Financial Freedom Part 2: Budgeting

Budgeting doesn’t have to feel like punishment – it can actually be a great way to regain control over your finances and set yourself up for success. We all know that managing money can sometimes be tricky, but with the right approach and a few smart hacks, you'll find yourself more financially stable and less stressed. Here’s how I manage my budget, and hopefully, it’ll inspire you to do the same.

Step 1: Get Real With Your Spending

The first step in my budgeting process is probably the toughest but most important – facing the facts! I always start by pulling up the last three months of my bank statements. Sounds scary, right? It’s not. This is where you’ll find the truth of where your money has been going and who is the biggest beneficiary of your paycheck! If you’re comfortable using Excel or Google Docs, throw those numbers into a spreadsheet.

Categorize your expenses and income. Seeing everything laid out makes it easier to identify trends and spot unnecessary spending. You'll likely find patterns – whether it's daily coffee runs or a subscription to something you forgot existed.

Step 2: An Honest Lifestyle Review

Once I’ve categorized everything, it’s time to face the lifestyle choices that are affecting my budget. Here are some common culprits:

• Subscriptions I barely use (how many K-Drama streaming services does one person need?!)
• Gym memberships I’m not committed to (let’s be real, those workout plans often end up as wishful thinking)
• Clothing and hire-purchase accounts that just pile on unnecessary debt.

This is where you start trimming the fat. I review each expense and ask myself, “Is this really adding value to my life, or is it just a comfort habit I can live without?”

Cancel or pause services that you’re not using regularly. It might feel like you’re losing out on something, but the money you’ll save will feel much better!

Step 3: Close Off Debt Bit by Bit

Here’s where things get real – the goal is to get rid of debt, especially high-interest ones like hire purchase and clothing accounts. Use the money you’re saving from Step 2 and channel it into closing off these accounts. The quicker you can reduce your debt, the quicker you can start saving and working toward other financial goals.

Focus on one debt at a time. Once it’s gone, move on to the next. Each account you close off will feel like a huge win. Cut up the cards and delete all email correspondence to help you avoid reactivating the accounts.

Step 4: Stick to Your Existing Budget

Once you’ve cut back on unnecessary expenses, avoid the temptation to increase spending elsewhere. It’s easy to feel like you have “extra” money when you've made savings, but instead of splurging, use that money to knock out debt or put it into savings. I make it a rule to not increase my current expenses when I have extra money – that extra cash should always be working for me, not against me.

In a world dominated by social media, it’s easy to get caught up in the highlight reels of other people's lives—those curated snapshots that seem perfect but rarely show the whole picture. Don’t fall for the hype. Remember, what you see online is not always reality. Focus on your own journey, stay in your lane, and keep a positive mindset. When you cultivate an abundance mindset, you recognize that life, opportunities, and even money, are flows meant to grow and evolve. Don’t fear money, but treat it with respect—manage it wisely, and it will continue to flow in the right direction.

Till next Time :)

xoxo

NNI