How do you maximize happiness with your money and get started budgeting with “The Simplest Budget"?

Your money should have a purpose and should be spent on the most important things in your lyfe. Also, budgeting can seem like a lot of work trying to organize all your expenses into many different categories. On top of that, it is another layer of complexity to keep track of those categories and know where to start cutting.

Your budget can be simple and focus your spending on what you Need and Love!

The Simplest Budget

The simplest budget organizes your money into 3 categories:

• Needs

• Loves

• Likes

Representation of the way your money should be allocated

Let’s take a look at these categories closer.

Needs: These will be things you cannot avoid such as your mortgage/rent, utilities, groceries (only needed items), gas, etc.

Loves: What gives you the most happiness in lyfe? Those are the only things that should go here. For me, it is my car, golf, eating out with friends and going to sporting events.

• Exercise: Sit down with your family (or by yourself) and understand what brings you the most joy in lyfe and where you should spend money to support that joy.

Likes: What do you spend money on that doesn’t bring you the most happiness even though you enjoy it a little? Is there anything that you could do without and still be just as happy?

• Exercise: Sit down with your family (or by yourself) and understand what fits into this category that you could start to reduce or eliminate.

NOTE: If you are spending money on anything that does not fit these categories, stop that spending immediately.

You can spend a lot of time trying to save a little here and there on your needs and loves but you should first focus on limiting spending on your likes and completely eliminating anything you don’t need and don’t even like. This will be easier and likely make a bigger impact without jeopardizing what is important in your lyfe.

Takeaways:

• If you are struggling to start a budget because you think it is too much work, then you should use these three categories as simple categories to get your budget going.

• If you like a more complex budget, you can still use this concept to group your expense categories to better understand where to start cutting or where to focus your money.

Now you are ready to put together your Simplest Budget! Reach out to get started with our budgeting app!

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