Why it’s possible to stick to a budget and still live your best life.
Managing your finances can feel like an impossible task sometimes, right? We’ve all heard the phrase “budgeting is hard” or “it’s nearly impossible to stay on track with finances.” I’m here to tell you that isn’t true. Sure, some days are harder than others, but with a little discipline and some consistency, it’s absolutely doable.
Now, don’t get me wrong—I’m not perfect, and there are days when I fall off track. But, I’ve learned a lot about staying organized and budgeting effectively since I first started keeping track of my personal finances. Here’s how I keep my finances in check and how it ultimately led me to starting my own accounting firm.
My Financial Journey Before My Firm
Before I opened my firm, I was managing my own personal finances just like I would for any client. I created an Income Statement and Balance Sheet for myself—sounds a little nerdy, I know, but it paid off. I was amazed by the insights I uncovered, and more importantly, it helped me cut back on unnecessary spending.
Let me give you an example. I used to go out to eat a lot. Like $700 a month just on eating out or $900 on decorations and house items I just had to have. When I started tracking this spending, I realized how big of an impact it had on my budget. Not only did I reduce my restaurant visits, but I also took a closer look at things like my subscription services. I had several subscriptions that I wasn’t even using, so I canceled a couple of them. This simple move saved me a couple of hundred dollars, which gave me more freedom to put towards my savings and experiences I truly value.
Finding Freedom in the Budget
Once I got more comfortable with tracking my spending, I shifted my mindset around the money I allocated for fun and miscellaneous (decorations). Instead of seeing it as “extra cash,” I decided to treat myself to experiences I really wanted. I love adventures, so I started prioritizing things like shark diving, skydiving, concerts, and even putting money toward hobbies like gardening, kayaking, and biking.
I stopped thinking, “I’ll do this when I feel like it” and started thinking more strategically about my “fun money.” Now, I treat myself to something big once a month, as long as it’s within my budget. If there’s money left over, I might double down and splurge on another experience.
This shift in perspective made all the difference. Instead of just spending on things that weren’t meaningful, I began to focus on experiences that added value to my life. It’s not just about buying things—it’s about investing in moments that create lasting memories.
The Real Impact of Credit Cards
There was a time when, if I had a large payment I needed to make, I’d put it on a credit card. At the time, it seemed like an easy fix. But soon I realized that this is how expenses quickly pile up, and before you know it, you’re drowning in debt. So, I stopped using credit cards for things I couldn’t pay off right away. Instead, I made sure that every expense was reflected in my budget and my bank account. If I couldn’t afford it now, I’d stop telling myself, “I’ll get it later,” and instead, I’d treat it as a future goal.
A perfect example of this was when my husband’s car needed new tires, which cost $2,000. He was tempted to use a credit card, but I told him no. I explained that we were going to feel the pain of this expense right now, but we’d make some adjustments to our budget over the next couple of months to catch up. The same thing happened when my dog needed unexpected surgery that cost $1,200—on my birthday, no less (yay, happy birthday to me!). I was down to just a couple of hundred dollars in my account afterward, but by sticking to the budget, I was able to recover fairly quickly.
This approach applies to anything unexpected—whether it’s medical expenses, home repairs, or other unforeseen costs. We don’t try to escape the financial impact by using credit cards. Instead, we make changes to the budget, adjust our spending, and take the hit so we can get back on track toward our goals. Lately, with all the “storms” life has thrown our way, we’ve definitely put our pleasure spending behind us. We’ve focused on cutting out all non-essential items until we’re back on track. The key is staying disciplined, making adjustments as necessary, and always keeping our goals in mind.
The Importance of Living Within Your Means
Another big lesson I learned early on is that car payments suck. Sure, I could afford a nicer car. But instead of putting my money into a vehicle that loses value the moment I drive it off the lot, I’d rather invest in experiences, things that give me memories, not just more debt. Plus, I like having an emergency fund (which I call my “oh shit money”). It’s my financial cushion, just in case life throws me a curveball. On top of that, I appreciate the sense of security. I know no one can hold a dollar over my head. It’s what I like to call “f*ck you money.”
I drive a 2017 Chevy Spark. It’s not because I can’t afford a nicer car. I don’t want a huge car payment taking a chunk out of my finances.
This mindset shift helped me prioritize things that actually matter to me. At 26, I’m on the verge of being debt-free (minus the house), and let me tell you, it wasn’t easy, but it’s absolutely possible with discipline, goals in place, and a solid budget.
Giving Back: The Power of Small Gestures
One thing my husband and I make sure to do every month is put a certain amount of money aside for giving. Whether it’s donating to a church, helping someone in need, or simply giving to someone who we think could use a little extra support, this act of giving is incredibly meaningful to us.
For us, this is not just about being generous; it’s a huge motivator. We love making small gestures to put a smile on someone’s face, and it’s one of the most rewarding aspects of our financial journey. Knowing that we’re using some of what we’ve worked hard to save to lift up others is not just fulfilling—it’s a reminder that there’s more to life than accumulating wealth. It’s about making an impact, no matter how big or small.
The Game Changer: Rocket Money
One of the best financial decisions I made was signing up for Rocket Money. If you haven’t heard of it, it’s a budgeting tool that’s user-friendly, budget-friendly, and super effective. Rocket Money helps you track where you stand on your spending and how much you have left in each category.
I get weekly—sometimes daily—reminders of my spending limits, which has been a game-changer for keeping me on track. By simply being aware of my spending and making small adjustments where needed, I was able to save tens of thousands of dollars. That money became the foundation for quitting my day job and taking the leap to start my own accounting firm.
Quick Note: I am not marketing or promoting Rocket Money—this is just a tool that has worked for me, and I wanted to share it as a helpful resource.
Steps to Take: Building Financial Discipline
While every financial situation is different, there are some core steps I believe everyone should consider when it comes to getting your finances in order. Here are some “Do’s” and “Don’ts” that have worked for me and could work for you too:
Do This:
- Track Your Spending: Whether you use apps like Rocket Money, Mint, or good old spreadsheets, tracking your expenses is step one to understanding your cash flow. You’ll be amazed at how much small purchases add up over time.
- Set Clear Goals: Create financial goals for both the short and long term. What do you want to save for? Are you focusing on building an emergency fund, paying off debt, or saving for a large purchase like a vacation or a home? Setting clear goals will keep you motivated and give you something to work toward.
- Review Subscriptions and Expenses: Look at everything you’re subscribed to. Are you paying for services or memberships that you’re not using? Cancel them. You’ll be surprised how many people don’t realize how much they’re spending on unused subscriptions.
- Embrace Budgeting: Get familiar with budgeting tools and create a realistic budget. You don’t have to be extreme with it, but having an idea of where your money is going is key. I use Rocket Money to keep track of my spending and it’s been incredibly helpful.
- Invest in Experiences: Rather than spending money on things that won’t bring lasting value, put it towards experiences that will enrich your life. Whether it’s a hobby, a travel adventure, or a concert you’ve been dying to attend, those are the things that bring true joy.
Don’t Do This:
- Ignore Small Purchases: It’s easy to overlook that $5 coffee or a $10 lunch. These small expenses add up quickly. Keep track of your spending so you can identify areas to cut back.
- Live Without a Budget: You don’t need a strict, military-style budget. However, having no budget at all is a recipe for financial disaster. A simple budget can help you stay on track with both spending and savings goals.
- Let Credit Card Debt Pile Up: Using credit cards as a crutch can get you into trouble fast. Only charge what you can afford to pay off each month, and don’t carry balances that accumulate interest.
- Make Impulse Purchases: Before you make a purchase, ask yourself if it aligns with your goals. Consider if it’s something you truly need. Avoid impulse buys that might not fit into your long-term financial plan.
- Neglect Your Fun Money: It’s okay to spend on fun, but make sure it’s within your budget. The key is finding a balance—treat yourself to experiences without overspending.
Final Thoughts: The Power of Discipline and Consistency
At the end of the day, financial success comes down to discipline and consistency. It’s not about how much you earn, but how much you save, plan, and invest in your future. By staying organized, I’ve been able to build the foundation for a life that feels both fulfilling and financially secure. I track my spending. I also make intentional decisions about how I spend my money.
With a supportive partner, the right tools, and a little patience, you can do this too. If you’re looking to get your finances in order, start small. Take one step at a time. Before you know it, you’ll be in a much better place financially. This could mean paying off debt, building savings, or even starting your own business like I did.
How do you stay on top of your finances? What tools or tips have helped you build a budget that works for you? Drop your thoughts in the comments below—I’d love to hear from you!
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