My first step towards financial wellness
When my husband and I first got married, our finances were far from organized, and we were barely making ends meet. We had no savings, and the rent was late more than once. To break free from this cycle, one of the initial steps I took was getting us a month ahead. While I was accustomed to budgeting for myself, the dynamics changed when we started living together and relied mostly on my husband's salary. With increased expenses, we needed a plan.
Reduce Impulse Spending:
I began by creating a monthly budget covering fixed expenses and adding a "getting ahead" amount, equivalent to 1/6 of that budget. The plan was straightforward – save 1/6 of our fixed expenses each month with the goal of being a full month ahead within six months.
Rather than saving the money separately, I utilized the 1/6 portion to pay some bills early, intending to make the process more seamless once we reached the sixth month. For instance, if the car payment was due on the 10th, we paid it on the 1st. As our paychecks came in, the money stayed in the account until our designated "budget day," usually after the last paycheck of the month or the month's end, aligning with our pay cycles.
Build Savings
On "budget day," - mind you this was before autopay was a thing - we wrote checks and mailed them at the beginning of the month. Even for bills not yet posted, the budget was set aside, and as soon as the bill arrived, well before the due date, the check was mailed. Budget days became a dedicated time for open communication, aligning our aspirations and ensuring that our financial decisions were in harmony with our long-term objectives.
Financial Peace of Mind
Living on last month's income marked the beginning of our financial journey, reshaping our mindset about money. We replaced the constant worry about covering rent or paying late fees with financial awareness and commitment to change. It helped us, and it can help you, break the cycle and start your journey towards financial wellness. It is time to take control of your financial future – let's start this empowering journey together!
Marina
Comments