HOW TO BUDGET - MY TIPS & TRICKS
Hey Nomad Crew.
Hope you are all doing well.
Over the past couple of months, I have gotten a lot of questions on how I budget, how I'm able to travel plus afford what I have, and how my manage my bills.
Well it's easy, I just learned from the age of 15 until now. When I was 15, I was already paying my phone bill, anything I wanted, and my groceries. Yes, you read that right. I was raised if you are able to afford it then you can buy.
I'm glad but also blessed that I was raised that way to be independent at a young age.
So here are my tips & tricks to how I manage and afford everything.
MAKE A LIST OF ALL OF YOUR BILLS
add due dates and amounts
depending how many you have lets say 2 - break it down into 2 categories: NEEDS & WANTS
needs - mortgage/rent, utilities (wifi, TV, hydro, water), phone bill, vehicle expenses, appointments
wants - travel, big purchases, online shopping
MAKE A LIST OF ALL OF YOUR EXPENSES
examples will be: gas, toiletries & makeup, groceries, clothes & shoes, outings & time with friends, memberships/ subscriptions, house supplies, gifts, special occasions coming up, pet(s), etc
if you are with 2 banks or more - know the rules and guidelines for the debit and credit cards that you have with that banks
example for debit: plan allows you 25 transactions each month with free e-transfers and deposits
example for credit card: unlimited transactions, no annual fee, 19.99% interest charge after a 25 day period if haven't paid that statement amount off
get electronic statements
figure out what amount needs to be paid off first
what effect are you going to use to pay it off: snowball or avalanche (https://www.youtube.com/watch?v=jtgnRJKSJlw&list=PLwetN92h9ZXp9f8oB9EYPt1j3MJUq0y96&index=6&t=0s)
figure out what the amount be for each one
where can you cut some costs
figure if you can get a gift card to some of the common places you go to each month (local coffee shop, restaurants, movies, etc) and fill it up once a month - amount should be based on how frequent you go there
3 WAY RULE
record all your expensive that you have purchased in a notebook
make note when you paid off credit card payments
only hold on to the receipts you need for income tax refund