Some of the best budgeting methods include proportional budgeting, zero-based budgeting, and reverse budgeting.
This article was originally published on Arrest Your Debt and has been republished here with permission.
A budget method sets out how an individual, company, or organization plans to spend money over time. Budgeting for beginners can be an extensive process, but a failure to budget is a quick path to long-lasting debt problems.
Multiple budgeting methods address different needs—some people might only need to set a budget for a specific purchase, while others might be looking for long-term financial strategies. Here, we’ll explore several different budgeting methods and valuable personal finance resources to help you address future financial questions.
The Traditional Budgeting Method
The traditional way to budget is rooted in the business and corporate world. Those who are willing to invest the time can use this method to handle their personal finances.
With this method, you study the income and expense figures from a previous month or year to help you plan out an upcoming period. You subtract the expenses from your take-home income, the funds in your checking account, or cash in your savings account. With this method, you’ll also need to account for inflation and any significant changes to your income.
Track Your Expenses
Check with your bank for options to get spending reports, and use banking apps to help streamline this process. You can then update your expenses daily or weekly for the most accurate results.
This type of accounting helps you understand what you’ve brought in, what you’ve spent, and what you have left each period. You can then decide where you may need to trim spending—especially if you find that your funds are running low each month. For example, you might see opportunities to lower food expenses by:
Using store-label or generic brand groceries rather than national name brands
Cooking more and eating out less
Opting for water instead of sodas at the restaurant
Change Your Shopping Habits
Switching up your shopping habits based on sales and price hikes is an excellent way to save money. Some common habits to target include:
Driving less can help lower your monthly gas or EV charging expenses.
Ordering online, especially if you can avoid shipping and handling charges.
Purchase foods that can serve multiple meals to reduce the time and money spent at grocery stores.
Wait to grab extra supplies until you’re already commuting from work or running errands.
Zero-Based Budgeting Method: AKA Zero-Sum Budget
In this approach, you give a task to every dollar you bring home. Since you account for every dollar of income, you should not have any money left over in your budget at the end of the month.
Here, you don’t simply rely upon expense categories. However, you would identify specific categories for food spending and then set funds aside for that distinct purpose.
Below is an example of a zero-based budgeting system for a particular month:
Total Monthly Income: $3,000.00
(-) Expenses:
Rent – $700.00
Electrical – $100.00
Water – $50.00
Cable and Internet – $175.00
Wireless/Cell Phone – $200.00
Grocery Shopping – $400.00
Dine out – $75.00
Car Payment – $200.00
Gasoline – $200.00
Car Insurance – $150.00
Credit Card 1 – $75.00
Credit Card 2 – $100.00
Doctor’s Visit – $25.00
Church Offering – $100.00
Deposit to Savings Account – $450.00
(=) $0 leftover after paying all expenses
You have all of your $3,000 in take-home pay allocated to various expenses and items in this example.
The zero-based method might not involve as much detail and time as you think. Remember that you have many fixed expenses such as mortgage or rent, car payments, and phone or cable bills. If one-time expenses crop up that are high priority, you can briefly pull funds from non-essential items.
Proportional Budgeting Systems
In a proportional budget, you devote a certain amount of your monthly income to specific categories. Unlike the zero-based method, you focus less on specific items. Instead, general areas of expenses guide the budgeting process.
The 50/30/20 Budget Method
The 50/20/30 method calls for you to reserve 50% of your funds for fixed expenses (i.e. rent & car notes), 20% for emergencies, long-term savings goals, and paying extra on your debts. The remaining 30% can then go to your wants.
Suppose you have a monthly after-tax income of $3,000. In the 50/20/30 budget, you distribute your money as follows:
(50%) Essentials: $1,500
(20%) Savings, Retirement, Emergency-Fund: $600
(30%) Discretionary: $900
The 50/30/20 helps you keep long-term savings in mind, but it might not be effective if your income is low and inflation is high. When the cost of living increases, it’s easy for the essential budget to exceed 50% of your monthly income.
The 60/40 Budgeting Style
The one-time MSN Money Editor-in-Chief Richard Jenkins developed another proportional budget. In the 60/40 approach, you spend 60% of your net income on committed expenses. This categorization of spending includes mandatory expenses and non-essentials to which you commit.
You then dedicate savings and money that might not have any utility beyond “fun” to the remaining 40%. Ideally, you can distribute these funds in 10% increments across three 401(k) or retirement plans, including a tax-free account. In developing his budgeting plan, Jenkins expressed a strong preference for saving well above the recommended 5% of income.
With enough income and the ability to shave expenses from your committed expenses, you might reach significant savings goals and future spending power in a few years.
Proportional Budgets for Would-Be Homeowners
If you plan to buy a home, your monthly debt payments should not exceed 43% of gross (pretax) monthly income. In calculating this debt-to-income ratio, you include car loans, student loans, credit card debt, and the anticipated monthly mortgage payment in debt. For example, your debt payments should stay at or below $2,580 per month on a monthly gross income of $6,000.
Also, consider the cost of maintaining your home. Some financial or home experts suggest budgeting 1% of your home’s price for maintenance. Other advisors include maintenance costs with mortgage payments and suggest that your housing costs do not exceed one-fourth of your income.
Reverse Budgeting: AKA Pay Yourself First Budget
Reverse budgeting makes saving the top priority. Most budgets have you start with mandatory expenses such as debt payments, food, and utilities. When you put the budget in reverse, you first decide how much to save and then set funds aside for your other expenses.
Reverse budgets should include a mixture of short-term and long-term savings goals. If you’re planning to buy a home or car or save a certain amount for college or retirement, start the process by estimating the cost of the particular benchmark.
Envelope Budget AKA Cash Envelope Method
Many budgeting techniques focus on determining how much to spend on particular categories depending on your financial goals. With the cash envelope system, you’re mentally forcing yourself into a planned spending limit.
Specifically, you label envelopes according to spending categories. Your take-home pay goes into particular envelopes based on your budget for each category. To that end, you might use some of the methods we’ve discussed, especially a proportional budget method, to decide how to allocate the money.
As you want or need to pay for something, you take money out of the envelope for that category and pay for the items with cash. Once you have emptied the envelope, you no longer spend on that category. With discipline and commitment, you resist the urge to borrow from another category.
Calendar Budgeting
Calendar budgeting encourages you to base your spending on your paydays and your monthly due dates. For example, if you get paid on the first and the fifteenth of each month, you would mark down those days on your budget along with the amount you expect to receive.
Next, you can mark down each fixed payment that will be due during your payment periods. If you receive $1,500 on the first and you have an $80 smartphone payment due on the 10th, you’ll want to jot down $1,500-$80 on your budget. Knowing how to read your paycheck stub is vital to effectively using this method.
Value Proposition Budgeting
Value proposition budgeting, also called “priority-based budgeting,” prompts people to measure the importance of every item they spend money on. The more integral an expense is, the more it’s justifiable if a large percentage of your budget is spent on it.
Businesses and entrepreneurs might favor this method, as it illustrates which expenses are worth their weight in revenue and which you can trim down. Using this method before applying for small business loans can also help you stay within your limit.
Budgeting Methods FAQ
A lot of questions can surface when you’re building out a budget. Here are some of the most common questions we’ve encountered.
What is the best budgeting model?
Budgeting isn’t a one-size-fits-all process, so there isn’t one model that beats the rest. It helps to learn about as many different budgeting strategies as possible to help you construct a plan that suits your specific needs.
The following information will highlight some of the most prominent budgeting methods people use. However, incorporating ideas and budgeting categories from multiple different methods is also a fantastic strategy.
What Things Do I Need to Include in My Budget?
Excel spreadsheets, Google Sheets, a printable monthly budget template, or a budgeting app can all help you account for your income and expenses. Start by listing your take-home pay and other income you received in a given period. If you’re basing the budget on a year, find your W-2 form and subtract all of the taxes withheld from the gross income. As an easier approach, use your final pay stub for the calendar year or total the paystubs in the particular previous month.
Next, list your common expenses for each month. You might have debt payments such as mortgage, car, student loan debt, and credit cards. Other categories of expenses include transportation, food, clothing, utilities, entertainment, television, and other media and insurance.
Build a Better Budget with Credit.com
The budgeting method that works best for you is a personal preference and depends on your financial situation, goals, and ability to be detail-oriented. Whatever you use to create your budget, budgeting should enhance your financial literacy, help you find approaches to debt repayment and other financial goals, and afford you discipline and structure in your spending habits.
A successful budget involves total buy-in and a belief that you can achieve financial independence and finally fix your debt payoff problems. Choose one of these simple budgeting methods to take control of your financial future and reduce your overall money stress.
Check out Credit.com’s guide for managing debt if you need help recovering from a financial setback. When you’ve got the funds, our investing guide can help you learn more ways to strategically increase your income.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Determining a budget just for a month may seem impossible. Budgeting by paycheck may leave you stuck with high expenses during a pay cycle.
That is why learning how to make a yearly budget is much simpler.
Here is why – you will anticipate every single item throughout the year.
Thus, eliminating the urgency of any emergency expenses. Honestly, most emergency expenses are just expenses that we knew would happen we just didn’t want to deal with them or the cost. This is the time to anticipate yearly expenses.
The thought of budgeting once a year shouldn’t be cumbersome. Interestingly enough, it will be freeing. You are managing your cash flow.
Once we finally got this very concept ourselves, it has changed our life, our net worth, and our happiness. (And it feels great!)
By budgeting yearly, precious time and energy will be saved.
The one year budget is a game changer for most households.
Since time was spent upfront, all expenses are covered. You’ve made a plan for your money. You can stop living paycheck to paycheck. No more letting your money control you!
You will control your money. This yearly budgeting process is very helpful for those who don’t know how much money they spend by category.
Now, let’s get into how do you create a yearly budget.
How to Make a Yearly Budget
First of all, this is the exact same process you would use to budget by paycheck, monthly, or bi-weekly.
The overall concept is the same you are just looking at longer time frame.
It will help you to forecast cash flow issues that may arise.
1. Create a Budget (or Cents Plan)
The very first step is to sit down and create a yearly budget. Or what at Money Bliss we call a Cents Plan.
Here is why we prefer to call it a Cents Plan – a Cents Plan puts your Money “Cents” with your Head “Sense” to come up with a plan.
Take time to create your yearly budget with a pencil and paper. Remember, you are working with yearly numbers not monthly.
To Do This:
Use your yearly income (net of taxes)
Review your expenses from the previous year
Increase any expenses that will be higher this year
Make sure all expenses are covered especially irregular expenses
When creating a yearly budget, you will heavily rely on sinking funds to cover your expenses.
For example, your yearly car registration is $450. Then, you set aside $37.50 each month into your sinking fund.
Not sure everything is covered, check out our courses to help you in this budgeting process.
The goal is to make sure your income is less than savings, giving, and your expenses.
2. Stay Consistent with Yearly Budget
Once you have sat down and created your budget, stay consistent.
I know you are thinking that is easier said than done. Guaranteed, the first few months will be toughest! That is when 95% of people give up and run back to their old habits.
Don’t give up on your vision and how you want to live your life.
Do not change your budget every month or every couple of months. Please don’t do it. (Sinking funds won’t let you get caught with a month without enough money.)
Here is why… When your yearly budget is created, you already allocated every possible expense you may have. Thus, there is no reason to change it. You are setting money aside in buckets.
The temptation to constantly change a budget happens because staying within the said budget is too hard. It is too difficult. It is no fun.
Don’t fall into temptation.
3. Tweak Only with Big Changes
There are times when tweaks are necessary for the yearly budget. Some examples include a pay raise, your oldest kid is starting preschool for the first time, the cost for medical insurance is rising, or a move changed all of your expenses.
As a general rule of thumb, tweak your yearly budget plan on with these qualifications:
The new expense or income will be recurring.
The new expense or income is a significant change to your Cents Plan (2% or more of your income). Rule of thumb – greater than $200.
This isn’t the place to change your Cents Plan because of overspending. That does not qualify as a big change. That is plan overspending. No sugar coating that one.
Look at ways to overcome why the overspending is occurring. The easiest solution…switch to cash for that category. Learn how to use the cash envelope system or cashless envelope system.
When the cash envelope or sinking fund is empty, no pulling money from other categories. Resist temptation. It is crucial to stop overspending in order to become free with money.
How do I make a 12 month budget?
If you don’t want to keep the same consistent budget each month or paycheck, that it completely okay.
You need the budget to work for you. That is what is most important.
You will follow the same budgeting process as above, but plan out each month for a year.
The main difference is instead of using sinking funds you would allocate the actual spending during that month.
This 12 month budget process is similar to cash flow planning. You anticipate all of your yearly expenses and which month and/or paycheck they will be paid.
This type of 12 month budget is helpful when saving a consistent amount is difficult because of income variations. Then, you are able to save more at certain points throughout the year and cover basic expenses when income is tight.
Yearly Budget Example
It won’t take long does it take to create the annual budget. It provides a different perspective – a birds eye view to make sure your expenses are covered.
In case you are a visual person, here is a case study on how to make a yearly budget work.
You can download this yearly budget template in our free printables area.
Now, you are controlling your money and not have your money control you. Write the Cents Plan in pen, so it can’t be changed.
Reviewing a Yearly Budget
Every paycheck or month, you must review that your plan is matching up to what you actually did.
There is no point to create a yearly budget plan and not use it.
It is very doable to budget once a year. The biggest step is starting.
This will help you to stop living paycheck to paycheck. Take the stress away knowing that your expenses are covered. Eliminate the urgency of emergency expenses that are truly expenses you didn’t want to plan for (hint: tires).
The best feeling is to know you are on a path with money (even if it is difficult for the time being), so you can sleep better at night.
Make your personal finances a priority.
Once we learned how to budget yearly, it made such a huge change with how money was handled in our life. We knew where our money was going in advance and how much we had to spend.
Comment below on your struggles with budgeting and learning how to budget once a year will make things so much easy for you.
More Budgeting Tips:
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
You want to learn how to be frugal but not cheap… then, you are in the right place.
Simply put… frugal living is saving money at it finest.
To be honest, though, learning how to be frugal can come with spending more money than you planned in the name of frugality. The truth can hurt. But, in order to be frugal, you must save what you would normally spend.
That means you are economical with money.
The list of 175+ frugal living tips seems like a great place to start when you are learning how to be frugal, right?
Wrong!
You need to focus on a few basic habits first. Set yourself up for success. And then, slowly incorporate more frugal ways to save money.
In this post, that is exactly what you will learn.
The frugal habits you need to be successful along with the best frugal life hacks to guarantee success.
Let’s dig in…
Can being Frugal make you Rich?
Absolutely yes!
The key is to save money from your frugal hacks.
Remember the age-old saying, “A penny saved is a penny earned.”
Every penny will slowly add up to the next money milestone.
If you don’t believe me, then check out this millionaire’s story of being frugal.
How Being Frugal can Cost You?
It can IF you are not careful.
Being frugal is about saving money. However, it is possible to spend more money in the name of frugality.
The first example would be being more than you need just because it is a good sale, deal, or clearance price that you don’t want to miss out on.
Next, in your search to find the cheapest option, you actually spend more over time replacing it because the quality isn’t quite the same.
There is a fine line between frugality, being cheap, and simply overspending on deals.
Just be weary of overspending money in the hunt of saving money.
How to be Frugal with Money
These are the habits you want to embrace to become a frugal person.
Personally, I like to think being frugal is being picky with my money.
I loathe my investment accounts going down, so why would I want to buy things that we don’t need or don’t matter in the long wrong. That is why I choose to be frugal with money.
Specifically, I choose to be economical with how we spend money.
Now, let’s dig in to understand how to be frugal with money.
1. Know Your Goals
First, you must know your goals. If you don’t have a goal, then you aren’t going to make any progress. Period.
In today’s society, it is SO easy to spend money without even realizing it. That is the point of business – they are out to market for your money (and they are good at it, too).
You must prioritize you first.
This is something we hear over and over. Prioritize your self-care before taking care of others. The same holds true for your money.
Action Step #1 – Sit down and write out your financial goals.
If this is something you haven’t done before, then check out our helpful guide to rocking your financial goals.
2. Understand your Spending Habits & Triggers
This one is HUGE!!
If you don’t know how and where you spend money without thinking, then you will never be able to stop the spending. You can’t slow the bleed.
First of all, I will admit that uncovering your spending habits is hard. It is introspective. It can be painful. Maybe even demoralizing.
But, until you let go of your previous financial failures, you won’t be able to move on.
This is an important step to make serious progress in your life. You may be amazed how this seemingly simple things will hold you back.
Action Step #2 – Review bank statements or credit card transactions. Look for things you bought without planning for them.
This will highlight your spending habits.
As for your triggers, watch your emotions and think what you automatically do when you are happy, sad, mad, and celebrating.
3. Save First
Oh my, pay yourself first.
This is something I focus on a lot at Money Bliss and for good reason. Saving money is the backbone to financial success.
If you don’t save money, then you are left scrambling when you need cash or stuck going into debt. This is a vicious hamster wheel that debt will overtake you.
Start by saving $10 a day. Many times you can find that money by uncovering your spending habits.
From there, look at increasing your saving percentage each month.
Action Step #3 – Figure out how much you save each week, each month, and your saving percentage. Brainstorm ways to increase how much you save.
To help our readers, you will find many spreadsheets and printables to help you figure out how much you save and track your savings progress. Once signed up on our email list, you will receive the password.
4. Spend Less Than You Make
Your expenses must be lower than your income. Period.
If you are currently spending more than you make, then you must look at ways to drastically cut expenses. Stop hoping that your situation will change and actually do something about it.
This seems like a very easy math concept. Yet, most people struggle with basic money management.
If you don’t believe that saving an extra $5 day, then think about having $1825 in your pocket.
Now, let’s flip it the other way, if you are overspending by $75 a week, then by the end of the year, you are in the hole $3900 plus interest if you took out debt.
Action Step #4 – Figure out your bare bones budget. Then, decide what fun spending items to keep to make sure you spend less than you make.
Here is a guide to help you figure out your bare bones budget. Also, you will find bare bones budget printable in our free library area.
5. Patience
Lastly, you must have patience.
Changing your money management won’t happen overnight. While you can have quick wins and successes, this is the race won by the turtle.
Patience comes with planning and that is one thrifty habit you should pick up.
When you become frugal with money, you plan how you spend your money and save your money. Many times, that means waiting for a sale to buy an item you need or accumulating money for another date.
Action Step #5 – Show self-restraint and try a no spend week or month.
By holding a no spend challenge, it will help you reshape your finances as well as help you prioritize what is important. As a reader, you have access to our no spend printables, too!
Frugal Life Hacks
These are the specific frugal hacks to save money.
These are the key areas you need to focus your energy on. Over time, they will become habits.
1. Pay Yourself First
Yep, this one again.
If you are frugal, then you pay yourself first.
You are focused on two things – how to save more money and how to make more money.
This pay yourself first concept will have you winning at money management – guaranteed!
2. Budget
A frugal person always has a plan on how they plan to spend their hard-earned money.
This makes sure that spending is always below income.
While many people hate the term “budget,” it doesn’t have to be constricting. We like to call it a “Cents Plan.” You make a plan for your money.
Just like you make a plan for your time on the weekend. Same concept.
The more you save now, the greater freedom you will have later.
3. Cook Meals at Home
Cooking food at home costs at least 25% of eating out. While the convenience of eating out is nice, it comes at a monetary and wellness cost.
You can make healthy meals under $10 for six servings. And not be a slave in the kitchen.
Shop the outer area of the grocery store. The expensive stuff is in the middle.
Hint: Try to incorporate a meatless meal 1-2 times per week. Plant based meals are cheaper to make.
4. Shop Less Often
This goes for general shopping, buying groceries, and adding items to your Amazon cart. The more often you go, the more likely you are to spend more money.
Decide ahead of time when you plan to shop (remember that patience concept from earlier).
For example, to get groceries for our house. I plan two pickups per month at the local grocery store and then have organic produce delivered on odd weeks with Misfits Market. Then, Costco run every month to 6 weeks. (Mind you… I have two children that are hitting the pre-teen phase.)
For me, I have shaved 30% off my grocery budget by implementing the strategy to shop less often.
5. Use Cash for Key Categories
If you are tempted to spend more than you should in certain areas, then you need to look at using cash.
When cash has been spent, you must wait until you full up that envelope again.
This helps so much with overspending.
You can do this with the cashless envelope system as well.
6. Own Less Stuff
The more items you have, the more it cost to buy and maintain.
So, by owning less stuff, you are accomplishing one of the most frugal life hacks to save money.
You don’t even need to become a minimalist. You just need to own what you need and that is it.
If you don’t believe me, look around and pack up anything you haven’t touched in the past 30 days.
7. Don’t Buy New
Buying new can be expensive. The best example of buying new is cars, trucks, and SUVs. The price instantly goes down the second you leave the dealership.
If at all possible, always look for used items that you can get at a discount or even for free.
With online forums and groups, it is much easier to find used items.
Of course, there is a caveat to this life hack; there are some things that are worth the investment and should be bought new. Just watch for sales or discounts.
8. Check your Receipts
It absolutely amazes me how many times I can be charged inccorectly. You would think with technology that this wouldn’t happen, but it does.
It takes a quick thirty seconds to scan your receipts and check for errors.
Sometimes, it may be the warranty you declined or double charged for apples. Other times, the sales price not have been rung up correctly.
Don’t hesitate to ask for the correct price!
9. Review Insurance and Ongoing Subscriptions
This may seem like a mundane task to do, but you could save yourself money.
This past summer, our homeowner’s and auto insurance went up again. We shopped around and ended up saving $1800. The same is true for cell phone and cable service.
You have to call and ask for discounts.
More often than not, these companies want you to continue as a customer and will lower your rate.
Insurance Options:
Automated Options to Save Money:
10. Switch to Reusable Products
When you throw something out, you have to buy new again.
This can fall into many categories. However, here are the main things you can reuse and ditch the waste.
This is what you want to look for:
11. Drink Water
Nothing is more frugal than drinking water.
The costs of various drinks can be a drain to any budget.
If you don’t like your tap water, then you can invest in a cheap filtration pitcher or even an under-mount filtration system. This is the one we installed and have been very happy with!
12. Watch Out for Fees
There are so many little pesky fees that can add up. Some examples include shipping, account maintenance, service fees, banking fees, etc.
While $2-8 may not seem like much, they will balloon over time. Look for promo codes or alternative ways to skip the fees.
13. Cut Cable or Unused Subscriptions
If you don’t use, then don’t spend money on it.
You can’t save money if you spend on things that don’t matter to you.
This is hard for many of us to do because we like conveniences and we don’t want to be seen as different.
Ways to Cut Cable:
The key when cutting cable is not to replace it with more subscriptions that end up costing more.
14. Collect Your Pennies
A true life hack to get you ahead financially is to know your money.
You know where you money goes. You know when you spend it. When you save it.
Also, you will never leave money on the table. If you see a penny, you pick it up and save spare change. If you lose a dollar, you want to get it back.
This means you are actively looking for ways to make more money. You want more pennies to collect that will add to your net worth over time.
15. Free Things to Do
The last frugal life hack is to always look for free things to do.
Here is a little secret… having fun doesn’t need to cost money!! We have been trained that having fun costs money. But, it is so not true!
Some of the best things in life are free.
For all of you, here is a guide of over 101 things to do without money.
Which Frugal Life Hack Will Save Money for You?
Being frugal is a lifelong habit. Yes, there are quick wins you can have here and there. But, in the long run, these frugal life hacks will have the biggest bank for your time.
Learning how to live frugally and be happy is about understanding your priorities and how you want to spend your money.
If you are serious about learning how to be frugal with money, then plan a time to examine your finances. In less than 30 minutes, you will uncover things to change the trajectory of your spending and saving habits.
Just remember… pennies do add up. So, watch your pennies and watch your net worth grow.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
The cashless envelope method is a fabulous way to jumpstart your budgeting process.
It is proven that the cash method will help you to save money, get out of debt, and make sure you’re spending your money that you actually have to spend.
There is no overspending allowed with the envelope system.
When using envelopes whether with cash or cashless, if you are out of money, you’re out of cash to spend.
In today’s society, more and more transactions are being done online, which makes using the “traditional” cash envelope system very tricky and complicated. So many people are looking into alternatives – specifically using a cashless envelope method.
Personally, a cashless envelope system is something that we have used for many, many years. As much as I would like to say that I’m great with cash. I’m not. I tend to misplace it more often than I prefer. Also, I do enjoy my credit card rewards that I receive the extra couple $1,000 helps to pay for quick travel getaways.
Today, in this post, you are going to learn how to be successful with the cashless envelope method. We’re going to outline how to use the cashless envelope system, provide the trackers and templates that you need.
Then, you can start budgeting with success today.
How do you Use envelope System without cash?
The method of using the cashless envelope system is much like the traditional cash envelope system, except you’re actually not physically stuffing your envelopes with real cash.
You are tracking your spending either with a printable template or a spreadsheet. Whatever method you choose it doesn’t matter. It is the basics of cash system that matter.
The principles are the same. You cannot spend more money than you allocated for a certain category.
Later in the post, we will discuss how to track your “cash” using either a printable template or a spreadsheet.
Reasons to Not Use Cash
There are many reasons you may not want to have cash on hand. Here are some of the most popular reasons not to use cash:
It gets lost. Personally, I am guilty of misplaced cash. Thankfully, it has always appeared. But, it is hard when you can’t find the money you need to make purchases.
It gets stolen. Getting your wallet stolen sucks. Getting your wallet stolen when you just stuffed your envelopes with cash is even worse. You are left without spending money for a week or two.
You can’t earn rewards. A very simple way to earn extra money is with rewards on your credit or debit card. You can earn 2% cash back by paying with these cashless methods.
Counterfeit money is a real problem. Unfortunately, there is more counterfeit money in circulation than you would believe. The cash withdrawn from the bank is always checked. But, the change you receive from stores may be counterfeit.
Bacteria on cash. Have you thought about how many people have touched your $20 dollar bill? There is a lot of stuff lurking on cash and coins. Nowadays, many companies are not even accepting cash.
There are many more reasons you may not like to use cash. Plus you need to account for online purchases where another payment method is a must.
Now, you are going to learn to manage money by using the cashless envelope system.
How to Use the Cash Envelope System Without Cash?
Just like the traditional cash envelope system, you are allocating money to each of your categories or envelopes.
Instead of actively putting money in envelopes, you are tracking your spending with a spreadsheet, an app, or a paper cashless envelope tracker.
First, you need to decide what cash envelope categories you want to track. Typically, these are the most popular envelopes to use “cash” for:
Groceries
Eating Out
Clothing
Gas
Gifts
Entertainment
Haircuts / Beauty / Personal Care
Pocket Money or Slush Money
However, you can use as many of the budget categories as you want.
1. Create a Budget
The first step to proper money management is to make a budget. First of all, a budget isn’t meant to be constricting, it is a money plan of how you want to spend your money.
By creating a budget, you are prioritizing where you want to spend your income.
It is a good thing to have a budget even though 69% of society doesn’t know how they spent their money last month (source).
If you have never created a budget, then I would highly recommend our Budgeting Course that goes into detail about how to properly create a budget.
Related reading: How to Make a Budget in 7 Simple Steps
2. Track Purchases Immediately
When you make a purchase, you need to write it down on your cashless envelope tracker – just like you would when using cash. You need to see the money being subtracted from your account.
This is what makes you understand the impact of every single purchase you make over the month.
If you can’t do it right away, save the receipt and write it down when you get home. Just don’t forget to do it!!
By waiting more than a day to track purchases, you may get caught over budget on your envelope budget.
You must stay on top of your envelope budgets!
3. Money is Gone, It is Gone
Don’t get caught with overspending! That is a quick cycle to end up in debt or even worse “borrowing” money from other envelopes.
This is where the rubber meets the road. That popular saying will make sure you don’t continue spending money once you are out of money.
The temptation to spend money will happen over and over. You just need to find ways to stretch what money you have left or be patient until you have more money from your next paycheck.
Make adjustments in the next month for categories where money always seems to be gone early.
4. Money if Leftover, Then Roll it Over
This is why the cash envelope system works so well.
It helps you to create sinking funds. When using the cashless envelope method, it helps you to have one BIG account with all of your sinking funds collected together.
When using a spreadsheet or printable, you can visually see how much money you have rolled over from month to month.
Here is a great example: You set aside $50 a month for gifts. But, only spend money when for birthdays and Christmas and not every month. Typically, you would roll your money over to the next month. So, when Christmas comes you have more money to spend.
For those, who are actively trying to get out of debt, you may take your money left over and put it towards debt. Just make sure those are discretionary accounts that you don’t need money for in future months (spending money would be a good example).
You don’t want to be caught without money set aside for a big bill.
virtual envelope system
The virtual envelope system is the wave of the future. The use of cash is going away.
While cash in the bank is still king, the actual physical transaction of paying with cash is going away. The use of debit and credit cards continue to increase.
You need to have a virtual envelope system in place, so that way you can track your purchase purchases in person, online, and those that are reoccurring.
With the virtual envelope system, you will use a spreadsheet that tracks your spending with a couple of inputs from you. The other option is to use a cashless envelope app with a monthly fee like Empower or Qube Money.
Thankfully, here at Money Bliss, we created a virtual envelope system that works perfectly for cashless budgets and creates sinking funds for you. Learn more about the cashless envelope spreadsheet here.
cashless envelope template
A simple way to start using the cashless system is with free cashless envelope trackers. There is nothing super fancy about the system.
You just have to track your expenses.
This is exactly how do you do the envelope without cash.
Here is a perfect example of how to use the cashless envelope template:
These are great for a mom on the go! Simply stick them in your wallet and write down your purchases.
Ready to Use the Cashless Envelope System?
While Dave Ramsey has created a movement of using cash envelopes. It is becoming harder and harder to use in a cashless society. So, you must find something that works for you.
Personally, we prefer the virtual envelope system. It allows the flexibility of being cashless while still benefiting from the cash envelope system.
To be successful, you must track your spending.
Transitioning to a new system will have some quirks, but over time you will get used to it. The pros are you will live with your means. Then, you move away from living paycheck to paycheck.
By tracking your spending with the cashless envelope method, you are putting your money management forefront and can see your pain points with money.
You can download your cash envelope trackers from our free printables area.
For those who want to use the cashless envelope spreadsheet, then enroll in our in-depth budgeting course.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: The 100 Envelope Challenge is a popular money saving challenge that has gained widespread popularity in recent years. The envelope money challenge is a fun and creative way to save money as it can be tailored to suit different budgets and financial goals.
Let’s be honest… sometimes you just have to make saving fun because saving money for another day can get kind of boring after a while.
Here at our site, Money Bliss, we have plenty of fun money saving challenges to help you find the perfect one for you.
Today, we are going to bring you one that is very unique.
Have you seen the popularity of this money saving challenge with envelopes taken off on TikTok? If not, then you are missing out.
This saving hack has been going viral and does not seem to be going away anytime soon. There is so much interest in this information!!
In this article, we will break down everything you need to know to start saving money today.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is the 100 Envelope Challenge?
The 100 day envelope challenge is a straightforward hack to start saving money.
You start with 100 envelopes and label them with the numbers 1 through 100. Then place all of the envelopes in a special place like a container box, basket, file folder, or bag.
Each day, you will choose a new envelope, and you must put that amount of money in the envelope.
Real Life Example For With 100 Day Envelope Challenge
For example, if you draw the number 33, then you would put $33 into that envelope and seal it.
Then the next day, if you draw the number 72, you would put $72 into that envelope and seal it. Then, continue this challenge for over 100 days.
And the best part is by the end of the 100 envelope challenge, the goal is to save $5,050.
Now, after 100 days, I would call saving $5,000 a huge win. Now, do I have your interest?
Is the 100 envelope Challenge worth it? My Personal Experience
I recently started the 100 day envelope challenge because I wanted to save more money. This was a great way to kickstart my short term goal.
My kids loved to pull out the envelope for that day and stuff it with cash. Once I was done I would close the envelope and stamp it with a sticker.
As a very visual person, I found that this challenge was incredibly rewarding and gave me a sense of accomplishment.
I was able to see my progress as I went along, and it was nice to have a visual reminder of how far I had come.
I was also able to stay on track with my saving goals and could adjust if needed.
On the downside, we don’t have cash around as much.
So this was the hardest part of the envelope saving method. Consequently, I opened a separate savings account, and I could easily make a transfer from my checking account. This allowed me to stay on top of my savings without worrying about having enough cash.
When I was a waitress, this challenge would have been a fun way to save money with my tips! Oh, what an inspiring money-saving journey that would have been!
100 Envelope Challenge Chart
How much money do you save with the 100 envelope saving challenge?
You need to the numbers behind everything so you truly understand how the 100 day money challenge is set up.
Let’s break down how the math works with this 100 envelope challenge chart. See the image below for a visual layout of the information.
At the end of the 100 day money challenge, you will save $5,050!!
How the 100 day Envelope Savings Challenge Works:
This is how to do the 100 envelope challenge. The premise of the 1-100 day envelope saving challenge is simple.
The 100 day envelope challenge is a savings challenge in which you are challenged to save a specified amount of money within 100 days.
Step #1 – Gather your supplies
Step #2 – You will write the numbers 1-100 on blank envelopes.
Step #3 – Each day or whenever you choose to pick an envelope, you will stuff the envelope with that much cash.
Step #4 – Track your progress.
Step #5 – Save $5050 in 100 days or 100 envelopes.
Pretty easy, right?
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Envelope Challenge Math
Are you a little worried about having to save a lot in one week? Need to know how to calculate 100 envelope challenge, here you go.
Here is the math if you randomly pick an envelope each day:
Most you save in one week: $679
The least you save in one week: $371
Even if you do not finish the entire 100 days and quit on day 50, you will save at least $950. More than likely, it will be a higher amount (unless you are great at just picking numbers under $50).
This challenge is great for somebody who gets paid with cash consistently, like servers, bartenders, drivers, caddies, etc – any tipped employee.
Find more money saving charts.
Is the 100 envelope challenge hard?
In fact, the 100 envelope challenge is extremely simple – just number the envelopes and shake them around to randomize their order.
You can use this method to save for anything – a vacation, a new car, or even your retirement!
This is a great way to exercise your brain and challenge yourself.
Raisin
Simply select one of the high-yield savings products offered by their network of federally insured banks and credit unions to begin your savings journey.
You can open a free Raisin account in just a few minutes!
Compare Rates
Advantages of 1-100 Envelope Challenge
Most importantly, the 100 envelope challenge is a great way to save money.
This 1-100 saving plan is simple and easy to follow. You can save a lot of money in a short period of time with this challenge.
1 – Save Money for a Purpose
The challenge is a great way to save for your emergency savings, pay off your debt, or save for a vacation.
You can start the challenge at any time and with any amount of money. All you need is 100 envelopes and some willpower!
2- Makes Savings A Habit
One of the advantages of building good habits is that they become easier and more automatic with time – this is proven by my favorite book, Atomic Habits.
Habits are a helpful thing, as they can make our lives a lot easier. When we build good habits, we’re more likely to do the same things in the future without having to think about them.
That is why the 100 envelope challenge is amazing. With each envelope, you are building a habit of saving money and paying yourself first.
3- Improve your Cash Situation in 3 Months!
This challenge helps you save money in a short period of time.
For 100 days (or envelopes), you are focused on saving money. A little bit at a time.
Also, it helps you become more mindful of your spending. That is a win-win!
In fact, you can use this how to save 5000 in 3 months chart.
4 – Easy to Follow with No Excuses
No advanced math skills are needed for this one.
The plan is simple to follow and the cash is easy to access.
As such, it would be difficult to come up with reasons why you are unable to complete this 100 day money envelope challenge.
5 – Restart if needed
Too many times, one thing happens and it completely derails our plans.
If your financial situation changes, you can stop and restart the challenge when you can. This makes it a great option for people who want to save money but are nervous if their finances change.
Drawbacks of the 100 Day Money Challenge
There are a few drawbacks, just like there are with any money saving challenge.
1 – Access to Cash
The first one is if you do not have access to cash readily. This can cause a problem to stuff your numbered envelopes with a dollar each day.
If you manage your finances digitally and don’t carry various dollar bills around, then it is much harder for you to find ways to actually physically stuff those envelopes with cash.
2- Figuring out the Budget with High Number Days
Another drawback of the challenge is what would happen if you picked #98 and # 99 on back-to-back days, you must save $197. That may be a challenge to have the extra cash available to do so. Especially if you pick #97 on day 3!
For instance, even for a tipped employee as a server who maybe makes $160 in a shift. That means over half of their cash would have to go straight to the envelope challenge.
Change to 200 Envelope Challenge – A Spin to Save at Least $5K!
3 – Concept of Finding Money to Save
Another drawback of this challenge is if you are struggling to live paycheck to paycheck, then attempting this challenge may just get you down and defeated. There is a possibility you may get behind on stuffing the envelopes, as you would randomly pick them.
Instead of being disappointed, you need to change the frequency of picking up an envelope every day to maybe picking envelopes one to three times a week; thus, stretching out the 100 days further.
100 Envelope Savings Challenge will Be Helpful
Even if you only make it, thirty percent of the way through the challenge… guess what, you have 30% more saved now than you did without doing the challenge.
Overall, I truly believe that any way to make saving money fun is well worth the effort.
If you make it to 65% of the way, then you are saving more than you would without the challenge.
How does envelope savings work?
With any of the envelope challenges, they are just a money saving challenge. A fun way to save money! A plan to follow to keep you accountable. A target to achieve!
Envelope savings is a tried and true way to save money.
It’s simple, it’s straightforward, and it works. You put your money in an envelope and don’t spend it until the challenge is complete. This challenge can be a fun way to get to know your spending habits better while saving money.
The savings are real, and you will be surprised at how much you can save by following this challenge for even just a few months!
Plus if you put the money in a high interest saving account, then you are adding more interest and dollars on top!
Many people prefer one of these challenges instead:
Shop for Supplies Needed for the 100 Day Envelope Money Saving Challenge
The supplies needed for the 100 Day Challenge are not complicated and you should have most of them around your house. If not, you can make a list and shop for them.
Supplies Needed:
Envelopes – Plain old white envelopes work, but colored envelopes make everything more fun.
Sharpie or Marker Pens – You need something to write with in order to keep track of those envelopes.
Cash – You need to figure out where you have the extra cash to stuff those envelopes. You may need to run to the bank quite a few times.
Stickers or Rubber Stamps – To make sure you don’t cheat and reopen a finished envelope.
Box or Container – Just make sure you have enough space for your envelopes!
Or Just Shop for this handy dandy premade Money Saving Box!
Related Read: Best Cash Envelopes – Pick Your Favorite
DIY 100 envelope challenge tracker
Also, it is super helpful to have a free printable 100 day challenge to keep you accountable! Don’t worry… we have you covered!
At the bottom of the post, you have the opportunity to download the image of the free 100 envelope challenge PDF.
Printable 100 envelope challenge
The 100 Envelope Challenge is a printable tracker chart you can download and print. Go to our resource library (for our email subscribers) to print the image.
It details how to set up an envelope challenge with your friends, family members, or co-workers.
The idea is that in the course of six months you will have earned $5,050 in savings by doing this challenge!
This 100 envelope challenge tracker is a useful tool for tracking the progress of your endeavor. You want to use a 100 envelope challenge tracker to keep you motivated during the next six months and reach your goal.
It can be printed or colored digitally and allows you to stay on top of how much money you need each day or each week.
100 Envelope Challenge App
As of right now, there is no $100 envelope challenge app developed to make this cashless. However, you can do this challenge digitally and we will show you how to do it virtually.
In case you utilize a cashless envelope system, you may be wanting to do this challenge, but are not sure the best way to do it.
Here is how to do the 100 day challenge digitally:
Instead of using 100 envelopes, you could write on 100 pieces of paper, fold them up, and put them into a bag or box.
Every day you would draw out a new number (just like the normal challenge).
Make sure you have a separate savings account for the challenge.
Instead of placing cash into the envelopes, you will move money from your checking account to that separate savings account.
For example, on the first day, you pull out the number 53. Well, that means you would move $53 from your checking account into your newly open 100 envelope challenge savings account.
You are taking money from your normal spending and moving it away and into a savings account.
That way you are setting aside money, virtually into a different account.
100 Envelope Challenge Variations
Not everyone can complete the 100 envelope saving challenge as we discussed in this post.
So, here are some alternatives to still save money using a concept similar to envelopes and still target saving $5000:
100 envelope challenge weekly – Pull envelopes each week instead of daily.
Save $50 for every envelope.
Give yourself an hour and see how long it takes before opening your last envelope.
10k in 100 days envelope challenge (detailed below).
50 envelope challenge is a variation on the 100 envelope challenge.
Pull envelopes on payday.
It’s up to you how long it takes to get there and if you want to take some time off in between while continuing to spend less than your original budget.
Higher income? Then check out the 10k in 100 days envelope challenge. This accelerated saving challenge is perfect for you.
Honestly, the goal is to save $5000. How you use this information and reach your target dollar amount is completely up to you!
100 Day Envelope Challenge FAQs
If you’re looking for a free printable version of the 100 envelope challenge chart, you can find it in our free resource library.
This section provides our readers with plenty of printables they can enjoy.
Make sure you subscribe to our email newsletter.
Yes, you can do the 100 envelope challenge twice a week.
Instead of picking an envelope each day, you would pick an envelope two times a week. Then, you would finish the challenge in one year.
The premise of the 100 envelope challenge is a money making challenge that allows you to save money and stay motivated.
Yes, you can complete the 100 envelope challenge biweekly. You will have more time to complete the challenge this way.
Instead of completing the challenge in 100 days, it will take you 200 weeks. To shorten the time, you can pick multiple envelopes with each biweekly paycheck.
Find more biweekly money saving challenges.
The 1-100 envelope challenge is a social media trend where participants are asked to create an envelope with a specific number of envelopes inside of it.
At the end of the challenge, you will save $5050.
This assumes you follow the traditional 1-100 day envelope challenge with no variations.
The 100 Day Envelope Challenge will take 14 weeks and 2 days to complete.
Or about 3.5 months.
The goal of the challenge is to prove you can save money and to see how far you can push yourself.
When you complete the 100 day envelope challenge in its entirety, you will have $5,050.
Yes, you can complete the 100 envelope challenge UK, Africa, or any other country.
You can live wherever you want to participate. Since you complete this challenge on your own, you can adjust the challenge as you see fit.
Are You Ready for these Envelope Saving Challenges?
All in all, this is the one great thing that social media can offer – maybe even providing information that can change the dismal data on saving money.
It brought around a brand new challenge for you new hack for you to start saving money.
The 100 day envelope challenge is a fun goal to kickstart your money saving journey.
The 100 day money envelope challenge may be too aggressive for what you can do right now, so here are great options to build those saving habits:
If you like the idea of this challenge here are some other money saving challenge ideas that you may enjoy more:
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: In this guide, I reviewed all of the budget apps and compared features and costs to form the best budgeting apps list. Find the best budgeting apps to fit your needs.
The best way to become smart with your money is to actively manage your money.
Make a plan for your money. Some may call it a budget.
At Money Bliss, we like to call it a Cents Plan. This enables you to find financial freedom. Find that place Where Cents Parallel Vision. Today, there are many budgeting apps on the market.
To kick off the new year, I was determined to find the best budgeting app on the market. Guess what?
My list grew each week!! And still growing! There are so many choices.
There are money management apps. Personal finance apps. Budgeting apps. So many apps to choose from! Seriously.
Some are free budgeting apps. Others have a monthly fee. Some have one-time costs.
The key to any budgeting app (free or paid) is to learn to manage your money.
At the very bottom of the post, we will reveal the best budgeting apps available.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.
Start Your Free Trial.
What is a Budgeting App?
A budgeting app is a tool that helps you manage your money and keep track of how much you spend.
There are many different types of apps, and some may be free while others cost money.
However, they all make managing your finances easy by tracking where your money goes each month as well as providing tools for saving cash flow or spending more efficiently on things like groceries or travel expenses.
The end purpose of a budgeting app is to make managing your money easy.
There are many apps out there that can help you with this, including some from big brand names like Mint which just announced it is shutting down, Acorns, and Quicken. This guide will provide a list of the best budgeting apps for 2024 so you can save time and money!
Quick Answer
The preferred budget apps are YNAB, Empower, and Quicken.
What to Look for in Budgeting Apps
In order to find the best budgeting apps, you need to know what features and functions you are looking for.
The best budgeting apps are often the simplest and focus on ways to make saving a breeze.
They can help ease financial uncertainty by providing tools that allow users to save more money over time.
What’s more, how can you tell what to look for in a good budgeting app?
1. Ease of use
The best budgeting apps are easy to use and do not require manual entry. Different ways of creating a budget include handwriting it out, using a spreadsheet, or logging into an app or software program.
You want to find something that is easy for you to use. Even better, if you find the app fun to use!
2. Budgeting Capabilities
There are many types of budgeting apps; thus, each person will have budget apps they prefer over others. At the end of the day, you need something that will work for you over the long term.
Some have basic features that simply allow users to view their own spending, while others provide a number of tools for managing finances and saving money. Users should choose an app based on what they want as well as the capabilities it offers.
Many budget apps let you define your categories to track.
3. Saves Time
When you have an automatic budgeting app, it tracks how money moves in and out of your bank account automatically with ease. In addition to this, the updating process takes place automatically as well which saves more time for individuals who need it most!
Saving time with the least favorite tasks like budgeting is a win-win!
You want your budgeting app that makes managing your money a breeze.
4. Focus on Financial Goals
You need a budget app that helps you work towards your smart financial goals. This is important.
You want your budgeting app to help you with achieving your financial goals.
5. Synchronization
Synchronization is the process of returning data to a master database from one or more secondary databases. You want the budget app to synchronize accounts automatically.
Most offer automatic synchronization but may lack a feature that allows for a reconciliation of accounts such as bank accounts.
Many budgeting apps can synchronize from desktop to mobile. In addition, you can have multiple users on the same platform.
6. Price
Budgeting apps range in price from free to about $150 per year.
The app that has the most features and options is Quicken, especially given its price point.
Spending $5 a month to manage your finances is cheaper than overdraft fees and the lack of saving money.
7. App ratings
Many financial experts and personal finance gurus agree that a budget is necessary to take control of your money.
Look for budgeting apps that have at least 1,000 reviews in both the App Store (for iOS) and on Google Play (for Android), as well as a rating of 4 stars (out of 5) or higher on both platforms.
That will tell you the longevity of the app and user appeal.
8. Security
Specifically, are budgeting apps secure? Are there any security features in place to protect your data? This is a huge feature you need to verify your personal information will be intact.
On my budgeting apps, financial information is safe because they need to go through vigorous testing and pass banking regulations. There are certain vulnerabilities inherent to operating online in the cloud.
9. Additional Features
Most budgeting apps go beyond basic budgeting. Some offer advice on debt and investments, while others identify unnecessary expenses.
Most apps can track your spending and organize your expenses into categories.
The savings apps will automate savings, suggestions to save money, bill alerts, access to credit scores, and investing features.
All of the apps have a different feature set, so it’s important to find what you’re looking for.
Good Budgeting Apps will Help, But First – You Must
Before we dig into the list of good budgeting apps, we must discuss key points first.
In order to be successful, with any type of budget app, you must understand three key areas.
1. Uncover your Money Situation
You can’t hide under the sheets or with your head in the sand and expect changes.
To be successful with money, you must be active with your personal finance situation.
Take time to understand your vision. Figure out where you stand in building a foundation to the Money Bliss Steps to Financial Freedom. Understand where the pits of money are spent every month.
Not sure, where to start? Stick around here at Money Bliss; we have many resources to help you!
Must Read Help:
2. Budgeting Apps Won’t Change Habits
While personal finance or money management apps keep you on track, they are incapable of changing habits.
You have to make changes.
Just because the budget app tracks your usage on the credit card doesn’t mean that you should have spent that money. So, be willing to make changes in your spending habits and those emotional purchases to achieve financial freedom.
You must learn to manage your money.
Related Readings:
3. Still Need Paper & Pen
The first thought is “Wait, I wanted to get away from paper and pen.” Yes, that is the goal for most individuals.
However, it is key to know your net worth over time.
Also, you never know when your favorite budget app will go away. (Ugh!) Personally, I don’t like to be pessimistic, but technology is rapidly changing, and being able to adapt is key.
Keep tracking your personal finance numbers toward financial freedom in a separate place.
Okay without further ado, the full list of budgeting apps on the market.
YNAB
Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.
Pros:
Comprehensive approach to budgeting, helping you plan monthly budgets based on your income.
Offers expert advice, making it suitable for those who require an in-depth, forward-thinking budgeting strategy.
Superior synchronization skills make it the winner in this area.
YNAB has extra features like goal setting for budgeting, shared budgeting tools for partners.
Option to manually add and upload transactions from accounts each month.
YNAB prioritizes user privacy.
Start 34 Day Free Trial
Full List of Budgeting Apps with Free Trial
The budget apps we selected for this section offer a free trial for users to test out before signing up.
Budget apps are typically inexpensive and start with a free trial.
1. YNAB (You Need a Budget) – A proven method that has helped hundreds of thousands of people break the paycheck to paycheck cycle, get out of debt, and live the life they want to live. YNAB is best for serious budgeters.
2. Simplifi – Manage your money less in 5 minutes each week. Reach your money goals with confidence! Introducing Simplifi by Quicken, the personal finance app that gives you something to look forward to.
3. Tiller Money – Your financial life is in a spreadsheet, automatically updated each day. Track all your accounts in one place, always know where your money goes, and confidently plan your financial future.
4. Rocket Money – Rocket Money is your automated financial assistant and budget tracker designed to put you back in control of your money. Truebill lets you easily track bills, cancel unwanted subscriptions, and proactively request refunds on your behalf, putting real money back in your pocket!
5. Qube Money – The cash envelope system made easy. They invented digital cash envelopes. Real-time financial awareness without the hassle of tracking expenses, updating spreadsheets, and carrying cash.
6. HoneyMoney– HoneyMoney increases your awareness about your money habits. Being fully aware of your money naturally changes how you spend it. Great way to use cash flow budgeting. Plus uses “envelopes” to budget.
7. Qapital – Free, easy way to save money. Get $5 for your first Goal if you sign up here.
8.Money Patrol – MoneyPatrol actively monitors and analyzes financial transactions, and then alerts insights about the trends, patterns, and anomalies observed.
9. Wallet– Wallet is designed to help you get your finances under control from day one, giving you ongoing insight into your financial situation, and helping you stay in control for the long term.
10. Every Dollar– EveryDollar follows the zero-based budget approach recommended by Dave Ramsey, a top personal money-management expert. Create daily and monthly budgets and track your expenses to manage and save money.
11. Expensify – Expensify is the perfect tool for anyone who needs to keep track of receipts and automate expense management.
12. Cost Track – Expense Tracker – Cost Track allows you to: use your money wisely, keep track of your personal and family budget, and quickly enter your income and expenses.
13. Easy Spending – It is a simple and convenient finance tracker that provides the most powerful and convenient daily money management for iPhone and iPad, that neatly tracks all your cash flow between different accounts that you can budget.
Making Your Budget Work for You:
Full List of Free Budgeting Apps
The budget apps we selected for this ranking are completely free! Free budget apps are good options for users who don’t want to pay monthly or a yearly fee. Just to note, the list of free apps is dwindling with each update.
Finding the best budgeting app the best ones do simple things well.
Free apps are not always better than paid ones.
Typically, the free versions of budget apps provide basic features. Plus there are many free budget apps available on the market.
1. Empower– Empower is the best app for investors. This is one of my favorite ways to analyze investment accounts. See all of your accounts in one place, which helps to see spending. Free budgeting app to use. Read myEmpower Review.
Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.
2. PocketSmith – Manage your budget and forecast your finances. There are paid levels of access but you can still get basic options for the casual budgeter.
3. Zeta – AskZeta is a financial planning platform designed to help couples manage their finances collaboratively. It provides tools and guidance for setting joint financial goals, budgeting, and navigating major life events to build a secure financial future together.
4. Honeydue – A financial app designed for couples, facilitating shared money management. It allows partners to track and manage their finances collaboratively, providing insights into spending, budgeting and shared financial goals.
5. GoodBudget – Envelope budgeting for the modern world.
6.Fudget – The budget planner you can actually use.
7. Wally – Personal Finance – It helps you compare your income to your expenses, understand where your money goes and set and achieve goals.
9. CountAbout – CountAbout is an online personal finance solution that surpasses the security and ease of use of the other popular commercial solutions on the market while offering complete privacy, zero advertising, and no selling of your personal data.
10. Daily Budget Original – Daily Budget calculation, planning & saving for big spending, basic categories for expenses, backup.
11. Spending Tracker – The simple fact is, by tracking your spending you will be able to stick to a budget and therefore SAVE MONEY.
12. Money Monitor – You can track and organize all your transactions, accounts, budgets, bills, cash flow, and payees in Money Monitor by easy operation but with powerful functions.
13. Money Box – Set your money goals and track your personal savings with this app. Take control of your saving goals and spend cash wisely.
14. Dollarbird– Track and forecast your money as easily as adding events to a calendar! Dollarbird helps you make sense of your financial situation, plan ahead and manage your money together with those who matter.
15. NerdWallet – Whether you want to maximize credit card rewards, earn extra cashback, track your credit score or make budgeting easier, it’s all here.
Budgeting Resources:
16. Buddy – Designed for simplicity and efficiency, helping users easily manage their finances. With intuitive features, it enables users to track expenses, set budget goals, and gain insights into their spending habits for better financial management.
17. Banktivity – Banktivity puts you in the driver’s seat of your finances so you can do both.
18. PocketGuard – With all of your financial accounts in one place, PocketGuard helps you stay on top of your finance and make better financial decisions.
19. Budget Saved – Personal Finance – Budget Saved helps you save money by grouping expenses based on need or want. You input an expense, save it as a need or want, and then you can look back to see which purchases were really necessary. With this information, you can see exactly how much you can save.
20. Albert – Money Management – Combining human guidance with cutting-edge technology, Albert is an intuitive app that automates your financial life — so you can be free to enjoy it. Build savings, meet bills, end the overspending cycle and develop your financial IQ, right from the palm of your hand.
21. Expense IQ – Expense IQ (formerly EasyMoney) is your ultimate money manager app that combines an expense tracker, a budget planner, a checkbook register, integrated bills reminder, and more rolled into one powerful personal finance app!
22. Prism– Never miss a bill or pay late fees again! We automatically track your bills & send due date reminders, for free. See your income, account balances, & monthly expenses at a glance.
23. Coin Keeper– Download CoinKeeper — the handiest way to plan and manage your finances, created especially for smartphones and tablets.
24. Mobills– Mobills is a budget planning app that allows you to create a custom monthly budget that will help you take control of your money. You are able to manage your money, track your spending, and achieve your financial goals all in one place.
25. iSpending – iSpending helps you to track your income and spending. You can add transactions under different categories, such as income, food, and entertainment.
26. Receipt Box – The Receipt Box is a quick app that is conducive to developing a good habit of tracking spending. It indeed performs well on this one.
27. BUDGT – BUDGT will help you keep track of your Expenses in a very simple way and tell you how much money you can spend each day, taking in account what you have already spent during the current month.
Full List of Paid Budgeting Apps
A budgeting app is a type of software that helps you track your money to manage your finances. There are several different ways you can use them, including getting paid upfront or by monthly fee.
Some apps offer discounts for people who pay monthly, but this is not always the case. If an app doesn’t have the capabilities you need to better manage your budget, it’s not worth it.
App users want budget capabilities and prefer to handle bill paying on their own schedules.
1. Quicken– Quicken personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more. Read my Quicken Review.
2. Moneyspire – The budget feature is very user friendly and can rollover amounts. All of the reports you need at your fingertips. Also, you can move your data from many of the top budgeting apps and Quicken.
3. PocketSmith – Manage your budget and forecast your finances.
4. MoneyDance – Moneydance is easy to use personal finance software that is loaded with all the features you need: online banking and bill payment, account management, budgeting and investment tracking.
5. CheckBook Pro – An easy & quick way to manage your daily finances, Checkbook Pro keeps track of your credit card charges, cash expenditures…etc.
6. HomeBudget – HomeBudget is an integrated expense tracker designed to help you track your expenses, income, bills due and account balances. It offers support for budgeting and allows analysis of your expenses and income, including charts and graphs.
7. Pennies – Keep track of your spending and save money with Pennies, the award-winning budgeting app for iPhone, iPad and Watch.
Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.
Start Your Free Trial.
Budgeting Apps Off the Cloud:
Due to security concerns, many budgeters prefer to keep their financial information off the cloud.
Here are the best budgeting software that are off the cloud. And if you want, they can be synced.
1. Quicken– Personally, I have used Quicken – pretty much since it was developed. Way before budgeting apps were even a thing and the cloud didn’t exist. Quicken is great for tracking how your money is being spent. Their internal budget feature is not user-friendly and has quirks. However, the cash flow reports are awesome to compare spending. The #1 reason I still recommend Quicken is because of its long history.
Read my Quicken Review.
2. Moneyspire – For those frustrated with Quicken, Moneyspire is your choice. The budget feature is very user-friendly and can rollover amounts. All of the reports you need are at your fingertips. Also, you can move your data from many of the top budgeting apps and Quicken. Start a free trial here.
3. Tiller Money – Tiller is the only tool that automatically updates Google Sheets and Microsoft Excel with your spending, transactions, and balances each day.
4. Banktivity – Get full control of your personal finance situation with Banktivity. Has all the bells and whistles you would come to expect for personal finance budgeting software. There is the ability to connect to the cloud if you prefer. Only for Mac Users.
5. MoneyDance – Moneydance is easy-to-use personal finance software that is loaded with all the features you need: online banking and bill payment, account management, budgeting, and investment tracking.
6. QuickBooks – QuickBooks is most like Quicken. It is the preferred software for most bookkeepers. The features are very helpful, but the price is significantly higher.
Expense-tracking budgeting apps
Expense-tracking budgeting apps are becoming more popular as they allow users to connect to financial accounts. They track transactions and group them into categories, making the best ones based on expense tracking systems.
Some of the top expense tracking budgeting apps include:
Simplifi: Quicken has introduced a new personal finance management solution. It is simple, smart, and intuitive money tracker tool that ensures users can keep track of their income and expenses in real-time.
YNAB (You Need A Budget): YNAB helps to reverse this pattern by living off last month’s income during current month.
Pocket Expense: This app is easy to use and has a clear interface for users who are not tech savvy. With Pocket Expense, you can input your income and expenses, set a budget, and track your progress.
Spendee – Understand your finances better with Spendee, the FREE budgeting app that tracks your spending, optimizes your budget, and helps you save money. This user-friendly app with good features for recording income and expenses as well as the ability to plan future budgets. It also lets you set goals and track progress.
Quicken: Quicken is a personal finance software application that can be installed on Windows, Mac or Linux computers and allows users to organize financial information in order for them to make financial decisions.
Learn where to load your Cash App card.
Investment/retirement planning budgeting apps
Investment/retirement planning budgeting apps are becoming more popular with consumers as the retirement age is being pushed back.
These types of apps allow users to keep track of their investments and review performance, ensuring that they’re on track to retire at the desired time.
There are numbeous different investment portfolio management tools, but most are designed for average investors looking to make changes or work towards long-term goals. Many double as budgeting apps also enable tracking expenses alongside investments in order to ensure that you’re on track to reach your goal.
Empower – read my Empower Review
Quicken
Betterment
Wealthfront
Stash
Apps to Help Save Extra Money:
Looking for easy ways to save extra money?? These budgeting apps will do just that.
1. Acorns: Invest Spare Change: This app rounds up any purchase made with a credit card to the nearest dollar and invests it in an exchange traded fund. They have four different investment portfolios from conservative, balanced, growth, and aggressive.
2. Tiller: This app automatically transfers money from any account you connect to it (like your checking or savings) into a fund of your choice every time you make a transaction.
3. Trim – Trim negotiates your cable, internet, phone and medical bills, finds and cancels unwanted subscriptions, can help you lower APRs and bank fees and more.
4. BillShark – Billshark is the easiest way to lower your bills, cancel unwanted subscriptions, and lock in the best rates for insurance.
Which Budgeting App is right for You?
Budgeting apps are becoming more popular as consumers try to make better financial planning decisions.
Budgeting apps help people with the ability to track spending, create budgets, and save money for retirement or other goals.
Budgeting apps must be paid for because they can be used across all devices and have a variety of features that can really help users save time and money.
As you can tell in this post, there are plenty of options to find your favorite budget apps.
Each of these apps can improve money management.
However, you must be able to make the changes necessary to stay within your means. That is up to you. Don’t try it and give up after a month. Stick with it. Show perseverance.
In the end, you will be happy you are stuck with using a good budgeting app.
Apps That Have Shut Down or Changed
These are budgeting app that have been on our list previously. But, when we recently updated the post, realized they are no longer offering the same services.
Mint: Personal Finance & Money – Mint is a free money management and financial tracker app that helps you get ahead and stay ahead. – Mint app shut down in 2024.
Firstly (formerly Honeyfi: Couples Finances) – The first app to help couples team up on everyday and long-term finances.
Opurtun (formerly Digit) – Digit analyzes your spending and automatically saves the perfect amount every day, so you don’t have to think about it.
mvelopes (merged with EveryDollar) – Everyone knows that cash will keep you on budget. Here is a digital option for your cash envelopes. Your first month free is to check out the budgeting system.
Olivia– Whether you identify as someone who is living paycheck to paycheck, or you’d just like to get smarter with your money in general, you’ve come to the right place! I am here to help YOU become the MASTER of your money.
Your Money Wallet – YourMoneyWallet lets you see all your accounts in one place, understand your spending, monitor your everyday spending, and see all your money transactions in a beautiful well crafted design.free
Joy – Money App– Joy is the brand new money app that will change the way you spend and save money to help you find more happiness in your life.
Advent – Budgeting Made Simple – Advent makes budgeting and tracking expenses super easy! With a very minimalistic design, you can easily maneuver around quickly.
Rolling Budget– Rolling Budget is a personal finance tracker that keeps track of your day-to-day expenses, travel, and fuel costs. Track where your money goes, plan your expenses, and create a budget that works for you!
Best Budgeting Apps
There are many apps available to help people manage their budgets.
The best app for you will depend on the type of budget you want to create and how often you want to make changes. All of these apps are mobile-friendly and work across multiple devices. They also offer additional features like budgeting tasks, reminders, and spending plans.
You can find all of these for iPhone or Android.
You can save time and money by using a good budgeting app.
This is your personal finance journey.
The ultimate goal with any budget app is to learn to manage your money. Not have your money manage you.
Now, make sure you are doing these habits to be successful with budgeting.
Which are your favorite budgeting apps?
Keep on Budgeting:
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Get a financial budget binder to help stay on track with spending and saving goals. Learn how to use it as a guide to help you reach your financial goals! Stay motivated.
I know that when my family and I set a goal for saving money in our budget binder, we’re more likely to do so because we have visual reminders throughout the year of how much has been saved and what still needs to be done.
When it comes to financial goals, we want them all.
For example, you are trying to save more money or pay off debt, but you cannot track the progress you are making or find ways to make it happen.
You need to create a cute budget binder so you know the overall picture of finances and how it lines up with other events in your life.
It can be time-consuming to create a financial plan because most people lack what needs to be included. Save yourself some time and energy by using a personalized budget binder.
This in-depth guide provides step-by-step instructions on how to set up your budget binder along with downloadable worksheets to help get you started.
Learn how to create your budget binder and what tasks you can break up into sections for each week of the year.
Also, find out why it is important to be specific with your goals and how goal-setting can help us reach our financial goals faster!
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is a Budget Binder?
Budget binders are designed to keep track of expenses and income.
A budget binder is a tool that helps you organize your finances and plan for the future.
They can be used for various purposes, such as budgeting, tracking your spending habits, maintaining a financial diary, or even identifying the best times to save money.
Why a Budget Binder Matters?
It’s important to start this as early as possible because it will help keep you on track with your money goals and make sure you’re saving enough money for them.
A budget binder is a place where you can keep your personal finance worksheets. Each budget sheet found in the budget binder is tailored specifically to each person, so if there are certain aspects of managing your finances that aren’t working well for you, then it would be best to bring those sheets up with someone who can help fix them.
You can use it to create your own budgets from scratch or use a paid template.
If you’re creating your own personal budget sheets, don’t worry too much about making them Pinterest perfect! If they work for you, that’s what matters.
The Benefits Of a Budget Binder
It is important to have a budget binder. This is especially true for those who are looking to pay off debt or manage their finances in the future.
The benefits of using this budget binder as a tool include:
Helping you organize your finances and stay on track with your financial goals.
Providing insight into how much money you spend, where it goes, and what can be done about that.
Showing you exactly what steps will help you fix your current situation.
Ultimately, budget binders can help people with their personal finances by helping them stay out of the red and save for a rainy day.
It also helps in managing expenses and debt, which is important for saving up to live off of while still having some convenience. Plus anyone has access to the binder if they need it and can pick it up without skipping a beat.
With financial freedom comes an easier life where you don’t have to worry about money management and enjoy time freedom from your busy schedule because it all becomes automated!
Plus… This budget binder is also a great tool to use with children because it teaches them about saving up for their goals. This will teach kids that they can’t have everything right now and need to save.
How To Make a Budget Binder
A “Budget Binder” is a binder that contains the various budget printables for different places on the internet. These include sheets to help you get started, and use whatever sheets apply to your needs.
If you are tired of losing track of your finances and overspending money more than you would like. You don’t want to stress about what you spend or how much money is left over for retirement.
Let’s keep things simple with a custom budget binder!
This space-saving product will help you organize all of your receipts and bills so that nothing falls through the cracks, while still being stylish at the same time!
To help you get started, check out the Money Bliss Budget Binder.
What supplies do I need to put together a Budget Binder?
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
The budget binder can be as simple or fancy as you like and that’s the beauty of it – you’re creating something that you actually stick with!
At the end of the day, you need something to stay organized and keep you motivated.
Here are the supplies you need for your binder:
Binder: A 3-ring binder will do just fine. I use a 1″ inch binder and that suits my needs just perfectly. Here are some binders to choose from.
Dividers: Your budget binder will be divided into sections. So you need 5 or 8 tab dividers. Here are the ones with binder pockets (that I prefer) or ones without pockets.
Clear Sleeves: These are great to keep your vision board front and center as well as any other current financial goals you are working on.
Fun Colorful Pens: You need pens that will motivate you to actually use the binder. When I first started using my budget, it was hard because not many people know about this system. So what I did is I bought a pack of pens in my favorite color and I put them right on the inside cover. These are the pens I love!
Highlighter Set: This is a necessity. I have found color coding to be helpful and it makes the process of bill paying more fun. Especially, when you are coloring in your debt payoff chart or saving money chart. These are the marker set I use!
Sticky Notes: Let’s face it… we all love to use sticky notes.
Cash Envelopes: This is extremely helpful if you use the cash envelope system. You always know where your envelopes are located. Find cash envelopes that fit into your binder.
Printer: You have one of two options. You can print all of your budget binder printables from home or you can take them to get printed. The choice is totally yours. Personally, I have found laser printers to have the best value for printing at home.
Hole Punch: I would recommend a heavy-duty hole punch. This is something that will get heavy use and is easy to slide into a desk drawer.
Paper: Lastly, let’s talk about the paper. For the budget printables you use the most, you may want to upgrade from the basic 20# copy paper. You will see the difference by using at least 24#.
Budget Binder Categories
In your budget binder, you will need various sections to help you reach your money goals and improve your money management skills.
Specifically, this is what should be in a budget binder:
How many accounts do you have
How many credit cards are open
Any outstanding debt unpaid
How you want to live your life with money
When your bills are due
How to handle that stack of paperwork and mail
A budget
Your net worth
Your credit score
Investment summary
Your first money goal
Your vision board
You can also use these printable binders for keeping track of bills, debts, savings, expenses, and more!
Whatever your goal is for the financial aspect of your life, you can create a binder that will help motivate and inspire you to work towards it.
Budget Binder Printables
A budget is the most important tool to get your finances under control.
The Budget Binder Printables are a great way for you to create and stick with your own personal budget that has goals, targets, and an overall financial plan. It allows you to stay on track of what’s going into each account so that it can be tracked regularly throughout the year (and even before then).
A budget binder is a living and constantly used document that contains all of your financial and personal information, such as income and expenses.
These are the types of budget binder printables you need:
Establishing a budget.
Listing monthly goals as well as long term vision.
Organizing personal information into categories.
Tracking income and expenses.
Bill Payment tracker
Saving tracker
Debt payment tracker
The Budget Binder Printables is a great way to stay motivated with your financial goals.
It will give you the motivation and tools that you need in order to achieve what it takes.
It’s important to keep track of your income and expenses so you can stay on track with your goals.
Budget Binder Ideas
Many people have their own budget binders in order to help them practice spending only the amount that they earn and to motivate them to earn more income.
By creating your own budget binder, you are able to utilize whatever inspiration you want which is why one can use their binder as whatever motivates them. If you are looking to save money, then the budget binder can be full of pictures and graphics about saving up or getting out of debt.
Typically, I recommend making your own budget binder because it gives you the flexibility to add to it.
Many people rave about their budget binder with envelopes as well.
However, looking at other budget binders will give you the best budget binder ideas. Here are some great examples:
Budget Binder from Walmart
Here are the Budget Binders you can find at Walmart. As always, we look for those with higher reviews!
Walmart is known when you need somewhere cheap to buy all their necessities, that is the place to go!
Pen+Gear 5.5″ x 7.5″ Budget Planner, 80 Pages
Track your spending and set your financial goals with our Pen+Gear Budget Planner.
This colorful 80-page planner is designed to help you keep your budget on track while staying organized when it comes to your spending. With guided prompts for tracking spending and financial goals, this handy-dandy planner is a must-have item for any parent, student, traveler, busy body, or young professional.
Use the labeled sections to keep track of things like housing costs, entertainment spending, your emergency savings account, and even charitable donations. Plus, its compact size makes it easy to plan your budget from anywhere you are, wherever you go.
Buy Now on Walmart
12-Month Budget Planner Bill Tracker Organizer with Calendar and Pockets
Whether you’re managing your household finances, just venturing out on your own or running a small business, the Budget Binder is your comprehensive guidebook to help you stay on track to your dreams (and thrive within your means!).
Knowing your financial status each day/week/month is powerful intel that you can use to make good decisions about your money. Good decisions add up to a financial future you dream of! The first step of this journey is yours.
Buy Now on Walmart
Budget Binder on Etsy
Handmade items are becoming more popular, and Etsy is a great place to find them. If you are interested in purchasing an item that has been personalized, the seller might still be able to do so for you.
An Etsy budget binder is a unique way of keeping your financial goals in one easy-to-access location. It can be made from any material you choose – paper, cloth, or even wood! You can use it as a planner or just have it sit on your desk as a decoration.
This PAYCHECK BUDGET planner is perfect for those who want to track their planned paycheck income, savings, and expenses against the actual amounts. Use this either to track your income and expenses during each paycheck period, or for the month.
Flexible to use for either traditional budgeting or for zero-based budgeting. With zero-based budgeting, all of your income is accounted for specific expenses and savings.
This Budget Planner’ is based on the zero-based budget method, which is a great way to keep your finances in order and gives every dollar you earn a job to do.
By using this budget planner, you can understand exactly where your money is going and help you get on track with your finances.
You will be able to notice patterns in your spending behavior, whether good or bad, and gain control over your spending habits to reach your financial goals.
Buy Now on Etsy
Digital Budget Planner
If you’re ready to take control of your money, this is the tool for you. This digital budget planner was created to help you think critically about your spending habits and make better decisions with your money.
A hyperlinked PDF that can be used with your Apple iPad or Android device, stylus and favorite annotation app.
It includes a monthly and paycheck budget, along with a debt, expense & bill tracker, just to name a few. It’s the perfect tool for anyone looking to get their finances in order.
Buy Now on Etsy
Printable Finance Planner Print at Home Budget Plan Budget
This print at home page is one of our many, printable planner pages. It is perfect to assist you in planning your life, and keeping on top of your day-to-day life.
You will receive (instant download) .pdf files, which are ready to be printed at home or sent to a printing company for more professional printing.
Buy Now on Etsy
Budget Binder at Amazon
The best part of shopping for Budget Binders at Amazon is two-day shipping. Also, the prices tend to be more competitive than you would find elsewhere.
Even if you cannot decide which one you like put it in your cart for later or create a wish list of the budget binders you are considering.
Clever Fox Budget Planner & Monthly Bill Organizer with Pockets
Are you looking for the best monthly budget planner to keep your finances organized?
Clever Fox Budget Book will help you keep your money organized, spend well, start saving, set and achieve financial goals.
It can help you to manage all your personal finances, savings, budgets, debt, payments, bills due, cash flow and expense tracking in 1 place.
Buy Now on Amazon
02/19/2024 11:52 am GMT
Smart Planner Budget Book
63,28 €
Take control of your personal finances with our 12-month budget planner.
Containing a wide variety of trackers, calendars and budget planning sheets. This financial planner is ideal for tracking your income, expenses, budget, savings and money goals.
Buy Now on Amazon
02/19/2024 11:57 am GMT
Gogirl Budget Planner and Monthly Bill Organizer
Are you looking for the best compact monthly budget planner to keep your finances organized?
GoGirl Finance Planner will help you keep your money organized, spend well, start saving, and set and achieve your financial goals. It can help you to manage all your personal finances, savings, budgets, debt, payments, bills due, cash flow and expense tracking in one place.
Buy Now on Amazon
02/19/2024 11:53 am GMT
Lamare Budget Planner
A budget planner should help you gain control over your finances – but too many people LACK THE TOOLS to truly make a change.
The Lamare Budget Planner and money saver features highly effective money planner tools, including a Daily Spending & Budget Tracker, bill tracker, Money Saving Organizer, Debt Tracker, goal setter, and Monthly & Yearly budget overviews.
A 12 month plan to get you on your way to financial freedom.
Buy Now on Amazon
02/19/2024 11:57 am GMT
Budget Binder at Target
Most women like to shop at Target. they want clothes that are affordable without sacrificing style. Consumers flock to the chain for its wide selection of trendy items, reasonable prices, and convenient location.
Plus with curbside service, you can order online and pick-up same day!
Budget Binder Cover Ideas
Every personal goal, small and large, starts with a dream.
Without knowing it intuitively, we can think of something we want or want to do and you can make it a reality.
With your cute budget binder, create a cover page that you will love and inspire you.
This is something you will identify once you make your smart financial goals.
Are you ready to Make Your Budget Binder DIY
A budget binder is a DIY money tool for beginners and everyone along their money journey.
It contains a worksheet with the different parts of your budget and an open-ended spreadsheet to track how much you spend on each area.
If you want to live life with intention, creating a budget binder will help your progress faster.
Since the budget binder is a physical binder in which you keep all of your monthly bills, receipts, and other expenses. It is best to create a Budget Binder DIY.
It is easier for you to live life on your terms when you live below your means. The budget binder, whether in paper or digital format, can help you organize your tasks for productivity and success.
Once you finish yours, please share pictures with us!
This is one tool that will help you find long term financial success.
Whether you track your spending or use an app like Simplifi, having this tool at hand can help with staying on track financially even though there are always going to be unexpected expenses such as a broken appliance.
Now, learn how to budget on a low income.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Unlock the secrets to savvy spending with smart budgeting strategies. Explore techniques to stay within your financial limits and secure a stable future. Use these ways to ensure your budget works.
Budgeting isn’t just about crunching numbers – it’s a lifeline for your financial health.
Staying within set limits is essential because it helps prevent debt accumulation, allows for savings growth, and ensures that you’re prepared for both expected and unexpected costs.
You probably already know this, but you don’t like the idea of a budget! Especially when you need to know how to stop going over budget!
Think of a budget as a financial compass, guiding you through the sea of expenses without losing your way.
Quick Overview of What Smart Budgeting Entails
Smart budgeting is the smart play in the financial game, where you make your money work for you, not against you.
This involves understanding your income, neatly categorizing expenses, and planning ahead to ensure you spend less than you earn. By doing this, you create a buffer zone for saving and investing.
It’s a balance of discipline, foresight, and savvy financial planning that aligns with your unique lifestyle and goals.
Below, we will have tips on how you can ensure you don’t go over your budget.
Top Tips to Stick to Your Budget
1. Set Clear Financial Goals to Guide Your Spending Choices
Setting clear financial goals is like planting signposts along your fiscal journey. They guide your spending choices and keep you motivated.
Whether it’s a dream vacation, a new car, or an emergency fund, specific targets make it easier to resist needless spending and ensure every dollar is bringing you closer to what you truly want. Remember, a well-defined goal is a milestone waiting to be reached.
Check out the top smart financial goals!
2. Know Your Income
Understanding precisely how much money you bring home is the bedrock of smart budgeting. This is how to calculate your annual net income.
If you are planning to spend more money than you make, then that is a huge red flag.
You have to plan to budget less than your income. Knowing these numbers is crucial; it ensures that your budget is built on solid ground and not in financial quicksand.
3. Create a Realistic Expense List
Time to be realistic about what you spend. Look at your bank accounts and credit cards to know what you are truly spending and where.
Start by listing all your fixed costs such as rent, utilities, and insurance.
Then, add estimates for variable expenses like groceries and entertainment.
Be honest and avoid underestimating these costs; if anything, overestimate slightly to give yourself some wiggle room. This transparency with yourself prevents unpleasant surprises and helps cement a budget you can truly live with.
4. Adopt Zero-Based Budgeting to Allocate Every Dollar
Zero-based budgeting is like giving every dollar a purpose before it even hits your wallet.
With this strategy, your income minus your expenses should equal zero, which means you assign every dollar to savings, investments, or expenses. This meticulous approach ensures that you don’t have any money aimlessly floating around, which reduces the temptation to splurge.
Zero-based budgeting is the ultimate financial organizer, making sure no dollar goes to waste. One of the popular budgeting methods to use!
5. Practicing the 24-Hour Rule to Avoid Emotional Spending
Emotions can often lead to budget-busting spending sprees. However, by practicing the 24-hour rule, you combat those impulsive urges.
This is one of the simplest ways I don’t go over budget.
When you feel the temptation to make a non-essential purchase, commit to waiting a full day before taking out your wallet. This pause allows you to consider if the item is a necessity or just a fleeting desire. Reflecting on your financial goals during this cooling-off period often leads to wiser decisions and consistent, long-term savings.
6. Automate Savings and Bill Payments to Prevent Oversight
The marvels of modern banking can turn you into a financial ninja with minimal effort. By automating your savings and bill payments, you rid yourself of the worry of manual oversight.
It’s as simple as setting up automatic transfers to your savings account right after payday and scheduling auto payments for recurring bills.
This ensures your financial commitments are met before you even think of discretionary spending, keeping your savings plan on track and your credit history spotless.
It may take a few months for your budget to start working.
7. Embrace the Envelope System for Controlled Spending
The cash envelope system takes budgeting back to basics with a tactile and visual approach.
By dividing cash into envelopes labeled for different spending categories like groceries, entertainment, or eating out, you create a physical barrier to overspending. Once an envelope is empty, that’s your cue to stop spending in that category.
It’s straightforward yet powerful; the tangible aspect of seeing cash dwindle provides a stronger cue to curb spending than swiping a card ever could.
8. Utilize Apps and Online Tools for Regular Budget Review
These platforms make regular budget reviews less of a chore and more of a seamless part of your daily life.
Track your expenses in real-time, receive alerts when you’re nearing a budget limit, and gain insights into your spending habits with just a few taps on your screen.
This tech-savvy approach to budgeting not only simplifies the process but also empowers you to make informed decisions about your money on the go.
Find the best budgeting apps on the market today.
9. Mindful Spending Techniques
This is when you question the value proposition and encourage you to think before you buy.
Start by questioning the necessity and value of the item.
Will it enhance your life or clutter it?
Is this on social media as the “must-have” item?
Do you truly need it? Or is it a want?
Will the constant barrage of new items increase your happiness?
Also, practice gratitude for what you already own to minimize the allure of new purchases.
Mindful spending isn’t about deprivation; it’s about making more room in your life for financial peace and the things that truly matter.
10. Altering Lifestyle Choices
Altering your lifestyle to fit your budget might sound daunting, but it’s often the most effective way to ensure your spending doesn’t spiral out of control.
The first step is to be mindful of lifestyle creep.
Make mindful modifications like dining in more often, choosing staycations over expensive holidays, or opting for public transport over a personal vehicle. These changes don’t have to feel like sacrifices; view them as trade-offs for a more stress-free financial future.
Embracing a lifestyle that aligns with your budget paves the way to a richer (pun intended) life. Yes, debt free is the new rich.
11. Dealing With Unexpected Expenses Without Breaking the Bank
You turn around and are hit with an unexpected expense. It is the worst and I know something we deal with on a yearly basis at least.
Dealing with unexpected expenses can feel like navigating a financial minefield. To handle these without breaking the bank, initially aim to establish a rainy day fund with at least 10-20K of cash investments.
Start small, if necessary, and grow this fund over time. Should an unexpected expense arise, you can dip into this fund instead of derailing your budget. It’s your personal financial cushion, softening the blow of life’s surprises without causing a monetary meltdown.
12. When to Adjust Your Budget for Income and Lifestyle Changes
Life never sits still, and neither should your budget. If there’s a change in your income — maybe a raise or a job loss — it’s time to adjust your numbers. Similarly, lifestyle changes like a new family member or a big move call for a budget review.
Revisiting your budget whenever these changes arise ensures it remains tailored to your current circumstances. A budget that reflects your present situation is not only more realistic but also more sustainable.
The goal is to increase your savings percentage with any extra income coming in and forgo lifestyle inflation.
13. Keeping a Miscellaneous Line in Your Budget for Surprises
Life’s full of surprises, and some can hit your wallet unexpectedly. Keeping a miscellaneous line in your budget is like having an umbrella for a rainy day.
Set aside a small pot of money within your budget for these unforeseeable instances. If a surprise does pop up, you can cover the cost without dipping into other savings or spending allocations. This strategic buffer grants you financial flexibility and peace of mind.
Also, this can be used as fun money when times are tight.
14. Tracking Progress and Celebrating Small Wins
A budget is a living document, but it’s also a tapestry of your financial victories.
Tracking your progress is not just about ensuring compliance; it’s about recognizing and celebrating the small wins.
These accomplishments, such as paying off a credit card or sticking to your budget for a full month, build momentum and reinforce positive habits. Celebrate these successes—they’re the stepping stones to your larger financial dreams.
Plus, they’re great morale boosters that motivate you to keep going!
15. Find an Accountability Partner to Keep You in Check
Enlisting an accountability partner is like having a co-pilot on your financial journey. Choose a trustworthy friend or family member who understands your goals and is willing to help you stay on course.
Share your budget, your triumphs, and even your slip-ups with them. They can offer support, celebrate your victories, and gently nudge you back on track when needed.
Your accountability partner is a powerful ally, turning the often solitary act of budget management into a shared and sociable success story.
Frequently Asked Questions (FAQ)
To quickly create a budget you’ll stick to, use a reliable tool like YNAB to map out your income, essential expenses, savings, and discretionary spending for the next month. By clearly seeing where your money should go, adjusting as needed, and monitoring your progress, it becomes easier to adhere to your financial plan.
Keeping it simple and realistic from the start is the best foundation for budget commitment.
You might be exceeding your budget due to unrealistic limits, impulse purchases, or unexpected expenses. Prevent this by creating a realistic budget on what you already spend and creating a buffer for unanticipated costs.
Consistency and flexibility in your approach are key to staying within budget.
Accommodating irregular income requires a bit of foresight.
Start by budgeting based on your lowest-earning month to create a conservative baseline.
Save during higher-income periods to smooth out the leaner ones.
Continually adjust your spending priorities as your income fluctuates.
Also, maintain an emergency fund and categorize expenses by necessity to build a budget that’s both resilient and flexible.
Automated payments are a game-changer for sticking to your budget. They ensure bills and savings get paid first, reducing the risk of spending what you intended to save or forgetting due dates.
Setting up automatic payments may take a few hours and a few months to verify all of your bills are paid. But, something that is worth you doing.
Automation takes the guesswork out of financial commitments and helps you maintain a consistent savings habit.
How do I make sure I don’t go over my budget?
You are afraid to budget because you know you will go over your budget, right?
That mentally needs to change.
To ensure you don’t go over your budget, embrace the psychological trick of setting your spending plan slightly below what you can comfortably afford.
Convince yourself that this lower threshold is your maximum capacity, and any overages will merely tap into your deliberate buffer rather than causing financial strain. For example, if your income is $5000 per month, then budget $4000. That way you have a buffer to be (hopefully) saved at the end of the month.
This mindset, coupled with regular tracking, thoughtful spending, and strategic adjustments, can keep your finances firmly in the green.
One step closer to becoming financially stable.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Learn how to save money quickly, even on a tight budget. Get practical tips for how to save money fast on a low income. Simple savings ideas to implement today.
Saving money on a tight budget can feel like a high mountain to conquer, especially when you’re trying to do it fast.
Many people earn just enough to cover their essential costs, leaving little room for savings. However, with the right strategies, saving money fast on a low income doesn’t have to be a pipe dream.
This is something I started when we decided to pay off debt. Then, we choose to continue saving that money and investing it.
By understanding the flow of your money – where it’s coming from and where it’s going – you can make informed decisions that maximize your savings potential.
By prioritizing your spending and forecasting future expenses, budgeting can reduce the stress of financial uncertainty and introduce a sense of control and confidence in your money management skills. Thus, leading to you starting to save.
What is the best way to save money on a low income?
On a low income, the best way to save money is to thoroughly understand your expenses and prioritize your needs over wants.
In addition, by planning and tracking your finances meticulously, you can identify where each penny is going. Thus, allowing you to analyze your expenses. Once you have a clear picture of these, start looking for areas to trim down.
Remember, saving money is about being proactive and consistent. These small but steady steps can build up over time to help you save money fast, even on a low income.
How to Save Money on A Fast Income
1. Start with Clear Priorities
Before you can decide where to cut costs or how to allocate your funds, you need to know what’s most important to you.
What is your why for doing what you need to do? Is it building an emergency fund, saving for a down payment on a home, or maybe preparing for retirement?
Whatever your goals, outline them clearly. This is how you will save money.
2. Budgeting effectively to manage finances
To budget effectively on a low income, it all starts with a cold, hard look at your numbers.
Begin by listing all sources of income – that’s your foundation.
From each paycheck or income stream, subtract your non-negotiable expenses such as rent, utilities, transportation, and debt payments. What you have left is your discretionary income.
Then, it’s time to categorize and prioritize. Group your expenses into necessities and nice-to-haves. If your essentials consume most of your income, you’ll need to scrutinize the nice-to-haves list.
Every dollar saved from unnecessary splurges is a dollar that can be put towards your savings.
Use budgeting apps or tools to keep a real-time record of your spending. These can help you stay disciplined and provide a visual reminder of your progress.
3. Track and Slash Unnecessary Expenses
Now, you must meticulously and ruthlessly cut out the non-essentials.
Identify patterns and spot the recurrent, unnecessary expenses that are draining your funds.
Do you subscribe to multiple streaming platforms?
Are you forking out cash for a gym membership you barely use?
Are those daily specialty coffee drinks adding up?
It’s time to slash these expenditures.
Cutting these expenses is like giving yourself a raise.
4. Lower Housing Expenses Without Compromising Comfort
Living in smaller, more affordable housing to decrease rent or mortgage might be exactly what you need.
Opting for a smaller, more affordable space is a practical approach to significantly lower your rent or mortgage payments. When you choose to live in a compact setting, not only do you reduce the square footage costs, but often, utility and maintenance expenses decrease as well due to the reduced size of the living area.
If you are renting, try to negotiate your rent or lease terms with your landlord – they might be willing to offer a discount to keep a reliable tenant, or you may be able to agree on lower rent for a longer lease commitment.
If you’re a homeowner, explore the possibility of refinancing your mortgage to take advantage of lower interest rates. Alternatively, consider renting out a room or a portion of your living space, as the additional income can offset your mortgage or maintenance costs.
5. Save Money on Utilities with Simple Home Adjustments
Saving money on utilities might sound challenging, but you can often achieve substantial savings with a few strategic home adjustments. Let’s explore some cost-effective strategies and modifications you can make to your living space that could help reduce your bills.
Energy Efficient Appliances: Swapping out older appliances for Energy Star-rated ones leads to significant reductions in electricity use and water consumption.
Smart Thermostats: Installing a smart thermostat allows you to programmatically control your heating and cooling based on your schedule and preferences, potentially saving you a bundle on your energy bills.
LED Lighting: Switch to LED bulbs, which are more energy-efficient than traditional incandescent ones and have a longer lifespan, saving you on replacement costs as well as your electric bill.
Insulation Upgrades: Proper insulation keeps your home warm in the winter and cool in the summer, reducing the need for excessive heating or air conditioning.
Water-Saving Fixtures: Low-flow showerheads and faucet aerators reduce water usage, preserving this precious resource and lowering your water bill.
Not only do these simple home adjustments lead to savings on your utility bills, but they also contribute to a more environmentally friendly lifestyle.
6. Cooking at home instead of eating out
Cooking at home instead of dining out is an excellent way to save money, especially on a low income. When you eat at a restaurant, you’re not just paying for the food; you’re also covering the cost of service, ambiance, and the establishment’s overhead.
Plan a balance between meal prepped home-cooked meals and the occasional dinner out to keep your budget in check while still enjoying life’s little pleasures. Here are some frugal meals to get you started.
Remember, you don’t have to eliminate eating out entirely.
7. Canceling unused subscriptions and memberships
Stop draining money on services you don’t actively use. It’s surprisingly easy to forget about these auto-renewing expenses, so taking the time to audit your subscriptions can reveal opportunities for savings.
Recently, we tracked over $100 a month in my mother-in-law’s unused subscriptions and membership!
As such, it’s important to periodically evaluate your subscriptions and memberships to ensure they are still serving your interests and goals. If not, give yourself permission to cancel and save that money for something that offers tangible benefits in return.
8. Buying quality items that last longer
Investing in quality items that last longer is a strategic way to save money over time. While the initial cost may be higher, durable products can prevent the cycle of frequent replacements, ultimately contributing to long-term savings and less waste.
Remember, not every purchase necessitates the highest quality option. Examine which items you frequently use and can benefit from in the long run. For instance, driving a Toyota or buying higher quality shoes.
Once you’ve identified these, invest in quality for those and enjoy the satisfaction of a purchase that lasts.
9. Optimize Grocery Shopping
To optimize grocery shopping and manage your food budget effectively, start by thoroughly checking your current pantry supplies and making a precise shopping list to deter impulse purchases.
Utilize coupons and enroll in local store loyalty programs for exclusive discounts.
Embrace meal planning to avoid unnecessary spending.
Consider incorporating meatless meals, as this can contribute to consistent savings over time due to the typically higher cost of meat compared to vegetables and other plant-based options.
Plan meals around these cheap foods when you are broke.
By shopping smartly, you have the power to drastically lower your monthly food bill. Just remember, the key is preparation and discipline.
10. Repairing items instead of replacing them
Repairing items instead of replacing them can be a significant money-saving tactic, especially when budgets are tight. It’s often more cost-effective to fix a piece of furniture, mend a garment, or troubleshoot an appliance than it is to buy new one.
Consider the condition and value of each item before deciding to repair it. If the cost of repair approaches the price of a new item, or if it’s beyond your skill set, researching community resources or seeking professional help may be a wise choice.
11. Practicing the 30-day rule for non-essential purchases
Putting the brakes on impulsive buying can significantly boost your savings, and practicing the 30-day rule is a tried-and-true method to control those urges.
Before you make any non-essential purchase, wait 30 days.
If after a month you still feel the purchase is necessary or meaningful, then consider buying it.
Remember that the goal isn’t to deny yourself enjoyment but to ensure that each purchase is considered and valued. This conscious approach can lead to more satisfaction with the items you do choose to buy and a healthier bank balance.
12. Skip the Car Loan
Opting out of a car loan and finding alternative modes of transportation, such as cycling, walking, or using public transportation, can lead to significant financial savings.
Without a car payment, individuals can redirect the funds that would have gone towards monthly installments, insurance, and maintenance into their savings account.
This strategy can be particularly impactful for those with a goal in mind or working with a low income, as every dollar saved moves them closer to financial stability. Furthermore, the elimination of auto loan interest charges and potential debt can provide a more secure financial footing and peace of mind.
13. Using public transportation or carpooling to reduce fuel costs
Utilizing public transportation or carpooling can be significant in reducing fuel costs, particularly when you’re committed to saving money on a low income. These alternatives to solo driving not only save on fuel but also on parking fees, and wear and tear on your vehicle.
Another option is embracing car-sharing services, especially if you find that you don’t require a car on a daily basis. Services like Turo and Getaround offer the flexibility of having a car when you need one without the constant financial responsibility associated with ownership.
Remember, it’s all about what suits your lifestyle and frequency of need. By assessing how often you need a vehicle and comparing it with the total costs of ownership, car-sharing could be an excellent way to save money.
14. Selling unused or unwanted items for extra cash
Selling unused or unwanted items is a fantastic way to declutter your space and earn extra cash. You might be surprised how much money you can make by letting go of things you no longer use or need. From clothes you’ve outgrown to homeware that’s gathering dust, each item sold can inch you closer to your savings goal.
Take advantage of this opportunity; a thorough home audit could reveal a treasure trove of sellable items right under your nose. Not only does this increase your income, but it also helps you consider future purchases more carefully.
15. Taking advantage of free entertainment and community events
Leveraging free entertainment and community events is a delightfully frugal way to enjoy yourself without breaking the bank. From concerts and exhibitions to workshops and meet-ups, there’s often a wealth of activities that won’t cost you a penny.
In fact, here at Money Bliss, I have the most popular list of things to do with no money.
With a little creativity and resourcefulness, you can uncover a variety of enjoyable and inexpensive things to do.
16. Automating savings to ensure consistent contributions
Automating your savings is a hassle-free way to ensure you consistently contribute to your financial goals.
By setting up an automatic transfer from your checking account to a savings account, you’re essentially paying your future self first.
This ‘set and forget’ approach helps grow your wealth with minimal effort.
17. Negotiating bills and asking for better rates
Many service providers are open to negotiating prices if it means retaining a customer. Whether it’s your cable package, insurance, or even a credit card interest rate, it’s worth having the conversation.
Remember, the worst they can say is no. But often, companies will offer helpful options when they realize you are considering alternatives due to cost concerns.
One phone call could save you $1000 a year – just like when I decreased my cable bill!
18. Evaluating insurance policies for potential savings
When evaluating insurance policies, it’s critical to regularly assess your coverage needs and shop around for the best rates. Comparing policies from different providers annually can reveal opportunities for lowering premiums or finding more suitable coverage.
Utilize online tools and independent insurance agents to ensure a comprehensive review of available options.
Remember to inquire about bundling policies, as this can often lead to significant savings while consolidating your insurance needs effectively.
19. Meal Planning and Prep: Strategies to Reduce Food Waste
By allocating some time each week to plan your meals, you can ensure that you only buy what you need, thereby minimizing waste and cost.
Learning to meal plan starts with looking at a calendar and a local sales flyer to find the low cost deals.
By creating a weekly plan and incorporating budget-friendly recipes, you can not only eat healthier but also avoid the costlier option of dining out.
20. Forgo single use items
By choosing reusable items over single-use ones, you cut down on waste and habitual spending on disposables. This is also known as frugal green.
For instance, investing in a reusable water bottle, rather than buying single use water bottles.
By integrating sustainable products into your life, you also promote a culture of conservation and mindfulness, inspiring others to make eco-friendly choices.
21. Shopping for groceries with a list to avoid impulse buys
This is key! Especially when shopping with kids or a significant other!
Shopping for groceries with a list is a golden rule to avoid impulse buys, which can quickly derail your budget. By planning your purchases beforehand, you stick to the essentials and resist the temptation of sale items that aren’t on your list or don’t fit your meal plan.
Bonus Tip: Remember to always shop on a full stomach – hitting the grocery store hungry is a surefire way to end up with impulse purchases that aren’t on your list!
22. Buying generic brands instead of name brands
Opting for generic brands rather than name brands is a straightforward and effective way to save money on everything from groceries to over-the-counter medications. These products are often of similar quality and effectiveness but come at a significantly lower cost.
By making the switch to generics, especially for regularly used items, the aggregate savings can be substantial over time.
23. Making bulk purchases for commonly used items to save on cost-per-unit
When you buy in larger quantities, the cost per unit typically decreases, leading to savings that add up over time. Bulk buying works best for non-perishable goods or products you use consistently.
Make a point of buying non-perishable items or products with a long shelf life in bulk to avoid waste and ensure that you truly save money with each bulk purchase.
Just make sure you are going to use it!
24. Cutting costs on personal care by DIY methods
DIY methods for personal care are not just a trend – they’re a practical and often healthier alternative to store-bought products. By creating your own beauty and personal care items, you can significantly trim costs and take control of what goes on and into your body.
Even if you’re not the crafty type, consider starting small with something like a DIY sugar scrub or homemade toothpaste. This is something I did over ten years ago. You might discover a new hobby that enhances both your well-being and your budget.
25. Regular maintenance of vehicles and appliances to prevent costly repairs
Keeping on top of maintenance schedules helps prevent major breakdowns that can lead to expensive repairs down the line.
By making regular maintenance a non-negotiable part of your routine, you protect your investments and save yourself from future financial headaches.
I keep a list in my digital to do list, so I never lose track.
26. Shopping at thrift stores, garage sales, or second-hand websites
Shopping at thrift stores, garage sales, or second-hand websites is an excellent way to acquire items at a fraction of the retail cost. Not only are you being financially savvy, but you’re also participating in the circular economy, reducing waste, and often supporting charitable causes.
Shopping second-hand first is not just about saving money—it’s a lifestyle choice. With patience and persistence, it’s amazing what quality items you can find without impacting your wallet heavily.
27. Learning basic sewing to repair clothes
Mastering the basics of sewing to mend your clothes is a skill that pays off in multiple ways. You save money by extending the life of your garments, reducing waste, and developing a practical capability that can come in handy in various situations.
Honestly, sewing a piece of clothes is a very simple thing. Something that must be learned by the younger generations.
Consider setting aside some time to learn sewing basics via online tutorials, community classes, or even from a friend or family member—it’s a practical step toward financial savings and sustainable living.
28. Utilizing coupons and discounts for shopping
Using coupons and discounts strategically can lead to significant savings on your shopping bills. With a little planning and some savvy shopping techniques, you can ensure you never pay full price for essentials and other purchases.
Remember to only use coupons for items you were already planning to purchase; otherwise, you’re not saving money, you’re just spending less on something extra.
29. Consolidating debt to reduce interest rates
Debt consolidation can be a strategic financial move to lower your overall interest rates and simplify your monthly payments. By combining your debts into one loan with a lower interest rate, you can streamline your bills and potentially save significant amounts of money over time.
Make sure to shop around for the best debt consolidation options and read the fine print. The goal is to find a consolidation plan that truly puts you on a faster track to being debt-free without any hidden costs.
30. Tackle High-Interest Debts First to Free Up More Cash
Addressing high-interest debts is paramount in optimizing your financial strategy. Such debts, often from credit cards or payday loans, can spiral out of control if not managed promptly due to their compound interest rates, which can quickly exceed the original amounts borrowed.
This is known as the debt avalanche.
By zeroing in on high-cost debts, you ensure your income is spent more effectively and not wasted on steep interest fees, accelerating your path to financial freedom.
31. Choose the Right High-Yield Savings Account for Your Emergency Fund
Selecting the right high-yield savings account for your emergency fund is an essential move for growing your savings. High-yield accounts offer interest rates significantly higher than standard accounts, ensuring your emergency fund doesn’t stagnate and keeps pace with inflation as much as possible.
This is one of the bank accounts you need.
32. Implement The Envelope System
The Envelope System is a budgeting method that involves physically dividing your cash into envelopes for different spending categories.
Utilizing the cash envelope system promotes disciplined spending by providing a tangible limit on various expense categories, ensuring you stay within your pre-determined budget and facilitating more intentional money management.
This method also offers immediate visual feedback on spending patterns, which can lead to better financial habits and incremental savings as any leftover cash from each envelope can be added directly to a savings fund, making the act of saving more rewarding and motivating.
33. Using cash -back envelopes to track spending
The use of cash-back envelopes takes the traditional envelope budgeting system a step further by rewarding yourself with savings.
Whenever you spend less than the allocated amount in a budget category, you place the cash difference into a “cash-back” envelope, which can be used for saving or investing.
Adopting the cash-back envelope strategy can provide a rewarding twist to budgeting, making it a fun challenge to spend less and save more.
Boost Your Income: Creative Side Hustles and Opportunities
Boosting your income can provide substantial financial relief, particularly when you’ve maximized your ability to cut costs and still find your expenses stretching your budget thin.
Generating extra income, be it through a side hustle or achieving a raise enhances your ability to save and invest.
With additional streams of revenue, you gain more financial flexibility to achieve goals like paying off debt faster, saving for a significant purchase, or building an emergency fund.
Finding a side hustle or part-time job for additional income
Exploring a side hustle or part-time job is a proven way to supplement your income. In today’s gig economy, there are numerous opportunities for flexible work that can be customized to fit your skills and schedule.
A side hustle can not only pad your wallet but also provide an outlet for creativity and passion, possibly even offering a new career trajectory down the line.
Explore Gig Work and Passive Income Streams
Exploring gig work and passive income streams can accelerate your savings efforts, especially when your regular income isn’t enough to reach your financial goals. These alternative income ideas often provide the flexibility to work on your terms and build up earnings over time.
These revenue channels provide a proactive approach to increasing your disposable income. Researching and choosing the best options for your skills and financial situation can help you build a sound extra income strategy.
Take Advantage of Bank Bonuses and Credit Card Bonuses
Banks often offer attractive incentives to new customers, and high-interest savings accounts can grow your deposits at a faster rate than traditional accounts. The same is true for credit card issuers offering big bonuses.
Taking time to research the best offers and account terms can net you a nice bonus and put your money to work earning more money.
Learn How to Invest Your Money
Learning how to invest your money is paramount to building wealth over time. While it can seem intimidating at first, understanding the basics of investing can enable you to take advantage of compounding interest and market growth to increase your savings exponentially.
Start small, stay disciplined, and continually educate yourself as you grow your investment portfolio. Over time, your investments can become a significant source of wealth and financial security.
Learn how to invest in stocks for beginners.
FAQs: Navigating the Path to Low-Income Savings Success
Saving money when your income barely covers your fixed expenses requires a strategic approach. Begin by scrutinizing your budget to cut any non-essential costs.
Look for ways to reduce your fixed monthly expenses, like negotiating bills or refinancing loans.
Every small change can contribute to your savings, so focus on making incremental adjustments that together can enhance your financial situation.
Even when funds are tight, saving money is possible by making small but impactful changes.
Prioritize reviewing your expenses and identifying areas to cut back, such as non-essential subscriptions or eating out.
Round up loose change or small amounts from your daily transactions into savings.
Seek free entertainment options and consider generating additional income through side hustles or selling items you no longer need.
Each penny saved is a step towards your financial cushion.
Setting Realistic Savings Goals and Celebrating Milestones
Setting realistic savings goals is a key to financial success, particularly when managing a low income.
Determine what you can feasibly save without overstretching your budget. Whether it’s $5 or $50 per week, every bit helps.
Celebrating your achievements, no matter how small, can inspire continued discipline and dedication towards your financial objectives.
Being realistic and flexible with your budget will help you manage your finances more efficiently, ensuring that you set aside money for future growth, even when funds are tight.
This is a great step towards habits of financially stable people!
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
You likely agree that saving money is a good idea. Putting extra cash aside every month can help you reach your financial goals, whether that’s building an emergency fund, going on vacation, or putting a down payment on a car or home.
But wanting to save money and actually doing it are two very different things. It’s easy to get caught up in day-to-day needs (and wants), and never gain any traction on savings. But don’t give up. We’ve got 33 tricks and tips that can make saving simple and pain-free. The best part — you can get started as soon as today.
Saving Money Doesn’t Have to Be Overwhelming
While spending less and saving more admittedly sounds painful, it doesn’t have to be that hard. You don’t have to go to the extremes like never shopping or having fun. Just making a few small changes in your day-to-day spending habits can actually add up to a big difference in how much you save each month.
Getting better with money is like any type of behavior modification — the key to lasting change is to make small, incremental changes that stick.
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33 Easy Ways to Save Money
What follows are 33 simple money-saving tips you can start working on right now.
1. Tracking Your Spending
One of the best ways to spend less and save more is to take a close look at where your money is currently going. You can track your spending by scanning your checking account and credit card statements over the last few months. But a simpler way is to use a budgeting app that syncs with your accounts and keeps track of what you spend in different categories in real time.
Once you have a big-picture idea of your cash flow, you can make adjustments. Spending a lot more on takeout than you thought? Commit to cooking one or two more nights per week. Is keeping up with fashion killing your budget? You may want to focus on spending less on clothing.
2. Selling Items You Never Use
An simple way to earn some extra cash is to periodically sell gently used items you no longer want or need. You might organize a yard sale or resell your items piecemeal via online marketplaces like OfferUp, Facebook Marketplace, or eBay. If you have extra clothes, shoes, or accessories in good condition, consider listing them on Poshmark or thredUP. Selling your unwanted stuff is essentially getting paid for clearing out clutter.
3. Limiting Time Spent on Social Media
Watching influencers take luxury vacations and promote their favorite products can prompt you to spend more and live beyond your means. In fact, recent research finds that social media can significantly impact your finances — and not in a good way.
Putting a time limit on daily phone scrolling, on the other hand, can automatically lead to less spending and more saving. It also frees up time for activities that can truly enhance your life, like reading, exercising, seeing (real) friends, even taking up side hustle (and earning more money).
4. Setting Goals for Saving
When we do things with focus, intention, and a clear goal in mind, we usually have an easier time making it happen. Instead of saving for the sake of saving, consider setting specific savings goals with target dates and amounts. For instance, maybe you want to save $5,000 for a summer vacation or $2,000 for a new computer.
By setting a target date, you can work backward and figure out exactly how much you need to set aside regularly. For example, if you want a new laptop in eight months, and it will cost you about $2,000, you’ll need to save $250 a month or about $60 a week.
5. Buying Generic Brands
Generic brands typically have the same ingredients and offer comparable quality to name brands but for a fraction of the price. For example, generic drugs usually cost 80% to 85% less than their brand-name counterparts. During your next supermarket or drugstore visit, try to go generic whenever it’s offered. Chances are, the only difference you’ll notice is less money draining out of your checking account.
6. Comparison Shopping
Spending a bit of extra time comparison shopping can help you scoop up the best deals and avoid paying full price. You can do it on your phone while you shop in-store. For online shopping, consider installing a browser extension that helps you find the lowest prices and automatically applies coupons and cash-back options at checkout. Many of these tools will also alert you when the price of an item you intend to purchase drops.
7. Automating Your Savings
Rather than transfer money to your savings account whenever you think of it, consider putting your savings on autopilot. Simply set up a recurring transfer from your checking account to your savings account for the same day each month (perhaps right after you get paid). It’s fine to start small. Even $50 can add up to a sizable sum over time, since the transfer happens every month without fail.
8. Making Monthly Debt Payments
While it’s not directly putting money into your bank account, making on-time, consistent payments on your debt means you’ll pay it off quicker. Once your debt is paid off, the money you are currently spending on principal/interest can go towards savings. In addition to your monthly minimum payments, try to put extra payments towards high-interest debt each month. You’ll whittle those balances down faster and save on interest.
9. Delaying Gratification
If you see something you want to buy but don’t actually need, consider putting off the purchase for at least one week (or ideally 30 days). Tell yourself that if you still want the item and can afford it after the waiting period, you can go ahead and buy it. Chances are good that once that waiting period is over, you’ll no longer have a burning need to purchase the item and simply move on.
10. Meal Planning
If it’s 6pm, you’re tired from a full day of work, and have no food in the house, you’ll probably seek out the path of least resistance — getting takeout or eating out. Your best defense against overspending on food is to sit down every Sunday to scan recipes and come up with a meal plan for the week (including breakfast, lunch, dinner, and snacks). You can then make a shopping list and hit the store.
Recommended: Examining the Price of Eating at Home Versus Eating Out
11. Avoiding the Daily Coffee
While it’s fine to occasionally splurge on a fancy coffee, getting your daily coffee out can add up, especially if you sometimes throw in a tempting pastry at the last minute. Even cutting back your coffee shop visits to just two or three times a week and brewing at home the other days can help you save a lot on coffee.
12. Making Repairs Instead of Buying New
While it is easier to replace items than fix them, the latter approach is better for both your wallet and the environment. Depending on the item, a repair could end up costing significantly less expensive than a replacement. Call around for quotes or ask for help from a tech-savvy or handy friend. Also see if there are “repair cafes” in your community. These are volunteer-run events where you can get items mended or fixed for free.
13. Using Cash Instead of Credit Cards
While credit cards are convenient, they make it all too easy to spend money. When you tap or swipe to make a purchase, you don’t really have a sense that you are giving up physical money. Switching to cash-only, even for just a month or so, can help you become more mindful about your spending. You might even try the envelope system. This involves labeling envelopes for each spending category, dividing your available cash for the month into the envelopes, and then only spending what’s in each envelope.
14. Switch to a New Cell Phone Carrier
When it comes to cell service, you don’t have to stick with the big names. Mobile virtual network operators (such as Mint Mobile, Consumer Cellular or Republic Wireless) typically offer the same quality of service at a much lower price tag. It’s also a good idea to look at your last cell phone bill to see how much data you actually use. You may be able to get a smaller plan to save even more.
15. Doing it Yourself Instead of Hiring Someone
Before you hire someone for a home repair or improvement job, like painting a room, re-caulking your tub or shower, or installing a water filter under your sink, consider whether or not you could do it yourself. Often, the cost of materials and a simple YouTube search will lead to significant savings.
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16. Stacking Coupons
There are two major types of coupons: Store coupons, which are issued by a specific retailer and can only be used at those locations (you can find these in the paper and through a retailer’s app or mailer); and manufacturer’s coupons, which are found on manufacturer’s and coupon sites. By stacking them, you get an even deeper discount. Stacking coupons for an item that is on sale is a triple whammy that can bring you back to pre-inflation prices.
17. Canceling Some Subscriptions
Dropping subscriptions that you hardly use or are redundant is a simple money-saving move with a potentially big payoff, since these debits occur monthly. It’s worth scanning your checking account and credit card statements for recurring charges to see if there are any items you can cut. If you primarily watch one streaming service but pay for four, for example, canceling three can save you significant cash.
18. Using a Refillable Water Bottle
While keeping bottled water (and seltzers or sodas) on hand is convenient, the cost can add up, especially if you have a family. A simple way to spend less at the grocery store each week is to give each person in your household their own reusable water bottle. You can then take bottled drinks off your shopping list. This will not only save money but also reduce plastic waste.
19. Taking Advantage of Free Resources
You might be surprised at how many things you can actually get for free. For example, your library can grant you access to movies, books, activities, and in some cases, passes to state parks and other nearby attractions. You might also join a Buy Nothing group. These are hyper-local virtual communities where neighbors can give and receive essentially anything for free.
20. Canceling Your Gym Membership
If you’re becoming a stranger to your gym, consider canceling your membership. Even if you got a great deal, gyms debit money out of your bank account every month, whether you go or not. You might look for alternative, low-cost ways to get physically fit, such as walking/jogging/biking around your neighborhood, lifting free weights at home, and taking hikes.
21. Saving Change
A nickel here and a quarter there might not seem like much, but if you start dropping all your spare change into a jar every day, you’ll be surprised at how much you’ll accumulate. If you rarely carry or pay in cash, consider collecting digital change. Many money-saving apps automatically round up your purchase to the nearest dollar, then transfer the difference into your savings account.
💡 Quick Tip: Want a simple way to save more everyday? When you turn on Roundups, all of your debit card purchases are automatically rounded up to the next dollar and deposited into your online savings account.
22. Skipping Alcohol at Restaurants
Ordering a cocktail or a glass of wine (or three) when out to dinner can significantly inflate your bill. Consider getting water or a non-alcoholic beverage instead, then perhaps having a glass of wine when you get home. If you must drink, local beer, “house wine” options, and happy hour cocktails are usually the cheapest options.
23. Finding Free Family Entertainment
Taking the family to concerts, movies, and immersive art exhibits can add up quickly. Instead, look for free or low-cost community activities. These offerings typically spike during the summer months and around holidays. To stay abreast of upcoming goings-on, you can sign up for newsletters or follow social media accounts of your local community, recreation centers, and libraries.
24. Doing a No-Spend Challenge
A simple way to save (potentially hundreds) is to do a no-spend month. This involves spending money only on essentials for 30 days. Before you begin, it’s a good idea to set parameters for what you will and won’t spend money on and then commit to the plan. It’s only a month! By the end of the challenge, you may realize there were certain things you didn’t really miss and rethink your approach to spending.
25. Reducing Your Energy Use
You may be able to significantly lower your utility bills with just a few tweaks to your habits and home. Try taking shorter showers, fixing any drippy faucets or constantly running toilets, turning off lights whenever you leave a room, and washing your clothes in cold water. Once you see a difference in your monthly bills, you’ll be encouraged to carry on and find more ways to cut energy use.
26. Adjusting Your Tax Withholdings.
If you typically get a refund after doing your taxes, you’re essentially giving the government an interest-free loan. That’s money that could be working for you by earning interest in a high-yield savings account. Revisit your withholdings and put that extra money into your own bank account.
27. Taking a Staycation Instead of a Vacation
It may sound boring, but you’d be surprised how much a staycation can feel like a fun and luxurious getaway. The key is to take a complete break from your daily routine, change up the scenery, and spend time doing things you truly enjoy. This can provide the respite you’ve been longing for — minus the headaches of travel — and for a fraction of the price.
28. Finding Cheap Ways to Reward Yourself
If you focus too hard on saving and never on fun, you might end up feeling deprived and give up on the whole project. Instead, allow yourself to celebrate small money wins and life events on the cheap. For instance, for every X amount you’ve put away into your emergency fund, you might reward yourself with a fancy coffee, a $5 “spree” at the dollar store, or getting a treat at your favorite ice cream shop.
29. Avoiding Bank Fees
Overdraft fees, ATM fees, and monthly maintenance fees can make your bank account balance move in the wrong direction — down instead of up. To ditch costly overdraft fees, keep regular tabs on your checking account to make sure you have enough to cover your debits and checks. To eliminate other fees, you may want to look for a bank account that doesn’t charge monthly maintenance fees and ATM fees.
30. Haggling
Negotiating prices isn’t just for buying cars or houses. You can haggle for just about any product or service — your cable and cell phone bills, things you buy in stores, and even your rent. The key to success is to come to the negotiation prepared (do all the research you may need in advance), speak with confidence, and start off the conversation with the question, “What flexibility do you have?”
Recommended: 15 Creative Ways to Save Money
31. Saving Your Windfalls
It can be tempting to go hog wild and spend your windfalls. But next time you get a work bonus, cash gift, or tax refund (which you actually want to avoid, see tip #26), consider spending a small percentage of it on something frivolous and fun, then putting the rest into your savings account. This can help you reach your savings goals significantly faster.
Recommended: The Fastest Ways to Get a Tax Refund
32. Timing Your Purchases Right
If you want to buy something that you don’t need right away, it’s worth researching the best times of the year for deals and sales. For example, you can often find great deals on cars in May, October, November and December; clothes are typically cheapest at the end of any season; and the end and the very beginning of the year are generally the best times to buy appliances.
33. Switching to a High-Yield Savings Account
If your extra cash is sitting in a traditional savings account, you’re missing out on a free source of extra cash. A high-yield savings account is a type of savings that you can open at many banks and credit unions. But it differs from a traditional savings account in that it offers an annual percentage yield (APY) that’s 10 to 20 times higher. If, for example, you put $25,000 into a savings account with a 4.60% APY, you’ll earn an extra $177.78 by the end of the year — just for letting the money sit in the bank.
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FAQ
Why is saving money important?
Saving money enables you to build an emergency fund that protects you against the unexpected. It also allows you to work towards — and achieve — future goals, such as buying a car or home, sending your kids to college, and being able to one day retire.
How can I find the motivation to save money?
To find the motivation to save money, it helps to set specific goals. Think about the things you want to buy or do in the next year or two and how much these things will cost. You can then determine how much you need to set aside each month to reach your goals. Watching your savings account balance go up can also help keep you motivated.
What are the consequences of not saving money?
When you don’t have a cushion of savings, any bump in the road (such as a car or home repair, trip to the ER, or loss of income) can force you to run up credit card debt. This can lead to a debt spiral that can take months, if not years, to recover from. Not saving also means you won’t make any progress towards your financial goals and simply continue living paycheck to paycheck.
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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
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