How to create a budget that you *actually* like

Are you spending your money on things that you truly value and make you happy? Do you ever reach the end of the month and not know where your money has gone? Do you want to intentionally save more money and grow your wealth for the future?

Budgeting is a great way to help you manage your finances and visualise your spending. Many businesses make and edit their budgets to ensure that they make a profit at the end of the year, so let’s apply these learnings to our individual incomes. A budget will help you keep track of your spending, prioritise spending that is important and aligned to you, and ensure that you're living within your means.

Here are some steps for creating a budget that really works for you:

1. List what brings you joy: this is a different starting point to most budgets but I truly believe that you need to understand what you value to know what you want to spend your money on. Write a list of 10-20 things that make you happy and you value spending money on e.g. travelling, eating at the best restaurants, going home to visit your family, quality time with friends, sport/hobbies, going to the gym. Your list should be totally unique to you (personal finance is personal after all).

2. Determine your income: calculate how much money you bring in each month, taking into account your salary, bonuses, and any other sources of income (if your income is less predictable then take an average of your last 3-6 months).

3. Identify your expenses: make a list of all your monthly expenses, including rent/mortgage, utilities, food, transportation, entertainment, and any other recurring costs. The quickest way to do this is to download your bank statements from your accounts. 

4. Categorise your expenses: group your expenses into categories, such as housing, food, transportation, and entertainment. This will make it easier to see where your money is going and where you can make cuts.

5. Track your spending: Keep a record of your spending for a few months to get a better understanding of your habits. This will also help you identify any areas where you may be overspending. I do an extra step here and note down how each transaction makes me feel (love/happy, sad/guilty, neutral etc) - this will help you identify 

6. Prioritise your expenses: Decide which expenses are essential and which can be cut back. Prioritise necessities like housing, food, and transportation.

7. Set spending guidelines: Once you've categorised and prioritised your expenses, set a spending limit for each category. This will help you stay on track and avoid overspending.

8. Re-evaluate regularly: Review your budget regularly to see how you're doing and make adjustments as needed. Life changes, and your budget should reflect those changes.

9. Stay motivated: Stick to your budget and make a conscious effort to live within your means. This can be challenging, but it will be worth it in the long run.

Your budget should be inline with the life that you want to live! It should fill you with excitement for your future instead of feeling restrictive. Go on, #financeyourbestlife!