Budgeting isn’t about cutting out all the joy from your life; it’s about mindfulness and intention. It’s a powerful tool that helps you create a thoughtful plan for your income. Each year, your financial dreams can evolve, and tracking your daily expenses allows you to understand where your money is going. This mindfulness in spending helps you reflect on what truly brings you joy and supports your aspirations.
Not to bore you with another lame coffee story (hold the eye rolls please).
But! That daily Starbucks Latte on my morning commute to the office really did add up. At almost $5.50 to $6.80 each day, five days a week for most of the year, I was spending over $1,300 annually. And let’s not forget about those lunches at Panera and Chipotle, which cost me another $2,300 to $4,600 annually. No wonder I couldn’t afford to travel as I dreamed!
When I decided to embrace a no-spend year, I discovered that bringing coffee from home and packing a sandwich could be just as satisfying. By making those adjustments, I saved between $3,600 to $6,100 for that cherished annual vacation. Suddenly, I had more funds to invest and pay down debt, paving the way for a secure financial future.
Budgeting isn’t merely about restrictions; it’s about awareness. It empowers you to prioritize what truly matters and fills your life with joy and meaning. Reflecting on my journey, I have no regrets. By committing my resources to debt repayment and growing my savings, I carved out the freedom to pivot toward my dreams, whether it was starting a business or changing careers. Building wealth grants you opportunities and time freedom that pay off in the long run. I find peace in knowing I can meet my needs for six months to a year if life’s uncertainties arise. Choosing to save and invest aggressively early on allowed me to experience the magic of compound interest, which is transformative. As my goals shifted, so did my budget. I focused on getting my financial house in order, directing most discretionary income to pay off debt. During the pandemic, I seized the chance to save and invest in trusted companies, making the most of a gloomy situation.
When student loan repayments resumed, I changed my budget once more to tackle loans and develop myself personally and professionally.
Balancing life is vital, and after a period of saving, I now feel ready to invest in experiences and growth.
Without a budget, I wouldn’t have achieved the financial peace I enjoy today. It required humility and the ability to silence the fears of judgment. I chose to postpone the fantasy of a carefree city life to focus on what truly mattered—conquering debt and building my future. So while friends moved to the big city to embrace that lifestyle, I redirected those living expenses to my debt.
Yes, living at home can be difficult, but it allowed me to invest in something even greater—my future. Living at home as a young adult can be tough, as it limits self-expression and social gatherings like “Friendsgiving” or sleepovers. However, staying at home as a single woman is culturally accepted, and many were supportive of my choice to prioritize debt repayment and saving.
To pursue my dream of becoming a business owner, I created a budget that allowed me to save and invest, giving me the financial cushion I wanted to focus on my businesses for the next few years. Although I still have student loan debt, I’ve made great strides in managing it, and my savings continue to grow.
Money isn’t everything, but having a solid financial plan is essential for living your dream life.