How to Find Room in Your Budget No Matter Your Salary

Sticking to a budget is difficult, and it can be extremely discouraging if you continue to bypass the plan you set for yourself month after month. To help you stay on track no matter what your salary is, we’ve outlined a few steps to make sure that your bills are covered with enough room to build up your savings (and have some fun)!

Start with the Essentials

Any budget needs to start with the essentials to make sure your food, shelter and comfort are immediately taken care of. Review your monthly expenses and note when your rent is due (including utilities and any other related fees), how much you’re spending on groceries and take out, and any other related spending you need each month, such as medications, subway memberships or parking passes. Once you identify all of these non-negotiable costs, immediately delete these from your budget so you know they are covered. You can even set up automatic payments for certain expenses so you won’t even miss the money before it’s gone!

Take Advantage of Work Benefits

Many companies offer packages that will match your 401k or 403b contributions to a certain point, and it’s important to put at least the minimum amount to meet these rates. Even if you are not moving money into your retirement accounts for one year, you will be missing out on thousands of dollars in retirement. Again - simply set up an automatic transfer so that you are immediately investing in your future self. Some companies offer additional benefits, such as commuter discounts or gym memberships, so make sure to set up a brief time to talk to your HR representative; a 30-minute meeting may save you more money than you expect.

Think of Your Goals

Once your non-negotiable bills are taken care of and you are vested to the minimum amount in your retirement accounts, an important next step is to think of your short- and long-term goals. Would you eventually like to buy a home? Have children? Travel extensively? Although you don’t need to have all of the answers, it’s a good idea to think ahead regarding your future expenses and what you would like in life. After you have a roadmap (no matter how vague it may be), you’ll be able to prioritize the rest of your budget every month. If you’d like to retire early, maybe you’ll want to put more money into your retirement accounts; if you’d like to have a large family, maybe you’ll choose to add more to your savings account. 

Emergency Funds are Critical

No matter your salary or future goals, you will want to immediately start building up an emergency fund. Even if you outline your budget carefully at the start of each month, life will always get in the way. You may have car repairs pop up, your pet may get sick or you might need to travel last minute. Having an emergency fund will allow you to pay for these pop up emergencies without going into debt or digging too deep into your savings. If you do not have an emergency fund yet - don’t panic! You can start at any time and add to it with any amount of money. Anything will help future emergencies that life might throw your way. 

Leave Room for Fun

Although sticking to your budget is important to make sure your needs are taken care of and you can work towards your future goals, it’s important to treat yourself. Budgets that are overly strict will never work, so build in some “fun” that you value. This could be as simple as a Starbucks trip twice a week, a spa day once a month or extra money for craft supplies, but make sure that this is something that you are doing for yourself. Self-care in whatever format is critical for our mental health, and it is important to fit this into your budget.

Money can be a tricky topic. Salary conversations have historically been taboo, and financial information has previously been male-centric. Despite what money you make each month or your previous monetary health, we hope that these minor tips will help you to work on your budget and find plenty of room for the things you really want in life.

Taylor Borowiec is a marketing coordinator living and working (and writing!) in Boston. You can follow her for book recommendations and hiking pictures @teaylur.

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