April is financial literacy month, a pivotal month for financial reflection and empowerment.
What a great time to recap the steps we've taken to build a stronger financial foundation. In January, we discussed the importance of categorizing budgets into fixed, variable, and infrequent expenses to bring clarity and focus. February saw us crafting specific budgets for each expense category, while March marked the launch of a separate bank account dedicated solely to fixed expenses. By maintaining fixed expenses in their designated account, budgeting becomes a streamlined process of verifying transactions and ensuring accuracy.
This strategic move not only simplified our budgeting process but also ensured we have a buffer for covering all fixed expenses for at least a month. Unlike fixed expenses that resemble straightforward checklists with predictable amounts that are easy to check off in a word or excel file, variable expenses require more detailed tracking.
So, this month, we’ll dive deeper into managing our variable expense. Since variable expenses come with multiple expenses in each category, I find budgeting apps most beneficial as they excel in categorizing and analyzing these kind of dynamic expenditures, and help us to make informed financial decisions in real-time.
That being said, I’m with many of you. The recent closure of Mint’s free budgeting app has me exploring alternative tools and methods. I have yet to find a free option, but I've conducted extensive research on various options and gathered insights from individuals navigating this transition. Here is a great video that breaks down budgeting app options by cost and ease of use. Personally, I’m exploring Monarch. What app do you use?
No matter what variable expense budgeting tool you choose to use, whether a simple Excel worksheet or feature-rich budgeting app, consistency in reviewing and analyzing variable expenses is key to financial empowerment. Remember, what we measure grows, and by diligently tracking our variable spending, we gain control and clarity and grow in our financial health.
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