• Home
  • GET THE BOOK
  • Start Here
  • Blog
  • Free Resources
  • Shop TBM
  • Courses

The Budget Mom

Real Women. Real Life. Real Finance

  • Home
  • Products
    • Live Rich Planner
    • Budget By Paycheck
  • Blog
  • FREE RESOURCES
  • COURSES
  • GET THE BOOK
  • Shop TBM

A life you love on a budget you can afford.

Here on TBM®, I provide you with simple, easy-to-follow solutions to help you budget your money, pay off debt, save more, and crush your financial goals. But more than that, I give you the tools to start doing the things that matter most to you, on a budget that actually works!

How to Budget When You Are a Spender

May 9, 2016
Budget Guides

Share70
Pin3K
Share
Tweet
Email
3K Shares

Everyone loves to spend money but sometimes the love for spending can really do some major damage on your budget. Click to read about how you can still budget your money even when you are a spender.

I can honestly say I was a complete out of control, total die-hard spender before I came to my senses. I don't think we are just born with a natural like instinct to go out and spend, but I think it's something that develops over time. It's something that is instilled in us by years of bad habits, constant credit card swipes, and unnecessary desires.

Throughout my financial journey that started back in 2011, I have experienced two important things. When I realized my debt was unmanageable, I did what most people do to try to save money. I looked for every great deal; constantly checking the clearance racks to get my next spending fix. I was saving money wasn't I? I wasn't spending full price on a shirt, and I was getting shoes on sale. It all sounds great right?

Now that I am 5 years into my financial journey, I realized that there are two types of spenders. Spenders who don't care about spending $80 on a t-shirt & frugal spenders. I transitioned from an out of control spender to a frugal spender. By becoming this, I was more aware of the money I was spending & I did make an effort to not pay full price for things. But the problem I ran into being a natural-born spender is that I was spending more as a frugal spender than I did before and here is why.

My thought process when I was searching the clearance racks was “I am saving money by shopping on the clearance rack, so I can buy more right?” Before you know it, I was bringing home bags filled with $5-$10 t-shirts that cost more than if I would have just bought the full priced shirt. I was purchasing items simply because they were on sale for $5, not because I actually needed them.

  • Related: How to Create a Budget (When You Really Don't Want To)

If you are a spender, and you are like I was, you will find yourself making excuses for your purchases. Whether you are a frugal spender of an out of control spender, you can break the spending habit and reach your saving needs by budgeting.

IT'S TIME TO CHANGE YOUR WAY OF THINKING

To break the spending habit you really have to change the way you think about spending money.Click To Tweet

This really became clear to me when I started the “No New Clothes For An Entire Year” challenge. You can read about the beginning of this journey here. By forcing myself to not buy new clothes, I realized how unnecessary all of my earlier clothes purchases were. In fact, there have been times when I feel sick to my stomach when I think about ALL of the money I spent on clothes. With all of clothes I purchased, I could have went on a really cool trip, had way more in my retirement, or saved for a huge remodel on my house. These are all the things I really want, but now can't afford because of my spending habit.

You have to stop thinking as a frugal spender and start thinking like an actual saver. To do this you have to start asking yourself tough questions before making purchases. Some of the questions you must ask yourself are:

  • Do I REALLY NEED this?
  • If I actually need it, is there a cheaper alternative or can I simply make it myself?
  • Can I get what I want for free?
  • If it's something I need to replace another item, is there a way to make the item I do have last longer or can it be fixed without a new purchase?

To think like a saver, you really have to think about the future. If you spend money now, how will it affect your goals later. If you want to spend $1000 on a new sofa, that's a $1000 less towards a dream vacation or a comfy retirement. You have to spend the money you do have the way you WANT to make sure you are achieving long-term financial goals.

  • Related: How 6 Bank Accounts Changed the Way We Manage Our Money

CREATE A BUDGET THAT'S REALISTIC

Create a budget that is realistic. To do this, you really have to know where your money is going. Make sure to check out my Income VS Expenses post here to help you figure out where your money is actually going. One of the most important parts of a realistic budget is making sure every dollar of income has a plan. Here are some basic steps to help you get started on creating a budget.

  1. Figure out your income & your expenses.
  2. Subtract your income from your expenses. Do you have money left over? Make sure it has a plan and is being used for saving or retirement (this includes any long-term financial goal such as a family vacation)
  3. Once you have all of your income allocated for, make sure you have a plan in place.

CREATE A PLAN THAT IS FAIL PROOF

As a spender, it takes a lot of motivation and will power to stop yourself from unnecessary spending. Here is the plan that I used which made it almost impossible for me to fail.

Once I had my budget created, I used automatic deposits for my savings and used a cash envelope system for my budget. With a cash envelope system, it really allows you to see how much you have left to spend in each category.

I would have my paycheck deposited into my bank account and then I would withdrawal the amount I needed to cover my bills. I left the money that was automatically being deducted for my savings in my checking and I took out the rest.

I would then organize the amount I had to spend in each category into envelopes. When there was no more money in the envelope, that was it, I had nothing left to spend. Seeing that I only had $20 left in my grocery budget made it easier for me to say “Ok, I won't get soda this time because I really don't need it. I am going to get milk and eggs instead”. Talk about a reason to stick to the grocery list! If you want to learn more about a cash envelope system, make sure to check out my step-by-step article HERE.

By having automatic deposits from your checking into your savings, you will accomplish the most powerful rule of Paying Yourself First. By doing this, you can't spend the money you plan on saving, because it's already gone and is being used for another purpose. (Check out CIT Bank's Savings Builder.)

From experience, I will tell you that going from a spender to a saver was not easy, and even now I slip up. But we are human, we make mistakes. Don't beat yourself down if you make a spending hiccup after you implement your plan & budget. Pick yourself up, note the mistake, learn from it, and move on.

What are your favorite things to spend money on?

Share70
Pin3K
Share
Tweet
Email
3K Shares

Filed Under: Tagged With: BUDGET, BUDGET GUIDES, BUDGET TIPS, SPENDING

Previous article:
« Why We Decided To Raise Chickens
Next article:
4 Must-Read Budgeting Articles For Beginners »

Hello, I'm Kumiko, but everyone just calls me Miko. Welcome to my blog, The Budget Mom. I am an Accredited Financial Counselor® , and mom to a rambunctious boy. Come along with me as I strive to live a life I love on a budget that I can afford. Read more about me.

RECENT YOUTUBE VIDEO

The Budget Mom

The Budget Mom
It’s time for another Real Life Budget. I asked my readers to submit their REAL information. Real spending, real debt, and real savings goals.

I am taking those real-life numbers and showing you how I would organize and budget that information using my Budget By Paycheck® Method.

If you would like to submit your budget information to possibly be picked for a Real Life Budget that we will show on YouTube, please reach out to budgets@thebudgetmom.com.

Today, we are looking at TBM Family member Christina's information. Christina and her husband are on a debt payoff journey and feel like they are not making the progress they should be. For the first time, I am showing how to use a debt reduction calculator to show how your decisions affect your debt journey.

Trust me, if you have debt, you don't want to miss this video!

CHAPTERS:
00:00 Introduction
03:07 Why & Personal Story
06:04 Income 
07:55 Fixed Expenses
09:15 Variable Expenses
10:30 Debt
12:52 Savings Goals
14:26 Budget By Paycheck Method
21:01 Debt Payoff Scenarios & Visuals
32:28 My Recommendations

➡️ DEBT REDUCTION CALCULATOR: https://bit.ly/3ZqqiNO
➡️ HOW I TRACK MY SPENDING: https://bit.ly/3aIe89I
➡️ HOW TO USE A BUDGET CALENDAR: https://bit.ly/2IzF2Vj
➡️ FINDING YOUR WHY: https://bit.ly/3aJUryj
➡️ THE BUDGET MOM'S FINANCIAL FREEDOM STEPS: https://bit.ly/3cfJXsp
➡️ HOW TO GET STARTED WITH THE CASH ENVELOPE METHOD: https://bit.ly/2vQJaO5
➡️ HOW TO CREATE A PLAN OF ATTACK TO PAY OFF DEBT: https://bit.ly/2wDETxF

ABOUT ME

Kumiko Love is a single mom who empowers women everywhere to regain control of their financial lives. An Accredited Financial Counselor with over nine years of experience in the finance industry, she founded The Budget Mom, a community of millions of women on a path to financial fulfillment.

She's also the creator of the wildly popular Live Rich Planner® and Budget by Paycheck® Workbook. Love has been featured on Good Morning America, the Today show, CNN, CBS, ABC and in USA Today, US News, World Report, Huffington Post, Money Magazine, Parents Magazine, the Washington Post, and Real Simple. She lives in Spokane Valley, Washington.

YOU CAN FIND ME AT:

📝 WEBSITE: https://www.thebudgetmom.com
📘 FACEBOOK: https://www.facebook.com/thebudgetmom/
📸 INSTAGRAM: https://www.instagram.com/thebudgetmom/
📌 PINTEREST: https://www.pinterest.com/thebudgetmom/

GET STARTED

➡️Start Here: https://www.thebudgetmom.com/start-here/
➡️Courses: https://courses.thebudgetmom.com/
➡️Free Resources: https://bit.ly/2PDmTHz
➡️GET 10% OFF my popular Budget-by-Paycheck Workbook - Coupon Code TBMYOUTUBE https://bit.ly/3FEdZFp

Soundstripe License Code: OWOVN0ZZJ6FAFVSL
Load More... Subscribe
Free Resource Library

Recent Posts

  • Financial Freshness: The Ultimate Spring Cleaning Money Challenge
  • What to Do When You Receive a Lump Sum of Money
  • Why You Should Consider a High Yield Savings Account for Your Emergency Fund
  • Common Investment Terms You Need to Know
  • Saving for the Unexpected: How to Protect Your Family with an Emergency Fund

Blog Categories

Amazon Associates Disclosure

The Budget Mom, LLC is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

  • Cart
  • Shop Policies

Start With My Friday Newsletter

Every Friday I send you a short helpful email with my popular Friday freebie. Join my 500k+ subscribers!

About

  • Home
  • ABOUT TBM
  • Contact
  • Start Here

Important

  • DISCLAIMER
  • PRIVACY POLICY
  • Subscribe

Favorites

  • YouTube
  • Blog
  • Live Rich Planner
  • Budget by Paycheck

Start With My Friday Newsletter

Copyright ©2023, The Budget Mom®
This website contains affiliate links, which means that if you click on a product link, I may receive a commission. This website is a participant in the amazon services llc associates program, an affiliate advertising program where I earn advertising fees by linking to amazon.com.
  • How financially fulfilled are you? Take this 2 minute quiz to get your score!
    Click Here to Start