Smart Money Habits Series Pt 2: Reconciling Your Budget The Easy Way

Budget Divas

Ep #60: In the last episode, we talked about setting up the foundations for reconciling your budget and I would highly encourage you to listen to that episode then jump into this one.

Reconciling my budget hasn’t always been my strongpoint because it takes time to plan and to actually sit down, look at my receipts, and cross-check every dollar that was spent with my budget. Even though I’ve been doing this for years, it’s still one more thing that I need to do on that never-ending to-do list.
Last year was a really busy year for us. Alden and I were juggling our businesses, our 9-5 jobs, and picking up extra side hustle work where we could because we were saving for a bigger place. In the busyness of it all, some things that to give in order to make space for another. I heard this analogy from one of my coaches – it’s like you have 16 pots and only 4 burners on the stove. You are trying to fit all 16 pots on the stove but there is no place for it, except for 4 of them. So you have to decide which 4 are going on the stove first, then second, and so on. And this is exactly what we were doing with our time last year. We were so busy with work that something had to give. And the #1 way that I ruin my budget is eating out. Can you relate to that? Even though we can’t see each other, nod your head and smile if you can relate to this.
I honestly love to eat out. Whether it’s sushi, thai food, or a good steak…. Dining out at restaurants is my favorite way to reward myself but it’s also my biggest budget buster AND last year because we were so busy, we were eating out all the time. Now, I am not opposed to eating out if it’s in my budget and planned but last year (especially in the summer and during the holidays when my son was home from college) we ate out a lot. On top of that, we also bought a ton of groceries thinking that I would cook at home. It was definitely a double-whammy. So the extra side hustle money that we were earning to go towards our savings ended up going to our grocery and dining out categories.
This is the reason why I’m so passionate about reconciling the budget. When you reconcile on a weekly basis, you know how much money have left to spend for the following week. If you’re not one who loves to meal plan or eat the same thing everyday, adjust your budget accordingly to allow more money towards your dining out category, so as long as it is within the means of your budget.
This is really where the magic happens when you reconcile your budget. You can evaluate your spending habits and see where exactly your money is being spent.
Now that you understand why it’s so important to reconcile your budget, here are the action steps to take to do exactly that so you’ll always be living within your means, have savings tucked away for a rainy day, and be able to pay off debt faster than you can imagine.

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