I was recently asked, “How do you budget if spreadsheets make you nervous?”
That is easy, don’t use spreadsheets! I understand how stressful finances can be—taxes, expenses, health insurance, and everything that comes with them. When you’re trying to save money, you're focused on getting ahead and allocating your income wisely. It can be overwhelming!
I learned early in my career the best solution is to pay yourself first. This approach addresses many common budgeting issues because people often get caught up in paying everyone else. They pay their utility bills, taxes, groceries, their kids' sports, or band lessons—whatever it might be. Then, when an unexpected situation arises, like a flat tire or a road trip they really want to take, but their money is gone. They live in the moment, and it can cost them. By paying yourself first, you prioritize the most important person in the room: YOU! Treat it like a bill and make sure you pay yourself first.
You might ask, "How much should you pay yourself?" Start with something meaningful, like 10% of your earnings. If you can live on 90% of what you earn, you’ll find yourself in a much better financial position down the road. Over time, the habit of saving money will feel great, and you might be able to increase it a little more. Perhaps you can go to 11%, 12%, 15%, or, if you’re fortunate, even 20% or more of your income!
So, how do you reduce your nervousness around spreadsheets? Focus on what you can control. Pay yourself first; treat it just like a bill—just like your mortgage or any other expense. Develop a lifelong plan of living within your means and I’m sure your future will be bright.