Make a Budget Already!

Making a budget for myself really was one of the best things I have done as an adult (a growned-up, as I would say). You've never tried making one? You made one a couple years ago but forgot about it after a month? You have one that you don't stick to? Unacceptable! There's a saying that has to do with trying to fit several large rocks and several small rocks into one jar. If you put the small rocks first and then the large rocks, it won't fit; if you put the large rocks first, the small rocks will simply fall into place. Making a budget is similar to that, but a little more frustrating.

The first thing you need to do is prioritize: figure out which expenses are the most important each month. Usually this is rent/mortgage, car payments, loan payments, insurance, utilities and the like. Once you have your big rocks in place, figure out where your small rocks fit in. How much are you willing to cut back on your daily Starbucks or your twice-a-week Subway habit? Not at all? That's okay, but it means you'll have to cut back even more in other places. Don't forget to account for things like groceries, household expenses, and car maintenance.

Did you fit all your rocks in the jar? If yes, awesome, and try to keep at it! If not, you might need to cut down some of your big rocks. This might mean some major changes such as moving somewhere with lower rent, trading in your car to get a lower payment, lowering your insurance coverage, or downsizing your cable package. I am currently considering getting rid of my cable altogether and using websites like Netflix or Hulu through my TV to save about $70 every month. This could be quite a big change for me but I'm fairly certain I'll be able to adjust to it in no time.

Now try it and let me know how it comes out! Seriously. Do it.