Money worries fill many heads, and there's no shame in it. Although money can quickly become a source of stress, having a plan will help to ease the pressure.
Worrying about what others think never gets you anywhere. Doing what’s best for you and your family, giving when you can, and budgeting when you can is all you can do. Having fancy things is nice, but only if you can afford the expense. As an adult, no one cares if you're wearing this year's Gucci release. Paying your rent or mortgage for the month does matter, though. In this article, we'll talk about budget planning, saving, and side gig ideas to increase your personal cash so that you can meet your spending goals!
Why Use a Budget Planning App?
Making a budget plan doesn't have to be a chore. Using a money management app will help you visualize and organize your money to see how much you're spending and where you can begin to cut down and save. An app like me, Diane Money, will help you break down your necessary and extra expenses. You'll be able to see if you're overspending on stuff you don't need, then you can put that into savings. Ideally, you should be following the 50/30/20 rule. 50% of your salary goes towards living and necessary expenses. Another 30% goes towards any extras you might have, and at least 20% makes it into savings. Saving over 20% is recommended because the more you save, the more you'll have for a rainy day.
Prioritization means putting your expenses first, inputting extras, and savings later. Consider finding new employment or incorporating a side gig into your life if your expenses consume more than 50% of your salary.
Money Saving Goals
We already talked about savings, but I want to go more in-depth. By age 30, you'll, in a perfect world, have saved one year of your salary for retirement. That can seem like a huge ask, especially if you're not making much money and have loans to pay off. If you have yet to save that, you're not alone. Over 40% of Americans have less than $10k put away. Rather than worrying, start a payment plan for your loans, consider refinancing, or see if you qualify for any programs. Adding an extra $100 to your monthly payment can help you significantly reduce your payment time. In 6 years, you'd pay down a total of $6,000 alone. After paying off your loans, add that extra $100 into your savings and watch it grow.
Everyone has goals they want to reach, and money is no different. We discussed retirement savings, and for many, that's their primary goal, which is fine. Most people have large purchases they'd like to make or vacations they want to take. Saving for those is also essential. Whether you're saving for a new car, home, or a holiday, figure out how much you want to spend so you can decide how much you need to save and consider whether there's anything you can sacrifice to save for what you want faster.
Side Gigs to Make Money
Many people operate side gigs to add some money to their lives. Millionaires and billionaires average seven side gigs, adding any extra money they don't need for living expenses into savings. Seven side gigs are a lot, though, mainly because even passive earnings (a job that doesn't require much watching or activity on the owner's part rather than active) usually take work to start up. That's why you should always begin one side gig and develop an audience on one platform at a time. When you have whatever you're working on fully developed and thriving, then move on to something else. Trying to do too many things at once will only mean you do several things poorly.
To review, budget, save, prioritize your spending, set your goals, and stop worrying about what others think of you. Do the best you can for yourself and those around you. Live in the best possible way and try to enjoy yourself while you're at it. If you're struggling with meeting your goals, saving, and prioritizing spending, check out the Diane Money app; it should help you get started.