This week’s blog post is dedicated to my coworker and friend, Derek Hageman. Derek passed away over the weekend after battling cancer. He was a big supporter of this blog and having him in my corner was the greatest honor. Derek was the most positive, humble and reliable person I have ever worked with. May his memory be a blessing.
The malaise and overspending of the holidays have passed, the days are getting longer (albeit wetter) and it’s time to update my budget again!
Whenever I come back to my budget, it forces me to confront every aspect of my financial standing: How much am I spending? How much am I saving? What’s the discrepancy between those numbers and the budget I have in place?
February was an expensive month. I have a lot of Pisces friends, so birthday gifts (and attending fabulous parties) were my top expense. In addition, grocery shopping has become unbearable! Not only are prices creeping up every time I go, but my favorite things can’t seem to stay in stock. Whole Foods, if you’re reading this, my fatigued body relies on your lemonade Vitamin Water dupe to survive at this point 😂.
As a result, I wasn’t able to save the right amount last month, and it made me consider lowering the percentage of my income I’m putting into savings. However, I recently found this article by Allison Baggerly on her site Inspired Budget. One of my favorite takeaways is #8, the “mini-budget.” Whenever unexpected expenses come up, or you feel like you don’t have enough money to make it to your next paycheck, Baggerly suggests writing a mini-budget to keep you on track. Going more in depth about the mini-budget, she says, “Budgeting is less about the math and more about your flexibility and willingness to stick with it even when you overspend.” Couldn’t have said it better myself!
Since we’re nearing the end of March, I already set up my full monthly budget for April 2023:
My total fixed expenses are still under 50%, and with a bit more monthly income my savings amount increased to $580. When I considered lowering the savings percentage from 20% to 15% of my income, the amount I would be saving (about $440) felt significantly less substantial. The thought of having an easier amount to save made me feel worse, like I had failed to even consider my goal. Worse still, it reminded me of something Carrie Bradshaw would do—making excuses for herself instead of taking control of her life. (Of course, Carrie wasn’t living through a period of skyrocketing inflation, so we have some leeway here.)
With Baggerly’s advice, I know it’s better to try to reach my goal every month rather than give it up or change it. Still, I thought it would be a good exercise to create a mini-budget for myself to account for the time until my next paycheck.
Baggerly says to start with my checking account balance and determine how many days until the next paycheck hits. Next, I subtracted the expenses I knew would be taken from my checking account before April 7: my monthly payment at the dentist, my rent and my internet bill.
Little did I know, I had already been running these short-term mini-budgets in my head around this time of the month. Once my last paycheck of the month hits, I break out my phone calculator app, subtract all the many things we pay for to live on this earth from my checking account balance and ask myself: Can I put the right amount in savings this month?
As of right now, I’m $95 short on my leftover amount, but the good news is that I will be able to put at least $580 in savings once I get paid again on April 7. Since I’m behind, I might transfer even more to my savings account this time in an effort to catch up. By sticking with my budget, I’m able to hold myself accountable and not give up on my savings goals—even when I’m not able to meet them!