How to Better Your Budget
As nurses, we’re the supposed to encourage health and well-being. We put our hearts into caring for patients, making sure they’re in the best possible shape. But let’s hit pause for a second—how much attention are we giving our own budgets? It turns out, managing your money can be just as crucial (and sometimes just as stressful) as taking care of patients.
Do you feel like your paycheck disappears before the month even ends? Or wonder why it feels like your hard-earned cash just slips through your fingers? If this sounds familiar, it might be time to take a closer look at budgeting. Budgeting is the secret sauce to getting a grip on your money so you can stop wondering where it all goes.
First Things First: Assess YouR Finances
Just like you wouldn’t treat a patient without taking their vitals, you can’t manage your money without taking a deeper look at where things stand. Now, I know this can be difficult for some people but it’s better to face it now than wait until it’s too late. This means you have to start by tracking every dollar coming in and going out. This is your financial check-up, and it’ll show you exactly where your money is going and what it’s doing.
Next up, ask yourself: What are you saving for? Maybe it’s a down payment on a car, or maybe you just want to beef up your retirement fund. Be specific about your money goals to help you map out a clear plan. Once you know your goals, it’s time to pick the budgeting method that fits you best. Let’s break down some popular budgeting options to get you started.
1. Zero-Based Budgeting
With zero-based budgeting, you give every dollar you earn a specific “job.” Basically, all your income is assigned to specific spending categories—whether it’s bills, groceries, savings, or fun money. The idea is that your income minus your expenses should equal zero. So, nothing is left unaccounted for. Just remember, this method keeps you super focused, but it does require regular check-ins and tweaking as your needs and goals change.
For Example:
Say you’re a nurse who earns $3,000 each month. You decide to put every dollar of your income to different expenses and savings. You list you fixed expenses like rent ($1,200), utilities ($150), groceries ($400), and transportation ($200). After accounting for these and ‘fun money’ spending like dining out ($150) and entertainment ($100). You realize you have $1,800 accounted for but also wants to save for a vacation. You ‘assign’ the remaining $1,200 to a vacation fund, making sure your income minus expenses equals zero.
2. 50/30/20 Budgeting
This one’s a crowd favorite for its simplicity. All you do is divide your after-tax income into three main categories:
- 50% for needs like housing, utilities, and groceries
- 30% for wants like dining out, shopping, and hobbies
- 20% for savings or paying down debt
This method helps you balance between enjoying your life now and saving for the future. It’s a simple way to organize your spending while still giving yourself permission to have fun.
For Example:
You bring home $4,500 each month after taxes. You apply the 50/30/20 rule:
- 50% for needs: $2,250 for housing, groceries, and bills.
- 30% for wants: $1,350 for dining out, subscriptions, and hobbies.
- 20% for savings: $900 towards his emergency fund and retirement savings.
3. Pay Yourself First
Think of this as a reverse budget. Instead of focusing on bills first, you prioritize savings. You set aside a chunk of your income for savings and investments before touching a single dollar for other expenses. One way to do this is by asking your employer to automatically split your paycheck, so a portion goes straight to savings. Another option is automating transfers to your savings account right after payday, so you’re not tempted to spend more than you should. This method works best for people who are in a position to save without worrying about covering basic expenses.
For example:
Say you receive $3,200 monthly from your nursing job. Instead of waiting until the end of the month to save what’s left, you automate $600 into your savings account the moment your paycheck is deposited. The remaining $2,600 is what you use for bills ($1,400), groceries ($400), and other expenses.
4. Envelope Method
Ever heard of the envelope system? Financial guru Dave Ramsey made this one famous. It’s old school but effective: you literally divide your cash into “envelopes” labeled with spending categories like groceries, entertainment, or travel. Once an envelope is empty, you’re done spending in that category for the month.
These days, you don’t need physical envelopes or cash. Many apps and online banking platforms have digital “envelopes” that let you track spending. If you’re someone who tends to overspend or make impulse purchases, this could be the structure you need.
For Example:
Say you have a monthly budget of $2,000. You decide to use the envelope method. You allocates $500 for groceries, $300 for entertainment, and $200 for clothing in envelopes. Each week, you take out cash from the envelopes for these categories. Once the cash in the entertainment envelope is gone, you know you can’t spend any more on going out until the next month.
5. Automated Budgeting with Apps
If you’re not into spreadsheets and prefer a tech solution, there are tons of budgeting apps out there that can make your life easier. Apps like YNAB (You Need a Budget) use zero-based budgeting, while others like Goodbudget, EveryDollar, and PocketGuard offer different approaches. My personal favorite is YNAB—it’s user-friendly and helps build healthy financial habits. But don’t be afraid to try a few different ones to see which one clicks with you.
For Example:
Let’s say you prefer technology to manage your finances. You download the app YNAB (You Need a Budget) and connect it to your bank account. Each month, your salary of $3,000 is input into the app. You categorizes you money: $1,200 for rent, $600 for groceries, $300 for utilities, $500 for savings, and $400 for entertainment. The app provides insights, tells you how much you have left in each category, and helps track spending, making budgeting a breeze.
Tips for Sticking to Your Budget
Alright, so you’ve got your budget set up—awesome. Now, let’s talk about how to actually stick to it. Here are some tips to help you keep on track:
Set Up Reminders
Whether it’s a sticky note on your fridge or calendar alerts on your phone, reminders can help keep your goals front and center so you don’t forget about them.
Review Your Budget Regularly
Take a few minutes each week to check in on your budget. Are you sticking to your plan? Does anything need tweaking? Regular check-ins keep you accountable.
Make It Fun
Budgeting doesn’t have to be boring. Reward yourself when you hit a milestone. Treat yourself to a nice dinner, a movie night, or some fun outings—just make sure it fits within your budget ;).
Find Someone to Budget With
Share your budgeting goals with a fellow nurse or friend! Having someone to chat about your progress with can make it easier to stick to your plan and motivate each other along the way.
Create Realistic Spending Categories
Make sure your categories make sense for how you actually spend money. If you know you enjoy eating out, leave room for it in your budget.
Adjusting Your Budget
As well all know, life happens? Sometimes, your budget may need a little tweaking. Here’s how to adjust your budget when things change:
Be Flexible
Understand that your budget isn’t set in stone and things change. If you find that you consistently go over in one category, don’t hesitate to shift things around.
Reflect the Changes
Did you move? Get a new job? Starting a side gig? Reflecting on these changes can help you see where changes to your budget need to be made. Try to predict how these changes might affect your spending.
Prioritize Your Goals
If a new goal pops up—a trip you want to take or a big purchase you’re planning—reassess your budget to see what you can adjust. Maybe cut back on a few non-essentials for the time-being to fund your new goal.
Keep Open Communication
If you’re budgeting as a couple or with a family, make sure you’re discussing any changes together. Open communication can help everyone stay on the same page and adjust accordingly.
Common Budgeting Mistakes to Avoid
Budgeting is a learning process, and it’s totally normal to make a few mistakes along the way. Here are some common challenges to watch out for:
Underestimating Expenses
It can be easy to overlook certain costs or underestimate how much you’ll spend in different categories. Keep an eye on those sneaky little expenses that can add up.
Not Accounting for Irregular Expenses
Make sure you include those annual payments, like insurance or holiday expenses. Figure those costs into your budget instead of letting them surprise you.
Ignoring Small Purchases
Those little impulse buys can really pile on and screw up your budget. Keep track of those “just because” purchases and really think before you splurge.
Setting Unrealistic Goals
While it’s great to have high goals, setting goals that are too ambitious can lead to let down. Make sure your goals are actually achievable, so you don’t feel overwhelmed.
Not Being Patient
Change takes time. Don’t get discouraged if sticking to your budget feels tough at first. Give yourself a break, we all have to start somewhere.
Final Thoughts on Ways to Improve Your Budget
There are a lot of budgeting strategies out there, and no one method is perfect for everyone. The trick is to try a few, tweak them to fit your goals, and find the one that sticks. Your financial journey is personal, so don’t be afraid to experiment until you find the budgeting approach that helps you effectively manage your money.
At the end of the day, taking control of your finances means less stress and more peace of mind—and who doesn’t want that?