Pay myself first

I follow a very detailed monthly budget, but I have a section of it that’s non-negotiable. Each month, my retirement contributions (Roth and 403b) come directly out of my paychecks and the only time these auto-withdrawals are altered is if I increase my contribution amount. I will exhaust my miscellaneous spending and long-term savings long before I even consider touching the monthly retirement amounts.

Track my spending down to the penny

In the Excel workbook that holds my monthly budget sheets, I also have a sheet devoted to miscellaneous spending for every 2-month period. This is where I note every single purchase I make, organized by category. These sheets are linked to the monthly budget sheets, so as I update the individual category amounts on the miscellaneous spending sheet, the total amount of miscellaneous spending is automatically updated on the month’s budget sheet as well. Tracking my spending has allowed me to gain better control over my day-to-day financials as well as to work in the idea of mindful spending.

Spend money where it matters most to me

As I’ve mentioned before, I love to travel. It is far more important to me to spend my money on experiences than it is materialistic items, although I always do bring back something unique from each trip. Travel is such a huge part of my life that I will happily take on additional jobs/work to make it a reality while still keeping up with my other financial goals. To me, a vacation with family and/or friends (or even alone!) matters far more than the latest handbag or a new gadget. The memories of my trips will bolster happy feelings for a lifetime–long after those material things wear out and/or get thrown out.

Spend less than I earn

If I want to take another trip or invest in another home improvement, I do so only when it fits into my monthly budget or overall financial plan. Under no circumstances will I allow myself to go back to the days when I spent freely and stuck my head in the sand when it came time to pay the bills!

I treat myself when appropriate

I strive to live my life in balance as much as possible, so I’m very keen on making room in my budget for indulgences. However, it’s important to note that I typically work my tail off to plan for these types of things, and I make sure to be consistent with the ebb & flow of spending and saving.

 

What are your money rules??