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Money Management

How to Prepare for a Job Change

How to Prepare for a Job Change

Lately, I have been really about finding work that you absolutely love. I have always loved teaching, since I was a kid, I knew I wanted to be a teacher. There was absolutely no question there.

Recently, I have found it more and more difficult to get myself to school. Not because of the kids or my actual job, but the environment that I have to work in everyday.

It’s not a good environment to be in and it definitely would be considered toxic. For awhile, I thought I didn’t like teaching because of it.

What I realized was that it wasn’t the teaching I didn’t enjoy, it was the unreal expectations that were being place on us as teachers in my current district.

I quickly realized that if I was going to find my passion again in education, I’d need to leave.

These are the steps that I am following now as I prepare to switch jobs.

1. Apply to all the jobs.

I’m at the point where I am applying to any job that remotely interests me. Of course, I have an idea of what I ideally want. I want to be a reading specialist, but if I can’t find that kind of job yet, that’s okay.

Anything that interests me, I have been submitting an application. LinkedIn makes it really easy to quickly apply to positions, so it really doesn’t take much time once you have your profile updated. I definitely recommend getting on there.

I suggest applying to jobs with any free time you have. It doesn’t hurt to just hop online and see what’s out there. I’ve been setting a timer on my job search because I can fall down the rabbit hole pretty easily.

2. Start saving money.

Changing jobs can be stressful and hard when it comes to your finances. A lot can change with a new job and there is too much uncertainty to not be prepared, especially when you know you want to do this.

I think it is so important to leave a toxic work environment. Finances can make this tricky, but if it’s something you really want to do, then prep for it!

For me, I am saving for the summer (no pay for teacher’s in the summer on 10 month contracts) and increasing my emergency fund. I would rather have cash just in case, then to be stuck in a situation where I need cash and don’t have it.

Even though I am still paying off my debt, it is super important to increase my savings to prepare for the changes ahead.

3. Decide if you are willing to relocate.

This is a huge decision when it comes to finding a new job. If you are happy where you are and don’t want to move, finding a job close to you is critical.

Depending on your field, that may be limiting your chances at finding a new job. For me, I can basically find a job anywhere being a teacher, it just might not be my ideal job.

By having the option to relocate, you are opening yourself up to a lot more opportunities, but a lot more things to potentially prepare for.

4. Find a side hustle, if you don’t have one already.

The reason I mention this is because if you are in a work environment that is toxic, this opens you up to be able to leave with some cash flow coming in still.

For me, I already have multiple side jobs, but I am figuring out how they will work when I move. The simple answer is, they won’t. All of my side jobs are at my current school and working with families in my area.

Once I move, I will lose all of them completely. Of course, I can find new families by my new house, but it takes time to build up a reputation in an area.

That’s why I am currently applying to side jobs I can start working now and can continue working once I move.

5. Start preparing your exit strategy.

Every job is different, but you need to make sure you leave your current job in good standing. I strongly believe in keeping connections everywhere you go because you never know when you will need them or run into them again.

I’ve noticed, especially with teaching, that you always find someone that knows someone, usually. It helps a lot when you have good relationships with people, if you ever happen to cross paths again.

If you can, frame it in a move to a different kind of position. I have shared with my supervisor that I am looking for a new job as a reading specialist, something that I can’t do in my current district.

Because of this, she is very supportive of me and furthering my career. She thinks that this is a great next step in my career and she knows that this isn’t something I can do in my current job.

You need to do what is best for you.

I found it hard at first to think about getting a new job. Then I remembered that this job will find a replacement for me as soon as I go. You need to have a job that brings you joy and encourages you to continue to build your skills and learn new ones.

Once it no longer does those things, it’s time to go. Of course, we’re adults, we need to pay our bills, but that’s why we prepare for this and why I encourage side jobs so much. They can always carry us between jobs! So, how have you prepared for a job change?

Money Management

Why the Public Library Should Be Your Best Friend

Why the Public Library Should Be Your Best Friend

I only rediscovered my library in the last year or so and I am so happy that I did. Prior to that, I always bought my books or relied on the Internet for my information.

I’m not sure where it started that I only bought my books, but it really doesn’t make sense to buy books the first time you read them. Of course, if you want to support the author, that’s a totally different story.

If you’re like me, I typically don’t read books more than once. If I do, it’s usually because it was a book that offers advice, information, strategies, or personal development. Most of my books sit on their shelves and gather dust after I read them the first time.

If you’re someone that loves to read books over and over again and loves having shelves of books, then absolutely go for it!! Whatever brings you joy and makes your heart sing. You do you, girl!

But, I know that’s just not me. And I am so glad I wandered back into my public library for this reason.

1. Obviously, you save money by using the library.

This one is pretty obvious. You get access to your library by living in your town and paying taxes. Take advantage of it! My library even tells me how much money I saved by borrowing the books instead of buying them, I love that!

The convenience is awesome, too. I can go online and place a book on hold and pick it up when it’s ready. Super easy!

Plus, there are SO many apps now that allow you to listen to audiobooks, or ebooks right on your device at home. You don’t even need to step foot in the library and it’s on your device. It doesn’t get much easier than that, and it’s free.

Yes, you might have to wait a bit for the book that you want to read, but we’re adults, right? We can wait for something we want.

2. Everything goes back to the library.

I recently got into decluttering and binged the Marie Kondo series on Netflix in one weekend. There is nothing I love more than a good declutter. I have a pretty extravagant plan for a declutter over my upcoming spring break. I know, super wild and crazy, right?

This is about the time where I realized that stories, learning, information, and reading, bring me so much joy, but the actual books, do not. This is the wonderful thing about the library, the books go back once they have served their joy bringing purpose for me.

Of course, some books do bring me joy and I hate seeing them go back to the library, which brings me to my next point.

3. You can test drive a new book before purchasing.

There are some books that I do buy. The books that I will purchase are ones that I know I will reference back to again. These usually are books that have a lot of information in them and I want to make sure I take the time to actually implement the information.

Recently, I borrowed the 4-Hour Work Week by Timothy Ferriss and I absolutely loved it. As soon as I finished it, I bought a copy. I wasn’t reading it to fully implement the material this time. It was just for me to see if it had the information I’ve been looking for, and it totally did!

Now, I know my purchase is worthwhile because I have already read the book and know I will reference back to the book in the future.

4. Tons of free entrance places and events.

My library always has something going on. They are even bringing WOLVES to the library, like come on. That’s just so cool. But, in all honesty they have a ton of informational events that are always happening. It’s awesome to have access to so much information all for paying your taxes.

A lot of libraries also have partnership with local places for free or discounted admission to events. My library advertises them all the time. It’s great to just get on their email list so you can maybe get to experience something new you normally wouldn’t have!

Libraries are wonderful resources to use to continue learning.

What it really comes down to is that it’s important to continue learning and libraries offer a great way of doing that. It can open up new opportunities or new hobbies you never knew you would be interested in. And let’s be real, you’re paying for the library, so you might as well use it! How often do you use your library?

Money Management

Why You Need to Have Personal Money

Why You Need to Have Personal Money

When you’re getting started with budgeting the first thing that people think is being restricted. The term “budget” just has such a negative connotation to it. But, that couldn’t be further from the truth.

A budget gives you permission to spend because you know you have the money.

The only thing a budget does is tell your money where to go and if it can go there. The reality is, you need to align your budget with the life you want to live. A lot of money gets sucked out of us for low joy purchases, which doesn’t make any sense.

For example, I would run out for lunch every week. It tasted good and it was my way to escape for a bit. The reality was that I was losing time at work, spending way more money, and eating food that wasn’t even good for me. Now, I eat lunch at work, am saving a lot of money, eating healthier, and no longer bring any work home (this is huge as a teacher).

For me, running out to buy lunch was a low joy purchase. This was one of the first things I cut from my spending. Of course, I go out to eat for special occasions, but I no longer get food out of convenience, I do to connect with friends and family.

Something I also cut from my budget was any kind of personal spending money, meaning self care was gone. For about 3 years, I would get 2 haircuts a year and that was it. I stopped getting my nails done, stopped getting hair cuts. I was determined to pay down my debt.

And I did. I paid off $118k in about 3 and a half years. I still have more to go, but I truly killed some serious debt by myself these last few years.

Now that I have gone this long, I’m burning out. It’s a long journey and I just want it to be over with already. So, I gave myself a bit of spending money for self care and I am so glad that I did.

Your budget should include you and some personal money.

Personal finance is never going to end. That’s why you need to think about long term goals when you budget, so budget in some personal money! Your budget should reflect you, the things you value, and the things that are important to you.

That means you need to remember yourself and put some money for yourself in your budget. Personal money doesn’t need to be some crazy number. My number changes every single month depending on my current situation. I typically roll my personal money over from month to month as well. This way if I feel like I want to treat myself to a massage, I will have the funds. Same thing goes for getting my hair done.

Yes, this is taking away from my debt pay off, but it’s really not too much money each month and if I decide I don’t want to use my personal money and send it to debt, I can.

This is the money that will keep you from feeling restricted.

Especially when you first start, you’re going to feel restricted. It’s just the nature of the beast. It’s an adjustment period and with time, it will feel more natural. You’ll realize what you value and when you’d rather be using the money to reach your goals.

Personal money is for those hard days. When life completely falls apart and the unexpected happens. You can use your personal money in whatever way you want. For me, I know I need to spend some time and money on me, I enjoy getting manicures and my hair done.

This is what I use my personal money on. After 3 years of not having these items in my budget, it feels wonderful to put them back in. It was hard for me to add them back in at first, but I remind myself that I went totally intense for 3 years. That’s a long time and I got a lot accomplished!

Personal money will help you spend less.

Personal money allows you to spend. This prevents you from going on a spending spree when you’re burning out. Trust me, it will happen, if you’re restricting yourself too much. It just depends on when it happens. It’s important to take care of ourselves on our journeys.

Personal finance is a life long journey and it’s important to keep this in mind when you’re budgeting. You can do anything for a season, you can cut your personal money for a period of time, but it’s important to adjust and change your budget through the seasons of life.

I realized I was starting to fall off of my goals and feeling drained from my long journey to debt freedom, so I added in some personal money. I’m glad I lasted as long as I did, but I’m so happy to be spending some money on me now.

Evaluate where you are currently and plan your personal money accordingly.

The great thing about budgets is that they can change so easily and they should change to reflect where you are in your life. If you’re close to meeting a goal, you can cut some personal money, if you’re struggling with spending, you can add it back in. It all is based on priorities and what you want to do with your money. How do you budget for personal money?

Money Management

Why I Don’t Use Cash Envelopes

Why I Don't Use Cash Envelopes

This post may contain affiliate links. Check out my Disclosure Policy for more information.

Cash envelopes are a popular method of budgeting in the personal finance world. It makes sense, you give yourself a certain amount of cash for a time period and once it’s gone, it’s gone.

This allows you to have complete control over your money and actually have to hand it over to pay for things. The physical exchange of money is felt and it allows you to change your mindless spending when it comes to a card.

I get it. This is a great way to budget and I think it allows a lot of people who use it to make significant change in their spending habits. I recommend this method to a lot of people because it is proven to work and has worked for so many people.

It just doesn’t work for me. And here’s why.

Cash envelopes don’t work for me because I’m a natural saver.

I’ve never been one to blow a ton of money. I’m naturally the type to save my money and then buy what I want. I’ve always been this way since I was a kid. I loved seeing my Pony Club account grow (the kids bank account they offered at my local bank).

I’ve never been in credit card debt, yes, I use them for the rewards, but I always have the cash available. Since I’ve never really had a spending problem, it was much easier for me to start budgeting. I didn’t need to have that hard money mindset change around spending.

But, I did need to have it around saving. It was hard for me not to save a lot of money. To be honest, I’m still saving money while paying off my debt, not much, but enough that it makes me feel better about sending thousands to my student loans.

Cash envelopes don’t work for me because I’m a nerd.

I love tracking my spending and budgeting my money to work for me. I didn’t start budgeting until the summer of 2014, but I always kept tabs on my spending and knew how much was in my accounts.

Cash is hard for me to track, I don’t do well with it. I like to streamline my systems to be easy for me to maintain, cash takes time and is hard to track for me. I like to be able to look quickly at my accounts and see where I am at any given point in time, that can be tricky with cash on hand.

Being a nerd, I like to account for every penny and give it a job, with cash, that gets a bit messy at times. For me, there are just too many moving parts with cash.

However, I do love paying cash when a discount is offered and I’m all about that.

What I do instead of cash envelopes.

Ultimately, you need to find whatever method works best for you. It’s going to take time, but once you find a system that works, you’re going to see great progress in reaching your financial goals.

For me, I use Mint to track my expenses loosely throughout the week. This allows me to quickly check in with myself to make sure I’m on track.

On the weekends, I put all of my spending into my spreadsheet for tracking expenses and update my budget for the month. This allows me to see where I’m at with my spending heading into the new week.

Because I have so many side hustles, I zero out my budget at the end of the month. All of my side hustle money, and most of my teaching salary, goes directly to debt. By the end of the month, all of my money has gone somewhere, mostly debt, for now.

Find a system that works for you.

You need to spend the time finding what naturally works for you. If cash envelopes don’t work for you, don’t try to force it to work. Spend some time trying out different methods and find the one that feels the most natural to you.

And it’s not going to happen over night. I’ve been doing this since 2014 and I’m still reworking it to figure out better ways. It can absolutely be difficult to get started, but that’s why I’ve created email coaching to help you get started. If you’re someone that is struggling to get going on a budget, then that is absolutely for you.

Once you have a system in place that works for you, it will be much easier to budget your money. It’s worth it to spend the time finding a system that feels most comfortable for you. By finding a system that works for you, it will allow you to more easily manage your money. What system do you use to manage your money?

 

 

Money Management

My Financial Breaking Point

My Financial Breaking Point

This post may contain affiliate links. Check out my Disclosure Policy for more information.

It can be difficult to start a journey with the Internet at our finger tips. On one side you have so many people that have been working their butts off for years and it can be hard to see yourself in that place when you are in such a different place. Change is hard and it doesn’t help when you see people posting about how great their life is now that they get their finances together.

The most important thing to keep in mind is that most of those people were right where you are now. You can’t compare your start with their middle, it just isn’t realistic. After years of working towards their goals, of course they’re in a better place. If they weren’t then they weren’t working towards anything.

Use those stories to motivate you to get to where they are and even further. Starting is hard, but the work is so worth it. I wanted to share with you all my financial breaking point and what caused me to completely change my life in a matter of months.

Summer of 2014: My financial reality smacked me in the face.

In May of 2014 I graduated from Syracuse University with a bachelors degree in Inclusive Elementary and Special Education and a lot of student loans, roughly $180k. Now, we all know that teachers don’t make the best salary starting out in most parts of the country. At this point, I did not understand student loans and was told they were a necessity in order to get my education.

I had no idea the reality of my student loans and what it would mean for me upon graduation. So, I decided to go straight into grad school full time and get my degree in 1 year, I’d be going for 4 semesters. I was going to get my masters in early childhood and special education. I assumed this would be a good path for me because it got me 2 more certifications, bringing my total to 4. That would make me more marketable, right?

About 2 weeks after starting my masters program I got a phone call from my Dad saying my first bill for my student loans from undergrad came. They hadn’t received my paperwork that I was still in school full time, which meant they billed me. The bill was for $1,200 and yes, I cried.

I didn’t cry because I didn’t have the money at the time. Of course I didn’t have the money, I was working at a day care making minimum wage, living in an apartment with my bills I had to pay every month. I knew I would get my loans put into deferment because I was full time at school.

I cried because I was in a masters program, taking out even more student loans, and just my private loans from undergrad promised a $1,200/month bill upon graduation. And I was going to school to be a teacher.

This is when I got serious about figuring out personal finance and decided to make major changes to my life in order to try to fix this hot mess I had created for myself.

Summer of 2014: The changes I made to get myself on a better path.

The easiest thing I could have done at this point was to drop out of grad school, but I knew the job market for an elementary teacher was tough. So, I decided to stay in grad school. Plus, at this point my plan was to stay in Syracuse and work there and in New York, you need a masters degree to get your standard certification.

So, I set up a meeting with one of the best people I met at Syracuse, who at this point had become a mentor to me. She had been the undergrad recruiter and I had worked with her in undergrad mentoring new freshman. Now, she was the grad recruiter and I knew she would be honest with me and spend time trying to figure out a plan with me.

I walked in to meet with her and laid everything on the table for her, my entire financial position at that very moment. She immediately started asking me questions and brainstorming solutions with me.

I walked out of that meeting with a to do list and my entire future changed. I credit this meeting to the beginning of my financial journey because without this meeting my life would have been so much different.

She had me apply to a new grad program, literacy education, which was less credits and made me much more marketable after graduation as a reading specialist. She emailed the person in charge of scholarships and asked if there was any available funding for me, someone who had done a ton of volunteer work for the School of Education in my undergrad and grad programs. A new job application for a preschool that offered 4 credits to Syracuse in the fall and spring semesters each for me. A babysitting job lined up that her daughter could no longer do because of a new job and a meeting scheduled with the financial aid office.

We also talked about my plan for after graduation and I told her I was planning to stay in Syracuse and teach. She immediately told me this was not a good idea. She pulled up the teaching salaries in the area and told me my salary here would not support my loan payments and that doesn’t even include cost of living.

She encouraged me to move back home with my parents and teach in New Jersey, where teaching salaries are much higher due to the high cost of living. I never even considered this option, but the reality was that it might be the best choice to get my finances in order.

Fall of 2014: Everything falls into place.

After that meeting, I immediately got to work. I applied to the preschool for a fall teaching aide position and I got it! This gave me a higher hourly pay than the day care and gave me 4 credits for the fall and spring semesters. The family hired me to babysit for 10 hours every week and she was flexible for when I came because she worked from home. I would go over there between my preschool hours and my night classes. A scholarship did come through and I managed to get additional TEACH grant funding for grad school. My entire tuition for the fall and spring semesters would be paid for.

I couldn’t believe that all of this was actually happening for me. With all of these new plans for myself, I still made sure to continue doing my research on personal finance. I got myself on a zero based budget, I got strict about my grocery budget, and since my jobs were all close to home, I really didn’t spend much money month to month.

While I was in grad school, I was averaging about $1,100 in income every month and shockingly, I managed to pay off some debt while in grad school. It wasn’t much, usually about $200/month, but it was still something. I felt so much more relaxed and at ease when it came to my finances once I got things under control. I was still nervous about what would happen post grad, but I felt so much better about it all.

Spring of 2015: Post grad reality sets in.

I knew I was going to have a hefty student loan payment each month. I estimated it to be about $2,000/month. So, I made myself an estimated budget for after I graduated. By this point, I had shared my plan with my parents and had officially decided to move home after graduation and started finding schools to apply to that met the requirements for my TEACH grant.

I knew it was going to be tight with my estimated budget I made, even with living at home and getting a higher salary because it was in Jersey. I was committed to getting side jobs tutoring and babysitting when I moved back home though. I figured I could get more income this way and there would be possibilities of more income at the school I’d work at.

I walked at graduation in May from my masters program with 6 credits to complete for my degree. Reality started kicking in, a lot of my friends in my program were getting job offers, and I still hadn’t heard anything. I knew it was still early and I knew the job market was tough in New Jersey, but I really needed a job if I was going to pay these loans back.

The Monday after I walked at graduation, I got a call from a school district 20 minutes from my parents house for a 5th grade position. I set up an interview for later that week and they hired me on the spot during my interview. I was so relieved and I was happy that my starting salary was $56k, about $10k more than I would have been making if I stayed in Syracuse.

I remade my estimated budget with my salary included and realized it would still be tight, but it would be manageable, something would not have been possible if I moved out of my parents house.

Fall of 2015: Pay back begins.

In August, I started my new job and the school year began in September. I was so excited to have my first classroom and to be teaching. I had my budget all ready for September and I began searching for ways to make more money. It definitely wasn’t easy as a first year teacher, I was exhausted and spending every minute doing work, but I was determined to find a way.

I officially started paying back my loans in November 2015, I had made payments in the months prior though. This helped me a lot because I had already made a small dent in my loans and helped me build the habit of paying more every month. I didn’t let my first salary go to waste, I put everything extra right to my student loans. My minimum payment was roughly $2,000/month when I started and it was hard at the beginning. I wasn’t seeing much traction because it was hard paying additional.

I eventually got a tutoring job and this freed up some cash flow for me allowing me to send even more money to debt.

Spring of 2016: First student loan paid off.

One year after I walked at graduation, I paid off my first student loan and I absolutely loved the feeling of getting that debt gone. I decided on the avalanche method because I had some crazy large balances with some crazy large interest rates. My student loans were all monsters, there would be no quick wins in the beginning for me. That was why I decided to go with the avalanche method.

It was hard waiting so long to pay off my first loan, but the reality was that I was going to need to wait regardless in my situation. I would have mini celebrations every time I paid off $5k though, this kept my motivated in that first year.

Spring 2019: Where I am now.

Over the last 3 years I have stayed in the same school district, moved teaching positions, added a ton of side jobs, and crushed $118k of debt out of $201k. I never thought I’d be here when I completely broke down in the summer of 2014. I had read so many blogs about others doing it, but I never thought I would.

Through some sacrifices, budgeting, and increasing my income, I have done it. Of course, I still have $83k left, but I am damn proud of what I have accomplished so far. I am still living at home, still working side jobs, and still teaching. Is it hard living at home at almost 27 years old, of course, but I wouldn’t be able to reach my goals if I wasn’t still here.

I also refinanced my private loans to get a lower interest rate of 4.97%. This isn’t a good option for everyone, but I’m so happy I did. I had $45k left in private loans when I refinanced and in 7 months I am now under $30k. That never would have been possible when I was at 7% interest. Refinancing allowed me to put more of my money towards my principal, which is saving me money in the long run. If you want to refinance your student loans, you can use my link to get $200 when you refinance.

Don’t compare your beginning to someone’s middle.

Any change is hard and it’s even harder if you aren’t giving yourself some grace. When you’re first beginning, it’s going to be hard, but it’s so worth it in the long run. I am so happy I started my journey and have paid off as much as I have. I know that if I didn’t decide to start, I never would have been where I am now. So, what’s stopping you from changing your life?

Money Management

3 Simple Ways to Improve Your Cash Flow

3 Simple Ways to Improve Your Cash Flow

Cash flow is ultimately what you are managing when you are budgeting. The amount of cash flow you have, determines how quickly you can reach those big financial goals that you have. If you have great control over your cash flow, chances are, you are going to reach your goals quickly. When you have to send your money to a specific line item, you are giving up that control of your money.

Ultimately, you want to have an even cash flow. What that means is that the same amount of money that goes in, also goes out.

Now, that doesn’t mean I’m telling you to spend every dollar of your income. But, I am saying that you should be doing something with every single dollar that you get. This makes your cash flow equal, everything that comes in, gets a job going out.

When you have a negative cash flow, you are spending more than you have coming in. That’s a major problem and one that needs immediate attention. This is when debt racks up and makes it incredibly difficult to make any kind of financial movement.

When you have a positive cash flow, this is a good situation to have. It means you have more coming in, then you have going out. However, if you just let this positive cash flow sit in your account, you’re not improving your financial situation.

This is why you need to have equal cash flow, everything going in, must have a job going out. You can’t just let money sit in your checking account doing nothing for you. It should leave your account to do work for you, earn some interest, pay off debt, or maybe invest.

Here are 3 simple ways to improve your cash flow and make sure you are making moves to a better financial future.

1. Have a positive cash flow.

The very first thing you have to do is to make sure you have more coming into your account then you have to send out to bills. If you have a negative cash flow, that needs to be immediately fixed. Track those expenses, get yourself on a budget, cut your expenses, increase your income, do whatever needs to be done to make sure you aren’t spending more than you make.

The very first thing to do is to determine if you have an income problem or a spending problem. If it’s a spending problem, that’s an easy fix. Find quick ways to cut some spending to immediately help your cash flow move to positive. If it’s an income problem, that’s also a fairly easy fix. Find yourself a side hustle, or evaluate if you are fairly being compensated.

Either way, you need to evaluate and make sure you have a positive cash flow, otherwise you can’t move to improving your cash flow.

2. Evaluate your cash flow.

Once you have a positive cash flow, it’s important to evaluate the money coming into your account and the money that leaves it. The money that you have coming in, do you feel fairly compensated for your work? Do you think you need to increase your income to reach your goals?

The big question is evaluating the money you have leaving your account. What happens to money when it enters your account? Does it sit in your checking account? Does it immediately go to bills? Is it working towards a specific goal you have?

Once you evaluate your cash flow, all the money coming in and out of your accounts, you will be ready to make big changes to improve your financial future. Start thinking about the things you want to change with the money coming in and out of your account.

3. Zero out your cash flow.

Once you know where you currently stand with your cash flow, it’s time to zero it out. Like I have said before, this doesn’t mean spend every single dollar you make. This means that you need to give every dollar a job, the easiest way is to zero based budget. That’s why you should have a zero cash flow by the end of your budgeting period.

If you still have a positive cash flow at the end of the month, what is that money doing for you? You need to put your money to work. In order to reach your financial goals, you need to make sure you are using your money to get there.

It’s not a bad thing to let money sit there, but the reality is, you’re not improving your financial future by letting it sit. If you are letting money sit in your account, what’s the purpose for the money? If you have a purpose for that money, then absolutely let it sit. Is it a buffer? Is it so you can get to the point of being a month(s) ahead because your income fluctuates? Are you cash flowing an expense you know is coming?

The point is, you need to make sure your money has purpose and isn’t just sitting around not working for you. By zeroing out your budget and cash flow, you can make sure you are reaching your goals.

Remember, your money needs to work for you.

If you don’t put your money to work, you’re not going to reach any kind of goals that you have for yourself. You need to make sure that you clearly know your goals and know how to make your money help you in reaching those goals. By making sure that you have given a job to every dollar that enters your account, you can ensure that you reach your goals. How have you made sure that you reach your money goals?

 

Money Management

Why You’re Not Succeeding at Budgeting When Everyone Else Is

Why You're Not Succeeding at Budgeting When Everyone Else IsThis post may contain affiliate links. Check out my Disclosure Policy for more information.

Budgeting can seem overwhelming and managing your finances can seem like a major task that seems impossible to figure out. There are SO many different ways to budget and SO many different people pushing different ways to budget.

What’s the right way to budget? Should I try cash envelopes to budget? Should I use an app? What about using a spreadsheet? Ugh. There’s too much out there to figure it out. And then you’re back to square one and definitely not budgeting and definitely not knowing where your money is going every month.

I’m fairly certain that most people that have never budgeted before have similar questions go through their head. If you’re anything like me, you definitely did.

I remember absolutely panicking about my post grad student loan bill every month of $2,000 and thinking, “How the hell am I going to make this work on a teacher’s salary?!” I was 23 and absolutely freaking out about how I was going to afford my life in a few short months.

This is the moment that determines if you’re going to be successful with budgeting. There isn’t any crazy math knowledge required, no special courses, no specific way, really it’s very simply why people succeed at budgeting and others don’t.

People don’t succeed at budgeting because they don’t want to do the work.

Budgeting is simple, but it’s in those moments where it’s make or break. People simply don’t want to do the work that is required to budget.

They want the freedom that a budget would bring, but they don’t want to do the work. Budgeting is easy, but it does take some time and desire to have the freedom to spend money.

I do get it, there are SO many different ways to budget out there. The reality is that you need to just commit to something that tracks your money and start. What works for me, might not work for you. That’s why you need to do some trial and error and find out what works for you.

It’s going to take time and some work, but the results you will see are so worth it. I have a template for Google sheets available, if that’s something you think would work for you.

People don’t succeed at budgeting because they don’t want to face their reality.

I remember when I hit my reality moment before I graduated from my masters program and realized how tight my budget was going to be with my minimum monthly payment. All the blogs out there said a budget would be freeing, WTF did I just sign up for?!

The reality is that in the beginning, your budget is going to feel restricting because it’s a new way you are managing your finances. But, something that helped me a lot was really focusing in on my why.

I want to live a life that wasn’t governed by bills, wasn’t dictated by when I was being paid next or how much I was getting paid. I want to live a life that doesn’t require me to stay at a terrible job just because I need the money. I want to do work that I absolutely love, regardless of my paycheck.

None of that was my reality then and it still isn’t my reality today, but I’m getting closer to living that life. All it took was my one decision to change my future and create a budget that helps me to get there. I’ve now created a budget that allows me to spend my money on things that I value and I do whatever I can to save money on things I need to spend on.

As a twenty something that’s quickly moving towards my upper twenties, people think I’m absolutely insane to still be living with my parents. But, I don’t mind living at home for now and it allows me to reach my long term goals so much faster. My parents live in NJ, cost of living is ridiculous, which also means my salary as a teacher is basically the highest it would be in most other parts of the country. This means $0 towards rent while getting a higher salary.

This was planned and a major change I made in my post grad plans once I made a fake budget for post grad. You need to face your realities, so that you can make changes for your future to get you to your goals.

Budgeting is not going to be easy, especially at first, but I promise you it will definitely be worth it. I can’t even imagine where my life would be now if I didn’t start budgeting back in 2015. I know for sure I wouldn’t have paid off 6 figures of debt so far and I definitely wouldn’t be in a place to start thinking about moving out. So, what’s stopping you from being successful at budgeting? I’d love to help, check out my email coaching, if you’re struggling with starting. Comment below what’s challenging you!