Budgeting for Beginners: The Simple Guide to Taking Control of Your Money

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Getting started with budgeting doesn’t have to be complicated. In fact, having a simple, easy-to-follow plan can make all the difference in sticking with it month to month. Whether you prefer a physical budgeting planner or a budgeting app like EveryDollar or You Need a Budget (YNAB), having a system in place is the first step toward achieving your financial goals. Let’s break down how you can set up a simple budget that actually works.

Step 1: Choose Your Budgeting Method

A good first step is deciding how you’d like to track your budget. Physical planners, like the Clever Fox Budget Planner, are fantastic for people who prefer writing things down and visualizing their spending on paper. On the other hand, digital options like EveryDollar and YNAB allow for easy categorization, tracking, and updates on the go. Personally, I like using apps for the convenience, but I also appreciate the structure a physical planner can add.

Step 2: Allocate for What Matters (and Make Adjustments as Needed)

Life is constantly changing, and so are financial goals. For instance, when I implemented infinite banking into my financial strategy, I had to make adjustments in my budget to set aside funds for policy loan repayments. Infinite banking has given me a way to act as my own bank by building cash value in a whole life insurance policy. But, just like any loan, it needs consistent repayment. You often hear that you should pay yourself first, but that is usually one of those things that sounds good but most people don’t implement. Your the obligation of having a policy and the motivation to max it out every year is a practical, efficient, and highly beneficial way to force you to pay yourself first. I am committed to that. I’ll put something on credit or even be late somewhere else before I miss a payment on my policies (hopefully you dont have to make that choice often but we understand times can get tight. Fortunately there is cushion in the way we design policies to account for those tough seasons of life. If you want more details about the safeguards in a policy shoot me a message. I may blog more about this later).

What this looked like in my budget was setting aside a specific amount each month for loan repayment. I added it as a line item along with other fixed/ necessary expenses such as regular bills, groceries, and savings goals. This required some flexibility—cutting back in other areas to make sure funds were available without straining my cash flow.

Step 3: Review and Update Regularly

Your budget isn’t set in stone, and it shouldn’t be. If unexpected expenses pop up or your financial goals change, adjust accordingly. This might mean reallocating funds within your budget or revisiting categories in your planner or app. Remember, budgeting is about progress, not perfection.

Whether you’re using a physical budgeting planner or tracking everything on an app, the key is consistency and flexibility. A well-maintained budget is a powerful tool for taking control of your finances and reaching your goals.