Step 2: Bad-Ass Budgeting Tips
- Ellie
- Apr 11
- 10 min read
Journey to Financial Freedom
We’ve all been there—staring at our bank account and wondering, “Where did my money go?” It feels like no matter how hard we try to keep track, the funds slip away before we even realize it. But here’s the thing: we should be in control of our money, not the other way around. Mastering the art of budgeting isn’t about restricting yourself; it’s about taking charge of your finances, making smarter decisions, and ensuring that every dollar works for you. In this blog, we’re diving into some bad-ass budgeting tips that’ll empower you to stop wondering where your money went and start commanding it with confidence!
Tip #1: Understand the Ins and Outs of Your Money
Income - Money coming in.
How often do you get paid? Even if you get paid weekly, doing a monthly budget helps you plan ahead. Also, most bills are due monthly, so we have to go with the flow.
Is your paycheck the same every time or does it vary? If it’s the same, you have it easy. If it varies, don’t worry! Calculate an average.
Go back 3 to 6 months
Add up all your paychecks and divide by the # of months (i.e. I am paid weekly and received 24 checks over 6 months. If my total for 6 months is $6,000 then 6,000/24 = $250)
$250 would be my average weekly check
Getting an average for those of us with a varied paycheck helps us build our budget later.
Include any other income you get: gift cards from family, TikTok income, cash from odd jobs, tax refund, EVERYTHING that you receive is income.
Expenses - Money going out
What bills do you have to pay every month? Are they the same (like rent) or are they varied (like electricity)?
Plan ahead for anticipated expenses. For example, you need an oil change soon, you need a haircut, your child has yet another birthday party to attend next month and you need to buy a gift.
What about emergencies? This is why we put money into an ‘emergency fund’ - we'll get into this shortly.
Include EVERYTHING going out. This includes the $0.99 you pay every month for iCloud storage. EVERYTHING, no matter the amount. Every dollar counts.
This is how you start taking back control of your money. You understand every dollar coming in and you know where you spend every single dollar going out.
Tip #2: Choosing a Budgeting System
This is an important step because each one of us is unique in our personalities, our strengths and weaknesses when it comes to our behaviors with money, and we are unique in the workflow of our lives. What works for me, may not work for you.
That said, all I can do is share my wisdom, tell you what did and didn’t work for me. It will be up to you to do your own research, try things, make adjustments, and find a budget app/style that works for YOU. Check out the table below for recommendations by Forbes and NerdWallet.
Top 3 Recommended Budgeting Apps
(f) = free option
“Best Personal Finance Apps” | “Best Budget Apps for 2025” |
Monarch | YNAB |
Quicken Simplifi | Goodbudget (f) |
Origin | EveryDollar (f) |
*For an in depth review of each app recommended, click on the source link at the top of each column and read their articles.
Which one do I use? Let me tell you a short story…
Several years ago, my uncle sent me and my 3 siblings each a copy of Dave Ramsey’s book, “Total Money Makeover” (paid link). We all laughed it off and rolled our eyes, but after a few weeks, I picked it up and started reading. I had a little in savings, no debt, and considered myself in control of my money. The book wasn’t dry and boring, as I expected a finance book to be. It was funny, entertaining and down-to-earth. What made me change my mind and read it was my experience getting sick and realizing that short & long-term disability weren’t enough to cover expenses and health insurance when I was out of work for a year. I made it through, thanks to friends and family, but it was an eye-opening experience and I realized I wasn’t as prepared as I thought. We all think, ‘something like that will never happen to me’.
I read the book, downloaded the EveryDollar budget app and got to work. Over 18 months I saved 6 months of expenses (my full emergency fund) and developed a routine when it came to budgeting. Nothing will motivate you like being broke and having a child to provide for! Because of this method, and a whole lot of willpower, I have been able to build wealth, save for trips and help my family when they needed it. I feel more in control of my money and the least financially stressed than I have ever been in my life.
The recommendations outlined in this blog are built on the foundation of Dave Ramsey’s methodology and combined with other methods and modifications that have worked for me over the years. Again, I stress that you need to find what method works best for you.
Tip #3: Play Chess, Not Checkers
When it comes to budgeting, many people play a game of checkers — moving from one expense to the next without much thought, reacting to the next bill or financial hiccup as it comes. But let’s be real: successful budgeting is more like playing chess. It’s not about making hasty moves, but about planning several steps ahead, thinking through every move, and adapting as new challenges arise.
Chess is a game of strategy. Every move counts, and you need to anticipate your opponent’s next step — or better yet, make moves that will set you up for success in the future. The same applies to your budget. You can’t afford to only react to the bills that come your way. Budgeting is about knowing where your money needs to go, planning for both the expected and the unexpected, and staying prepared for whatever life throws at you.
It’s tempting to skip over details, and just focus on getting by from one paycheck to the next. But just like chess, budgeting requires you to think long-term. Whether you're saving for an emergency fund, paying off debt, or planning for big purchases, your budget should reflect these goals. Take time to think about the moves you're making today and how they will impact your financial future.
Tip #4: Plan for the Unexpected
Even the best chess players know that their plans can get derailed. The same goes for budgeting. Life throws us curveballs — medical bills, car repairs, or surprise expenses we didn't see coming. We can’t always predict these moments, but we can plan for some of them. A solid budget should always include room for unexpected costs. Think of it as creating your own financial "buffer" — a space to make adjustments when the game changes.
Using the EveryDollar budget, we will save for an ‘Emergency Fund’ for those unforeseen emergencies. This cushion helps us stay on track when those surprises come. The key to this strategy is ensuring you don't feel caught off guard and derailed when life happens. If an emergency comes up and we have our emergency fund, we don’t have to stress because we know we got it!
Tip #5: Short-Term Sacrifices, Long-Term Gains
In chess, it’s often necessary to sacrifice a piece temporarily to gain a better position later on. The same applies to your finances. Meeting short-term goals like paying off debt or saving up for an emergency fund requires a bit of sacrifice. Maybe that means cutting back on non-essential purchases or temporarily reducing your entertainment budget. But these sacrifices are stepping stones toward long-term financial freedom.
Just like chess, prioritizing where your money goes is key. Make sure that your most important financial goals — whether it’s building savings, paying off high-interest debt, or investing for the future — get the attention they deserve. This is where you have to be strategic with your moves. While it’s nice to splurge occasionally, keep your long-term vision in mind. Every dollar you spend today should be contributing to your greater financial success.
Tip #6: Prioritize Your Money Moves
Just as in chess, you need to prioritize your moves. What’s more important: buying a new gadget you don’t really need, or making sure you have an emergency fund that can carry you through a tough time? What’s the better move: splurging on a vacation or tackling credit card debt that’s been holding you back? Prioritizing where your money goes means making those strategic decisions and sacrifices.
Budgeting isn’t about living with a never-ending sense of restriction. It's about being intentional with your money and thinking ahead. When you take a strategic approach, you’ll find that your financial future becomes more secure, your goals become more achievable, and your sense of control over your finances grows stronger.
Tip #7: Set Small Goals
Let me introduce Dave Ramsey’s Baby Steps. We will only look at steps 1-3 for now. Following these steps, one at a time, will help us take control of our money and feel secure while we work on paying off debt or work on our savings.
Step 1: Save $1,000 for your starter emergency fund
Having a starter emergency fund gives us security so we can handle emergencies when they come up. Without this, emergencies can set us back and prevent us from being able to get ahead.
Step 2: Pay off all debt (except the house) using Dave Ramsey's "debt snowball”,from smallest to largest, regardless of interest rates. Here’s how it works:
List all your debts: Write down each debt, from smallest to largest balance.
Make minimum payments: Continue making the minimum payments on all debts except the smallest one.
Focus on the smallest debt: Put any extra money you can toward paying off the smallest debt. Once it’s paid off, move to the next smallest.
Repeat: As you pay off each debt, the money you were paying toward the smallest debt now gets added to the next debt in line, creating a "snowball" effect where you can pay off each subsequent debt faster.
The method works psychologically by providing quick wins, motivating you to keep going until all debts are paid off.
Step 3: Save 3–6 months of expenses in a fully funded emergency fund.
Most sources recommend a minimum of 3 months
6 months is a good idea if you have a high-risk situation where there's a higher likelihood that you could be out of work for a prolonged period
We’ll get to these steps later…
Step 4: Invest 15% of your household income in retirement.
Step 5: Save for your children’s college fund.
Step 6: Pay off your home early.
Step 7: Build wealth and give.
We’ve discussed 7 bad-ass budgeting tips! Let’s take a moment to look at an example of how we could put these tips into action!
CASE STUDY
Jayson is 28 years old, just graduated from college and has an entry-level full-time job. Consider his financial situation below and take a look at what his next steps might be.
He has $300 in savings.
Net income (income after taxes/deductions) = $3,000/month.
Monthly living expenses = $2,000
Debts are as follows:
Student loans: $20,000; minimum payment $400/month
Credit card 1: $2,500; minimum payment $100/month
Credit card 2: $800; minimum payment $25/month
Net Income | $3,000 |
Living Expenses | -$2,000 |
Debt (minimum payments) | -$525 |
Left Over | $475 |
Jayson has put together a budget and planned out his income and expenses for the next month. He has included some expected expenses that don’t happen every month, including an oil change for his car and the copay for his upcoming doctor’s appointment. If he wants to follow the baby steps, what will be his first step?
He needs to save $700 more dollars to complete ‘Step 1: Save $1,000 for your starter emergency fund’. While he saves for his starter emergency fund, he will continue paying minimum payments on his debt until he is able to save a total of $1,000. He has $475 left over each month to put toward savings. If this doesn’t change, it will take him about 2 months to reach his first goal.
Tip #8: How to Ensure Success
All of this sounds great in our heads, but we all know, sticking to it and making it work in our everyday lives is a different thing. As we work through our goals, taking baby steps to attain one small goal at a time, here are some things we can do to help ensure we are successful.
Be patient. Saving money and paying off debt takes time.
Commit. We have to want this. We have to want to reach our goal more than we want that new item of clothing or going out to eat every week.
“Perseverance is not a long race; it is many short races, one after the other.” - Walter Elliot
Find Your Willpower. For many of us, this will be the hardest part. Dig deep, find the willpower you know you have. We must restrain our impulse to buy things we don’t need or unnecessarily go outside of the budget plan. Remember, these are temporary sacrifices.
Prioritize. What goal is most important? What should we do with the extra money, when we have it?
Self-Motivate. What motivates us to stick to our plan? Put up sticky notes around the house, set reminders on the phone, or we could plan for a way to treat ourselves (within our means) when we reach a goal. Find what helps you and do it.
Phone a Friend. This is a great time for us to use our support system. We can let friends or family know we’re doing this and ask someone to help hold us accountable. Or even better, start this new step in life WITH a friend, partner or family member. Build wealth together!
“Once adversity reveals your strength, and you know what you can endure, you become an irrepressible force of nature.” - Abigail Damoah
Think of your budget as a chessboard. Don’t play checkers with your money. Strategize, plan for the known and unknown, and make sacrifices today for the wins of tomorrow. Every decision counts, and each move brings you closer to financial success. So, make your moves count — and enjoy the long-term gains that come from playing the financial game like a pro.
If any of you have any words of wisdom you would like to share for getting started, or any other budget app recommendations, feel free to write them in the comments section.
Stay tuned for the next blog, “Ditching the Debt”. In the meantime, you got this!
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