Budgeting Made Fun: Rakstar Guide to Financial Bliss
Your One and only Guide to Financial Bliss, Baby
Hey Rakstars!
Are you ready to embark on the thrilling adventure of budgeting? Sorry what…didn’t hear us… did we say budgeting. You sure are right, we did. Budgeting! The word that seems the most boring but yet the most important when it comes down to personal finance. Buckle up, because we’re about to turn that financial frown upside down.
It takes two to Tango: You and your Income
Sweet, payday – that sweet, tasty moment when your bank account experiences a momentary increase of all your sweat, blood and tears.. It’s like being rich, right? But before you start planning your next splurge on a unicorn onesie (aren’t they comfy!), let’s talk about income.
Your income is the star of your budgeting show. It’s the Beyoncé of your financial life. Calculate your salary, side hustle earnings and even that mysterious cheque you got from who was it again… was that your Aunt or a distant cousin…no wait I think she wasn’t even related to you. Total it up and voila – you are now a budgeting Rakstar, ready to jump on the stage.
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- Photo by Osman Arabacı
Extravaganza Expenses
Imagine your expenses as a colorful parade of performers in a circus. They move up and down, side to side and well, they laugh and sometimes you cry. You may have heard about them as well: the rent acrobat, the utility tightrope walker and the dining-out magician (I love my food delivery apps, okay).
There are two types of expenses. One is fixed expenses and the other is variable expenses. Fixed expenses are expenses that stay the same for example these are those monthly necessities like rent, utilities and Netflix (yes, right?). You pay the same amount each month. Variable expenses are expenses that vary (see what I did there), the cost amount is never the exact same – groceries, dining out and your self-control in the shoe aisle. Track all of it down and don’t forget those debt payments. They’re like the clowns that keep popping up when you least expect them (student loans, anybody?)
Dream Big – they say!
Budgeting is not about paying your bills and hoarding coupons (Extreme couponer alert). It’s your ticket to financial freedom and dare we say, fun!
Meet your financial BFFs: Emergency Fund, Retirement Savings, and Goals (the squad, if you will).
Picture your Emergency Fund as your trusty bestie, ready to save the day when life throws darts your way. Retirement Savings? Well, that’s like planning your own epic retirement party (we must have a chocolate fountain). And those short and long-term goals? Think of them as the dreams you’re determined to turn into reality (yep, even that unicorn onesie).
The Showdown
Now that you’ve got the cast assembled, it’s time for the grand finale – the budget showdown. Add up your Total Income, Total Expenses (both fixed and variable) and your Savings and Goals. Subtract your Expenses from your Income and what do you have? Drum roll please… the Remaining Balance – your budget’s “ta-da!” moment. Another drum roll, please.
If it’s a positive number, you can do the Income Tango, baby! But if it’s negative, don’t worry, it’s not doomsday yet. We just need to think strategically so that we can get creative and figure out where we can cut back (goodbye daily Starbucks) or boost our income (hello side gig as a unicorn onesie model).
The Budgeting Dance
Here’s the boogie: Budgeting is not about living like a frugal financial hermit or denying yourself all the wonders and joys in life. It’s about making your money work and potentially dance for you, so you can savor those luxury spends.
Budgeting is a dynamic dance, it can be a Beyonce dance, a Tango, sometimes even a waltz.. Life events change, thus budgeting helps but only with practice. Just like your best dance moves. So, grab your financial partner (whether that’s a spreadsheet or an app or hey, your calculator), put on your budgeting Beyonce shoes and turn on your Rakstar moves.
And always remember, unicorns are optional, but financial bliss is a must. Happy budgeting, financial Rakstars! 🚀💰✨
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- Photo by Osman Arabacı
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- Photo by Mikhail Nilov
