Budget tips 2020

How's your budget tracking going? 

If you forgot to start it, February is a great time to start! I know January can feel overwhelming... too many New Year resolutions and we are all still recovering from the holidays. Or maybe it's just too hard to keep up with these new habits you promised to yourself.

Now that the pressure of the holiday season is over, I want to remind you about one thing I can't emphasize enough: self-awareness. This can be anything from emotional awareness, social awareness, or financial awareness-- which is what I want to talk about today. 

I know, we all look at our bank accounts and are usually not so thrilled by it. The only way to get over it is to look again and again. Slowly, we can start to change some habits and finally be happy with where we are financially. 

If you don't do it already, you should start tracking your budget. If you are afraid to, then start off with a few things at a time like groceries and meals out. If you do already but not in an organized fashion, you should bring it to the next level. The Excel level. If you haven't done so already, you should check out my budget template. You can get it here. I promise, it's not as complicated as you might think!

And now it's time for some specific budget tips:

1. Keeping track of a budget can feel overwhelming. Write down daily expenses somewhere handy like your phone or a planner. Then, once a week, like on Sunday night, tally up what you spent and put it in your budget spreadsheet. This is the easiest way to track everything weekly.

2. Try to put $5/week in savings. Feels impossible? Just try it. Skip one coffee/meal out! If you manage to put $5/week in savings, you actually save $260 a YEAR. This seems like a tiny amount, but might be a realistic goal for you if you are still trying to find financial stability or are in school. You can always increase the amount as you go.

3. Keep all your checks/invoices, even after you deposited them. Tax season is always a pain, especially if you are a freelancer. Save some headaches and have a designated spot for checks so it's easy to access. Otherwise you might wonder "hmm... what was that $300 deposit in my account back in February of last year?". Additionally, if you are unlucky enough to get audited by the IRS you will have hard evidence of all income and it will be already organized to present to the auditor.

4. Check your credit card statements. Not just for fraudulent activity, but to learn about your consumption habits. Do you eat out a lot? Do you use too many subscription services? Do you cope with stress through online shopping? Take a look at your credit card statements so you can see how and when you spend your money. It might be a little painful at first, but it is one of the top ways to raise awareness.

5. Be honest with yourself. It's time to stop with the shame and the excuses. Small efforts are still way better than getting into a situation where you ignore your finances because you think you might not have a chance at being stable. Managing your money as a musician is really challenging, but there is always a way to make it work!

Need even more motivation? You can always email me back. 

And happy tracking!