some expenses and use that extra cash for something fun!

Imagine the fun things you have been wanting in life, when you do the work to lower your bills, you are giving yourself a chance to afford the fun things in life!

How to Lower Your Utility Expenses

Lowering your utility expenses is one of the easiest expenses you can cut.  It doesn’t require very much extra effort, and can have a huge impact on your finances.

1.  Reduce Your Home Thermostat

Consider lowering your house thermostat by 1 or 2 degrees during the day and 10 degrees at night (just pile on those blankets and flannel pjs!).  We keep our thermostat set to around 68 in the winter and 78 in the summer. 

By making this one simple change you can save up to 10% on your electricity bill!  Quick, go lower that thermostat asap!

2.  Switch to LED Light Bulbs

If you haven’t switched out the traditional light bulbs in your home for LED light bulbs now is the time to do so.  LED light bulbs are more expensive upfront, but through time the savings is huge and well worth the initial cost!  This 6 pack on Amazon is a good deal at $14.

The great thing about LED light bulbs is that they last forever!  Ok, I might be exaggerating a bit here…they don’t really last forever.  But they do last for a very long time!  As a matter of fact LED light bulbs lasts 5 times longer than regular light bulbs.  This means buying less light bulbs which will save you money (yay!).

The other great thing about LED light bulbs is that they use much less electricity, which brings down the cost of your electric bill.  Just one regular light bulb will cost you $15 a year.  One LED light bulb will only cost $6 a year.  Multiply this number by the amount of light bulbs in your home and you will see huge savings.

3.  Lower The Temp on Your Hot Water Heater

Double check the temperature on your hot water heater.  Lower the temperature down to 120 degrees.  This is low enough to see a savings in your monthly bill, but high enough that your showers will still feel warm and your dishes will get cleaned.   For every 10 degrees you lower your hot water temp you will save your family about 3%.

How to Lower Your Household Expenses

It’s no secret that running a household is expensive!  However, there are a few things you can do to help bring down these costs.

4.  Switch your Cell Phone Carrier

Shop around to multiple cell phone carriers.  If you have been with the same cell phone carrier for a while it might be time to switch.  Most cell phone carriers will offer you a good deal for being a new customer, all you have to do is ask!

Your original cell phone provider might even match the deal when they find out your considering switching.  Don’t be afraid to negotiate a little!

Last year our family started using Tello Mobile.  Plans start as low as just $6 month and we have been so impressed with the coverage.


The wireless network you deserve

5.  Negotiate Your Homeowners Insurance

Ask your insurance provider for special discounts on homeowners insurance.  Most will be willing to offer you a deal if you bundle with your auto insurance.

You might also get a deal if you have a security system, have retired recently, been with the same company for a long time or updated your home to make it more disaster proof.  My motto is that it never hurts to ask!  Remember, everything is negotiable!

Don’t be afraid to shop around for different providers while you are at it.  You might be able to find a cheaper rate somewhere else.

6.  Pack a Lunch for Work

One of the quickest ways to lower your monthly expenses is to stop going out to eat.  Eating out regularly is very expensive.  I have found it important to make a meal plan each week and stick to it.

If you consistently eat out for lunch while at work, start packing a lunch from home instead.  Give your co workers a polite, “no thank you” to the lunch invites and eat a lunch from home.

My husband loves to take dinner leftovers in his lunch.  Whenever we have leftovers, we just proportion them into lunch sized servings and stick them in the fridge.  This makes it easy to grab and bring to work, and tastes much better than a sandwich!

How to Lower Entertainment Expenses

Another budget category that is easy to lower are entertainment expenses.  Entertainment usually falls under the want category, making it easy to stretch a little thinner if necessary.

7.  Cancel All Subscriptions/Memberships

Look through all of your monthly subscriptions and memberships.  Pick a few (or a lot) of these subscriptions to cancel immediately.  You just might be surprised how quickly the extra money adds up from this simple switch.

Don’t forget these common subscriptions/memberships:

  • Gym Membership (try one of these free exercise ideas instead)
  • Netflix
  • Amazon Prime
  • Hulu
  • Disney Plus
  • Magazine Subscriptions
  • Music Streaming Services
  • Beauty Box Subscriptions

If this feels like a huge sacrifice to do all at once, try cancelling just one or two per month.  This will help you ease in to the change.  Just don’t forget to keep canceling something new every few months!

8.  Cut Your Cable

Do you still have cable TV?  Get rid of it to save an extra $40-60 every month. 

We did this a few years ago and I thought we would miss it (especially the DVR).  Fortunately we actually haven’t missed it at all!  There are so many other affordable ways to relax and watch TV.  A few of our favorites is to rent movies from the library and use Netflix.

Other Ways to Save

Now that you’ve reduced your entertainment, household, and utility expenses there are still a few more things you can do to free up some extra money.

9.  Increase Your Auto Insurance Deductible

Consider increasing your auto insurance deductible.  This will result in a lower monthly premium, saving you money each month (which is what we want!!).

Just be sure you have enough money in your emergency fund to cover the deductible in the case of an accident.

10.  Ask for a Lower Credit Card Rate

If you have any credit card debt call these credit card companies and ask for a lower monthly interest rate.  Most companies will be willing to honor this request if you have been paying on time each month.

I know this can be a scary phone call to make, but really the worst thing they can say is, “No”, right???

11.  Sell Clutter Around Your Home

Use your clutter around your home to make a little extra money!  Take an hour today to sort through your home and use a few online platforms to list a some of your clutter for sell. 

My favorite quick-to-sell place is Facebook Marketplace.  Most items I list for sell on Facebook sells within a few hours.  Use this extra cash to help pay for your bills this month.

Try to make a goal to sell a 2-5 items every month.  If you have any debt this is a great way to get this debt paid off a little faster.

In Conclusion

You do not need to implement each of these ideas into your life immediately, just pick a two or three to do today and then pick a couple more to do tomorrow.

These small simple changes will make a big difference over time.

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Do these 11 things today and lower your monthly expenses. budget tips | saving money | frugal living | monthly budget | how can i cut costs from my budget #frugalliving #frugaltips #budgettips

what can I do to have more money each month

I hope this article helped you get some ideas about how to lower monthly expenses.

 

 

 

 

How to Start Budgeting for Beginners

By: Sweet Frugal Life4 Comments

Your Budgeting Questions Answered!

I receive so many messages on a daily basis from people wanting to learn how to start budgeting, but they don’t know how to take that first step.  It is always so amazing to me when I see others who want to improve their life and financial situation.  This isn’t an easy thing!  It can be scary trying to make such a big change into the unknown.  There can be a lot of questions when you first start budgeting and I want to answer some of those for you. 

FAQ for budget beginners2

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How do I begin budgeting?

The very most asked question I receive on Instagram is “How do I start budgeting?”  I think one of the hardest parts of most new habits is starting.  It is always hard to take that first big, sometimes scary, step in a new direction.  I have three suggestions to help you get on the right track for a successful budget.

1.  Make A Zero Based Budget

I recommend making a Zero Based Budget.  This is a budget where your expenses and income will be the same, you give every dollar a job to do.  This doesn’t mean you SPEND every dollar, it means that it has a purpose and place within your budget.

If you are new to budgeting, it might take you a while to figure out just how much money to budget for each category.  This is normal!  A budget is fluid, meaning it is always changing. 

I had about a year of FAILED budget (no lie) before I finally learned what works for me and my family.

A great resource to get started is my Free Budget Worksheet.  Grab it by signing up below!

2.  Track All Expenses

Once you make your Zero Based Budget I recommend tracking all of your expenses throughout the month.  Yes, this means to right down every.single.thing you spend.  Even that $1 pack of gum.

Tracking your expenses keeps your budget accurate, and gives you a great window into your spending habits.  By tracking your spending habits, you will be able to see what areas you are over spending in and areas you could cut back.

3.  Check Out Dave Ramsey

I highly recommend everyone new to budgeting, frugal living, or paying off debt read the book, The Total Money Makeover by Dave Ramsey.  This book changed my mind and was the one thing that put me on my path to frugal living and mindful spending.

Check it out from your library, borrow it from a friend, or order it from Amazon.  No matter how you get it, just read it.  Dave Ramsey uses easy to understand terms as he explains exactly how to fix your financial situation.

What is the best way to keep track of day to day spending?

Ok.  So now that we understand it’s important to track spending, let’s talk about exactly how to do that!

There are a few different ways to track your spending.  Truth is, there are many different ways to track spending.  What’s most important is that you stay consistent with tracking.  Now, let’s discuss your other options.

1.  Excel Spreadsheet

When we started budgeting my husband put in hours making us an excel spreadsheet budget.  It was full of details and catered to our spending and needs.  

Using an excel spreadsheet for tracking expenses is free and easy to customize, but can be very time consuming!

2.  App or Software

After using the excel spreadsheet for a few years we moved on to a computer budgeting program.  It was seriously the best decision.

We have been using You Need a Budget for about 10 years now and have never looked back.  It is so user friendly and very affordable!  You can download the app onto your phone and update it as you spend.

A few other great apps available are Every Dollar, Mint, and Pocket Guard.

3.  Paper and Pen

There is nothing wrong with tracking expenses with paper and pen.  As a matter of fact, I know many who prefer doing it this way.

When tracking spending it is important to stay consistent.  Pick a day of the week, schedule a time, and develop a routine for tracking your spending.

How do you use cash envelopes?

Cash envelopes are a great way to limit your spending and stick to your budget.  They are fairly easy to use too!

Just make your budget, and then get out enough envelopes for your spending categories.  Label each envelope, “Clothing”, “Groceries”, etc.  Stuff the envelope with enough cash to cover your budgeted amount.

As you go throughout the month, use the cash envelope to purchase items in each category.  Once the cash is gone, your spending for the month is done!  

How do you make a grocery budget?

First, I want to remind you that grocery budgets will vary greatly!  There is no secret amount or right/wrong way to budget for groceries.  Food prices vary in different parts of the world, and different families have different needs/diets.

It will take some trial and error to find the right grocery budget for you.  A good rule of thumb is $100/person/month.  So, a family of four would have a budget of $400/month.  However, if you find yourself needing more in your budget that’s OK.  Make your budget work for YOU!

How do you save money on groceries?

Groceries are one of the biggest expenses for most budgets.  But!  I have learned a few ways to ease this burden!

1.  Meal Plan

The number one way I have found to keep those costs low is to meal plan.  Plan out every meal you want to eat for the week.  As you meal plan, write out your grocery list, and stick to this list while you shop.  Having a plan reduces the temptation to impulse shop and eat out.

2.  Walmart Grocery Pickup

Another fantastic way to stick to your grocery budget is to use Walmart Grocery Pickup.  It is completely FREE and you get to shop at home (in your PJs!) and then pick your groceries up at the store.  You don’t even have to get out of your car!!

The thing about Walmart Grocery Pickup is that you are able to watch your cart total on the app as you shop.  If you find you are spending more than your budgeted amount, just delete a few items from the cart!  So easy!  So helpful!

What are the easiest cashback apps for frugal beginners?

I’m always getting asked about the best cash back apps.  And, I love answering this question because cash back apps are one of my favorite things ever!!

Here are a few of my favorite:

1.  Ibotta

Ibotta is the cashback app I have been using the longest.  It’s easy, straightforward and always has a few rebates available!  Sign up using this link for up to a $20 bonus!  Whoo!

2.  Fetch Rewards

The easiest cashback app ever is Fetch Rewards.  Fetch Rewards takes less than a minute to use, and rewards you with points for every receipt.  These points can be redeemed for gift cards to your favorite places (Target and Amazon!!).  Try it for yourself here and use code FETCH2K to get 2,000 bonus points!

3.  Rakuten

Another very easy app to use is Rakuten.  Rakuten gives you cashback when you shop online at participating retailers.  I never buy anything online without first checking the Rakuten website!  Sign up today and get $10 bonus when you spend your first $25!

I share more details about cashback apps here!

What should my budget look like?  What is normal for our family?

When you are learning how to start budgeting it’s important to remember that no two budgets look the same, and that’s how it’s suppose to be.

My normal will be different than your normal.  What I spend on groceries, will be different then what you will spend on groceries, etc.  This is one of my favorite parts of a budget.  You can customize it and find something that works for you personally!

What can you do when you cut back, budget and still don’t have enough?

I loved this question; because it is so relatable and real situation for many of us.

My first piece of advice is to keep your head up!  You are NOT alone!  There are so many dealing with similar struggles.  I strongly believe that together, we CAN help each other reach our financial goals.  Reach out to facebook groups and instagram accounts that discuss this issue.  Surrounding yourself with others in this situation should give you the strength, support and ideas to help get you through it.

When you have done EVERYTHING you can think of and the money is just still NOT adding up, that means it’s time to take more extreme actions.  Here are a few ideas to take when you need to be “gazelle intense.”

 1.  Sell items in your home

Look around your house for items you don’t use very often.  Sell these to earn a little extra money.  My goal is to always earn about $50 each month just by selling my clutter.

10 Items In Your House You Can Sell Quickly To Make Money 

5 Places Online To Sell Your Clutter and Earn Cash).

2.  Start a side hustle

Try to find another way to bring in extra money.  A side hustle is a job you can do during your free time.  Here are a few side hustle ideas you can do at home.

3.  Make some sacrifices

Look through your budget one more time and find a few things you could cut out to have more money.  A few ideas are to stop eating out, lower your phone data plan, stop going to movies, skip the daily Starbucks, or cancel your TV subscriptions.

4.  Earn more money

Consider asking for a raise from your current employer.  If you have been working at the same location for over a year, many employers will consider giving you a raise.

If a raise won’t happen you might want to make a job change.  Begin searching around for a job that will pay better and still make you happy.

5.  Downgrade

If you are in desperate need of more money and none of the other suggestions will work for you, you might want to look into downgrading in a few areas of your life.  This might mean trading in your car for a cheaper model or moving into a more affordable home.

I understand it is NOT easy when the money just ISN’T there.  ESPECIALLY when you feel as if you have sacrificed again, and again and again.  I get it, I have been there!  Keep your head up.  Keep trying.  Be “gazelle intense.”  I believe in you!

In Conclusion

I hope this article answered all of your questions about budgeting!  Feel free to reach out if you have any other questions.  I’m always happy to help!

Remember that learning to budget takes time, and that’s OK!  Don’t give up if you fail the first few times…..keep trying and keep learning.

 

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FAQ from Budget Beginners (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I hope this helps you understand how to start budgeting for beginners.

Money in Your Twenties: What You Need to Know

By: Sweet Frugal Lifecomment

Finance tips for your twenties.

The twenties were some of the best years of my life.  It’s a wonderful time when the entire future lays ahead of you and you feel ready to conquer the world.  This is also a time when a lot of personal growth and learning occurs.  You make big decisions that have big consequences on your future.  One of the most important of those decisions how to manage your money.  Oh how I remember being young (and dare I say naive….).  I thought life would go exactly as planned and money would never be an issue…boy was I wrong!  I so wish someone, anyone, had sat me down and taught me more about finances.  Sure, I understood that I should spend less than I made and that you had to work for money….but there were some important things I was very ignorant of.   So today I am going to share those lessons with you.  Here are a few things I think you should know about money in your twenties.

what I wish I knew about money in my twenties - money tips for 20 year olds

1.  Start Saving For Retirement ASAP

One of the most important things you should know about money in your twenties is to start saving for retirement asap!

I know in these early adult years retirement feels forever away.

Guess what?  It’s not.  The retirement years are going to come quicker than you think.

The day you start earning money is the day you should start investing into a retirement savings account, such as a 401k or IRA.  Time is your friend when it comes to investing and compound interest.  So, start early!

2.  Budgets Are For Everybody

For about half of my twenties I didn’t think I needed a budget.  I never spent more than we earned, so I felt confident in my money management skills.

After reading Dave Ramsey’s Total Money Makeover my views on money shifted drastically.  I realized that a budget is for EVERYBODY, and we could have more money if we started budgeting.

The next day my husband and I sat down and made our first budget.  We weren’t pros at the beginning….as a matter of fact we failed many times.  But through practice and patience we mastered budgeting and our finances improved.

Everyone should be budgeting, it doesn’t matter how much money you make or save.  A budget will help you help you save even more and help you control your spending.

3.  You Need An Emergency Fund (and probably a bigger one than you think)

In your twenties it’s easy to feel as if all the bad things only happen to other people….never to you.

I’m here to tell you, that they do and will happen to you too, unfortunately.

I don’t know what will occur in your future, but I do know that you need an emergency fund to cover any expenses or circumstances that might come your way.

Try to save a minimum of 6 months living expenses in your emergency fund.  This will give you enough to cover most emergencies without feeling stressed about the distant future.

4.  Debt Is Dumb

You will run across many advertisements trying to convince you to sign up for this credit card or buy that piece of furniture on credit.  You will hear phrases like, “0% down” or “no payments for one year!”  Many people will tell you it’s normal to pay off debt.  It becomes confusing as you try to weed through what’s correct and what’s not.

I’m here to tell you that debt is just dumb.  Period.  It will only bring you financial stress in your future. 

Stay out of debt!  Remember, if you save up and pay cash for something, rather than buying it on credit, you will end up spending less in the long run!  No debt=no interest!

The only thing I recommend anybody going into debt for is to buy a house.

5.  Your Tax Refund Is Not Free Money

I remember the time my husband and I got our first tax refund back in the mail.  It felt like free money just being handed to us.  I basically thought it was the best thing ever and immediately started planning all the fun ways to spend this new found money.

What I WISH someone had told me was that a tax refund is NOT free money.

In fact it is money that you worked hard for and EARNED……and then loaned to the government interest free.

If you do receive a tax return remember that this is not free money, it’s money that you earned and should be used wisely.  I suggest using it to pay off debt, grow your emergency fund, or to help you save for a big upcoming purchase.

6.  You Don’t Need a Fancy Car

In my twenties I truly thought I needed a brand new car to “officially” become an adult (insert eye roll here).

Oh, how wrong I was!

I’m here to tell you that you do not need a fancy car.  If you want one, and can pay cash for it, go for it, but it is so not necessary.  Cars are known for losing their value quickly.  In fact, cars will lose around 15% of their value EACH year, that’s a lot of wasted cash.

Look for a vehicle that will be safe, reliable and fuel efficient.  Look for one that will be able to grow with you as your life changes throughout the years.  Most importantly, look for one that you can afford.

7.  Bills Are Negotiable

Your bills are negotiable!  Don’t ever be afraid of asking for a better rate or cheaper amount.  The trick is speaking up, knowing your facts, and being polite.

You will find big savings each month if you begin negotiating your bills.

8.  Just Because You Can Afford It Doesn’t Mean You Need to Buy It

This is an important one so listen up.

Just because you have the cash to buy something right now…doesn’t mean that you need to buy it right now.

Don’t give in to your impulses and the flashy sales that will come your way.  You worked hard for your money and shouldn’t blow it on items you won’t value in the long run.

When choosing whether to buy something or not ask yourself these simple questions:

“Do I need this?”

“Did I budget for this?”

“Will I use this for many years?”

If you can answer yes to all three of these questions, than it is a good buy.  If you answer no to any of them, I would wait a few days before making the purchase.  This gives you the time to make an informed decision, rather than buying on impulse.

9.  Credit Cards Are Great…..If You Use Them Correctly

I am a HUGE fan of credit cards in my own life.  I use them regularly and love the cash back that I can earn from them.  Each of my credit cards are paid off in full every month and I always spend within my budget.

When I was in my twenties, I had heard many people say that credit cards were bad….so I didn’t use them.  Later down the road, as I learned and studied more I realized I was missing out on a lot of rewards.  

I now use credit cards regularly and would never go back.  If you are wise with your money I encourage you to look into a few reward credit cards.  We personally use a Discover Card and love the cashback earned each month.

HOWEVER!  There is a big but here!

If you struggle with constant over spending, are often over budget, and have a history of credit card debt, I would advise you not to open a credit card.  In this instance the rewards are just not worth the risk of overspending.

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The most important thing I can teach you about finances in your twenties is that it’s important.  This is the crucial time in your life to learn everything you can about money now so that you will be able to implement it throughout the rest of your life.

If you are looking for a good place to start learning about money I highly recommend the Master Your Money Super Bundle.  This bundle is available for only 5 days and is over 90% off!

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In it you will be given all of the tools you need to start budgeting, investing, paying off debt and cutting expenses.  I have already learned so much from this bundle and know you will too! 

Grab it today before this deal is gone:  Master Your Money Super Bundle 2020

In Conclusion

The twenties were one of my favorite times of my life.  It was when I truly grew and found myself.  Enjoy this time while you are in it, but never forget that the future isn’t as far away as it might feel, and finances matter.  I hope these tips helped you learn how to manage money in your twenties.

 

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Common Overspending Triggers and Solutions

By: Sweet Frugal Life8 Comments

How to stop overspending for good.

Some days I feel like my spending habits are right on point.  I am sticking to my budget, spending wisely, and stashing lots of money away into savings…….But then, I have other days when I just STRUGGLE and completely forget how to stop overspending! 

I find myself shopping impulsively, buying things without even checking the budget and using a “I need it so I get to have it” mindset.  Does ANYONE else have this happen????

Obviously I know I shouldn’t spend this way.  Yet, I tend to ignore the voice of reason and spend.

I have learned that these overspending urges are usually the result of a trigger.  SOMETHING going on in my life (usually emotionally for me 😉 ) that causes me to want to overspend.

True Story….

The other day I got that urge to SPEND.  Like, really really spend.  I wanted to buy decorations for my home and I wanted to buy myself a few new shirts and I wanted to go out to eat and I wanted to take my daughters on a back to school shopping spree.

Fortunately, I was able to stop myself from spending this time, but I found myself wondering “What caused this spending trigger?  Why am I feeling the sudden urge to spend, when I know better?”

In this particular moment I was feeling frustrated; frustrated by my budget, and frustrated with the amount of money I am “allowed” to spend each month. 

I just wanted to throw the budget in the garbage and show that budget who’s boss.  I wanted to prove that I can spend what I want and when I want!

This is not healthy!  I need to be friends with my budget!  I knew then that something needed to change.

As a parent, I tend to always budget money for my kids instead of budgeting money for me.  Which I am HAPPY to do for them, but I was limiting myself to much.  I realized that when I am to limited, I get tempted to spend.

So, I decided to change my budget.  Next month I will be budgeting more money for my personal spending money.  I am hoping that by doing this it will eliminate that trigger and will help decrease the spending urges.

We all have different spending triggers and recognizing these triggers is the first step in learning how to stop overspending.

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Today I am going to share with you a few overspending triggers and and the solution to go with it!  I encourage you to pick out a few of your personal spending triggers and come up with a solution to help you overcome it.

Overspending Triggers and Solutions

1.  Trigger:  Boredom

Maybe your spending trigger is boredom.  You might find yourself stopping by stores or browsing online just because you need something to fill your time.  You are using shopping as a form of entertainment, rather than as a means of buying what you need.

Solution:

The best way to stop shopping for entertainment is to find a new (cheap) hobby.  Find something that will fill up your spare time and give you a sense of purpose.  If you need some accountability, ask a friend to join you in this hobby. 

A few cheap hobbies include:  running, biking, walking, painting, sewing, crafting, reading, baking, etc.

You could even turn your hobby into a side hustle and have it make you money!  Here are a few side hustle ideas to get you started.

2.  Trigger: Lack of Confidence

Many people shop because they are struggling with a lack of confidence.  You know the phrase, “keeping up with the Joneses” is a real true sentiment.  It’s so easy to look at your neighbors, friends, and others around you and feel like you want to dress like them, look like them, and have what they have.

Unfortunately, this feeling of trying to keep up causes us to overspend and buy items impulsively.  If you find your confidence growing with each new purchase, this might be one of your triggers.

True Story:

Many years ago I went shopping with my sister in laws on Christmas Eve.  They had a few items they still needed to buy for Christmas, so I joined them at the store.  I had all of my Christmas shopping done, but was going along for moral support.

Well, as they shopped and I watched what they bought for their kids, I started feeling insecure about what my kids were getting that year for Christmas.

So, I started impulsively grabbing this and that, trying to keep up.  I began lacking confidence in my previous gift choices, and so spent more than I should have.

Solution:

It’s so important for all of us to develop true self confidence.  We need confidence that doesn’t stem from the size of house we live in, the clothes we wear, or the amount of things we own.

Try reading a few self help books from the library to help you learn more about growing your own confidence.

The next time you want to buy something ask yourself, “Am I buying this because it will make me feel better about myself or because I need it?”  This self reflection can really be helpful in making smart money decisions.

3.  Trigger: Shopping as Therapy

Do you find yourself at the store on days you are feeling upset or emotional about something in your life?  This is one of the most common shopping triggers.

Shopping can give us a short sense of euphoria, making the hard emotions temporarily disappear.

Solution:

Find a new way to deal with your emotions.  You might want to go for a run or walk.  Or maybe call a friend and vent to them for a few minutes.  Turn on the TV and watch your favorite movie.  Find something, that doesn’t involve spending.

I have found when I am feeling emotional a nice long hot bath really helps me relax and forget about the stressful day.

4.  Trigger: Jealousy

Do you get jealous when you see things that your friends or family members are buying?  Or maybe all of the social media influencers you follow seem to live a “better” life than yours, so you buy what they have to try to keep up?

I think most people feel like this from time to time, and it is a very similar trigger to lacking self confidence.

Solution:

Honestly, I think the first step to combating jealousy is to develop self confidence in yourself.  While you are working towards this it’s totally OK to distant yourself from the friends you are jealous of.

I have totally unfollowed friends and influencers on social media before because their posts were making me jealous and tempting me to spend.

Try to find a few frugal friends to lean on when you are feeling weak.  Use these frugal friends as your examples of a beautiful life.

5.  Trigger: Sales

One of my personal biggest spending triggers is sales.  I LOVE a good sale.  But, if you are buying something just because it’s on sale, you are using sales incorrectly!

Solution:

One of my personal frugal rules is:  There Will Always Be Another Sale.  Always.  This is important to remind yourself of often.  If/when you are tempted to buy something, because “it’s such a good deal” remember that there will be another good deal.  There is no reason to buy something and overspend in your budget just for the deal.

Another great tip is to delete your e-mail from all store databases.  This means they won’t be sending you the flashy emails announcing each and every sale.  If you don’t know about the sale, you won’t shop at the sale!\

clearance rack

6.  Trigger: Friends

How many times has a friend invited you to do something that would cause you to overspend on your budget??  I think this happens to everybody at one point or another.

It’s hard to say No to friends.  We don’t want to hurt their feelings or have them take it the wrong way….so often we end agreeing to things we shouldn’t.

Solution:

Be up front with your friends.  Tell them your spending limits and the activities that you will be able to or won’t be able to participate in.  Kindly ask them to stop inviting you to the activities out of your budget.  But then, in return make sure you invite them to frugal friendly activities so they understand their friendship is important to you.

I truly believe if they are a TRUE friend they will respect you and your budget.

In Conclusion

Every single person on this planet has multiple spending triggers.  We all experience these temptations.  However, it is up to us to figure out how to not give into our personal triggers.

 

Related Articles:

Fix Your Budget After a Day of Impulse Shopping

How To Stop Impulse Buying For Good

How NOT to Be Frugal

 

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How To Stop Impulse Buying For Good

By: Sweet Frugal Life7 Comments

10 tips to help you stop impulse shopping today.

Let’s talk impulse shopping.  Truthfully??  This is something I have always struggled with.  Do I budget?  YEP!  Do I love to save money and watch my bank account grow?  ABSOLUTELY!  Yet, I STILL impulse shop!  (you win some and lose some right???)  A few years ago I made a few changes to help stop this bad habit.  Through time, and a lot of practice and fails, I have finally been able to control myself more at the store.  If you can relate to this, well you’re in luck!  Because today I am going to share a few tips to help you learn how to stop impulse buying.

secrets to stop impulse buying

1.  Admit you Have a Problem

The first step to quit this bad habit is admit that you have a problem.  Many impulse shoppers try to rationalize their impulse buys.  These phrases sound a little like, “Oh, but it was on sale, so it was a smart buy,” or “It was something that we really needed anyway, so it wasn’t really an impulse buy.”

The truth is that these phrases are only excuses.  We make up excuses to hep ourselves feel better when we know we messed up!

The next time you buy something on impulse, admit to yourself what you did.  Don’t make up an excuse or explain the buy away.  Impulse shopping doesn’t make you a bad person, it makes you normal….but that doesn’t mean it’s what is best financially.

You must admit you have a problem, before you will ever be able to change.

2.  Recognize your Triggers

Now that you’ve admitted you might have an impulse shopping problem, it’s time to decide what your spending triggers are.

Is there a certain store that you leave buying more than you should have (this would be Target for me!).  Or maybe when you are feeling stressed you spend more than you want to.  Pay close attention to your spending habits and make a list of a few of the triggers that tempt you to shop.

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3.  Find Alternatives To Shopping

The third step to curing impulse shopping is to find alternative activities to help keep you away from your spending triggers. 

If shopping at Target tempts you to overspend, shop at Walmart instead (this is what I had to do!!)

If you shop when you are feeling upset, find a different activity to help you work through those emotions.

If you follow a really cute, sweet blogger on Instagram, but her posts about darling clothes on sale make you want to spend….unfollow her!

Do whatever it takes to find something to keep you away from your personal triggers.

4.  Leave the Cards at Home

Ditch your credit and debit cards and instead shop using cash.  This is the best way to make sure you don’t overspend.

Decide how much money you want to spend at the store, put that much money in an envelope and leave EVERYTHING else at home.

You will need to pay close attention to everything you put into your cart, because you literally can’t afford to buy anything that costs more than the cash in your wallet.

5.  Make a List

Never go to the store without a premade list in your hand.  Commit to buying what is on that list, and NOTHING else (even if you pass by the cutest shirt….and it’s on a huge discount….just keep on walking!).  This has saved me so many times!  For some reason if it’s written down, I am much better at sticking to my goals.

6.  48 Hour Rule

Give the 48 hour rule a try the next time you want to impulse buy.  It’s super easy!

Just set a dollar amount (mine is $50) and commit to waiting at least 48 hours before buying anything above that amount.

This will give you time to make sure you REALLY want this item.  Most of the time when I wait 48 hours, I tend to change my mind and realize that I didn’t need the item after all (funny how that works huh!).

The 48 hour rule also gives you time to shop around, and see if you can find a similar item at a cheaper price. 

When you wait to make a purchase you are giving yourself time to separate emotions from logic, or want vs. need.  This is so important when learning how to stop impulse buying.

7.  Give Yourself Splurge Money

Be sure to include “splurge money” in your budget.  Splurge money is money for you to spend however you WANT!  (yay!  I love splurge money!)

Your splurge money will give you that sweet little taste of freedom in spending.  This can help curb a lot of your spending temptations.

The amount you budget for splurge money will be different for everyone.  If you have a very tight budget, your splurge money should be a smaller amount.  If your budget has some wiggle room perhaps you could give yourself more money.  As always, do what’s best for YOU!

8.  Walk Around With Your Shopping Cart

This suggestion might seem a little silly, but it works for me!

Whenever I get tempted to impulse buy something not on my list, I grab it anyway and put it in my cart.  I don’t head right to checkout, but instead browse around the store for a while.

After 20 minutes or so, when it’s time to leave, I look at my cart and the items I stashed in there and ask myself, “should I really buy this?  Do I have money in my budget for this item?  Is it something I need?  Could I wait and budget for it later and come back and buy it?”

Because I gave myself that time to walk around with it in my cart, my voice of reason come back and I usually decide to put the items back where they belong.  Try it!

9.  Use a Spending Buddy

Find a friend who has similar financial goals as you and use each other as someone to talk to when tempted to impulse buy.

A few years ago I had a good friend who agreed to be my spending buddy.  Whenever I would find that one item I thought that I just HAD to have, I would call my friend.  I explained to her what I wanted and she would ask me the important questions about if I really needed it, could I find something cheaper, etc.  And, I would do the same for her in return.

My spending buddy was so great at helping me spend less.  And because I KNEW I would need to call her before I bought anything….it made me second guess my impulses, I only wanted to call her for important things!

10.  Forgive Yourself

This is one of my very most important tips!  We are all going to make mistakes, change is HARD…..and perfection is IMPOSSIBLE!

Remember to forgive yourself when you overspend and impulse buy.  Use these mistakes as an example to learn from.  Make a plan about how you will be do better next time, and then MOVE ON.

In Conclusion

If you are struggling with overspending and trying to figure out how to stop impulse buying, try out a few of these tips.  The most important thing is to remember to keep working at it.  You won’t cure your shopping problems over night, but through time, patience and effort you can form new habits.

 

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10 Quick Ways to Save Money on Groceries

By: Sweet Frugal Life4 Comments

The best tips to save money on groceries.

Groceries is one of the biggest monthly expenses in most households.  And, unfortunately food prices continue to rise every single day.  The good news is that this is one of the expenses that can be lowered, it just takes a little extra effort.  I’ve been learning how to save money on groceries for over a decade now.  It has taken a lot of trial and error, but I have finally found a few tricks that work.

I am a member of online affiliate programs.  I may be compensated by purchases made through links in this post.  All opinions are my own.

secrets to spend less on groceries

1.  Meal Plan

Make a meal plan for all of your weekly meals and snacks.  Browse through pinterest boards, and recipe books to give you fresh ideas of what to cook each week.  As you meal plan, make a list of  groceries to buy.  Take this list with you to the grocery store and only buy what you wrote down, nothing else!

A good meal plan will be written based on what you already have in your pantry and cupboards.  Take a few minutes to take inventory of what you already have at home and plan your meals around those items.

Meal planning limits impulse buys and the temptation to eat out.  Do not skip this important step!

2.  Keep it Simple

It’s fun to experiment and try making a few fancy meals.  But, when you meal plan remember to think about the cost of ingredients.  Sometimes those fancy meals have ingredients that will cost you a lot of money.

Try simplifying how you cook to save money on groceries.  You don’t need to have simple meals every day of the week, but try to plan a few meals each week that are simple and basic.

Here are a few simple dinner ideas:  breakfast for dinner, grilled cheese sandwiches, pasta bake, bean burritos, spaghetti, quesadillas, etc.

3.  Buy What’s On Sale

As you meal plan check the weekly grocery ads to see what’s on sale for the week.  Plan your meals around those sales.  For example:  If chicken is on sale, I will plan a few meals with chicken.

If you have room in your grocery budget buy extra of what’s on sale.  If you buy it when it’s on sale, you will be spending less in the long run.  I like to stock up on snacks, cereal, fruit (buy fresh and freeze for later), and canned goods during sales.

The best way to check ads is by using the Flipp App.  It’s a completely free app to use and very easy to navigate.  You will enter your zipcode, select your favorite stores, and then can browse each of the ads.  There are new ads each Wednesday.

4.  Shop Your Pantry

Before you ever meal plan or even look at the weekly ads, look through your pantry.  Take a quick inventory of what you already have.  Plan your meals around those items.  Turn it into a game and try to come up with as many meals as you can, only using the ingredients you own.  This is a great way to use up the items you bought shopping sales.

If you have kids, turn this into a game.  Tell your kids that you are playing  Box Car Children (did anyone else love those books as kids????).  You can only eat the food you can find and gather around the house.  Kids love this!

Another way I use up my pantry is by having regular YO-YO nights.  YO-YO stands for “You’re On Your Own” and is really just a fancy way of saying we are having leftovers for dinner.  When I plan Yo-Yo for dinner the family knows we are eating leftovers and whatever can be found in the pantry.  Cheapest dinner around!

5.  Utilize Cashback!

Take advantage of every cashback app available.  It hardly takes any time to scan your receipts and you get FREE MONEY!

If I ever see my husband throw a receipt in the garbage without getting cashback I ask him, “Would you ever throw 50 cents in the trash can?  No!  But when you throw away a receipt without scanning it first, it is the same as throwing away money.”  The small cashback adds up!  In the 5ish years I have been using cashback apps I have gotten hundreds of dollars  back.

My Fave Grocery Cashback Apps

Ibotta:  The first cashback app I ever used was ibotta, and I’m still using it weekly.  It’s so easy to use!

All you have to do is shop, check the app for rebates, scan your receipt, and the money is instantly put into your ibotta account.  Easy.  Peasy.  They have a wide selection of rebates, and I can always find something to earn on.  My favorite rebates are the “any brand” rebates they often put on items such as milk, produce, pantry items, beauty and household.

*******Sign up for Ibotta with this link and you will get up to a $20 welcome bonus!  Yay!  This is the perfect way to try it out!***********

 

Discover Card:  My FAVORITE way to earn cashback is by shopping with my Discover Card.  I know a lot of people don’t like using credit cards, and I get it!  But, for me, this has been the best way for us to earn more money.

In short, when I shop with my Discover Card I automatically earn cashback on all purchases.  They give you 1% cashback on EVERYTHING and 5% on different categories that are rotated monthly.  (Currently, I am receiving 5% on groceries).

You don’t have to do anything, just use your card and your cashback will grow.  I earn around $500 cashback with Discover a YEAR, and all I do is shop like normal!

Fetch Rewards:  Fetch Rewards is hands down the easiest cashback app to use!  All you have to do download the Fetch Rewards app, scan your grocery receipt, and fetch will automatically reward you with points.  It’s seriously that easy!

These points can be redeemed for gift cards to ALLLL of your fave stores (I usually choose Amazon or Target!).  One of my favorite parts of Fetch Rewards is that your points can be redeemed for as little as $3 (3,000 points equals $3).  This makes collecting the reward quick and fun.

Checkout 51: Checkout 51 is very similar to ibotta.  You shop, scan your receipt and qualified purchases and you will get the rebated money instantly in your account.  Once you reach $20 in your account you can request your money, same as ibotta.  Most importantly, it only takes a few minutes to check for rebates and one minute to scan your receipt.  I have made over $50 cashback using Checkout 51!

6.  Cook From Scratch

The more you cook from scratch, the less money you will spend on groceries.  I know how big the temptation is to grab the prepacked foods at the grocery store.  But, if you really want to save money on groceries you need to learn to resist this temptation.

If cooking feels really overwhelming to you, start small with a few simple recipes.  Slowly try new things.  Don’t let a few failures get you down.  I have been cooking almost my whole life and I still make a few flops every now and then.

If you struggle finding the time to cook start meal prepping during the week.  Set aside one day each week as your meal prep day.  This might be a weekend, evening, or whenever you have free time.

Your meal prep day will be the day you cook up your meat, cut up veggies, and mix up a few snacks.  These can all be stored in your fridge to use throughout the week for meals.

7.  Buy Meat on Sale

Meat is one of the biggest grocery expenses.  Get into the habit of only buying it when it’s on sale.

One way to get cheaper meat is to buy it in bulk.  Look for places selling bulk meat, like Butcher Box, and stock up when they are having sales.

7.  Shop Less Often

How many times have you gone to the grocery store for “just one thing” and left with a cart full of food?!?!?  It has happened to me more times than I would like to admit!  The less times we go to the grocery store, the less money we will spend (I know you’re shocked right).

The next time you feel that temptation to run to the store for one little thing, don’t do it!  Instead, figure out how to make it work without buying that one ingredient.  Look up a good substitute ingredient, or find something else to make.  I promise your bank account will thank you!

8.  Calculate Your Spending

Make sure you don’t go over your grocery budget by keeping track of how much you are spending while at the grocery store (before checking out!).  Whip out your phone calculator and add up each item as you put it into your shopping cart.

This helps keep you on track so there is no surprises at the checkout counter.  If you see you are going over your budget, take some of the food out of your cart and put them back on the shelf.

The EASIEST way to keep track of how much you spend while grocery shopping is to shop using Walmarts Free Grocery Pickup.  This is probably the best invention ever.  Not only does it save me time and sanity (hello no crying kids in the grocery cart), but it also saves me so much money!

The Walmart Grocery App is easy to use.  Just open it up, click the items you want to add to your cart, and then check out when done!  You will select a time and day to pick up your groceries at your nearest Walmart.  A nice Walmart employee will bring your groceries out straight to your car and load them up for you!  It’s the best!!

Grocery shopping this way helps me easily keep track of how much I am spending.  Before I check out I look at how much money I have spent, if I have gone over the grocery budget I delete a few items until I get to the right amount.  I haven’t gone over budget since I started doing this!

********If you want to try Walmarts Free Grocery Pickup (AKA My Favorite Thing Ever!) you can get $10 off your first order by using this link!

9.  Buy Generic

I use to be such a name brand snob (not proud of it) and insisted I would never buy generic.  Many years later I am so glad I saw the error of my ways.Most generic grocery brands are just as good as the name brand, sometimes even better!  I now wish I would have realized this earlier, we could have saved so much more money!

Try buying less name brand and more generic and you will notice a huge savings on your grocery spending.  This is such a simple change that can make a big difference.

10.  Meatless Mondays

Spend less money on expensive meats by incorporating a few meatless meals into your weekly meal plan.  We like to have Meatless Mondays, which is one day every week when I plan a meal without meat.  You can set up your meatless days however works best for you.

I have found the best meatless meals are meals with beans, quinoa, soups and pastas.

BONUS

11.  Learn from Others

One of the best things I have one for my grocery budget is to study!  I read blogs, follow money saving Instagram accounts, and do what I can to study and learn from others grocery tips.  It takes time, and it takes a little bit of effort, but it has helped me tremendously!

One of my favorite blogs to follow is Money Saving Mom.  She gives realistic advice to help moms (and anyone!) save money.  I actually just bought her BRAND NEW ebook Slash Your Grocery Bill:  25 Tried and True Strategies and was so impressed!  She goes over 25 of the best methods to save money on groceries, giving details and easy to follow instructions.

I actually had no idea you could freeze baking mixes until I ready this book (it’s shared in tip #16!).  I am planning on whipping up a few baking mixes today and sticking them in my freezer for later use.

The best part is she has the book on sale for only $8.50!  Don’t waste any time and download Slash Your Grocery Budget today!  It is full of so much money saving goodness!

In Conclusion

I know you save money on groceries!  Try a few of the tips in this article, the more you try, the more you will save.  The most important thing is to never quit.  It takes constant effort to spend less at the grocery store.  I know you can do it!

 

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How to Budget With Sinking Funds

By: Sweet Frugal Life6 Comments

The answer to What Is A Sinking Fund and your other most asked questions about sinking funds ANSWERED!

My husband and I really like to travel.  We don’t do it a lot, but it is a conversation we are always having.  The secret to being able to travel while on a tight budget?  Sinking funds!  They are my very favorite part of our budget!  Today I’m explaining exactly what are sinking fund.

Do you use sinking funds in your budget??  If you don’t use them yet, I strongly suggest beginning immediately!  They have enabled me to save up for the things we want, and the things we need; and they allow me to enjoy spending GUILT FREE.

complete guide to sinking funds

What is a Sinking Fund?

A sinking fund is a smart way of saving money for planned future expenses.  You contribute a small percentage of your income into the sinking fund each month.  This gives you the ability to pay for the large expenses without having any stress; the money is ALREADY there!

For example, we use a sinking fund to save for our Christmas expenses each year.  We know that December will be an expensive month, so we save a little bit of money each month into our Christmas Sinking Fund, and when the time arrives, we can easily pay for everything.

What types of Sinking Funds should I have?

Sinking Funds will be different and unique to each person and situation.  Any known expense that you feel you should save up for, is a Sinking Fund.  A few examples of sinking funds are:

  • Christmas
  • Vacation
  • Home Repair
  • Taxes
  • Car Maintenance
  • Clothing
  • Retirement

Is this my Emergency Fund?

No, no and no!  Your Emergency Fund is for emergencies ONLY!  An emergency is usually an UNPLANNED expense.

A sinking fund is for all of those other expenses that arise, the ones that you know are coming and know will be expensive.

Example:

I KNOW that Christmas will come EVERY year, so I save for it through my sinking fund.  I KNOW that we want to take our kids on a vacation in a couple of years, so I have a sinking fund to save for that large expense.

How much should I save?

The amount to save into your sinking funds will depend on your income and what you are saving for.  The best way to determine this number is to write down your goal amount, divide it by the number of months until you will need that money, and then you have the exact amount to save each month.

Example:

If we wanted to spend $1000 on Christmas and we started saving in January we would compute the equation:  $1000 divided by 11 = (about) $91.  So, now we know that we need to save $91 every month to have our Christmas fully funded by December.

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Do I need to save a large sum each month, or make smaller contributions?

I encourage you to put money into your Sinking Fund with every budget that you make.  Budgets are made at different intervals, usually depending on preference and pay period.  I make my budget monthly, so I deposit into my sinking fund once each month.  If you budget weekly, deposit money into your funds weekly.

Piggy bank with one dollar bill

 

Where do I keep my Sinking Funds?

You will want your money saved in a place that will be readily available.  Do not put these funds into the stock market.  A regular savings account or money market account is best.  I know of a few people who prefer setting up multiple savings accounts for each individual Sinking Fund.  Check with your bank about opening up multiple accounts, my bank charges for each account, so it just wouldn’t be worth it to me.

We decided to keep the funds all together in one savings account.  This is where an excellent budgeting program comes to play.  I use YNAB for budgeting and it allows you to set up certain categories as Sinking Funds.  This makes it possible (and so easy) to be able to track how much each fund holds at all times.

If paper and pen is your thing, go with it!  You can easily track your sinking funds using my Free Sinking Fund Tracker.  Download it, along with 4 other free printables below.

 

 

How is a Sinking Fund different than a Savings Account?

It’s not really.  I use my bank savings account as a place to store my emergency fund and all of my sinking funds.  The biggest reason to use a sinking fund is to encourage you to save with intention and purpose.

Scenario 1:

Johnny saves $100 every month into his bank savings account.  He is proud of his regular savings and dreams of one day having enough for vacations, a new car, or any emergencies that may arise.

After one year Johnny has $1,200 saved.  He had some needed to make repairs in his basement bathroom and used the entire savings account to cover the costs for those repairs.

Scenario 2:

April saves $100 every month into her bank savings account.  She uses YNAB (or any other budgeting program) to save this money into separate sinking funds.  Monthly she puts $50 into her emergency fund, $25 into her new car fund, and $25 into her vacation fund.

After one year April has $1,200 in her emergency fund, $600 in her home maintenance fund, $300 in her new car fund, and $300 in her vacation fund.

April now has possibilities.  She can use her home maintenance fund to begin repairs on her basement bathroom, or wait a few more months to help that grow a little more.

The Lesson

When you save money using sinking funds you are are giving yourself options and control over your savings.  You are making it possible to save for large expenses, without having to juggle all of the other costs that can get in the way.  Think of sinking funds as a budget for your savings account.

In Conclusion

If you aren’t using sinking funds in your budget, I highly suggest you start now.  It opens up a whole new world of saving possibilities!  Make sure to grab my free budget printables below to help you get started.

 

 

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How To Watch TV Without Cable or Satellite

By: Sweet Frugal Life2 Comments

Everything you need to know about how to watch TV without cable or satellite.

Truthfully, I use to be so in love with my cable TV (this was back in my non-frugal days).  I remember telling my friends that, “I could never live without my DVR!”  I didn’t even know how to watch TV without cable or satellite.

Well, years and years later, I am here to tell you that I CAN actually live without cable (go figure 😉 )!

Five years ago we decided to make some big cuts in our budget.  When the talk of whether or not we should cut out the cable I wasn’t super thrilled with the idea.  But, I wanted to trim our budget and knew that this was a need, not a want.  So, we cancelled it.

And you know what.  There has not been a single day when I have regretted it.  There have definitely been a few times when I have MISSED having cable,  but I have never regretted getting rid of it.  The amount of money that we have saved is so worth it.

If you are wanting to cut costs in your budget, I highly recommend cutting out the expensive cable or satellite television.  I’ll share a few budget friendly options below.

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Budget Friendly Cable Alternatives

It wasn’t even hard to find a few cheaper services for our family.

Digital Antennae

The first and cheapest option we did was to buy a digital antennae.  This was a one time purchase of $30 and enables us to get all of the public channels for free.  The only TV we had for a few months was this digital antennae.  If you are on a strict budget, this is the perfect option for you.  It provides great TV with NO monthly payments.  My kids love watching PBS Kids and my husband and I enjoy the news and a few favorite evening shows (I’m talking about you This Is Us).

Library

Did you know that your local library has hundreds of free videos available to checkout??  They do!  If you aren’t using this great service, I recommend starting now.  We love to stop every week and choose a couple of new books and videos while returning the old ones.

Young woman watching TV

Streaming Services

Looking for more options than a digital antennae provides?  Check out these affordable subscription services.

Netflix

Netflix is seriously one of the best inventions ever!  They have just about anything you would want to watch, available 24/7!  Documentaries, horror films, chick flicks, popular TV series, kids shows, and more!  Everything is there!

With plans starting at just $8.99/month, this is a great budget friendly option for TV viewing.

Hulu

Another great option is Hulu.  They are one of the cheapest options with the lowest plans only $5.99/month.  One of my favorite things about Hulu is there great selection of new releases and current TV shows available.  You don’t have to feel like you’re missing out on current TV.

Disney+

One of the newer TV subscription services available is Disney+.  Our family have quickly became huge fans!  We love all of the Marvel and Disney options.  My teen/tween daughters especially enjoy watching the Disney Channel original series.  Plans start at only $7.99/month.

Amazon Prime Video

We all love Amazon (don’t we? or is that just me???).   One of the awesome perks of Amazon is Amazon Prime.  With their low price of just $12.99/month you are given access to stream hundreds of popular TV shows and movies, including a few Amazon Prime originals.  PLUS!  Amazon Prime offers access to music, books, two day shipping and more!

How To Watch

You can watch these streaming services on your smart TV, computer, or phone.

If you don’t have a smart TV I recommend getting a Roku.  The Roku gives you the ability to access all of these subscription services in one easy place.  It is a one time low price and very user friendly.  There are hundreds of apps/channels available to add to your device, some of them are even free…no subscription required!  Yay!

The Results

By only subscribing to a couple of streaming services and cutting out our cable we have saved $500 a year!  This means that in the 7 years since we have cancelled our cable we have saved $3,500!

Just think about what you could buy for $3,500.  I don’t know about you, but I would much rather spend that money on something other than TV.  The little expenses always add up!

 

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I hope this helped you know how to watch TV without cable or satellite.

Extreme Ways to Cut Your Budget

By: Sweet Frugal Lifecomment

Looking for more ways to cut your budget?  This is for you!

I’ve been thinking a lot lately about budget cuts.  I get a lot of comments and messages on Instagram; and a few of them just break my little heart!  These messages are from those that feel they have done every single thing they can think of to find extra money in their budget, but there is just nothing left to find.  These people have cut ALL unnecessary spending, only paying the bare minimum to live and they STILL can’t find any extra money in the budget.

If you can relate to this in any way; I want you to know that I hear you.  Financial stress is one of the scariest and hardest things to go through.  This article is for you.

I am a member of online affiliate programs.  I may receive compensation for purchases made through links in this post.  All opinions are my own.

1.  Make a Budget

If you don’t already have a budget, make one!  This step seems obvious, but it is a step often skipped.  It’s easy to assume your spending is minimal enough that a budget won’t change anything (I know this, because I use to be one of those people!).

I’m here to tell you that your budget is EVERYTHING when it comes to overspending!  Even if you think your spending is already under control, I can guarantee you will spend less if you have a budget in place.

Don’t know how to make a budget?  Read my article, Zero Based Budgeting, and grab yourself my free budgeting cheat sheets below!  These two resources will give you everything you need for a successful budget.

 

 

2.  Check Your Budget ONE MORE TIME

I know that you have probably looked through that budget a bunch of times this week.  But, I want you to look one more time.

Try to look at your budget with a new eye.  I have found when I am desperate enough, we can usually find something else to cut from the budget.

Here are a few ideas to look for:

Monthly Subscriptions

Do you have any subscriptions you can cancel?

Often we are willing to cut out the cable, but leave Netflix. Now would be the time to consider cutting out the other TV subscriptions, such as Netflix, Hulu, etc.  Instead, rent movies from the library for free, or spend your time doing something other than watching television.

Other subscriptions to cancel are:  subscription boxes, magazines, etc.

Smart Phones

In today’s day and age it is hard to function without a smart phone, I get it!  However, I do know a lady who does is able to do it!  This sweet lady has a cheap flip phone, and a cheaper phone bill because of it!  Could you consider getting rid of that smart phone and the huge monthly data plan?

If canceling your phone plan completely doesn’t feel right, consider switching phone providers to a more affordable option.

We are currently using Tello mobile.  Our unlimited talk and text plan only costs us $5/month.  It’s the best thing ever!

Internet

If you truly feel that you MUST have a smart phone (no judgement, I totally feel that way!), consider getting rid of your internet service.  If you’re not streaming movies, and you have internet available on your phone; this can be a great solution to get an extra $50 a month.

My husband and I went without internet for about 9 months, and it was hard, but we got use to it.  The library was an absolute lifesaver during this time.  Once a week my laptop and I would take a trip to the library, plop down on a chair, and use their free WIFI to take care of all of my internet needs.

It wasn’t easy, but we made it work, and you can too!

Fuel

I get it.  You’ve got places to go and things to do; and unfortunately fuel is expensive.

I’m not going to suggest you stay home and never go anywhere (I mean, you’ve gotta earn a living and live a life, right?).

What I am going to suggest is to look at ways to consolidate your driving.  Consider shopping at a store closer to you, or buying online instead (use free shipping!).  Plan your errands for only once a week, and try to only drive to one area and get everything done in just that area.

I was talking to a friend a few years ago, who was very poor, and I mentioned to her about a free kids playground she could take her kids to (it was on the other side of town, about 15 minutes away).  She told me that fuel in her car is just to expensive, and so she tries to not drive that far away.

It was such a good example to me about watching every penny spent.  I have been much more mindful of unnecessary driving habits ever since.

Adjust the Temp

Turn your house thermostat down a few degrees in the winter, and up a few degrees in the summer.  Research shows that you can save at least 1% for each degree change.  We shoot for 68 degrees in the winter months and 78 degrees in the summer.  Honestly, we aren’t always perfect at this, but we try!

Another easy tip is to adjust the thermostat while you are sleeping, or if you will be gone for work all day.  If you don’t need that extra heat, there is no sense in paying for it!

Groceries

Groceries are one of the biggest expenses in most budgets; food is expensive!  But, it’s an area that can always be improved, if you are willing to put forth the work!

Here are a few ways I have been able to spend less on groceries:

Make a meal plan each week.

Making a thorough meal plan will save you money in two ways.  It decreases the temptation to eat out, and helps you plan meals based on what you already have at home (so you won’t impulse shop at the grocery store).

Cook from scratch.

Cooking meals from scratch, rather than buying prepacked meals, will save you HUGE in your grocery budget.  Consider making your own bread, snacks, etc.

If time is an issue, consider spending one day a week cooking a few meals to keep in the fridge or freezer to eat throughout the week.  Weekends are perfect for meal prep days.

Buy in bulk.

Watch for grocery sales offering you a huge discount when buying in bulk.  I love to buy my meat in bulk, and then freeze it in dinner sized portions.  This requires some time and effort, but can be a big money saver!

A few other cheap items to buy in bulk are:  snacks, cereal, canned goods, and paper supplies.

Use Cashback Apps

Cashback apps are one of my favorite ways to earn a few extra bucks.  Download as many as you can onto your phone and use each of them every single time you shop.  Here are a few of my favorite cash back apps.

3.  Pay with Cash

Do you use cash for purchases?  If you don’t, I highly suggest you start!  Paying with cash is one of the best secrets to spending less and saving more.

I prefer the cash envelope system to help me keep track of my cash and spending.  It’s simple really.  Instead of pulling out my credit card every time I shop, I use my cash from the envelope instead.

It truly helps me to see where my money is going….and once the envelope is empty, I can’t buy any more in that category for the month.

If you are feeling a little hesitant to use cash envelopes, consider trying them for one week.  If you can see a difference in that week, try it for another week.  Baby steps!

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4.  Negotiate Your Bills

Your bills are negotiable!  Many companies are willing to work out a lower price when asked and given good reason.  We have negotiated a few of our bills with success every single time.  I always remind myself, “It never hurts to ask.  The worst thing they could say is no, so why not try.”

Many of your bills are just non-negotiable (like your mortgage), but there are some companies worth calling and asking for a cheaper rate.  You will see the most success with your:

  • Cable TV Service
  • Cell Phone Provider
  • Medical Bills
  • Internet Provider
  • Insurance Premiums

Keep in mind these tips during the negotiation:

  • Know your competitors prices, and don’t be afraid to mention them during the phone call
  • If you’ve been a long time customer, mention it!
  • Be polite, but firm in your request.
  • Don’t be afraid to ask multiple times.  You’ll be on the phone with different people each time, chances are you’ll get someone who will listen to you eventually.
  • Threaten to leave as a customer; this is when they really begin to listen.

For more details about bill negotiation check out this article.

5.  Increase Your Income

After following the above steps and you still can’t find extra money in your budget, it might be time to consider increasing your income.

Here are a few tips to help you do this:

Ask for a Raise

Prepare a statement to bring to your boss.  Explain why you are an asset to the company.  Give concrete examples to show exactly how you have  helped the company to be successful and earn more money.

Change Jobs

I know it’s not easy to change jobs.  It’s hard to start back at square one, get out of your comfort zone, and learn a new job.  But, look at the big picture.  If a job change will bring you closer to your financial goals, than it is probably worth the switch.

Find a Side Hustle

A side hustle is a job you can work in addition to the job you already have.  You might do this job during the weekends or evenings.  Anyone and everyone can have a side hustle, and I know many people who have multiple side hustles!  I LOVE side hustling!

If you’re needing some side hustle ideas check out the article, 12 Legit Side Hustles for Stay at Home Moms, for a few ideas.  Many of these side hustles are for ANYONE, not just stay at home moms!

Sell Unused Clutter

Look around your house.  I bet there are a few items you haven’t touched in months (maybe even years….).  You can easily sell this unused clutter to earn extra money.

6.  Go to the Extreme

If you are looking for even more extreme ways to cut costs, consider downsizing your home and car.

If you have a current car payment, sell that vehicle and buy a cheaper one with cash.  I know this is not the cool thing to do, I know it’s much more convenient to have a newer car.  But, I also know that being debt free is important!

The older vehicle will only be temporary.  Once you have saved up enough cash, you can buy a newer one again.

And lastly, move somewhere more affordable.

I know this will be difficult, but I also think it just might be worth it!

You can reduce your rent or morgage by moving somewhere smaller and more affordable.  Look at the bright side…smaller also means less to clean (I like less cleaning!).

In Conclusion

I believe whole heartedly that when there is a WILL, there is a WAY.  You can do this!  Find a support system to help you through.  I’m always an email away!

 

Related Articles:

What we cut from our budget to save over $2500 a year

The 6 Step Plan to Stop Living Paycheck to Paycheck

11 Things to do Today to Lower your Monthly Expenses

 

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