The last six months of 2020 have provided many financial challenges for most of the world. I had planned on taking several trips this past summer, but they had to be cancelled. This gave me plenty of time to search for a job in my area. As a student entering the summer months, I was especially hopeful of finding temporary employment. However, none of my job applications were met with an offer. Although I was able to secure an internship, the money went directly to school expenses. As I have begun working on campus again, I find myself balancing between enjoying the fruits of my salary and recovering from the lost income of the summer. Now more than ever, I see the need to live within my means. So, what does that look like?

Spend Less than I Make

This sounds pretty straightforward, and yet it is easy to simply ignore the increasing amount of purchases with a credit card, debit card, or even cash. An example of a mistake people often make, which might just break the grocery budget, is to arrive at the cash register and think, “I have money in my account, so I can buy this extra treat.” While it is not bad to treat yourself from time-to-time, when you continuously go over your budget, the money has to come from somewhere. Does that mean you’re pulling from your savings or even creating a payment on your credit card for which you will be charged interest? To avoid these little expenses adding up, start by making a grocery list before any shopping trip and stick to it. This will reduce last second purchases and aid in the effective tracking of your money.

Stay Accountable

A budget can be intimidating to set up, but the guidance that a budget establishes actually provides financial freedom. The freedom comes when one no longer feels guilty for purchases because one can see that they have money set aside for that expense. A budget shows where one typically spends money and is equal to the income they receive. When the predicted expenses equal the income, I know what amounts of money I can use for groceries, clothes, gas, dining out, and other monthly expenses.

Set Aside Money for Emergencies

This step is how I survived the summer of 2020 without having regular income. My emergency fund is divided into three main categories: medical emergencies, car emergencies, and unemployment emergencies. I was able to draw from the money I set aside from my previous semester and summer of work to provide for my essential expenses of summer 2020. As a part of my budget in step two, I also include an amount of money every month to save specifically for emergencies.

Follow Through

Physically tracking my budget and income helps me to live within my means. Temptations still occur as I strive to have fun within my budget. However, since I can see where my money is going, I always know how much I can use to treat myself. There is no longer any guilt from just spending money without consulting my bank account.

Living within our means can be as simple as spending less than we make, staying accountable to our goals, setting aside money for emergencies, and following through to achieve our goals. If you would like help with this process, meet with a NEXUS coach to talk through this process in more depth. You can schedule a coaching session with myself or others at https://ronblueinstitute.com/schedule-an-appointment/.