7 Tips for Budgeting: How Our Family Stays on Budget with Two Creative-Minded Musicians
Budgeting is possible even with a single income!
Disclaimer: I’m not a financial advisor. I’m just giving some tips I’ve learned and our family has implemented that help us.
We can all admit that finances aren’t much fun to think or talk about. However, I personally love creating and implementing a budget - it combines my love for puzzles with my love for spreadsheets! Yet even I struggle with it. There have been times I came close to a panic attack when my husband and I sat down to pay bills. Truth is, it’s hard to balance - wanting to take care of your home and family, eat and live in healthy ways, invest in dreams, and all the while stay on budget. This applies to everyone, though it can be especially true if you’re a musician-income household. So I’ve brainstormed 7 tips to help stay on budget when the going gets tough.
Step 1: Make sure you’ve created a budget.
This one might seem obvious, but do you really have something breaking down your monthly income into expenses AND savings and/or paying off debt? Are you keeping track of how much you’re spending on the extras, and do you know what percentage of your income is being used up by these purchases? This is SUPER valuable information to have and keep updated.
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Step 2: Keep track of your purchases to make sure you stick to the budget.
Another obvious one, right? But fair warning - this can be tedious! Which makes it easy to overlook. It’s totally worth it, though. Plus there are lots of apps that can help you with this. Or you can DIY a process that works for you. I prefer making my own spreadsheets because I’m just a spreadsheet geek. Living away from the city, I make a lot of purchases online. So, since I have the spreadsheets set up, each time I make a purchase I just add it into whichever category it falls. Sometimes I’m busy or forget - I can also check once a week through statements and update it that way. Good news is, you can use or make a system that works for you.
The key here is to just make sure you do it. It’s really easy for me to be like, “Oh I’ll just stop for a coffee on the way,” when I’m out running errands. Or, “I’ll stop and get something to eat before I get groceries so I don’t go in hungry!” (Which, by the way, is an extra nugget of advice - don’t go grocery shopping when you’re hungry!) Since I started keeping an eye on the budget, though, my thought habits are shifting to, “I better give myself time to make and eat lunch before I leave,” or, “I’ve already gone out for coffee once this month, I better hold off this time and make some tea at home instead.” It totally works!
Step 3: Try to keep a minimum amount in your account at all times.
This is something my husband and I implement, and it’s really helpful in keeping us in check. It’s a great way to get out of the paycheck to paycheck routine. When you give yourself a buffer, you feel less overwhelmed by the finances, and the psychology shift makes looking at the numbers a lot easier. I suggest setting a goal for both the amount you want to keep on hand AND a timeline for when you’d like to get there. Maybe you need to cut back on spending for a little while to build this buffer, but that will only help you cut spending where you don’t need it and prepare you for building savings in the future! Keep it realistic, though, otherwise you’ll set yourself up for discouragement. Use your budget tool to figure out what you can accomplish, and you’ll have a motivating plan that feels rewarding!
Step 4: Have budget “meetings” with your spouse or yourself.
My husband and I do this at least once a month, usually when we pay bills. We assess where our account stands, how much we deviated from the budget, our current savings goals and any adjustments to the budget that need to be made. If you aren’t married you can go through this process on your own, or ask a parent, friend or mentor for help and advice. It’s always great to get another perspective and to get help with accountability.
Try to keep it low-stress, though. When my husband and I first started doing this, I brought in a load of anxiety and worry! I didn’t grow up thinking about finances this way, and, for me, paying bills felt like getting on a half-finished roller coaster and hoping the seatbelt worked. But with time it gets easier, and you realize, even if your situation looks hopeless, that diligence and discipline can prevail.
Step 5: Stay flexible and update as you go.
This is one area where the meetings come in handy. Life gives us constant change, and we need to be able to adapt accordingly. There’s inflation, fluctuation in gas and therefore grocery and product prices, maybe you had a baby or decided to start working out. Your budget could need updating for any number of reasons. Having a budget tool on hand helps with this because you can make changes and see in real time how it affects the overall picture.
For example, I’ve recently been working through some health issues, and we’ve been spending more on ways to try dealing with that naturally. The last 3 or so months I’ve been trying to update the budget accordingly. Having that account buffer helps give me time to do so! Part of this budgeting process is making things doable - we’re always busy, right? So it may take a while to get the budget adjusted just right. Make sure you don’t use this as an excuse to put it off, though. Spiraling spending can catch up to you fast. Stay disciplined and update your budget as quickly as you can.
Step 6: Set future goals.
Why do you want to create a budget in the first place? What are you hoping to achieve by keeping track of how you spend your money? Do you want to get out of debt, buy a house, start a family, start a business, start some investments? Knowing what you’re working toward is a great way to stay motivated! Know your big goals, then give yourself some landmarks along the way by breaking the big goal down into smaller goals. Set some timelines. When you start ticking those boxes you’ll feel encouraged and inspired, and it might even spur you to spend less on extras and save more toward your dreams.
Step 7: Keep it positive.
We tend to feel more motivated when we’re encouraged. I can’t imagine many people walking away from a lecture about how much you’ve failed feeling ready to tackle life’s problems. Imagine you’ve just listened to someone talk about possibilities and opportunities to change your life for the better - now that puts some pep in your step, right? So do that for yourself when it comes to your finances.
Our spending budget used to be much higher. We weren’t as used to cutting back. I was still working full time, so we ate out a lot more and felt like we had more to spend. Yet when I left my job and we started going out to eat or going out for coffee less often, it was easier because we were used to a budget and had the system in place. The dream of cultivating a family dynamic where I could take care of my husband and the home was more important than going out to eat or buying new clothes. And now we have new dreams that are more important than other ways we could spend money. Even when it gets hard, we feel encouraged and motivated because we’ve put all the previous steps into place.
So I encourage you to follow your dreams and remember that creating and sticking to a budget gives you another tool in your kit to get there!
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