It’s Budget Season Y’all [PART 2]

Now that I’ve had my fill of apple pie and the panic of the upcoming holiday season has set in, it’s time to make a plan for the new year.

In Part 1, I confess that my budgeting strategy has not been much of a plan at all. If you didn’t see that delightful bowl of embarrassment, read: It’s Budget Season Y’all [Part 1].

Although this might surprise you, I’m not really a Carpe-Diem kind of gal. I have more of an I’ll-Start-On-Sunday-Because-It’s-A-Fresh-Week style. Clearly this means I’ve already thrown in the towel for 2020 (yup, months ago.). So, for the next few weeks I’ll be sharing a lot of randomness as I organize my thoughts and gear up for the new year.

Don’t worry. We’re not talking “New Year, New Me!” – more like “New Year, Slightly Improved Me.”

Why start budgeting?

To be honest, I got roped into budgeting by a friend. They wanted to get a handle on their monthly spending and needed an accountability partner. I check all the right boxes. I get overly excited to try a new fad or self-help gimmick. I jump in full force, buy the supplies and hype up the energy. Then, I burn out quickly and quietly let you fall off the bandwagon too. It’s all the fun of having an accountability partner but without the shame.

So, this is going to be short-lived, huh?

Probably! If this starts to fade out, maybe I’ll repurpose the site to BankSnackCarrie and rate my daily treat of choice. But seriously, it’s time to reenergize my finances and become more mindful of how I use my money. Recently completing my M.B.A. and having a baby leads me to believe that I’m *kind of* a grown up now. I should probably come up with a plan to pay off my student loans before Little C heads off to college.

Alright, let’s start with a game plan.

We’re going to take it easy with this one. This isn’t a start-going-to-the-gym-five-times-a-week kind of plan. This is more of a let’s-start-by-taking-the-stairs-today kind of plan. My first few steps begin here:

1. Document monthly income and spending. Where does my money go? Money comes in. Bills get paid. Beyond that, I can’t tell ya.
   
   
   • In addition to monthly spend, look at recording and planning for recurring annual costs, like excise tax, car inspections, memberships, etc.
     
     
2. Identify opportunities to cut excess costs. What if I reduced my monthly Amazon purchases from 38 to 37. One less impulse buy could make all the difference! At least that’s what I’m telling myself.
   
   
   • Start by making a list of subscriptions and automatic payments. These can add up quickly!
     
     
3. Set money goals for new year. This should be simple. If I make $X.00 per year, I can only spend $X.00 or less. Spending more is what gets me into trouble. (That and a vast array of other things. But that’s a blog for another time.)
   
   
   • Set dedicated savings goals.
   • Consider planning for debt paydown goals.
   • Create spend goals by category.

Where do we go from here?

I don’t know! My favorite part of planning is making the lists. What can I say? I come from a long line of faithful list-makers.

While I diligently work on drilling into these steps with lists on lists on lists, I’ll need some solid motivation to keep this going. What else would you add to the list? Share your tips for getting started below!