Budgeting: How Organizing Money Organized My Life

Document created by emilyf on May 19, 2016Last modified by amara.mastronardi@socialedgeconsulting.com on Dec 5, 2016
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Generally when a kid first starts earning money, she learns relatively quickly that spending money is a lot of fun - especially if she worked to earn it. I first starting receiving a steady paycheck about two years ago, and had it not been for my wonderful dad and his money organizing advice, I would probably be broke now with a bunch of stuff that I hardly use or need.


My dad helped me figure out how to figure out a budget plan. We figured out what categories to put money in, and then we configured what percentage of my paycheck would go into each section of the budget. Basically we narrowed it down to five categories: Tithing (10%), Long-Term Savings (18-month variable, 10-20%), Short-Term Savings Account (20%), Checking Account (20-30%), and Spending (Cash, 20-30%). While these percentages are sometimes moved around a little bit to accommodate how much money I received (I might not need as much cash and therefore will put more into savings), it is a lot easier to follow this plan than to do it all in my head. After figuring out the categories, I organized the budget (according to the attached photo). I take note of the date I received the money; the total amount of the paycheck or amount received; how I got the money; and how much money I put into each category.


Through this plan, I have been able to make sure that I do not go overboard with spending and can look back at the end of the year and see where and how I spent my money. Saving is very important; and I am grateful today that I was forced at a young age to learn how to save. I will be going on a cruise to Mexico with my grandparents and best friend this December; and if I had not started saving when I did, I would be in a fix. But because I budgeted, I can buy the things I need (and a few things I want) and not have to worry about how to pay for the cruise. This will also help me in the future as new expenses like car insurance and gas arise. Before I used to waste a lot of money; but now I can proudly say that I usually save more than I spend. I no longer look back and cringe on how much money I spent and how little I saved. And now I can say that my life is more organized because of the budget.


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