• Meg McClymont

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


CREDIT CARDS

  • 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


BANKS

  • 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


DEBT

  • 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)


EXPENSES

  • 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

  • 50% needs

  • 30% wants

  • 20% savings


RECORD

  • 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










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