Wine and Dime is back with a new episode...
Budgeting. The mere mention of the word can send shivers down the spine of even the most financially savvy individuals. It's a topic that often elicits feelings of overwhelm and anxiety. But fear not, for today we have the wonderful Becky Eason, a financial planner with Rooted Planning Group, here to share her expertise and shed some light on the art of budgeting.
About The Guest(s):
Becky Eason is a financial planner at Rooted Planning Group. She has been with the company since 2018 and is known for her expertise in budgeting and finding deals. Becky is passionate about helping clients achieve their financial goals and make the most of their money.
Key Takeaways:
Evaluate past spending to understand where your money is going and assign values to each expense.
Set goals and automate savings to achieve them.
Use apps and tools like Mint.com to track spending and find discounts.
Be flexible with travel plans to take advantage of lower prices.
Seek out local resources and workshops for financial guidance and counseling.
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The Power of Intentionality
When it comes to budgeting, it's important to start with a clear goal in mind. Are you budgeting to address a cash flow deficit or simply to gain a better understanding of where your money is going? This distinction will shape your approach to budgeting.
Becky suggests starting by examining your historical spending patterns. Take a look at your bank and credit card statements from the past few months and categorize each transaction. This exercise will give you a clear picture of where your money has been going. From there, you can assign value to each category and determine if any adjustments need to be made.
"By going historical, you're not really being conscious of what you should be spending your money on. It's okay, this is what I actually am doing. And then once you build that out, then you can analyze what you've been spending and put the value to it," Becky explains.
The Importance of Setting Goals
Once you have a clear understanding of your spending habits, it's time to set goals. Becky emphasizes the importance of being intentional with your spending and aligning it with your values. If travel brings you joy, for example, you can shift your spending in other areas to create a travel budget.
By incorporating your goals into your spending plan, you can visualize how much you can allocate toward each goal. Becky recommends automating your savings for these goals, ensuring that the money is set aside and easily accessible when needed.
Strategies for Reducing Spending and Increasing Income
For those facing a cash flow deficit, reducing spending and increasing income are key strategies. Becky suggests finding a balance between saving for retirement and paying off high-interest debt. It may be necessary to scale back on retirement contributions to prioritize debt repayment.
She also advises exploring resources within your community, such as government organizations, local churches, and nonprofits, that offer workshops or counseling on financial management. These resources can provide guidance and support as you navigate your financial journey.
The Art of Finding Deals
Becky is known for her knack for finding deals and discounts. She shares some of her tips and tricks for saving money, particularly when it comes to travel. Setting price alerts on flight bookings, monitoring prices for potential adjustments, and being flexible with travel dates can all lead to significant savings.
Additionally, Becky suggests utilizing apps and working with travel agents who can help find the best deals and save you time. Travel agents often have access to exclusive discounts and can assist with price adjustments if the cost of your trip decreases after booking.
Overcoming Fear and Taking Action
Budgeting can be a daunting task, but Becky encourages individuals not to be afraid of it. She emphasizes the importance of facing your financial situation head-on and taking the necessary steps to gain control over your money.
"Don't be afraid of it. There's a lot of fear around looking at your spending, and it can be fearful and time-consuming, but the sooner you do it, the sooner you'll be able to see the results," Becky advises.
Conclusion and Future Outlook
Budgeting is a powerful tool that allows individuals to take control of their finances and work towards their goals. By being intentional with spending, setting clear goals, and exploring strategies for reducing spending and increasing income, anyone can create a solid financial plan.
As technology continues to advance, there are more resources than ever to assist individuals in their budgeting journey. From apps that track spending to online workshops and counseling services, the options are endless. The key is to find the tools and strategies that work best for you and your unique financial situation.
In conclusion, budgeting is not something to be feared or avoided. It is a valuable skill that can transform your financial future. By taking the time to evaluate your spending, set goals, and explore strategies for reducing spending and increasing income, you can create a spending plan that aligns with your values and helps you achieve your dreams. So, don't wait any longer. Start your budgeting journey today and take control of your financial destiny.
This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.
Visit www.rootedpg.com to learn more.