Sam: It is easy to say: ‘The first step is set a budget.’ But it’s like, ‘Well, how do I set a budget? What should I do?’
First, write down what your necessary expenses are – Utilities, mortgage or rent. These are the things you can’t live without. Then, on top of that, add expenses that keep you going about your day and getting to work, like gas and food.
From there, budget for the extra stuff. You want to reach an amount that’s comfortable for you, where you’re not too restricted, but you’re not overspending either. You can keep something and not use it.
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Also, the budget you set in January may not be the same in July or December. then i would say give any budget three months. If it doesn’t work, create a new budget or change some numbers.
The biggest change for us has been traveling full time as a family. Before we were stationary, we had a fixed rent and a gas budget. Now, we don’t have a rental, but we do have an RV site fee.
Give yourself the freedom to have the money you need to pay major expenses. we went from a couple hundred dollars a month in gas to over $1,500. There are also months where we stay in one place at a time and don’t go anywhere, so we don’t use that $1,500.
But we still keep the money there, because there may be a month when we need the money. Like a tire goes flat, and we have to use it for that.
Years ago, when I wasn’t looking at my debt, I thought my student loan debt was around $5,000. – I didn’t know for sure. But keeping track of every dollar made it a game. For someone like me who is competitive, if I have an extra $50 in my budget, I would like to put it in a goal. Just seeing those numbers go down was really helpful for us.
