How To Transform your Life By Knowing Your Numbers & Expenses – Budget Glow-Up Day #3
So glad that you all could make it to Budget Glow-Up! Don’t know what it is yet? Head over to our Facebook Group. Also, sign-up for our e-mail list to get the June freebie of the month which is our single-page budget tracker!
Quick recap of Day #1 and Day #2. Day #1 is knowing your why. Why are you wanting to learn to budget. Day #2 was learning about SMART goals and getting one set up for yourself. You can go back to Day #2 here.
Now let’s get to business. Knowing your numbers and expenses. Why is this important? No matter your income, you only have a set amount of money coming in every month. Now this can grow by selling online, getting a second job, having a partner include their income etc., but currently your income is the same.
This is why knowing your numbers and expenses is important. You should never let your expenses be more than your income. Debt is created that way and we want to stay out of debt. Being in debt can give you a huge burden that you feel like you can never come out of.
Look at the past three months of your expenses. This is where I want you to take your expenses from. Write two categories: FIXED and FLEXIBLE.
The fixed category is basically things that you cannot change and are the same each month such as electricity, water, rent, mortgage.
The flexible category are things you can change such as clothes, entertainment, subscriptions etc. **PRO TIP: If you want while you are going through your flexible, highlight your subscriptions to see if you can or want to cancel them**.
These two categories are what we will be looking on tomorrow to learn about budgeting. You need to know your numbers in order to get to the budgeting part of budgeting. It’s okay to be scared to look at it. It’s okay to worry about it. It’s just one more hurdle to go through.
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