How to Finally Create a Budget That Takes Care of You

How to Finally Create a Budget That Takes Care of You

Who else has heard that they should have a “rainy day” or emergency fund? 

You may have heard people mentioning this in the past here or there. But unless you are super invested in your finances, many of us most likely avoided cultivating such an account. (And many of us are probably feeling the effects of not saving money right now. File that under the things I wish I had done!)

The important thing here is saving money and putting it aside. This isn’t always just something to do for a crisis. It can also be vital for funding your retirement or even for personal goals, like that vacation you’ve been dreaming of going on.

Here are some tips to make your champagne dreams a reality (and protect against future financial emergencies) when things settle back to normal. We’re talking about how to finally create a budget that takes care of you.

piggy bank labeled emergency fund and cash

Why Do You Need to Budget a Rainy Day Fund?

Because an emergency fund would give you at least 6 months of cushion around your personal budget, it’s a pretty crucial thing to have. As we all know by now, we can never be sure when a crisis is going to strike. This account would be there for you in emergencies like the 2008 Subprime Crash, the current COVID-19 pandemic, or the next catastrophe to come.

Other huge financial goals that you might have could include a yearly vacation or retirement. But for many massage therapists, these aspirations seem like impossible dreams so a lot of us tend to push these desires to the side and never tend to them.

Most of us are like many Americans that live paycheck to paycheck or even client to client. So it’s not always easy to consider saving for the future, whether it’s for emergencies or pleasure!

But you can do so if you follow these 3 steps:

1. Calculate a Real Number

Because many people don’t know when they’ll cross the finish line, many people never really go for their dreams. Unfortunately, it’s not enough just to want something. It’s time to turn your desires into goals. 

To achieve the things that you need and want, it’s best to:

  • Visualize your goals
  • Write them down
  • And plan them

That’s why you need a real, tangible number to drive you towards making your goal a reality.

If you have a journal or piece of paper nearby, now is a great time to come up with an amount that you’d like to put away. Alternatively, you can write out your aspired number on a sticky note and put it somewhere where you’ll always see it. This will help you remember to always work towards and pay attention to the fulfillment of your aims.

woman at computer eye glasses flowers

2. Create Systems

Just as people used to put cash in envelopes for safe-keeping, you can use bank accounts as digital envelopes! 

Open high-yield savings accounts in a separate bank than your checking account. Doing this will help ensure that you’re not dipping into it accidentally and can distinctly track how much you’re saving. 

Be aware that it may take several days for the money to transfer back and forth when you are saving for items like:

  • Taxes (quarterly)
  • Vacation (yearly)
  • An emergency fund (every few years to a decade or more)

But the good news is that you don’t need to transfer money often!

3. Set the Auto-Pilot

Now it’s time to plan out the goal that you’ve visualized. It’s time to figure out how much you need to deduct each month or pay period to meet your goals. This could be another excellent task to do in your notebook next to the cash amount you want to save!

Once you’ve calculated how much you need to save, you can set an automatic transfer from your checking account to your other bank account. Then, just sit back and let the money accumulate. 

In Conclusion

With this budgeting process, you can focus on creating one or multiple different funds of your choice that you’ll be able to greatly benefit from in the future. Whether your rainy day fund involves saving money for an emergency, retirement, or merely a vacation, creating a budget that takes care of you is essential.

If you’re currently in need of some extra money during this time, we have valuable advice on how you can accomplish this in our latest ebook: 

Cash Flow in a Crisis: The Bodyworker’s Guide to Thrive”. 

Cash Flow in a Crisis Cover

In it, you’ll learn:

  • Money-generating techniques that you can start implementing today to help you get back on your feet and thrive during this time
  •  The pros and cons of each method, so that you can decide which options are best for you
  • Tips and tricks on the best ways to go about each
  • Insight on how to improve your marketing when using these methods increase your cash flow even more

If you need increased cash flow so that you can start creating a budget that takes care of you, our ebook can be a useful tool to point you in the right direction.

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