Money Musings 💭 Watch out for these budgeting mistakes 👀
It's that time again... 🥳 We're doing another anonymous money survey!
The information you share will remain completely anonymous and I'll be sharing the range / average results for you to see. As a thank you, I'll be raffling off $50 cash, and a copy of each of my books to three winners!
Back to your regularly scheduled programming...
With prices rising on everything from gas to groceries, it’s a great time to check in on your budget. I know, I know. Sounds like a blast. 🙄
BUT it’s truly worth the work. Budgeting (or creating a happiness allocation, as I like to call them), gives us clarity, peace of mind, and allows us to plan for the things we want / even splurge without feeling guilty. 🤗 Now, that sounds good!
If you are putting together a budget, or going to give yours a revamp, here are some common pitfalls to avoid.
PS: These come from my own experience. I’ve made each and every one of these mistakes.
Keep it simple. Categories can be useful but when we have too many, updating and checking in on our spending is more confusing and daunting than it needs to be.
Be realistic (yet optimistic). It can be tempting to go cold turkey on Lyfts after seeing how much you spend, but that sets us up for failure. We can make progress but we need to be realistic and it’s easier to keep up with changes we ease into.
Include the "small" things. Leaving out little things or even rounding down can feel like no big deal. BUT if we are doing this with many of our expenses, across multiple categories, it can really add up and throw our budget out of whack.
Plan for 52 weeks. There are 52 weeks in a year yet when we budget we often plan for 4 weeks in a month. 4x12 only adds up to 48 so we’re not accounting for 4 whole weeks of spending. 🤯 That math won’t work.
Check in on your numbers. We can make the most beautiful plan or budget but if we never look at it again, it’s not going to be very impactful. Look at your spending monthly (or more often) at your money parties. That’s also a great time to adjust your numbers going forward (a.k.a. your projections).
What budgeting questions do you have? Where do you run into challenges? I’m here to help!
MONEY MOVE OF THE WEEK
SUPPORT LGBTQ+ OWNED BUSINESSES.
Happy Pride Month, all! 🏳️🌈🏳️⚧️ Anytime we purchase something - an item or a service - we have the chance to vote with our values. You can switch a recurring expense or take the time to do some research before making a one-off purchase.
We asked you, our amazing Fiscal Femme community, to share your favorite LGBTQ+-owned businesses and here’s what you came up with.
I’m always working to be more mindful about where and how I make purchases, but this month, I’m giving extra consideration to finding and supporting businesses owned by the LGBTQ+ community. If you have more you’d like to share, please reach out!
YOU GOTTA SEE THIS
DEFINE UMBRELLA INSURANCE.
The gist: The coverage amount of an umbrella policy goes above and beyond the amounts you are covered for on your car insurance and your homeowners insurance. The idea being, if those get maxed out by a large lawsuit, you are still protected.
Who needs it: Brian Walsh, a CFP with SoFi, recommends looking into an umbrella policy when you hit $500,000 to $1 million of net worth.
Why they need it: Once you hit a certain amount of wealth, umbrella policies are important in the U.S. because we have a very litigious culture. As Tiffany Aliche says, "Folks love suing" so as you have more wealth (that goes beyond your home and car coverage limits), adding on an umbrella policy can be a great idea. The good news is, it’s really inexpensive and can protect you.
If you are looking to get smart about insurance, in chapter 10 of Financial Adulting, me and some very smart experts share everything you need to know.