The Rachel Cruze Show - Top 4 Budget Categories We All Neglect

Starting point is 00:00:05 So even if you plan your spending with a monthly budget, it can still feel like that your money is just disappearing. So here's how to sharpen up your budget categories to avoid overspending and some common spending traps, because let's be honest, they're everywhere. And make sure to like, subscribe, and show this episode with a friend. All right, the first category that may need some attention is the miscellaneous category. I am guilty of this a lot, which is what it's for, but it's kind of the category that just everything gets tossed into. where you were like, okay, I don't really know what this is. Just throw it in, throw it in, throw it in. And I'll get in a bad habit sometimes of something happening, like the kids' sports, for instance.

Starting point is 00:00:41 Like sometimes I'm really bad at putting just a line item for that. So I'll just dump a bunch of expenses over a month or two where I'm like, I should have planned that as an exact category because then it helps you plan more to be able to see exactly where your money is going because that miscellaneous category is kind of like a black hole of stuff that just gets put in. And the other thing I'm guilty of is if a transaction comes through every dollar, and I don't know exactly like what it means, but it's like $7.49 or like $18 or whatever.

Starting point is 00:01:10 Like if it's like, I'm like, I don't know. I just throw in the miscellaneous category where people could be stealing money from me. And I'm not checking in on it. I just throw in the miscellaneous category if it's not that much. So I just need to do a better job diligently looking at it. And if there is an area of life where expenses continue to get into that category, just create its own line item. Practicing that.

Starting point is 00:01:31 Next step is food. Yes, food, I mean, let's be honest, it's a non-negotiable. We have to have our food. But it does tend to be one of the largest categories in our budget, not only that we spend money on, but also that we go over. So what I do is I'm kind of specific about our food. So we've learned that, and gosh, we've been doing this for like over 10 years. So we actually have three categories for us in our food budget. So we have groceries, eating out, and then I have a Costco line item. because it's usually like a good chunk of money, but I like I like to see exactly like what we're getting from there because it's usually again we're like stockpiling a bunch of stuff. So I'd like to see it. Now some people go and they do like grocery pickup, eating out, delivery. Like they have very specific line item.

Starting point is 00:02:19 So whatever you want to do, if you want to keep it broad, that's okay. If you want to be more nuanced, that's awesome too. But that's how we do it. But I do like at least saying groceries and not to eat because it kind of is a punch in the gut. but it's good to see of how much we spend on going out to eat. So we have to put a dollar amount. And I like having a dollar amount with that specific category because I love going out to eat. So I do like to know, hey, we have plenty of money in here.

Starting point is 00:02:44 Let's go on a great date night. Let's go take the kids to chick fly and not worry about it because it's in there. So I always like to see a difference between groceries and out to eat. And if you are just starting to budget, do that because, again, you will see how much you spend at restaurants and it will make you cry. Just like me. Yeah. But it's good to be organized. All right, I have so much more to share, but first I do want to tell you about one of our new sponsors, Minow.

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Starting point is 00:04:17 to keep it gone. Now, right now, you can get 20% off at joindeletme.com slash rachel with code rachel at checkout. That's join deleteme.com slash rachel code rachel. All right, the next category to look at is giving. Now, you want to make sure that you're not neglecting this part of your money. This is a category that a lot of people feel like if they have goals that are like really urgent and they need to do, they just put this off. But this is part of your financial plan.

Starting point is 00:04:45 This is something that is extremely important because it deals with you the person so much. Like, there's something so personal about, yes, having your goals and striving for great things for your money, which is what I want for you. But it's something else to be said that when you have to be said that when you have to live your life with an open hand and you're giving at some capacity. Again, it may not be a lot depending on where you are, but at least something, getting in the habit, getting in the practice of it, I think is so key because as you start to win with money, you're going to be magnified of who you are as a person. And so making sure that humility, that generosity always is being a

Starting point is 00:05:19 continual part daily, I would say, of your financial plan, just looking at for opportunities to give and to serve. All right, number four is subscriptions. Oh, this is another constant edit in our house, man, whether they're monthly, quarterly, annually, it feels like a no-brainer to go through and look at this category because there are so many things that can just end up in it and you don't even realize what you're paying for. And I think that's what's really difficult. It's again, especially if it's like something annual, it'll hit and you're like, wait, what? I forgot that we even had that. So be looking at that cancel, the things that you're not using, change, edit, pause, do what you need to do.

Starting point is 00:05:59 even Audible for me. Like, I was paying for Spotify premium and didn't realize that it came with audiobooks. And I also had an Audible subscription when I realized it. I paused Audible, which was great. And I have a few credits on it that I can still use that if the book I want is not on Spotify premium. But I was paying for literally two subscriptions that were like doing what I needed. So, again, dig in, look at the details because that can save you money.

Starting point is 00:06:23 Now, if you're sitting there thinking, oh, is the budget really worth all this work? I'm here to tell you it is. There is something so powerful about taking control of your money and every single dollar having a name and knowing where it's going. And that's why I love every dollar. Not only is the budgeting part of every dollar incredible because you can link your bank accounts and you're able to get these transactions and you're able to keep up to date on what is going on with your money. But also it's going to look over your entire financial plan. So I'm going to leave a link down below for you to dig into this because I think it's really important and you're going to be able to do it stress-free. It is so easy. It's so easy to understand, but you just got to do it. Now, did you know that there are a few really easy and powerful ways to level up your monthly spending? Check out my episode's Six Simple Ways to Become More Disciplined with Your Money. You can click there, or if you're listening on podcasts, leave a link below. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - Top 4 Budget Categories We All Neglect

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