This is very similar to my routine and yes, to analog! I've tried using spreadsheets in the past but nothing beats my trusty notebook. It gets messy at times! I am going to steal the stapling the receipts though - that is a good idea. I also really love these practical types of post - so useful!
Love analog, and love that you use a notebook, too!! It does get messy, but it really sticks in my brain much better and I love being able to easily flip back to look at something from a previous month without getting my computer. So glad you enjoyed this one! xx
I would love to learn more about how you budget with a self employed income. I'm self employed as well and always struggle with allocating inconsistent income and would love some insight!
This was so interesting thank you! I tend to just shove as much as I can in savings but I love your intentional method. I really appreciate your analog budget system I would love to see how to make that. I find it really annoying to sit at the computer and plug numbers into a spreadsheet.
Hooray, so glad you liked this one! I love writing it down physically, I think it helps me so much more with it sticking in my brain and staying on track than on a screen. Also, i totally agree re: annoying sitting at the computer with a spreadsheet. I'll work on writing up a newsletter about budgeting and share soon. xx
Thank you for sharing this! You’ve inspired me to be a bit more proactive. And yes, I would absolutely read your newsletter on writing a budget. I know it is so important but in all honesty I find budgeting and managing finances overwhelming -I can barely round up the enthusiasm to begin!
Thanks for writing in. I agree, it is (unfortunately) a luxury to be able to make enough money to contribute to savings accounts in our country. Many things are so broken. If you are struggling to afford fundamental human needs of rent, food, and utilities, you will be unable to pay yourself first, which perpetuates the cycle.
We have worked really hard to get to this point and for years were not able to contribute much, or anything, to a retirement account, living on a low income as a young family (we only opened these when I was about 30, and my husband 39). My version of paying myself first during that time was starting to save our emergency fund, about 10% of income, and that was it. As our income increased, we increased the amount we were saving accordingly and were finally able to allocate as described in this post (which, as I note, the luxury of which does not escape me).
Great piece! I find so many people miss that step of having the fund to pay off occasional/seasonal expenses. It makes a big difference and keeps the emergency fund safe for true emergencies.
This is so helpful. I prefer to use a notebook as well- it keeps it top of mind. May I ask what bank you use for your high yield savings account? I was doing research and I got so overwhelmed by the choices. Thank you again for writing such thoughtful posts. It always gets me thinking.
Thank you! So glad you enjoy reading! Yes to a good old notebook, I agree, it keeps me on track to see/write in it physically.
I use the Marcus online high yield savings account, which is currently 3.65% APR. I chose it because it has a competitive rate and a simple, easy to navigate website, no fees, and no minimum balance requirement. I’ve had it for several years now and have had no complaints. Transfers back into my checking have typically completed same or next day, so it’s still easy to access even though it’s online. Leaving a referral link just in case you decide to go with them, and would like an extra .25% cash back bonus over your first 3 months: https://www.marcus.com/share/AMA-5LM-EAEN
So simple to follow! Love these tips and it's especially inspiring to see you live below your means but still be very content. For the emergency fund, when you say fully funded is it saved up to survive around 6 months without income? I've heard this is a good guideline.
Hello! Thank you, so glad you enjoyed reading this one. I think 6 months is a great rule of thumb. Our emergency fund is currently funded for 9 months of expenses. I started by funding it to 3 months, then focused on getting our retirement contributions up, and then gradually added any extra money into the emergency fund whenever I could. Once, my husband lost his job and had to take another, low paying job, and it took him about 9 months to find another job, which is why I have ours at 9 months now. xx
I could read about how you budget and all that goodness all day! It was not talked about in my family so money is a huge source of fear for me . Im learning a lot from you! thank you
This makes me so happy!! I'm going to write more on it. Learning and becoming literate in personal finance has given me so much freedom, I wish we would have all learned this growing up. xx
This is so inspiring! I’m constantly so impressed with what a beautiful life you’ve built while embracing simplicity. Have you ever thought about making personal finance a regular topic for this newsletter? I think I’m not the only one who would absolutely love that :)
Thank you so much, what a beautiful compliment. Yes, it seems this is such a popular topic that I think I'll keep expanding here- and I love talking personal finance! Is there any topic within that that you're especially interested in reading? xx
This was super useful, thank you for this! I’m a younger adult and am learning how to manage (minimal) money after growing up with very little. I’d love to know more of the basics about a sinking fund if you think you’d be interested in writing it! It seems like a great way to manage money, and you explain things so clearly! Thanks again, hope you have a wonderful day (:
Wonderful! I'm so happy you've found this helpful, and well done for learning how to manage money young, its so impactuful when you start early.
Absolutely! I'll work on a budgeting newsletter and will be sure to detail more about sinking funds then. It helps so much with understanding your true monthly costs and not having to dip into savings to cover inevitable, but erratic, costs. In the meantime, may I suggest this video? it covers sinking funds so well, and clearly, I think. I love this channel and have learned so much from them- I think you will like it, too.
Thank you for explaining your routine in detail. How do you track what you spend on the daily? That's where I personally get lost. Do you use cash much of the time? I like the physicality of cash but once it's spent it drives me crazy that I don't remember where it went. My husband created an envelope-style finance program that we've used over the years but for some reason it's hard for me to remember the balance in each envelope. Maybe because it's on the computer and not easy to access when I'm at the store. Why is it so complicated? 🫠
I don't use cash much, even though, like you, I prefer the physicality of it- I've just drifted away from it. I use a credit card (paid in full every month) for easy tracking and to get my cash back at Costco every year (lol). The envelope system is fantastic! We used that for a while, too.
I get a receipt for everything I can, and write it down when I get home (I mark a check at the top of the receipt so I know I recorded it). If I spend cash, I write it down in a tiny memo notebook I keep in my purse (so useful for writing down all kinds of things), tear the page out, and treat it like a receipt- it also gets taken out of my purse, recorded, marked with a check mark, and filed with the other receipts. This gets balanced against my bank statements and credit card statements every pay period. Hope that helps! The comment below about writing it down ahead of time is an excellent idea, too!
When I know I will be spending in a given day, I write the place - gas, hardware store etc.- in my expenses record before I go. Then it triggers me to remember and come up with the amount.
This is very similar to my routine and yes, to analog! I've tried using spreadsheets in the past but nothing beats my trusty notebook. It gets messy at times! I am going to steal the stapling the receipts though - that is a good idea. I also really love these practical types of post - so useful!
Love analog, and love that you use a notebook, too!! It does get messy, but it really sticks in my brain much better and I love being able to easily flip back to look at something from a previous month without getting my computer. So glad you enjoyed this one! xx
I would love to learn more about how you budget with a self employed income. I'm self employed as well and always struggle with allocating inconsistent income and would love some insight!
This is a romantic version of what i do hahah, i.e. excel spreadsheets
This is very inspiring.
This was so interesting thank you! I tend to just shove as much as I can in savings but I love your intentional method. I really appreciate your analog budget system I would love to see how to make that. I find it really annoying to sit at the computer and plug numbers into a spreadsheet.
Hooray, so glad you liked this one! I love writing it down physically, I think it helps me so much more with it sticking in my brain and staying on track than on a screen. Also, i totally agree re: annoying sitting at the computer with a spreadsheet. I'll work on writing up a newsletter about budgeting and share soon. xx
Thank you for sharing this! You’ve inspired me to be a bit more proactive. And yes, I would absolutely read your newsletter on writing a budget. I know it is so important but in all honesty I find budgeting and managing finances overwhelming -I can barely round up the enthusiasm to begin!
Yay! So glad to hear that. I'll work on a budgeting newsletter and share soon. I was overwhelmed at first, too! It can be a lot if you're new to it xx
It’s wonderful when a family has enough money to do this.
If I’d “paid myself first” each month, I wouldn’t have had enough money to cover basic living expenses.
Thanks for writing in. I agree, it is (unfortunately) a luxury to be able to make enough money to contribute to savings accounts in our country. Many things are so broken. If you are struggling to afford fundamental human needs of rent, food, and utilities, you will be unable to pay yourself first, which perpetuates the cycle.
We have worked really hard to get to this point and for years were not able to contribute much, or anything, to a retirement account, living on a low income as a young family (we only opened these when I was about 30, and my husband 39). My version of paying myself first during that time was starting to save our emergency fund, about 10% of income, and that was it. As our income increased, we increased the amount we were saving accordingly and were finally able to allocate as described in this post (which, as I note, the luxury of which does not escape me).
Great piece! I find so many people miss that step of having the fund to pay off occasional/seasonal expenses. It makes a big difference and keeps the emergency fund safe for true emergencies.
Thank you! Yes, it makes such a big difference, I can’t believe I just tried to cashflow everything for so long, haha. Much smoother this way!
This is so helpful. I prefer to use a notebook as well- it keeps it top of mind. May I ask what bank you use for your high yield savings account? I was doing research and I got so overwhelmed by the choices. Thank you again for writing such thoughtful posts. It always gets me thinking.
Thank you! So glad you enjoy reading! Yes to a good old notebook, I agree, it keeps me on track to see/write in it physically.
I use the Marcus online high yield savings account, which is currently 3.65% APR. I chose it because it has a competitive rate and a simple, easy to navigate website, no fees, and no minimum balance requirement. I’ve had it for several years now and have had no complaints. Transfers back into my checking have typically completed same or next day, so it’s still easy to access even though it’s online. Leaving a referral link just in case you decide to go with them, and would like an extra .25% cash back bonus over your first 3 months: https://www.marcus.com/share/AMA-5LM-EAEN
So simple to follow! Love these tips and it's especially inspiring to see you live below your means but still be very content. For the emergency fund, when you say fully funded is it saved up to survive around 6 months without income? I've heard this is a good guideline.
Hello! Thank you, so glad you enjoyed reading this one. I think 6 months is a great rule of thumb. Our emergency fund is currently funded for 9 months of expenses. I started by funding it to 3 months, then focused on getting our retirement contributions up, and then gradually added any extra money into the emergency fund whenever I could. Once, my husband lost his job and had to take another, low paying job, and it took him about 9 months to find another job, which is why I have ours at 9 months now. xx
I could read about how you budget and all that goodness all day! It was not talked about in my family so money is a huge source of fear for me . Im learning a lot from you! thank you
This makes me so happy!! I'm going to write more on it. Learning and becoming literate in personal finance has given me so much freedom, I wish we would have all learned this growing up. xx
This is so inspiring! I’m constantly so impressed with what a beautiful life you’ve built while embracing simplicity. Have you ever thought about making personal finance a regular topic for this newsletter? I think I’m not the only one who would absolutely love that :)
Thank you so much, what a beautiful compliment. Yes, it seems this is such a popular topic that I think I'll keep expanding here- and I love talking personal finance! Is there any topic within that that you're especially interested in reading? xx
I'm so impressed and found this very helpful and inspiring thank you.
Thanks Caitlin! So glad you enjoyed this one! Hope you all are well xox
This was super useful, thank you for this! I’m a younger adult and am learning how to manage (minimal) money after growing up with very little. I’d love to know more of the basics about a sinking fund if you think you’d be interested in writing it! It seems like a great way to manage money, and you explain things so clearly! Thanks again, hope you have a wonderful day (:
Wonderful! I'm so happy you've found this helpful, and well done for learning how to manage money young, its so impactuful when you start early.
Absolutely! I'll work on a budgeting newsletter and will be sure to detail more about sinking funds then. It helps so much with understanding your true monthly costs and not having to dip into savings to cover inevitable, but erratic, costs. In the meantime, may I suggest this video? it covers sinking funds so well, and clearly, I think. I love this channel and have learned so much from them- I think you will like it, too.
ps thanks so much for reading and writing in! xx
https://www.youtube.com/watch?v=lVRK85JTiF0
Thank you so much! I'll check it out!
Thank you for explaining your routine in detail. How do you track what you spend on the daily? That's where I personally get lost. Do you use cash much of the time? I like the physicality of cash but once it's spent it drives me crazy that I don't remember where it went. My husband created an envelope-style finance program that we've used over the years but for some reason it's hard for me to remember the balance in each envelope. Maybe because it's on the computer and not easy to access when I'm at the store. Why is it so complicated? 🫠
I don't use cash much, even though, like you, I prefer the physicality of it- I've just drifted away from it. I use a credit card (paid in full every month) for easy tracking and to get my cash back at Costco every year (lol). The envelope system is fantastic! We used that for a while, too.
I get a receipt for everything I can, and write it down when I get home (I mark a check at the top of the receipt so I know I recorded it). If I spend cash, I write it down in a tiny memo notebook I keep in my purse (so useful for writing down all kinds of things), tear the page out, and treat it like a receipt- it also gets taken out of my purse, recorded, marked with a check mark, and filed with the other receipts. This gets balanced against my bank statements and credit card statements every pay period. Hope that helps! The comment below about writing it down ahead of time is an excellent idea, too!
When I know I will be spending in a given day, I write the place - gas, hardware store etc.- in my expenses record before I go. Then it triggers me to remember and come up with the amount.
This is a great tip!