How can you ensure you don’t go over your budget? Staying focused with money can be challenging for many of us (raising my hand here!). The temptation to overspend, unexpected expenses, and lifestyle inflation are just a few obstacles that can get in the way. However, with the right strategies, learning how to stay on budget can be done!

In this article, I’ll go over key tips and techniques to show you how to stay organized and not overspend with money. Let’s dive in!

Fundamentals for budgeting success

Before we can figure out how to stay on budget, it’s helpful to understand some basics. At its core, budgeting involves three fundamental steps: defining our financial goals, tracking our expenses, and creating a system that aligns with our objectives. Here’s a little more about each of these:

Define your financial goals

As we begin our journey, defining and clarifying financial goals is essential.

Whether buying a house for the first time, eliminating debt, or building an emergency fund, establishing clear and measurable goals is key. Once we have those goals in place, we can better determine what kind of system to create.

Track your expenses

With our goals in mind, it’s time to gain a thorough understanding of current spending habits. As they say, we can’t move forward if we don’t know where we are right now.

Keep meticulous records of expenses for a few weeks, categorizing each and identifying patterns.

For instance, where do you like to spend? Struggle with overspending? By doing this, you can start to pick out areas where adjustments can be made.

Whether through the use of apps, spreadsheets, or an old-school notebook and pen, tracking your expenses is one of the first steps toward exercising control over finances.

Create a realistic budget

With an understanding of our financial goals and insights into our spending habits, we’re ready to create a system. While there are many ways to create and make a better budget, one key is to make sure ours is realistic.

I like to account for all sources of income and expenses, including fixed costs and discretionary spending, like clothes and gifts. Be authentic when setting your budget. You don’t want to set yourself up for disappointment.

Focus on creating a balanced system that reflects your current financial reality, leaving plenty of room for adjustments.

6 Tips for staying on budget

With an understanding of what a budget is and a solid financial system firmly in place, here are six tips to help you stay on budget:

1. Set spending limits

It’s important that you establish clear spending limits within each category. This is key to preventing overspending. Allocate specific amounts for essentials such as groceries, transportation, housing expenses, and fun money/discretionary categories like dining out and entertainment.

It’s okay to spend on certain “frivolous” things. Nobody is stopping you from occasionally indulging in what you love. But we should set limits for ourselves.

For example, if you love shopping at Sephora (who doesn’t?), include that, but set yourself a cap and vow to stop spending once you hit that limit. That way, you can still indulge here and there but won’t blow your money goals because of it.

2. Automate your bill payments

Automating our finances is one of the most effective strategies for staying organized.

By setting up automatic transfers or payments for recurring expenses such as rent and utilities, we can be sure we’ll meet our financial obligations on time.

Not only does this minimize the risk of late fees or missed payments, but it can also help ensure those bills are always paid first before we begin to spend on discretionary things.

3. Practice the 24-hour rule

Impulse purchases are the downfall of many money-conscious people, derailing even the most meticulously crafted plans.

To combat impulse spending, adopt the 24-hour rule: before making non-essential purchases, wait twenty-four hours and reassess whether the purchase aligns with your financial goals. This cooling-off period provides an opportunity for reflection and helps prevent impulsive decisions.

I’ve successfully used this rule to help me curb my impulse spending. I’m aware that social media ads can easily lure me into buying something I didn’t even know existed before logging on that day, so I’ve implemented the 24-hour rule for online shopping.

If I see something I like, instead of adding it to my cart and instantly buying it, I make myself wait a day. Usually, I don’t even remember I saved something in my cart until days or weeks later, and by that time, I’m no longer interested. But, if I still am, and if it’s in my budget, I can still buy it!

4. Plan for unexpected expenses

Are you wondering how to stay on budget when something unexpected happens? Life is unpredictable, and unexpected expenses are inevitable.

To mitigate the impact of these surprise costs, establish an emergency fund with three to six months of living expenses. You can weather financial storms by setting aside funds for emergencies, such as hospital bills, car repairs, or home maintenance.

5. Practice self-compassion

Like most areas of personal finance, cultivating a sense of self-compassion is essential. Everyone will veer off course and throw their budget out the window at some point.

Instead of beating ourselves up over a slip-up, reacting with kindness is important. Remember—it’s about progress, not perfection when it comes to sticking to a money system.

6. Regularly review and adjust your budget

How can you ensure you don’t go over your budget? One of the best ways is to do a budget review periodically.

As our circumstances change and our financial priorities shift, we need to remember to adjust our financial system accordingly. Whether due to changes in income, expenses, or personal goals, we will all see lots of changes in our financial lives.

We should set aside time each month to assess our money, identify areas for improvement, and make the necessary changes.

Expert tip: Try loud budgeting

In recent years, there’s been a big shift in how we talk about money. And this is a good thing!

No longer is money the taboo topic it used to be. For example, it’s become more commonplace to share salaries with our coworkers or tell our friends how much our end-of-year bonus was. That’s why “loud budgeting” is having a moment right now.

To make loud budgeting work for you, start by being more open about what you want to and can spend your money on. We can thank Gen Z for promoting this idea, but it can help all of us stick to our budgets!

How can you ensure you don’t go over your budget?

In addition to the strategies outlined above, here are some more tips to help safeguard us from overspending:

Use apps

Digital tools are one of the best ways to streamline our finances and stick to our goals. From expense tracking to goal setting, apps offer many features designed to keep us on target.

Some of our favorites include You Need a Budget (YNAB) and Microsoft Excel’s budget templates, in addition to our own best budget templates, of course!

Know your spending triggers and keep away

Identify the triggers, such as emotional spending, that lead to impulsive shopping.

For me, it could be stress, boredom, or anxiety. We can develop strategies to prevent overspending when we become aware of our triggers and temptations.

For example, if I know I always shop online when bored, I can replace this behavior with calling a friend.

One of my big spending triggers is procrastination. More specifically, I procrastinate when I’m anxious about a task that I don’t know how to start. When this happens, I will do anything to avoid that task!

Often, that “anything” includes shopping. I’ll convince myself I have to shop to avoid the discomfort of not knowing how to do something. Luckily, I can usually identify when I am doing this, have a little chat with myself, be kind to myself, and force myself just to start.

Find an accountability partner

Want to know how to stay on budget? Ask a good friend or family member to serve as an accountability partner on your money journey. Share your financial goals, challenges, and progress with this person.

In addition, you can use their support and encouragement to stay motivated, and they can get the same benefits from you.

What is the best way to stay on a budget?

Staying on budget requires planning, discipline, flexibility, and self-awareness. Here are some additional tips to help us stay consistent with our finances and achieve long-term financial success:

Find a method that works for you

Explore different methods, such as zero based budgeting, the cash envelope system, or the 50-30-20 rule, to find an approach that resonates with you and your financial goals. Experiment with various techniques until you discover the best method for your needs.

Be disciplined yet flexible when learning how to stay on budget

While sticking to our goals is essential, staying flexible is just as crucial for long-term success. Life is full of surprises, and maintaining flexibility in our budgets allows us to navigate unexpected expenses or income fluctuations, such as irregular income, without sacrificing our financial stability.

Celebrate small wins along the way

How can you ensure you don’t go over your budget? Acknowledge and celebrate your achievements, no matter how small, as you progress.

Whether it’s paying off one credit card or sticking to your financial system for one week or an entire month, each accomplishment brings you one step closer to your goals. Celebrating your successes reinforces positive financial habits and motivates you to continue your journey.

Why can’t I stay on a budget?

Despite our best intentions and efforts, we may fail to stick to our budgets.

In fact, we probably will, and that’s okay! The important thing is that we adjust and get back to it. Here are some common reasons why people might struggle with how to stay on budget:

Failure to adjust for income or lifestyle changes

We’re likely to face changes in income or expenses, which can significantly impact our money. If we don’t adapt our finances to accommodate these changes, it can cause a lot of frustration, not to mention financial strain.

We need to be proactive by reassessing our finances regularly and making adjustments as necessary to reflect our current circumstances.

For example, a few years ago, I left a job with a high salary. It was the best thing I could have done for my mental health, but it wasn’t the best financial move because I did not account for my adjusted (lower) income.

I kept my lifestyle and spending habits for a few months, not adjusting my finances to my new reality. Luckily, I did correct course quickly to live below my means, but it’s something to be aware of because our financial circumstances are often changing. It’s important to make sure our spending and budget change, too.

Unexpected expenses

Emergencies and unforeseen expenses will occur. For all of us.

Failing to plan for these costs can disrupt even the most carefully crafted budgets. To minimize the impact of these unexpected expenses, prioritize building an emergency fund and maintain a financial buffer.

Emotional spending

Emotions play a powerful role in our financial decision-making processes. No matter the root cause, emotional spending can sabotage our efforts and derail our financial goals.

If we can learn to recognize the underlying triggers behind our spending habits and develop healthier coping mechanisms to address them effectively, we’ll be well on our way to sticking to our budgets.

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Want to learn more about creating an ideal system for your money? Check out these great posts!

• How To Budget By Paycheck: 5 Key Tips For Success
• Budget Not Working? Here Are 5 Tips For Better Budgeting!
• 15 Key Tips For Living On One Income
• Save More! Try A No Spend Challenge!

Embrace these principles to help you stay on budget!

By embracing the principles discussed here, we’ll all be one step closer to staying on target with our finances.

Remember your finances won’t always be perfect, and you might slip up here and there, but you can always regroup and get back to successfully budgeting. Focusing on your goals and keeping organized finances will help you make progress!

The post 6 Practical Tips For How To Stay On Budget appeared first on Clever Girl Finance.

Budgeting can be a tough habit to maintain especially if you have a lot of numbers, but it’s oh-so-important for women who want to take control of their finances.  Because budgeting can feel like a drag sometimes, everyone could use a little extra motivation to keep their spirits elevated when it comes to budgeting. That said, today’s motivation comes in the form of 42 budget quotes (in total) that will improve your mindset!

Why budget quotes are inspiring!

Want to know why quotes about budgeting help? Quotes are short and sweet bits of wisdom or humor (Check out our funny money quotes!) based on something someone has said, which in turn inspires us to keep moving forward when the going gets tough.

Budgeting quotes are usually quite brief, so they can help us focus and give us just the push we need to continue on with our day even if the tasks we’re doing don’t feel like they matter much in the moment.

Below are 42 budget quotes broken out by category to inspire you, motivate you, help you stay on track, and give you ideas to take your budget mindset to the next level.

8 Quotes on budgeting for overall inspiration

We all know the purpose of a budget but sometimes, just a little bit of inspiration can be just what we need to stay focused. 

Use these inspirational budget quotes to reignite your passion for budgeting and find the inspiration you need to keep going!

1. “If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.” – Edmund Burke

2. “Budgeting is not just for people who do not have enough money. It is for everyone who wants to ensure that their money is enough.” – Rosette Mugidde Wamambe

3. “Every cent you own and every moment you spend is always an investment.” – Natalie Pace

4. “If broke people are making fun of your financial plan, you are on the right track.” – Unknown

5. “Life is a dance between making it happen and letting it happen.” – Arianna Huffington

6. “One reason people resist change is because they focus on what they have to give up, instead of what they have to gain.” – Rick Godwin

7. “A budget doesn’t limit your freedom; it gives you freedom.” – Rachel Cruze

8. “Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success.” – Picasso

Remember why you are budgeting in the first place

What I love about these inspirational quotes is that they remind us why we budget, which is helpful when we’re mired deep in the how of budgeting. 

When you forget to “find your why” budgeting can sometimes feel like you’re just slogging through the numbers, making a ton of sacrifice and making yourself feel guilty about what you’ve spent our money on.

But in reality, the whole point of budgeting is to find financial freedom. As Rachel Cruze said, a budget gives you freedom. So, these quotes can help you keep that freedom top of mind.

I encourage you to pick one or two of these quotes that resonate with you and write them on a post-it note. (Or if you’re feeling fancy, type them up in a pleasing font and print them out.) 

Post them somewhere you’ll see them often. They’ll inspire you to whip out your budgeting app or spreadsheet even when you don’t feel like it. Additionally, it’s worth thinking about what your favorite quotes about budgeting are and using them in your everyday life.

8 Motivating quotes even when budgeting is hard

Sometimes budgeting can be downright hard. It could be that your budget isn’t going accordingly to plan or you are just too tired or stressed to track it. 

However, there are some handy, motivational quotes about budgeting you can use. These quotes will give you the motivation you need to keep budgeting!

1. “Becoming rich is hard. Staying broke is hard. Choose your hard.” – Eric Worre

2. “You don’t have to see the whole staircase, just take the first step.” – Martin Luther King, Jr.

3. “The slightest adjustments to your daily routines can dramatically alter the outcomes in your life.” – Darren Hardy

4. “It is not necessary to do extraordinary things to get extraordinary results.” – Warren Buffett

5. “Money, like motions, is something you must control to keep your life on the right track.” – Natasha Munson

6. “A budget isn’t about restricting what you can spend. It gives you permission to spend without guilt or regret.” – Unknown

7. “If you don’t get serious about your money, you will never have serious money.” – Grant Cardone

8. “People do not decide their futures. They decide their habits, and their habits decide their futures.” – FM Alexander

Small actions add up to big progress over time

One reason that I find budgeting so draining is that it takes small, consistent, and often monotonous actions to see tangible, exciting results. And as a result, those actions can feel meaningless when we lose sight of why we’re doing them.

For instance, on a day-to-day basis, it can be easy to think to yourself, “I won’t ruin my budget if I don’t budget today.” However, say that too many times and soon you won’t have a budget at all.

Use these quotes to motivate yourself to keep doing the small actions every day (or at least once a week!). Actions like importing your transactions, categorizing your expenses, and reviewing your monthly budget progress do matter.

There are ways to make budgeting easier. Find budget templates or tools that work for you and make budgeting less painful.

12 Budget quotes to help you save more money

Saving money can be painful and demotivating, especially when you’re first starting out. Additionally, even a small leak can have big consequences.

However, with the best quotes about budgeting by your side, you can upgrade your saving habits and find motivation for saving money. So here are some quotes to help you stay focused as you work on saving more money:

1. “Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” – Ayn Rand

2. “Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” – Will Rogers

3. “You must gain control over your money or the lack of it will forever control you.” – Unknown

4. “When money realizes that it is in good hands, it wants to stay and multiply in those hands.” – Idowu Koyenikan

5. “Beware of little expenses; a little leak will sink a great ship.” – Benjamin Franklin

6. “Don’t give up what you want most for what you want now.” – Unknown

7. “Unless you control your money, making more won’t help. You’ll just have bigger payments.” – Dave Ramsey

8. “Money isn’t about buying bigger and better things. It’s about being prepared to take care of your family.” – Unknown

9. “Save money, and money will save you!” – John Soforic

10. “Don’t save what is left after spending; spend what is left after saving.” – Warren Buffett

11. “The rich get rich because they pay themselves first.” – David Bach

12. “We must consult our means rather than our wishes.”― George Washington

Learn how to spend money so you can save more money

I subscribe to the philosophy that if you’re cutting back on expenses to the point of depriving yourself of everything you love, you’re not likely to stick with your budget. 

That said, I didn’t include any budget quotes that shame you for spending money on things you love. Budgeting shouldn’t be about only spending money on the bare necessities, because you need fun money, too.

Instead, opt for creative savings where you can. Don’t spend your money on expenses that don’t truly bring you joy or value. And if you do have to cut back on some things to save money, use these budget quotes about saving to remind yourself why you’re doing so.

5 Budgeting quotes that will inspire you to earn more

Sometimes our budgets reveal that if we want to truly make progress toward our financial goals, we need to start earning more money. 

And when we do start earning more money, our budget helps keep us accountable to actually save that money instead of increasing expenses. 

In addition, there are a bunch of budgeting quotes that can help here. So let’s take a look at are our favorite quotes about this:

1. “Become so financially secure that you forget it’s payday.” – Unknown

2. “The more your money works for you, the less you have to work for money.” – Idowu Koyenikan

3. “The stock market is designed to transfer money from the active to the patient.” – Warren Buffett

4. “Compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn’t, pays it.” – Albert Einstein

5. “Don’t make money, create wealth. Making money is easy. Being able to create and sustain wealth is what will set you apart from the rest.” – John Rampton

You have what it takes to earn more money

Many of these budget quotes reveal that one of the easiest ways to earn more money is to put your money to work for you and invest.

However, are you afraid you don’t have enough knowledge about investing? Investing for beginners isn’t as difficult as you’d think.

You don’t have to be an expert on investing to get started, and there are plenty of resources to help you learn more. (Order the Clever Girl Finance book Learn How Investing Works, Grow Your Money today!)

You can also learn how to invest with a small amount of money. Investing just a little bit today can earn you more than investing a lot of money in a few years, thanks to the power of compound interest.

9 Best quotes on budgeting overall

This last section includes some of the best quotes of all time on budgeting. Many of these budget quotes were spoken by people who have seen firsthand how the power of budgeting helps you grow wealth and become financially secure. 

1. “The simplest definition of a budget is ‘telling your money where to go.” – Tsh Oxenreider

2. “Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” – Joe Biden

3. “A budget is telling your money where to go instead of wondering where it went.” – Dave Ramsey

4. “A budget is more than just a series of numbers on a page; it is an embodiment of our values.” – Barack Obama

5. “The budget is not just a collection of numbers, but an expression of our values and aspirations.” – Jacob Lew

6. “Money is a terrible master but an excellent servant.” – P.T. Barnum

7. “Got my mind on my money, and my money on my mind.” – Snoop Dogg

8. “Stop being the chess piece, and start being the chess player. It’s time to master the game of money once and for all.” – Tony Robbins

9. “Budgeting isn’t about limiting yourself – it’s about making the things that excite you possible.” – Unknown

Chances are, one or two of these will resonate with you and remind you why you’ve committed to budgeting in the first place.

The speed of your success depends entirely on your own dedication to budgeting. You can change your spending habits and the way that you manage money by identifying your true needs. Also use these quotes to align your purpose for budgeting with your personal core values. 

Expert tip: Create a budgeting vision board

Nobody can do the work for you. When it comes to the understanding of your budget, you are the master of your own destiny.

But sometimes, we all need a little motivation to get things moving. With a little creativity, you can make your own budgeting vision board.

For example, include images that make you feel motivated, a handful of the best budgeting quotes, and anything else that inspires you. 

Saving money is the result of habit. The secret to getting it right is reminding yourself why you are doing it. Whenever you feel like going off track, take a look at your board for support. 

What is a positive quote about budgeting?

One of my personal favorite positive quotes about budgeting is “A budget is telling your money where to go instead of wondering where it went” by Dave Ramsey. For me, it sums up why we put sustainability and budgeting first. Essentially, we need ot have a plan for our money, otherwise it will slip away.

What is a famous quote on budget?

Chances are, you know the lyric “Got my mind on my money, and my money on my mind” from Snoop Dogg. It may not be the most literary budgeting quote but it will stick in your head!

What is a catchphrase for budgeting? 

If you’re looking for a short and sweet catchphrase about budgeting, here’s one of the best. “Save money, and money will save you!” by John Soforic. Why not write it somewhere you will see it every single day?

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If you liked learning from these fun budgeting sayings, you’ll love reading these articles next!

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• 31 Funny Money Quotes That Teach Real Life Lessons!
• 10 Big Budget Challenges And How To Tackle Them

Get inspired by these quotes to stay on track with your budget!

Budgeting can set you free financially. Furthermore, done consistently over time, budgeting allows you to practice intentional living with your spending. And cutting the budget without sacrificing the things you love most is rewarding.

So if you’re struggling to stay on track with your budget, pick one, two, or even three of these quotes that stand out to you and post them in a place you’ll see them often. Stay focused, stay motivated, and just keep budgeting.

In addition, if you want to become a budget boss, make sure to enroll in our free Create a Budget That Works course. Also, check out our other 100% free courses, worksheets, and resources to help you build and maintain a solid financial foundation for the rest of your life!

The post 42 Budget Quotes To Improve Your Budget appeared first on Clever Girl Finance.

Turning 40 is a time to celebrate all that you’ve accomplished in life so far, live your best life, and look forward to all the adventures still ahead of you. And one of the best ways to celebrate a milestone birthday is to throw an amazing, unforgettable fiesta! If money is tight, don’t worry, there are plenty of 40th birthday party ideas on a budget you can use to throw a fabulous bash without spending a fortune!

Let’s get into these awesome ideas for a 40th birthday!

1. Picnic in your backyard

What’s one of the simplest 40th birthday ideas on a budget? Host a picnic in your backyard! You can keep costs down by providing simple food and drinks and asking guests to bring their own chairs or blankets.

And don’t forget the games! A few classic picnic games like frisbee or tag will keep you and the kids entertained.

If you’re looking for 40th birthday party ideas on a budget that don’t cost the earth, this one is a no-brainer.

2. Barbecue party to grill your favorite foods

Everyone loves food on the grill! Burgers, hot dogs, steak tips… you name it. Throwing a barbecue party is a great birthday party idea since it’s relatively easy to organize, and everyone is sure to have a good time.

All you need is some food, drinks, and 40th birthday decorations, and you’re ready to go! Plus, you can save money by making it a frugal meals potluck and asking your guests to bring some food, snacks, or dessert.

3. Movie night

If you’re thinking, “I need money desperately,” but still want to treat your guest to a personalized 40th birthday party, you can host a movie night at home and watch some of your guests’ favorite classic films.

Top Gun? Back to the Future? Dirty Dancing? You betcha!

All you need is a projector and some movie snacks! It is definitely one of the most awesome ideas for 40th birthday celebrations if you prefer more intimate and chill parties.

4. Gaming or board game night with friends and family

Monopoly, Scrabble, Settlers of Catan, Uno… the list goes on! Gather up all your gaming supplies and have a good time trying out game night ideas with the closest people in your life. These 40th birthday party ideas on a budget are easy to arrange.

If you’re looking to spice things up, make it a drinking game and take a drink every time somebody loses in cards.

5. Sip and paint night

A sip and paint night is a unique and fun birthday idea that you should definitely consider. You can invite all your friends over, have them bring their favorite bottle of wine or two with them, then give everyone a canvas and let the painting commence!

Sip and paint is not only an excellent idea for what to do for 40th birthday celebrations for yourself, but it’s also a great way for everyone at the party to have fun, too.

6. Karaoke your heart out

Hosting a karaoke night is one of the most fun 40th birthday ideas on a budget and is the perfect way to celebrate! You can invite all of your friends and family to join in on the fun. Karaoke is a great way to get everyone up and singing, and it’s sure to be a night you’ll never forget.

Put together a list of 40 of your fave karaoke songs for your 40th so you’ll love the playlist for the whole evening. Whether you love pop, rock, or alternative music, this will be a real blast.

7. Bowling night

When you’re looking for an affordable birthday party idea, consider bowling. It’s inexpensive but also a great way to get people involved in conversation while they wait their turn at the lane.

Plus, there are plenty of places that offer both discounts and group packages, which can make your life easier if you’re on a budget.

8. Escape room exploration

If you want an unforgettable experience, consider exploring an escape room. These interactive puzzles provide a unique challenge that is perfect for groups of friends or family.

You and your guests will have a blast working together to solve the clues and escape before time runs out!

9. Amusement park trip

For many people, turning 40 is a time to reflect on the past and plan for the future. It can also be a time for celebration, and what could be more fun than spending a day at an amusement park with friends and family?

Whether you’re young at heart or just young enough to enjoy the rides, an amusement park is one of the most thrilling 40th birthday ideas on a budget. Be sure to use sites such as CityPass to save on tickets!

10. Adventure day

Still looking for 40th birthday party ideas on a budget? One of our favorites is to go on an adventure day!

Visit a new city, go camping, or explore a new area of town with your family and friends! What’s better than taking off into the great unknown?

Whether you’re driving to another town or exploring a local park, the exploration of an unknown place is always exciting. Be sure to take lots of photos to reminisce on the beautiful memories for years to come. You can find all kinds of fun things to do for free in a new town by checking online!

11. Masquerade ball

Nothing says celebration like a good old-fashioned masquerade ball. Put on your best mask and enjoy a night of intrigue and mystery. You can decorate with gold balloons, candles, and table centerpieces for a festive flair.

Moreover, there are so many budget-friendly possibilities for costumes. You can go as anything from royalty to a Venetian gondolier. I’m sure your guests would have tons of fun!

12. Hollywood glamour Party

Think glamour, glitz, and old-school Hollywood. Get inspired by classic movies like “Casablanca” and “The Great Gatsby.” You can have everyone come dressed in vintage outfits from their favorite Hollywood costume or an outfit from any era.y

If you want to go all out, you can even rent some props and set the scene like a movie studio backlot. When it comes to 40th birthday party ideas on a budget, this has to be one of the most stylish. Go on — add a little pizazz. 

13. Throwback 90s hip hop party

Anyone celebrating their 40th birthday will remember the classic 90s hip-hop tunes we grew up listening to. So why not host a throwback 90s party for your birthday? It’s a great way to celebrate in style.

You can have all of your guests over and listen to music from the 90s, dance the night away, and enjoy snacks and drinks. And don’t forget to wear your best baggy jeans or tracksuit to show off how you can be fashionable on a budget.

14. The 70s disco fever

It’s time to get your groove on! A 70s disco dress-up theme party is the perfect way to celebrate everything that is funky, cool, and groovy about this decade.

From dancing in the streets to bell bottoms, polyester suits, and afros, there are so many options for this theme. You can go all out with a full costume or just rock some of your favorite ’70s attire.

Perhaps you could start upcycling fashion to make a sweet ’70s outfit. This party will be one for the books!

15. Carnival party

If you’re looking for a unique way to celebrate your birthday, why not throw a carnival-themed dress-up party?

Make it even more fun by decorating your home with circus-themed 40th birthday party decorations and serving classic carnival food like hot dogs and popcorn. You can also have fun games and activities for your guests to enjoy, such as ring toss or balloon popping.

16. Year of birth retro party

Celebrate 40 years of being alive by reminiscing about the year you were born. Granted, you won’t actually remember it! But it’s a fun theme to play around with.

Have your party guests dress in costumes from that year, get your party playlist on, and maybe even play around with a nostalgic menu. Vol au Vents and Chicken Française, anyone?

17. Concert viewing party

Do you love live music? Taking all of your friends to a concert may be out of reach.

However, that doesn’t mean you can’t have the same experience at home. Invite your besties over to enjoy a special screening of your favorite artist for your 40th birthday. 

Not sure where to start? You can purchase Beyonce’s World Tour on Amazon.

Simply search for the concert you have in mind, rent it, and host a night to remember. 

18. Create your own photo booth

When you’re coming up with new ideas for 40th birthday celebrations, don’t miss this one. You want to ensure you have loads of snaps of the big event. Why not create your own photo booth from scratch?

The good news is that you don’t need a ton of money to get this right.

Start out by getting some props online — you can buy a range of photo prop packs on Amazon. Next, get a Polaroid camera and some film.

If that is too expensive, take the pictures on your phone!

19. DIY casino night

Is luck on your side? If you can’t quite afford to take a trip to Vegas for your birthday, a better way is to bring the casinos to you instead. 

You can buy roulette games online for less than you might expect. Invite your friends around for a casino-themed party, and don’t forget your costumes.

20. Cocktail-making at home

If you’re a fan of fancy cocktails, here’s one of the best 40th birthday party ideas on a budget. Why not host a cocktail-making session at home? 

There are two main choices here… You can make one cocktail or ask your friends and family to bring their own recipes and ingredients. 

If you throw a themed party, you might even want to have themed cocktails. It’s a fun activity that your party guests will enjoy. 

Tip: Make some mocktails for anyone who is pregnant or doesn’t drink! You need to cater to everyone’s needs. 

21. 40th birthday dinner party on a budget

There’s no shame in getting to 40 and preferring more of a traditional meal than a buffet. A small dinner party is a great chance to get together with your nearest and dearest to enjoy sumptuous food and fabulous company.

It still doesn’t need to be expensive, even if it does look fancy pants! You could have each dinner party guest bring a different course or perhaps invite them all to bring a bottle while you handle the food. If you love a bit of fizz, then Prosecco is a brilliant alternative to champagne.

Expert tip: When in doubt make a list of themes and activities

With a bit of creativity, throwing a birthday party without spending a ton of cash is easy! Simply think about what type of event you want and your interests, and then get creative with the planning to save money.

One of the best ideas for 40th birthday celebrations is to make a list if you don’t know where to start. Write down themes and activities you like, and see if something stands out. Then start planning your party from there.

Ideas to make a 40th birthday more affordable

When it comes to throwing a 40th birthday party on a budget, creativity is key. We promise you’ll have a fantastic time even if you only have a few dollars to spend. Here are a few tips for how to save money fast while still having an amazing birthday experience on your big day:

Have your 40th birthday party at your home instead of renting a space

One easy way to save money is to hold your 40th birthday party at your home instead of renting a venue. That way, you can control the food and drinks that are served, and you won’t have to pay for a location.

You can also decorate your home to match the theme of your party, which can add to the festive atmosphere.

Ask guests to bring food or drink to your 40th birthday party

When you’re wondering what to do for 40th birthday celebrations, hosting a party can be expensive, but there are ways of cutting the budget. One way is to ask guests to bring food or drink to the party. It saves you from buying everything yourself and can help keep costs down.

There are many different types of food and drinks that guests can bring, so everyone is sure to find something they like. Plus, it’s a great way for guests to get together and socialize.

Serve simple snacks and drinks rather than a full meal

Instead of serving full meals that take quite a bit of time and budget to make, you can instead set up a buffet table where your guests can help themselves to simple snacks.

It will help you to save money on food costs and make it easier for your guests to find something they like to eat.

Use decorations you already have around the house

One of the other creative ways to save money for your party is by using decorations you already have around the house.

For example, you can use tablecloths and tableware, ribbons, streamers, balloons, and posters to create a festive atmosphere. And don’t forget the confetti!

You can also make your own party decorations by using materials like cardboard, construction paper, and paint.

Provide your own 40th birthday party entertainment on a budget

Another fun way to save money on your birthday bash is by providing your own entertainment rather than paying for a band or other professional service. You could get a Bluetooth speaker and create your own music playlist for the party. You can also decide what games will be played, if any.

That way, you can have more control over the type of music or games that are played and who is involved. Plus, it’s a fun way to get everyone in on the celebration!

What items are needed for your 40th birthday party ideas on a budget?

The items needed for your party could differ depending on what type of party you’re hosting.

However, to ensure that your party goes smoothly, here are the most essential items and factors to consider during your party planning process.

A venue

Almost every party needs a venue. The perfect place to celebrate this momentous milestone is somewhere with plenty of space for guests to spread out and have fun.

It should also be private enough so that the guest of honor can enjoy their special day without interruption.

However, you can keep it budget-friendly by having your party at your home, a friend’s house, or a park if possible.

Food

A big part of planning what to do for 40th birthday celebrations is the food. For food, it’s customary to serve a mix of savory and sweet dishes. Finger foods are perfect for parties, as they can be eaten without utensils and don’t take up too much time or space on the table.

Last but not least, don’t forget your 40th birthday cake! Whether it’s shaped like the number 40, has 40 candles on top, or you serve 40 individual cupcakes instead of a multi-tiered centerpiece, it’s your call!

Drinks

Guests will also need drinks, so make sure there’s a variety of alcoholic and non-alcoholic options available. Also, don’t forget to prepare plenty of cups and wine glasses so you won’t have to worry about buying them last minute.

Music

Music is also important for a birthday party, as it sets the mood and helps guests get into the celebratory spirit.

The best way to make sure that you’re prepared is to make a Spotify playlist beforehand and also take into consideration the music taste of your guests or the theme of your party.

Decorations

Last but not least, decorations. To keep things cohesive, make sure that your party decor matches the theme of your party and makes the guests feel welcome and excited for a whole day of fun!

You can even search for decor inspirations on Pinterest to help you create amazing decoration ideas for your birthday. Remember to check places like the Dollar Store or Goodwill to save cash on decor!

How to save up money for a 40th birthday?

If you want to have a fun 40th birthday party but need to save up money, there are lots of ways to prepare, like a spending freeze. You can also try out a savings club or find other ways to save money on a tight budget. Even a side hustle or a couple of extra hours a week at work can help you throw the birthday party of your dreams!

What is a good menu for a 40th birthday party? 

A good menu for your 40th birthday party depends on your taste and the type of event you’re hosting.

For example, if you are going for a formal dinner, you might want to choose a classic, such as French or Italian food. Should you host a larger event, you may want to go for sharing dishes, such as charcuterie boards. 

Alternatively, you could make your event a potluck and have your friends and family each come with a special meal!

How do you throw a big birthday party on a small budget? 

To throw a big birthday party on a small budget, consider what you spend on. A large guest list can still be inexpensive when you’re mindful of the venue and food, which are two big costs.

Pick a free or inexpensive (but large) venue like a park or community center. Then, save by planning an inexpensive meal or asking guests to bring sides and desserts.

What makes a good 40th birthday party?

So long as you’re celebrating with the people who matter to you, you should have an amazing birthday bash. Remember, this is your event, so you make the rules.

You don’t have to go overboard if your budget is slim. There are plenty of ways to have fun, relax, and share in this milestone with your loved ones.

Articles related to inexpensive birthday ideas

If you enjoyed reading about 40th birthday ideas on a budget, you’ll love these articles:

• 18th Birthday Ideas On A Budget!
• Turning 40? Key Financial Steps To Take
• 22 Fun And Inexpensive Ideas For Days Out With The Girls
• 40 Fun Things To Do For Free With Friends

Try these 40th birthday party ideas on a budget and have a blast!

Hopefully, these 40th birthday party ideas on a budget have provided you with some inspiration for your upcoming birthday bash! Your birthday is a time to celebrate all that you have accomplished in life so far.

It’s also a time for looking ahead to the future, finding out how to plan for the year, and setting new yearly goals to have. And, of course, it’s a time for having fun with friends and family.

So make sure to have fun and enjoy this special day while also avoiding money leaks and overspending!

The post 40th Birthday Party Ideas On A Budget appeared first on Clever Girl Finance.

Budgeting isn’t just about making sure you have enough to pay the bills each month. It’s also about planning ahead for future expenses. While you should have an emergency fund, a smart way to save money each month is to set up different sinking funds categories.

Sinking funds allow you to put money aside each month for specific things.

In this article, you’ll learn about the different types of sinking fund categories. These can help you build out your budget and live debt-free.

Why do sinking funds categories matter?

According to PR Newswire, 80% of Americans have a budget.

But many don’t have enough money saved. In fact, YouGov claims that 12% of surveyed Americans said they have no savings, and 27% had less than $1,000 in savings. 

The purpose of a sinking fund is to save cash for specific expenses. That can include one-time or irregular expenses. The cash ideally should be broken up into categories.

For example, if you have a wedding coming up, instead of using your credit card, you can figure out how much you’ll need for related expenses. Divide that amount by the number of months until the event. Then aim to save that sum every month in your “wedding budget breakdown” fund. 

Setting up a few options from our sinking funds list may help you avoid spending money on the wrong priorities. You can focus on saving a specific amount for a specific purpose every month. 

One benefit of sinking funds is that you don’t have to pay for things all at once. Spreading out the cost can reduce the pain of major expenses and stop you from going into different types of debt. 

You set aside money from your paycheck each month (or whatever frequency you decide) toward a specific financial expense. That’s to ensure you don’t go over your budget when a big event, repair, or other expensive item comes up.

Rather, you’ll save the money slowly for upcoming expenses and save yourself from taking on long-term debt. The alternative for many people is paying by credit card, and high-interest rates then compound the amount you owe. 

Setting up a sinking fund with specific categories can help you take your budgeting skills to the next level. It forces you to itemize your monthly budget even further, rather than just dumping leftover cash into a savings account. Every saving goal can have its own sinking fund. 

You know you need to create sinking funds but are you clear on the sinking fund categories you need? Here’s a list to help you plan!

18 Sinking fund categories to review

There are many sinking funds categories to choose from. And you’ll probably think of a few more besides what we’re including here. 

They aren’t just for parties and can include recurring yearly expenses, emergency bills, car expenses, appliance updates, wedding expenses (which can be costly), and more.

Keep in mind that sinking funds are just one part of your overall budget. Your budget will likely have several different budget categories to help you plan your finances overall.

That said, here are some of the more common sinking funds categories that you could incorporate into your budget:

1. Transportation

One of the biggest expenses besides housing is transportation. Whether you own a car, take public transport, or use Uber on the weekends, it’s important to budget for your transport costs.

If you own a car, you can set up a sinking fund to pay for car expenses, maintenance, and unexpected car repairs. New tires or other replacements for your vehicle can set you back hundreds of dollars (at least). 

Your car sinking fund could include money intended for vehicle registration fees, parking permits, and car insurance. You might even set aside money to purchase a new-to-you car eventually (find out: what car should I buy?).

And for those who use public transport, you can set aside money for train or bus passes or ride-sharing apps.

2. Medical expenses

Another of the sinking funds categories to establish is medical expenses. Going to the doctor is expensive, especially during an emergency.

In fact, according to Affordable Health Insurance, over half of Americans surveyed have medical debt.

Even with good health care insurance, it’s important to set up either a medical Flexible Spending Account (see “What is a flexible spending account?) or a Health Savings Account (HSA). You can use it as a medical sinking fund so you don’t end up in debt due to medical expenses.

3. Christmas and the winter holidays

Christmas is a good example of sinking funds categories that come every year. Unfortunately, many people don’t prepare ahead of time, eating into their budget or savings to pay for the holidays.

No matter how much money you spend for Christmas, Hanukkah, or other major holidays, a sinking fund category for them can ease the pressure of that time of year. It’s a saving goal with a specific deadline each year. So you can follow a sinking fund savings plan all year long or use Christmas clubs. 

Determine how much you plan (or will be able) to spend for the holidays. Then divide that amount by 12 if you plan to save money every month. (If you start later than January, simply divide the amount of money by the number of months remaining.) 

Don’t forget about things like decorations, office gifts, Christmas dinners out, and travel expenses if you go to see family. Those can go above and beyond your general holiday gift budget. 

You may still encounter unexpected costs. But by setting up a sinking fund specifically for Christmas, you can incorporate Christmas on a budget into your monthly budget all year long.

4. Vacation

Another good example of sinking funds categories is vacations. Whether you hit the road every few months, plan a big annual trip or some other vacation pattern, planning is key. By budgeting for your time off months ahead of time, you can be even more prepared and avoid taking on debt. 

If you are planning a trip to Disney World on a budget or even Europe, it can be a big life event. And you probably don’t want to put it all on a credit card. 

Create a vacation budget and, as with many items for sinking fund ideas, divide the amount by the number of months until the trip. That will allow you to take your family vacation or girls’ trip without worrying about money, so you can truly disconnect and relax.

5. Childcare

Unfortunately, the average family spends about 27% of their household income on childcare, according to Care.com. (And 59% of parents said they expected to pay more than $18,000 per child in 2023!) 

The cost of childcare will be a factor if you’re a parent. So that’s another one of the categories you might consider. You can also include other costs of raising a child, like preschool fees (find out “how much does preschool cost?”), sports and activity registration, clothes, dental and eye care, summer camps, and more. 

While some childcare-related expenses are unexpected, like when your child has a sudden growth spurt, you can prepare ahead of time for many by setting up a sinking fund.

6. Braces

Not every child needs braces, but many do. Braces are very expensive, costing thousands of dollars.

You may spend even more if you have more than one child. So it’s worth it to add this expense as a financial goal.

If you have any children or are planning on starting a family, start saving early.

7. Utilities

It might not be the most exciting item of sinking funds categories, but utilities are a necessary expense that usually fluctuates throughout the year.

For example, if you live in an area with harsh winters, your electricity bill will likely be more expensive in the winter than in the summer. However, you can consider how to lower electric bill payments.

You can plan ahead for these moments by setting up a sinking fund in your budget. Figure out the average you paid last year and split it between 12 months. That way, you’ll already have the money in your account when your bills are more expensive.

(Some utility companies arrange this for you. They’ll estimate your total bills and divide up the estimated total equally among your monthly bills for the year. You can do this yourself within a sinking fund, though, if it’s not offered by your utility provider.)

8. Self-care

While a self care Sunday here and there doesn’t have to be expensive, if you like to get specific hair or spa treatments, then it might make sense to set up a self-care sinking fund. 

Massages, nail care, laser hair removal, and more are all expenses that can add up. So, incorporate your favorite ways of treating yourself into your budget by setting up a sinking fund.

When it’s not a necessary expense, it can make you feel better to save a little bit each week or month for that specific purpose. Then, you’re less likely to neglect those special treatments or activities due to money. 

9. Special occasions

Special occasions like a major anniversary or wedding might not happen every year, but when they do, they’re often expensive.

For example, retirement parties, bar mitzvahs, quinceaneras, or the average wedding cost might be tens of thousands of dollars. Depending on your family and societal expectations. Don’t feel that you have to blow your monthly budget to impress anyone, but do consider how you want to contribute to those big moments. 

You can start saving for these events several years in advance to help spread out the cost of these one-time expenses. (If you’re like me and have a lot of college-aged nieces and nephews, those graduations and potential weddings are future expenses to consider!)

10. Annual renewal expenses

Some bills are recurring expenses that happen every year, such as annual renewals.

For example, perhaps you have subscriptions to software or other memberships. Even if you pay them in a lump sum each year, you can make sure to have the money set aside each month to spread out the budget burden. 

Write in your calendar when the payments are made. Then, you can prepare well ahead of time for anything that is a recurring expense.

11. Clothing

Unless you’re doing a no new clothes challenge, you might want to make a sinking funds category for clothing. That can include general clothing, seasonal clothing like coats or shoes, or clothing for special occasions like weddings or work events.

While you likely won’t need to buy new clothes every month, setting money aside every month can help you be prepared whenever it’s time to replace worn-out clothing. That also goes for kids’ clothing. Since they outgrow items quickly, a sinking fund for their clothes is a good idea as well. 

12. Gifts

A birthday party or anniversary presents can show your loved ones you care. But they also can rack up bills and debt if you’re not careful. Plus, you may like to give gifts for other occasions like Valentine’s Day, Mother’s Day, Father’s Day, and other special occasions.  

Thankfully, this category is usually easy to save for. The amount of money you’ll need for gifts may be lower than for other sinking funds categories. 

However, this depends on the number of people in your life, so no matter what, a budget item for gifts can help. Sustainable Christmas gifts and experience gifts for kids are great options, but that doesn’t always mean they’re free!

13. Home maintenance

If you’re a homeowner, you will definitely need to do some maintenance eventually. Home maintenance is one of the best categories because it works like an emergency fund but for the specific purpose of your home. 

A sinking fund lets you plan ahead for inevitable home maintenance bills. Unexpected bills for plumbing, windows, garage doors, or even a sinking foundation (ask me about that one!) can put a dent in your finances. 

It’s typically suggested to save between 1- 4% of the value of your home each year for maintenance. With any luck, you won’t need to spend it every year. But the flip side is that some years, you might face multiple big home expenses at once. 

Making a sinking fund for specific home repairs you know you’ll need is smart planning. It’s also something to factor in when deciding, “Should I buy a house now?” as it’s another ongoing expense.

14. Home furnishings

Sinking funds categories may also include home decor like furniture or new appliances. A new couch or bed can be very expensive. Instead of wondering where the money will come from, plan ahead.

Setting aside a bit each month in advance is much less stressful and better for your credit score. This type of sinking fund is fantastic for homeowners to have because retailers put appliances and furnishings on sale at certain times of the year. 

By planning ahead as a homeowner, you can take advantage of sales and offers while respecting your budget. 

15. Charity

One of the sinking fund ideas you might not have considered is one for giving to others. Whether you give to a church, another charity, or both, you might want to have some cash saved for a good cause in a sinking fund account.

Even if you’re not currently giving to a charitable organization, a charity sinking fund can ensure that you have the funds if you come across an organization or cause you’d like to help out with. 

Some people save a certain amount of money each month in their “giving” or “charity” sinking fund. Then, any time during the year when a GoFundMe or other giving campaign occurs, you’ll have an account to draw from when sharing your generosity. 

16. Tuition

Some sinking fund categories can include education expenses like tuition. Education is expensive, especially for private schools. Once the person reaches college, the annual cost of attendance at a four-year school is over $26,000 for in-state colleges. 

Obviously, this is a massive expense to try to plan for. While student loans may be an option, and scholarships and part-time work can help, a sinking fund started years in advance will ease a lot of headaches. 

If you send your kids to private school or are saving for their college, then a sinking fund like a 529 college savings plan might make sense, rather than a traditional savings account. (Find out, “Is a 529 plan worth it?”)

17. Pet care

Your sinking funds list might include caring for your beloved pets. Our canine and feline companions may also need some care at some point in their lives, so this is another sinking fund example. 

Besides the obvious monthly food costs, you should also plan for yearly vet visits, vaccinations, and emergency veterinary care. While some people take out pet insurance, many prefer to incorporate the cost into their monthly budget by saving it instead. 

Having a sinking fund set up for your cat, dog, or other animal can help you care for them without added financial stress. Then, if your pet becomes sick or injured, it can be much easier to manage the added expense. 

18. Emergency fund

If you do not already have an emergency fund, you should definitely set one up.

In fact, you should start to fund this category before any of the others.

Emergency funds are types of sinking funds categories that can help you pay for any unexpected expense that you weren’t planning for.

In general, it’s recommended to have about three to six months of living expenses saved up. But you can save more or less depending on your personal circumstances. Some people, like freelancers, may prefer having a 12-month emergency fund in case of volatility in their field of work. 

You should only draw from your emergency fund when financial emergencies and costs come up that you didn’t know were coming. If you need new tires or brakes on your car, that’s an emergency. If you find out you are losing your job, use your emergency fund to pay essential bills while you look for a new one. 

19. Pregnancy or adoption

Growing your family can be super expensive, whether by pregnancy, fostering, or adoption. Even in the “ideal” circumstances, pregnancy comes with a lot of additional costs. 

If you’re at the stage of your life where you’re thinking of becoming a parent, it’s not a bad idea to begin saving for that specific purpose. A sinking fund for having a child can ease a big financial burden. 

Consider not only the medical costs that you’ll incur through pregnancy but also the cost of missing work for childbirth, even if you’re considering how to make money on maternity leave. Since U.S. employers aren’t required to pay you for family and medical leave, missing several months of work can be a hardship. 

There could also be complications with fertility, which aren’t always covered by health insurance. If you decide to pursue adoption, that also can be quite costly: private adoptions range from $30,000 to $60,000. 

20. Technology upgrades

You could include this in a more general sinking funds list as “life upgrades.” Still, since technology and electronics are so integral to modern life, you can make it a separate savings category. Whenever you need to replace a smartphone, laptop, e-reader, or other tech device, you might use a sinking fund to do so. 

In particular, remember this if you rely on certain electronic devices for your job. If you are working from home or work remotely, your job almost certainly requires a reliable computer and related devices, so be ready to replace those things regularly. 

21. Fun and entertainment

Here’s one of the more fun ideas: a literal “fun” fund. You can save in an account just for things in the entertainment realm that you know you’d enjoy. You might not know exactly what event will come up, but by saving even a couple hundred dollars for it, you can be ready when something exciting is available. 

Is your favorite band from your youth going on a once-in-a-lifetime reunion tour? You could use your sinking fund to purchase tickets. It enables you to enjoy this opportunity rather than pass it up. 

Expert tip: Use sinking funds to see your savings progress

Sinking funds are an excellent way to plan ahead for costs that you know are coming up in the future. By separating your savings into individual accounts, you can gain an accurate picture of your progress toward each savings goal. 

Although budgeting in general is awesome for planning and tracking your expenses, sinking funds can provide you with specific savings guidance. You can make as many sinking funds as you wish, depending on what makes sense for your current phase of life. 

Figure out a savings target for each one and contribute something toward that saving goal on a regular basis. Seeing that balance increase each week or month in your separate savings accounts can help you anticipate the accomplishment of reaching the amount of money you need. 

What is the best way to organize sinking funds?

It’s a good idea to organize and stash the money for all your sinking fund ideas in a high-yield savings account or interest bearing account. That way, the money is easy to access and will earn interest as it sits in the account. 

Keep an eye on the balance in each sinking fund. You might set up automatic deposits from your paycheck and then start tracking savings growth monthly. Your bank may even offer an easy way to organize sinking funds within a single savings account, so be sure to check whether that’s an option. 

How much should I put in my sinking fund?

The best way to determine how much to put into a sinking fund is to decide on the total amount of money you’d like to see in the account. It may be several hundreds or thousands of dollars, depending on the type of sinking funds category. 

If you have several months to reach your saving goal, you can divide the total by the number of months to figure out how much to save monthly. This tactic works for many categories, from vacations to events to holidays.

For others, like home maintenance or the “next new car” sinking fund, you might simply settle on a dollar amount each month until you actually need the money. 

What are the sinking fund expense categories?

Basically, sinking fund expense categories are expenses that you can plan for. They’re typically not emergencies, but that doesn’t mean they’re unimportant. And they can help you to “save money live better“!

Things like annual recurring expenses, one-time occasions like weddings or vacations, and replacements of things that wear out (cars, furniture) are great options. 

What number of sinking funds should I have at one time?

There isn’t a fixed number of sinking funds to recommend because it’s a personal finance decision. You get to decide how many sinking funds would be helpful for you. 

The key to the “right” number of sinking funds is, what can you handle? If you had a dozen sinking funds, that might be an awful lot to keep track of. For some people, three to five sinking funds may be the sweet spot. 

Another option, if you have too many things on your list, is to create one large sinking fund for everything. It doesn’t help as much in terms of visualizing your progress toward a saving goal.

However, it may be better to have one sinking fund to dip into instead of stressing about organizing 15 different sinking fund ideas at once!

Articles related to saving money for specific things

If you learned more about the various savings categories and want to find out more information, check out these articles next!

• Sinking Funds: Why You Need Them. How To Set Up Yours!
• How To Use Budget Categories
• Building An Emergency Fund: A Quick Guide
• Are You Financially Fit? 6 Ways to Tell—And What To Do If You Aren’t

Sinking fund categories can help you prepare for the future!

Having a few sinking funds categories can help you manage your finances and ensure you remain debt-free.

You can save your sinking funds in a high-yield savings account, a checking account, or whatever you prefer. The main thing is that you make the calculations in advance for how much things will cost and then save accordingly.

Depending on your needs and lifestyle, you can set up a sinking fund for just about any major expense that you can reasonably anticipate. Pet care, vacations, college funds, self-care, and gift-giving are just some items that might fall on your sinking funds list. 

To take this a step further, learn more about handling money with our articles about budgeting best practices and money mindset.

The post 21 Sinking Fund Categories to Consider In Your Budget appeared first on Clever Girl Finance.

Often, living on one income requires you to get creative with your budgeting and learn to prioritize your needs over your wants. However, it can also help you find joy in the simple (and free) things in life. Check out these 15 tips to help you live well on one income.

There are a lot of different people who can benefit from learning how to live on one income.

For example, you may be looking for financial advice for single ladies, or you may need ideas on how to survive financially as a single mom. Or perhaps you’re in a partnership where you made a conscious decision to have one parent stay at home to care for the children.

You may even be in a partnership where one of you is experiencing losing your job or difficulty finding employment.

No matter your lifestyle and no matter how many paychecks you bring home, you can find a way to live a happy, fulfilling life—without breaking the bank.

From practical budgeting best practices to money mindset shifts, here’s a look at how to live on one income.

15 Tips for success when living on one income

If you’re living off one income, you know how difficult it can be to pay the bills. But don’t worry, you’re not alone!

With these 15 practical steps, you can learn how to stretch your income.

1. Build a sustainable budget for your single income

When you have only one source of income, you need to be more intentional and strategic with your spending, as there may be less margin for error.

And it all starts with building a sustainable budget.

Here’s an overview of better budgeting when living off one income:

Calculate your average monthly income

First, add up your income over the past three months. Then, divide this number by three to get your average monthly income.

Calculate your average monthly spending

Similarly, you can figure out your average monthly spending with a quick equation. Just add up your spending over the past three months and then divide by three.

Get to know your monthly expenses

The first step in minimizing your monthly expenses is identifying your monthly expenses. After all, as the old saying goes, You don’t know what you don’t know!

Start learning your monthly expenses list by organizing your spending into different categories, like savings, fixed expenses (such as rent), and discretionary spending (such as nights out).

Compare your monthly spending to your income each month

The cold, hard numbers don’t lie. Once you’ve determined your average monthly income and your average monthly spending, you can see whether or not your current budget is working for you.

Pro tip: If your monthly spending is equal to or greater than your income, it’s likely time to reevaluate your monthly budget.

Adjust your budget as needed

Are you spending more than you’re making each month? Don’t get caught up in a spiral of shaming or blaming yourself.

Instead, take action to change your spending habits now.

You can start by learning more about how to navigate money spending problems. It’s also a good idea to create new habits for how to spend money wisely.

Remember that a sustainable budget for a one-income household looks a little different for everyone, so avoid the comparison game by focusing on what’s right for you and your income.

Track your budget every month

If it helps, you can consider your budget a living, breathing being. In other words, you want to keep track of your spending every month (or even every week) to ensure you stay on track with your spending and saving goals.

One way to help you keep track of your spending is by starting a spending journal where you record and reflect on every penny you spend. Building a budget can be challenging, but by staying positive and motivated, you can achieve your financial goals.

2. Cut back on expenses

Don’t beat yourself up if you’re spending more than you earn.

There are many ways to embrace extreme frugal living to spend less on expenses and stretch your dollars further.

For example, to cut back on expenses, you can:

• Cancel subscriptions you no longer use
• Shop store brands instead of name brands
• Eat out only once or twice a month
• Embrace couponing
• Suggest free activities when you hang out with friends, like going for a walk or having a movie night at home
• Negotiate with your phone, internet, and cable provider for a lower rate

With a little effort and some smart strategies, you can cut back on your expenses and make your single-income household budget work for you.

3. Build an emergency savings fund

Building an emergency fund is vital for achieving financial stability, especially when you have a single-income household.

Here’s a step-by-step guide on how to get started:

Set a savings goal

Creating a clear savings goal is the first step toward building a robust financial foundation. After all, it’s much easier to work towards a clearly defined goal than a rough idea.

Best practices for emergency funds suggest saving at least three to six months of living expenses.

So, to determine your savings goal, you can simply multiply your monthly expenses by three, four, five, or six. For example, if your monthly expenses are $3,000, your savings goal should be between $9,000 and $18,000.

It’s also a good idea to consider your lifestyle and job stability when calculating your goals.

For instance, if you have a stable, relatively secure job, then you may feel comfortable saving just three months’ worth of expenses. Conversely, if your income fluctuates month to month, you may choose to save up to six month’s worth of expenses for greater peace of mind.

Start small

To build your fund, begin by setting aside a modest amount of cash each paycheck or month. Remember that every little bit is important, even if it’s just $20 or $50.

By adding to your savings accounts slowly but surely, you can confidently grow your emergency fund over time. Plus, starting small allows you to ease into the process and adjust your budget as needed without feeling overwhelmed.

A good rule of thumb for saving is to follow the 10% rule, where you save 10% of your monthly income. Then, as you get more comfortable with saving, you can slowly increase the amount you set aside each month.

Make saving automatic

One of the easiest ways to grow your emergency fund stress-free is to make it automatic. Automating your savings means setting up automatic transfers to send money from your checking account to your fund every month, twice a month, or however often you want. The best part is that automatic transfers are completely hands-free, so you don’t have to worry about “forgetting” to save.

Importantly, by sending money to your savings whenever you receive paychecks, you’re establishing a habit of saving that can serve you for the rest of your life.

Keep your savings separate

Keeping your emergency fund completely separate from your regular savings or checking account is a crucial step in ensuring that the money is only used for emergencies.

By having a separate account, you’ll be less likely to use your emergency fund for non-emergencies, such as impulse purchases or vacations.

Additionally, having a separate account can help you track your progress toward your savings goal and make it simpler to manage your finances overall.

An emergency fund may also help reduce stress in emergency situations, as you’ll be able to protect your peace knowing you have a designated fund to rely on.

4. Factor in debt

Debt can be a burden, especially if you’re living on one income.

But with a solid plan and discipline, you can tackle your debt and take control of your finances.

The first step is to factor your debt payments into your budget. This means allocating money from your monthly income to pay at least your minimum payments—on time. Above all, make sure you prioritize your debt payments over non-essential expenses.

Another helpful strategy is to look for ways to reduce your debt.

Reducing debt could include learning how to negotiate credit card debt with creditors for lower interest rates or setting up a debt repayment plan, such as the debt snowball worksheet method.

It may be a long journey, but every payment brings you one step closer to financial freedom and that glorious, living debt free feeling.

To help you stay disciplined, motivated, and consistent in your debt repayment plan, check out these inspirational debt free quotes.

5. Maximize your income-earning potential

While it can certainly take time to navigate the job market and find ways to increase your income, remember that it’s not impossible.

Here are several tips to help you create multiple sources of income:

Invest in yourself

Learning how to invest in yourself by taking some courses or obtaining certifications is a great way to enhance your skills and increase your value as an employee.

By staying current with new technologies and industry trends, you will be better equipped to handle challenges and develop new ideas. An investment like this can lead to greater opportunities for career advancement and increased income.

Negotiate your salary

When starting a new job or during performance reviews, it’s important to negotiate your salary and benefits package to ensure that you are being fairly compensated for your skills and experience.

Be bold, and don’t be afraid to ask for a higher wage or additional benefits such as flexible working hours or increased vacation time.

Do your research and come prepared with specific examples of your contributions to the company. Remember, negotiating your salary is not just about earning more money but also about ensuring that you are being valued and respected for the work you do.

If you want to increase your income without changing your job, you can also learn how to ask for a raise.

Start a side hustle

Exploring different side hustles for women can be a smart way to earn more money and develop new skills outside of your full-time job.

Whether it’s freelancing in your area of expertise or starting a side business based on a passion or interest, these opportunities can provide additional income streams and potentially lead to new career opportunities.

However, be sure to carefully consider the time commitment of your potential side hustle before getting started. That way, you can make a plan to effectively balance your new project alongside your full-time job so you can avoid burnout.

Finally, it’s also important to ensure that any side hustle does not conflict with your employment contract or company policies.

Grow your professional network

Love it or hate it, networking is an important aspect of career development that involves making connections within your industry and building relationships with like-minded professionals.

By attending networking events and joining industry groups or associations, you can meet new people and learn about potential job opportunities or clients that may benefit your career growth. It’s important to be genuine in your interactions and show interest in others’ work to build trust and rapport.

If you can’t attend these groups or events in person, you can also find ways to network online if meeting in person isn’t possible.

To help you get started, check out these networking tips for a career boost.

6. Seek out free resources and services

There are plenty of resources and services out there that can help you save money and stretch your budget while living on one income.

One excellent option is to look for free community resources.

For example, consider heading to the library to check out books or magazines instead of paying for online subscriptions or going to the bookstore. You can also propose a clothes swap with friends instead of cashing out at the store.

And remember, for financial help, there are plenty of free online resources for budgeting, saving, and investing.

Another way to save money is to explore government programs that can assist with healthcare and housing.

However, be aware that some of these programs have income thresholds, so check if you’re eligible.

Finally, ask for help from friends and family if you need to. You’d be surprised how many people are willing to lend a hand or offer support during tough times.

7. Plan for unexpected expenses

Facing unexpected expenses is never fun—and it can feel even more stressful when you’re living off a single income.

The best thing you can do to help ease the burden of unexpected expenses is prepare, prepare, prepare!

Check your insurance

Sure, making regular insurance payments is never fun. But you’ll be happy if you have the right coverage in place in the event of an emergency!

To help safeguard yourself against financial emergencies, be sure you purchase the correct types of insurance coverage for your lifestyle, such as:

• Health
• Home
• Renter’s
• Car
• Life
• Pet

Take preventative measures

Remember: It’s almost always cheaper (and often easier) to maintain and care for your belongings than replace them.

For example, you can care for your car and help prevent future expensive repairs by regularly changing your oil. Similarly, you can help avoid expensive damage to your home by doing routine chores like cleaning your gutters.

These projects may not be fun, but they sure beat paying a hefty, unexpected bill!

Of course, surprise expenses are a part of life, but with some planning and preparation, you can minimize their impact on your budget.

8. Create a financial plan

If you’re trying to live on one income, having enough money can be a challenge sometimes. But creating a solid financial planning process and sticking to it can make a world of difference.

Start by setting clear financial goals, and then make a plan for how to achieve them.

Remember, it’s all about finding a balance that works for you and your family.

9. Prioritize needs over wants

If you really need to trim the fat from your monthly budget, it’s important to prioritize your needs vs wants.

Understandably, it can be tempting to splurge on things that make you happy at the moment, like ordering take-out or buying a new pair of shoes. But if you’re committed to long-term financial wellness, then you’ll likely need to take a more disciplined approach to your spending.

Take the time to evaluate your expenses and distinguish between what you truly need and what you simply want. Doing so will help you make more mindful spending decisions and prevent overspending.

And remember, it’s okay to treat yourself occasionally. (And there are plenty of budget-friendly ways to treat yourself, too!) Still, when it comes to budgeting and living on one income, needs should always come first.

10. Find affordable ways to enjoy leisure time

It’s easy to feel like you can’t do anything fun without breaking the bank, but that’s not true!

Truly, you can find many ways to save your pennies while still relaxing, having fun, and spending time with friends.

For example, you can go for a walk in the park, have a picnic with your family, or visit a local museum or art gallery. You can also look for free events or classes in your community or get creative with DIY projects at home.

The key is to prioritize self-care and socialization without sacrificing your financial goals.

Need some inspiration? Discover 40 fun things to do for free with friends.

11. Stay motivated and focused on financial goals

When you’re dutifully saving every month, making your debt payments, and staying away from fancy restaurants and expensive stores, it can be all too easy to lose your motivation to save.

To stay inspired and focused, it’s important to remember why you set financial goals for yourself in the first place. You may hear this referred to as “find your why.“

You can also check in with yourself regularly and reflect on how you feel about your financial situation by money journaling.

Above all, don’t be discouraged if you experience setbacks. We all overspend sometimes.

12. Communicate openly with your partner

If you are in a relationship where you share one income, it’s important to remember that you and your partner are a team.

And it may seem obvious, but it can’t be overstated: Communication is vital.

If you haven’t already, sit down with your partner and have a real talk about money. By openly discussing financial goals, concerns, and budgeting for couples, you can be sure you and your partner are on the same page so you can make informed decisions together.

13. Stay flexible and adjust your plan when needed

Life can be unpredictable. Sometimes, no matter how much you budget and plan, unexpected expenses still come your way. That’s why it’s crucial to stay flexible and be ready to adjust your budget and financial plans when needed.

For instance, your income may change, you may decide to start saving for a house, or you may be expecting a child and need to create a baby budget. Whatever the case may be, remember—your money is supposed to work for you, not against you.

That means your budget should change and evolve throughout your life as you do.

There are plenty of different budgeting methods you can try, so don’t be afraid of changing your financial plan as you grow.

14. Teach your kids to embrace frugal living

Trying to figure out how to live on one income is particularly challenging if you are also raising a family. But there are ways to stretch your family’s income with frugal living tips.

For example, to make your family’s income work for everyone (from you to your partner to your kids), you can organize budget-friendly family night ideas, look for ways to save with your back to school shopping list, and figure out some at home date night ideas for you and your partner.

This is also a great time to start teaching your kids about money so they can learn financial literacy from a young age.

15. Learn to meal prep

It may sound silly, but changing up your eating and cooking habits can go a long way in helping you save money.

For example, when you create a monthly meal planner, you’ll know exactly what you need at the grocery store weekly. This helps keep you focused so you don’t randomly fill up your cart with food items you don’t need.

Plus, learning budget meal planning just makes cooking easier. In turn, this translates to fewer nights where you call in expensive take-out because you don’t know what to cook for dinner.

Get started meal prepping right now by picking next week’s meals from this list of 25 of the cheapest meals.

Expert tip: Make it easier to live on one income by hitting unsubscribe

A tip like this won’t make you extra money—but it sure can help you save. First, unsubscribe from all subscriptions that you don’t use, even those $5 subscriptions that you don’t think are a big deal. After all, $5 every month adds up!

Next, head to your email inbox and unsubscribe from as many marketing emails as you can. The fewer advertisements, sales, and coupon codes you see, the less you’ll be tempted to click “Add to cart”.

Try it—you may be surprised by how much smaller your credit card bill is at the end of the month.

How can I afford a home on a single income?

To afford a home on a single income and to prepare for first-time home ownership, the preliminary steps include determining what you can afford, building your credit score and saving for a down payment. Importantly, you must also know what you can afford so you don’t end up house poor.

If you are living on one income, you can also research relevant government programs to help you more easily afford a home.

How can you afford life on one income?

Knowing how to afford life on one income can be challenging, so the best thing you can do is to learn to live frugally. In the future, you can also take steps to increase your income, for instance, by building passive income streams.

Remember to be aware of your budget and your financial goals at all times so you don’t spend unnecessarily.

Why is it hard to live on one income?

It is hard to live on one income because it basically means you have to support multiple people without getting multiple paychecks. This can be especially challenging if you have kids or lots of debt.

Whether you’re supporting just yourself, a partner, or an entire family, you can help ease the burden of living on one income by creating a budget that fits your lifestyle and cutting the budget if necessary.

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If you enjoyed learning how to make the most of living life with one income, read these posts next:

• How To Plan Your Finances If You’re Getting Paid Monthly
• Budget Not Working? Here Are 5 Tips For Better Budgeting!
• 33 Creative Ways To Save Money Right Now
• Living Beyond Your Means? Here Are 10 Signs

Living on one income will require consistency and dedication, but you can do it!

Living off one income can be challenging, but it is achievable with careful planning, prioritization, and flexibility.

By taking these steps, you can reach financial stability, reduce stress, and focus on what truly matters. Don’t be afraid to seek resources and support along the way, and remember that small steps can lead to big changes.

The post 15 Key Tips For Living On One Income appeared first on Clever Girl Finance.

Love it or hate it, if you want to be financially successful, you need to budget your money and success with budgeting means understanding budget categories. Knowing about the different kinds of things you might spend money on can help you figure out which ones apply to you and your financial situation. So, let’s talk about the various categories that you might need, including a budget categories list!

Sometimes, the easiest way to decide on budget categories for yourself is to see a big list and then choose the ones that apply to you. You may not need every category, and that’s okay. It’s all about which items you need to include in your personal budget.

4 Main budget categories and sub-category lists

Below is a list of 4 main expense categories for a budget as well as a list of sub categories for each one. I also elaborate on the importance of each category and how to clearly layout your sub categories:

1. Finances for your future self

Your financial future is affected by what you do now. And so it’s important to have a category in your budget that caters to our future self. This group of categories includes:

• Retirement account contributions e.g. 401k/403b/IRA
• Non-retirement investing (e.g. index fund investing)
• Health savings account (HSA)
• Emergency fund
• Credit card payoff
• Student loan payoff
• Other loan payoff

Why having a plan for your future self is important

Ever heard the words “pay yourself first“? It should be a consistent part of any plan you make. Because of this, the “finances for your future self” category is all about thinking ahead.

But what does pay yourself first mean? Before you pay any bills or do any shopping, a portion of your earnings should be diverted into your retirement account, if possible, for your future self and your emergency savings accounts for a rainy day.

Time goes by so quickly, and planning for the future version of you will ensure that you can enjoy your retirement and not have to depend on the government or your children to take care of you. 40% of elderly Americans are dependent on social security during retirement, according to the National Institute on Retirement Security, so it’s important to save for the future now.

Having an emergency fund, or even a rainy day fund, will also provide you with a buffer in the event of an unexpected cost so that you can rely on your emergency savings instead of a credit card or other debt.

Almost 50% of Americans want to focus on saving for emergencies, according to Nerd Wallet. So it’s incredibly important to add this to your budget in case anything unexpected comes up that you need to pay for.

Also included in this group of categories is the money to pay off any debt you have (e.g., your credit card debt, car loan, personal loans, student loans, etc.) because it is essential that you pay off your debt as soon as you can so you can focus on building wealth. It may not seem this way, but debt payoff is actually future-focused because it will offer you more security and money later.

2. Essentials

Your essentials are items that can’t be taken out of your budget or put off for a later time. They are things you need to pay for in order to have a good quality of life, so they should be one of the first things on your budget categories list. Your essentials category would include:

• Mortgage payments or rent
• Utilities (e.g water, electricity, internet)
• Groceries and food budget
• Transportation costs and/or car payments
• Renters insurance
• Homeowners insurance
• Property taxes
• Health insurance
• Auto insurance
• Life insurance (e.g. Term or Whole life insurance)
• Disability insurance
• Dental care
• Childcare costs
• Pet food
• Necessary personal care items

Getting really clear on what your essentials are

As mentioned, your essential are the things you need to live your life. However, this category does not include money for shopping or getting your nails done — those are not essentials.

Instead, essentials focus on the categories that you need to get by. Meaning your basics such as rent money and any housing cost categories, transportation, insurance, and food.

Your essentials are your non-negotiable costs, and they should be one of the first things you take care of when you get a paycheck.

3. Life goals

Your life goals include things like saving for the future outside of retirement and other things that you may want to pay for to enhance your life.

Although not as essential as a car payment or groceries, “life goals” is a really important expense categories to have in your budget.

• Tuition savings for a child’s college education
• Certifications or training to help with your career aspirations
• Savings to start a business
• Savings to move to a new city or country
• Home down payment
• Home repairs and projects
• Donations to charities you believe in

Defining your life goals

Your life goals might include things like your midterm savings and investments for the next 10 to 15 years, business savings, saving for a home purchase, saving money for college, and so on.

I recommend creating separate accounts to save for each of your different life goals. I personally have automated deposits set up for different goals, and it’s helped me stay on top of my savings!

4. Everything else

Anything that isn’t essential and isn’t saving for a specific goal is considered unnecessary. But this category is usually the most fun, and it makes life more enjoyable!

• Entertainment e.g. concert tickets, movies, etc.
• Gym membership
• Eating out e.g. fast food, coffee shops, and restaurants
• Vacations
• Gifts e.g. for extended family and friends, weddings, anniversaries, or birthdays
• Cable subscriptions or cable alternatives
• Streaming services e.g. Netflix, Hulu, Amazon Prime
• Hobbies e.g. gardening, crafting
• Self care e.g. getting your nails done, going to the spa for a massage, etc.

Everything else should include fun money

The “everything else” category is your splurge money. It’s the money you would spend shopping or saving for a wish list item, traveling, entertaining yourself, and whatever else it is that you would typically do as a part of enjoying the life you have.

Having a category like this matters because you want to be able to enjoy your money sometimes, even as you pay your bills and work towards your goals. So it can boost your morale and allow you to reward yourself for working hard.

You might include things like going to the movies, dinners out, birthday gifts for friends, and other items in this category.

Using percentages for your budget categories

Once you are clear on your list of budget categories and sub-categories. It’s a good ideas to assign each category a percentage. You likely won’t be spending the same amount on each category. Some categories will require more of your income than others.

However, knowing approximately what percent of your income should be assigned to each category is a big part of organized finances and can help you with improving your spending habits.

For each of the 4 main categories mentioned above, below is a general guideline of how your money can be allocated. However, based on your individual expenses and goals, the percentages may look a bit different for you.

• Finances for your future self: At least 20%
• Essentials: 50%
• Life goals: 15%
• Everything else: 15%

Keep in mind that you can adjust these budget category percentages according to your goals and timelines. Remember, your budget is your blueprint for how to manage your money so you can build wealth, and it should work well for you personally. Be sure to check out our example of a budget.

Expert tip: It’s ok if your budget categories change

Choosing budget categories is not a one-time process. Budgets are ever-evolving and might need to change to meet your current needs.

Although you will probably always need to include the four main budgeting categories, you may find that you may need to adjust or change the sub-categories.

So make it a habit to continue to check in with your expenses, goals, and list of budget categories to make sure your spending reflects them.

How do you plan your budget categories if you are focused on paying off debt?

If you are focused on paying off debt, you should plan to pay as much as you can towards your debt each month rather than the minimum payment. And so paying off debt might mean lowering the amounts you contribute to your different budget categories.

For example, you might need to spend less on things like entertainment or vacations and instead reallocate the difference to paying off your debt as fast as possible.

Like with everything money-related, sticking to your plan requires discipline. If you struggle with your plan initially, having an accountability partner is a great idea!

Reach out to a friend for support. We all need a cheerleader sometimes.

How many categories should I have for a budget?

The number of categories you choose for your budget depends on your expenses, goals, and splurges. That said, it’s a good idea to have categories for:

• Long-term savings goals for your future self and debt repayment
• Your essentials and needs
• Other life goals,
• Non-essentials like travel, splurges or fun money

You can then break these main categories into smaller sub-categories. Although there is no perfect number of categories, it’s a good idea to start with these four main categories at the very least.

What are the four main categories in a budget?

The four main category groups in a budget are finances for your future self, essentials, life goals, and everything else. You may choose to call each of them by different names e.g. “retirement and savings,” or “discretionary spending” but the main idea for each category is the same.

You will likely need all four of these categories to create a balanced budget, though your sub-categories under each of the main categories you choose will vary depending on your expenses and even your goals and lifestyle. For instance under your main category, “Finances for your future self” you might have sub-categories for your 401k/IRA, emergency savings, and student loans payoff.

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If you liked this article about budgeting with budget categories, check out these other great articles:

• 20 Cash Envelope Categories For Your Cash Budget
• The 50-30-20 Rule: How It Works + A 50 30 20 Budget Template
• How Does The 30-30-30-10 Budget Work?
• How To Create A Family Budget That Works For Your Family

Leverage these expense categories in your budget today!

Like any art, budgeting takes time to master. Additionally, part of budgeting well is defining your budget categories. Knowing what category something belongs in can help you decide if you save for it or purchase it now or later.

Budgeting can be difficult, but categories can help! If you need hands-on budget counseling, that’s okay, too. The most important thing is to start and just keep going even when it gets tough, knowing that making a plan is going to help your finances.

The post How To Use Budget Categories appeared first on Clever Girl Finance.

Whether you’re working for yourself or have an irregular job schedule, budgeting on an irregular income can be tough. You still have to pay your bills, but you aren’t always sure how much money you’ll have. But creating a budget for this type of income is easy to learn!

Perhaps you would like someone to describe irregular income and give examples. According to American Progress, there are millions of Americans who are self-employed. If this is you, or you work as a freelancer or a contractor, your income is dependent on how much work you do, which makes your income irregular.

And sometimes the work you’re doing now won’t pay for another 30 to 45 days!

If you work in the service industry or another hourly job with a rotating schedule, your hours and income can vary from week to week.

Similarly, if you have a sales job where you earn a commission, it can be hard to determine what your actual income will look like at the end of each month. Entrepreneurs and people who work in the gig economy may also face irregular income challenges.

So how do you budget when you don’t have steady paychecks? It may seem that budgeting with a fluctuating income is impossible. But there is a way to best approach your finances that will allow you to be successful with managing your money and give you peace of mind.

Budgeting when you have an irregular income

A budget is a plan for your money. When you have a predictable monthly income, creating a budget with budget categories that work for you is a little more straightforward (though it still has its challenges).

When your income varies, making a plan for your money can be more work, but it can be done. Here are five tips to help you create a successful budget on an income that changes.

1. Create your baseline budget

You can also call this your bare bones budget. The total amount of these expenses is the minimum amount of money you’d need to earn each month.

The expenses include necessities like your rent/mortgage payment, utilities, food, and car payment. It does not include going out to eat, shopping, or entertainment — remember, it’s the bare minimum amount of money that you need to get by.

For some of these, you’ll know exactly how much you’ll be spending every month (e.g., rent/mortgage). For others, you may have to do some digging to figure out how much you should expect to spend.

By doing this, you’ll be able to determine how much you need to have coming in at the very minimum. Additionally, if you earn more than your baseline expenses you can put the extra money aside for any lower income months you might experience.

Budgeting tools and strategies

You can use a number of the best budget templates and tools to categorize past expenses and determine how much you’re spending every month.

Additionally, you can use expense tracker apps to figure out how much you’ve been spending. Then you can use those numbers in your baseline budget for the current month. But you can also use a simple spreadsheet or a spending journal that helps you keep track of your money.

Once you know how much you’re spending, put all the information into a monthly budgeting strategy that lists all your necessities and their costs. Add up the total, and you have the amount you need to get by each month.

You may choose a budgeting app or simply write your budget down. Just make sure you know your numbers and you choose a method that works well for you.

Pro tip: A calendar can also be very helpful to remind you when specific bills need to be paid.

2. Prioritize your essential and non-essential expenses

Your expenses need to be listed in order of importance so you know what to pay first. For instance:

Essential spending

All of your essential expenses should come first with an irregular income, but you can prioritize them. Prioritizing means determining what bills need to be paid first, second, third, etc.

For instance, housing, food, and transportation could be items 1, 2, and 3 on your list. Having this priority in place ensures that you are properly allocating your money to your top budget items first when you get your paycheck. 

It’s also important to note that your emergency fund and any other savings are essentials that should also be taken care of before discretionary spending.

Discretionary spending

Once you create your baseline budget with your necessary expenses, you can add to the list your non-essential expenses or discretionary spending. Things like eating at restaurants, going to the movies, and gym memberships are considered non-essential spending habits.

Prioritize your discretionary spending in order of importance for times when you have extra cash.

Doing this may involve making some difficult decisions and cutting things that you can’t currently afford to avoid overspending.

For instance, going out to eat or that Netflix subscription. While you’re figuring out your budget, it’s important to remain focused on your goals and learn how to stop spending money on non-necessities.

3. Save for future months during the months you earn more

Having an irregular income means you’ll have good and not-so-good months. You can hope that your income will increase over time, but that’s not always the case. Lots of things, like seasons, can factor into how much you’ll be making.

Have a specific account to draw money from when needed

If you happen to earn excess money in a certain month, pay for your most important expenses first (as discussed above). This includes all your necessary expenses and saving goals.

Then, whenever you have a month that you make more money, add some extra funds to a separate account.

These savings will help you in future months in the event that your income declines again. Or if you have unplanned life circumstances that require you to spend a lot of money at once. Saving can help you cover your expenses during those months without having to leverage credit cards, leading to debt stress.

Sinking funds

It’s also a good idea to establish sinking funds. A fund like this is specifically for large upcoming expenses that you know you’ll need to pay for.

You should contribute to this as often as possible. That way, you will have the money you need when the time comes to pay annual expenses or one-time costs.

To find out how much to save, consider all of your upcoming expenses. Both those that are recurring and those that will only happen once.

You can add up the cost of all of them and then divide that amount by several months or divide it up through the whole year.

4. Earn extra income

If you find that your earned income doesn’t pay for as much as you would like it to, there is another option: earn more!

Ideally, your irregular income provides for your living expenses. But if you want more discretionary or saving money, try some of these ideas:

Side hustle

You might try starting your own business or easy side hustles in order to earn more. It can be something that you do in addition to your full-time job that doesn’t take up too much time. The great thing about this is you can potentially earn as much as you want!

A side hustle could be walking dogs, cleaning houses, taking on freelance writing jobs, etc. Anything that you have the talent or time to do.

Second job

Side hustles don’t work for everyone. So you can always take on a part-time job in addition to your regular one. Work weekends, evenings, or whatever schedule works for you.

You may be able to take on a job where you’re already familiar with the work, or you can branch out and try something entirely new.

But is working two jobs worth it? Make sure you have the time for this before taking on another job.

5. Define your money goals

Even though your income varies, it doesn’t mean that you shouldn’t plan for the future! Come up with a couple of money goals, then consider how much you want to save.

Even if it takes a while, getting started with your goals will help you to build momentum and know that you are moving in a positive direction with your money. 

Including saving for your goals before discretionary spending in your budget is also a good way to make sure that you make progress.

Here are some examples:

Prepare for retirement

There are quite a few ways to do this, from a 401k if you have the option to IRAs or regular investing. While retirement planning can seem overwhelming, it’s actually not too difficult to get started.

Try using a retirement calculator to find out how much you should save each month and year, and then start contributing now!

Plan your vacations

Just because you have an income that varies doesn’t mean there’s no room in the budget for fun! If you love to travel, start planning a vacation to somewhere you’ve always wanted to go.

Be sure to total up the cost of the trip in a vacation budget and then set aside money with each paycheck or whenever possible.

Save up for education

If you are saving for your kid’s college education, or you plan to go back to school yourself, start saving up money and learn how to avoid student loans.

You may also wish to save for a professional goal. For instance, taking classes or gaining certifications in your career, may cost money and/or time.

Determine what time frame you’re working with (how many years until you need to use the money), as well as the full cost of the education. Then you can make a plan for your savings.

Expert tip: Determine how best to manage your irregular income

Although some people can work easily with an irregular income and don’t struggle with the paycheck uncertainty, you may find that it isn’t for you. If you find that even with a budget you feel concerned about your finances, it may be time to look for alternative solutions.

While having a varying income is completely fine, it’s totally okay to change this if you would feel more financially secure with a more stable amount of money each month. Look for a career that will allow for a steady paycheck, and continue with your budget and financial goals.

What is an irregular income with an example?

An irregular income is simply one that doesn’t pay the same every paycheck.

For instance, you might make $3,000 one month and $5,000 the next.

An income like this means that you will need to be diligent about budgeting and saving up your money for lower income months, or you may feel like you’re living paycheck to paycheck.

What is an example of an irregular income job?

An example of a varying income job is one that has varying hours, such as working in a restaurant that is much busier in the summer than in the winter. There may be times when there is more work to do and others when there is less.

Another example is if you have a job that takes on various projects, such as a freelance writer. If you are paid per project, your income can change quite a bit from one month to the next.

Can you budget with an irregular income?

Yes, you can budget with an irregular income. You simply have to prioritize and stay organized. It’s also very important that you create your baseline budget by factoring the minimum amount you need to spend on bills and also by using an average of your past income e.g. An average of how much you earned over the last 6 months.

By budgeting based on your minimum expenses and average income you can put away any earnings over your average income to accomodate for any low income months in the future.

Be sure to pay your essentials first, then your savings goals, and then consider spending on non-essentials. Following this method will help you to pay your bills without worry.

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If you found this article about a varying income helpful, check out these other posts next!

• Zero Based Budgeting 101 + The Best Zero Based Budget Templates
• Budget Not Working? Here Are 5 Tips For Better Budgeting!
• 31 Ways How To Make Money Without A Job
• Budgeting For Couples: How To Budget As A Couple

You can budget successfully on an irregular income!

Putting a plan in place, regardless of your income, is the foundation of financial success in life. It’s all about managing your monthly expenses, whether there are fluctuations in your income or not.

Plan to revise your budget every single month, and if you fall short, each new month is an opportunity for better budgeting. Remember, you can be successful with your budget, create goals, and plan for the future!

The post Budgeting With An Irregular Income: 5 Success Tips appeared first on Clever Girl Finance.

In personal finance, where income, expenses, dreams, and aspirations converge, the budget emerges as a crucial tool. It’s not just a set of numbers, rather, it’s a strategic plan that empowers you to navigate the complexities of financial decisions. And when you have a family, creating a family budget becomes even more important.

In this guide, we’re diving into how to create a family budget that works for your family and its unique circumstances.

From understanding fundamental principles to mastering practical steps, you’ll acquire the skills to start a budget that goes beyond being a mere spreadsheet to being a financial tool guiding you toward your financial goals. 

So let’s get into creating a budget for the family that genuinely suits your needs!

What is a family budget?

A family budget is a tool that makes managing money for an entire household easier. 

The budget helps you decide how to allocate income so that you are not only taking care of your bills but also making progress toward your goals. 

In short, this budget guides your decision-making, helping you balance present obligations and future aspirations for a well-rounded lifestyle for you and your household.

8 steps for how to create a family budget that actually works

Now for the nitty-gritty of crafting a family budget that’s not just a piece of paper but a practical roadmap to financial success. 

In these eight steps, we’ll learn how to budget effectively, ensuring your family’s goals and aspirations are at the forefront of every financial decision.

1. Gather your financial information

Start by piecing together your current financial position. 

Gather your recent bank statements, utility bills, pay stubs, and credit card statements. These documents provide a clear view of your income sources and expenses, and then offer essential pieces of the financial puzzle. 

This step is about awareness—understanding where your money comes from and where it goes. By gathering this information, you’re arming yourself with the tools and insights needed to make informed financial decisions.

2. Define your short-term and long-term goals

Now that you’ve got a grip on your financial picture, it’s time to plot your course. 

First, outline your short-term goals—those you’d like to achieve within the next year or so. Maybe it’s tackling credit card debt, going on a family vacation, or a home renovation project.

Then, set your sights on the long term. 

These are the bigger dreams that might take a few years to accomplish—think of buying a forever house, funding your child’s education without taking out student loans, or having a long and comfortable retirement.

In addition, your goals will shape where you allocate your money, ensuring every dollar takes you closer to what matters most to your family.

So, take a moment to reflect on and define those goals. You can even use examples of financial goals.

3. Include savings goals

Now, let’s talk about one of the most important players in your budget game: savings. These goals are all about securing your future.

For instance, savings goals might include:

• Unexpected events and emergencies
• Starting a business
• Professional development
• Estate planning
• Funds for aging parents’ care and support
• Charitable donations
• Starting a family or growing the one you already have

In addition, by making savings a non-negotiable line item in your budget, you’re essentially saying, “Hey, future, we’re ready for you!” 

This disciplined approach strengthens your financial foundation and ensures you’re prepared for life’s surprises and opportunities. 

4. Be realistic

If you want to have a family budget, dreaming big is fantastic, but it’s crucial to keep things doable when it comes to your budget. 

Your goals should push you forward without knocking your financial stability off balance. 

This keeps you motivated and steadily moving toward your financial aspirations. 

For instance, let’s say your current monthly savings are $200. A realistic goal could be to boost that to $300 per month—a challenging yet attainable step forward.

In contrast, an unrealistic goal might be to save $1,000 per month, which could strain your finances and cause frustration.

Remember, the key is to stretch yourself without snapping. By setting goals that match your financial landscape, you’re ensuring steady progress and avoiding burnout. 

5. Identify needs vs. wants based on your family values and goals

With your goals in sight, it’s time to sort out priorities. 

For example, think of your budget as a filter, separating needs from wants. 

List your essential needs—housing, groceries, utilities, and healthcare. These are the must-haves that keep your family running smoothly.

Then, consider your wants. These are the extras, the nice-to-haves that enhance your lifestyle but aren’t necessities. This includes eating out, equipment for hobbies, seasonal home decor, and entertainment subscriptions.

Most importantly, at the end of the day, you want to get your spending and monthly expenses list aligned with what matters most to your family.

And cut all other expenses as much as possible. 

6. Plan ahead for special occasions

Life is brimming with moments that deserve a celebration, whether birthdays, holidays, or other milestones. 

But let’s not forget that these festivities can sometimes come with extra expenses. 

That’s where your budget comes to the rescue. So be proactive by including these special occasions in your financial plan. 

For instance, to include these special occasions in your budget, set aside a separate category for the “Special Occasions Fund.” Allocate a specific amount of money each month to this fund so that you’re prepared financially when these events come knocking. 

For example, suppose you know your child’s birthday is in six months, and you anticipate spending $300 on gifts, decorations, and a party. In that case, you can set aside $50 monthly in your Special Occasions Fund. 

By thinking ahead, you can relish these joyful times without worrying about their impact on your wallet.

7. Track and review regularly

You’ve crafted your budget—now it’s time to maintain it.

Set aside time each week to track your spending against your budgeted amounts, or consider budgeting weekly. This practice isn’t about perfection, however, it is about staying aware and accountable.

As you review, look for the following:

• Consistent overspending in “want” categories, such as dining out or entertainment
• Unexpected costs that may have cropped up during the week and how they impact your budget 
• Progress toward your savings and debt reduction goals
• Expenses that may vary throughout the year, like back-to-school shopping or holiday-related costs

Adjustments are a natural part of the process. 

It’s like fine-tuning a musical instrument to produce harmony. The key is to make those tweaks and keep your budget aligned with your family’s evolving needs and aspirations. 

For example, let’s say you’ve been consistently overspending on entertainment, allocating $100 per month but spending around $150. This trend could lead to an annual overspend of $600. 

By identifying this pattern during your weekly review, you can decide whether to adjust your entertainment budget or find cost-effective alternatives to manage your expenses better.

8. Get your kids involved

This step isn’t just about teaching—it’s about empowering the next generation with financial know-how by teaching financial literacy for kids. 

For example, start by having age-appropriate conversations about money. Share stories, discuss saving and spending, and let them make small decisions within limits.

As they grow, involve them in budget discussions. 

Show them how you allocate funds, prioritize needs, and save for goals. This hands-on experience lays the foundation for responsible money management as they approach adulthood.

Other ways to involve your kids in the family budget may include:

• Having them pick which of their “wants” to prioritize
• Having them set their own savings goals
• Giving them a small grocery budget and teaching them how to compare prices, stick to the list, and look for discounts

When you involve your kids in the family budgeting process, you’re not just building financial skills but nurturing a lifelong sense of financial responsibility. 

Teaching budgeting for kids helps them be confident and capable of handling their own financials. 

Expert tip: budget for irregular expenses

Have you ever been caught off guard by unexpected expenses that mess up your budget? It happens to all of us.

But here’s the good news: there’s a smart way to handle these surprises and keep your finances on track. Review prior years’ financials and identify any recurring irregular expenses.

Look for: car repairs and maintenance, medical expenses, home maintenance, membership renewal, seasonal utility increases, vehicle registration renewal, back to school supplies and field trips, tax preparation fees.

You’re already a step ahead by recognizing these possibilities and quantifying them. Now, set aside some money each month to build a buffer against these unexpected costs.

Why should you specifically have a “family budget”?

A family budget puts you in the driver’s seat regarding your spending. 

No more puzzling over where your money vanished to or how to stop spending money—instead, you’re in charge, dictating where each dollar goes and also turning spending into a deliberate and informed choice.

But there’s more to it. Think of a budget for the family as a shared playbook. 

It’s a platform where every family member gathers, understands the financial game plan, and gets on the same page about financial objectives. Additionally, this unity can go a long way in fostering a clearer understanding of financial priorities and a collaborative approach to managing money.

In addition, perhaps the most impactful aspect is the conversation it sparks.

A budget for the family dismantles the barriers often surrounding money discussions. It creates an environment where money becomes an openly discussed topic—no more hushed conversations or avoidance. 

Instead, financial matters become approachable and open, facilitating candid and productive exchanges.

Categories to include in your family budget

A typical budget encompasses various categories that cater to the unique needs of a household, especially when children are part of the equation. Tailor your budget template to suit your family’s lifestyle, and adjust as your circumstances change.

However, some essential categories should be included in a comprehensive budget.

Housing

This category covers your mortgage or rent payments, property taxes, insurance, and home maintenance expenses.

Additionally, family-sized homes often require budgeting for utilities like water, electricity, and gas. Quicken explains that this is often the most expensive budgeting category.

Groceries

With growing appetites and nutritional needs, families typically allocate a relatively large portion of their budget to groceries. This category includes everything from food essentials to household supplies. However you can try out the cheapest grocery list to save on costs!

Childcare and education

Families with children need to budget for childcare, school tuition, books, uniforms, and extracurricular activities. These expenses vary depending on the age of your children and the educational options you choose.

Healthcare

Medical expenses are a critical consideration for every family budget. These include health insurance premiums, doctor visits, prescriptions, and potential emergency medical costs.

Transportation

Transportation costs can add up with multiple family members potentially commuting to work, school, and activities. This category includes car payments, fuel, maintenance, and public transportation fares.

Savings and investments

Prioritizing savings and investments for your family’s future is crucial. This category might include retirement contributions, college funds for your children, and emergency fund savings.

Debt repayment

Allocating a portion of your budget to debt repayment is essential to maintain financial stability. Especially if you have personal loans or if you want to reduce credit card debt.

Entertainment and recreation

Families also need to enjoy quality time together. This category can cover family outings, vacations, hobbies, and additionally, leisure activities.

Clothing and personal care

Children’s growth spurts and changing fashion trends mean this category needs to be included in your budget. Also include personal care items like toiletries and haircuts.

Charitable giving

Many families allocate a portion of their budget to charitable donations, teaching children the importance of giving back to the community.

Expenses unique to families with kids

Additional costs you may incur in support of your children should also be included in your family budget.

However, these costs will fluctuate as your kids get older.

So let’s break these down by age:

• Newborn to 3 years old
• 4 to 12 years old
• 13 to 18 years old

Newborn to 3 years old

In this phase of rapid development, careful financial planning becomes essential to ensure that you can provide your child with the best possible start in life. 

From the basics of diapering to the complexities of childcare arrangements, this is the time to lay a solid foundation for both your child’s well-being and your family’s financial health.

So be sure to include the following in your budget, especially when preparing for a baby:

• Diapers and baby wipes (and lots of them)
• Formula and baby food
• Strollers, cribs, car seats
• Toys
• Medical expenses from the frequency of doctor’s appointments 
• Daycare, nanny, night nurse

4 to 12 years old

During this dynamic phase of childhood, your kids are developing their personalities, interests, and a deeper understanding of the world around them. 

They start school, build friendships, and also find hobbies.

From education-related costs to extracurricular activities and their evolving social lives, each aspect demands careful financial consideration. 

If your kids are within the 4 to 12 years of age group, include these in your budget:

• Frequent new clothes as they grow quickly at this stage
• College fund
• Snacks
• Extracurriculars like sports, singing, musical instruments, dance, and art
• Travel
• Preschool
• Birthday party gifts for your kids’ friends and birthday parties for your kid
• School field trips
• Summer camp
• Allowance
• School supplies
• Medical expenses for cold and flu bugs brought home from school
• “Big kid” beds and other bedroom supplies

13 to 18 years old

As your children approach the final stretch of childhood, the years from 13 to 18 emerge as a period of remarkable self-discovery and preparation for the exciting journey into adulthood. 

By understanding and preparing for the financial commitments that come with this phase, you’ll be better equipped to foster your child’s development, exploration, and pursuit of their dreams. This is also a good time to teach investments for teens!

For these final few years of childhood, you will want to budget for the following:

• Phones, laptops, iPads
• College applications
• Tutors
• School supplies
• A car
• Car insurance
• Field trips and social events
• Lessons and equipment for hobbies

What is a reasonable family budget?

A reasonable family budget is highly personal and depends on your expenses.

For instance, if you have a larger family, your budget may need to allocate more resources to expenses like groceries, utilities, and possibly larger housing.

On the other hand, a smaller family might have different priorities, with more flexibility in certain areas. 

Similarly, where you live plays a significant role. Urban areas often come with higher housing costs and transportation expenses.

In contrast, rural areas may offer more affordability.

That said, no matter your circumstances, a good rule of thumb for a reasonable budget is to follow the 50-30-20 budget template guideline. Approximately 50% of your income is for necessities, 30% for wants, and 20% for goals.

How does a typical family budget look?

A typical family budget splits your money into different categories of income, goals, needs, and wants.

This includes what you spend on where you live, like rent and utilities, as well as money for food and going out to eat. You’ll also set aside cash for getting your family around, like car payments, gas, and insurance. 

The budget covers school stuff, too, as well as savings for the future (college fund, anyone?) and having fun together on family vacations. 

By checking and adjusting the budget, you can stay in control of your money and reach your individual and joint goals.

What is the average family monthly budget?

The average household monthly spending budget in the United States is approximately $5,111, Value Penguin claims.

For instance, it could be broken down as follows:

• Rent, mortgage, interest, property tax, maintenance: $1,884
• Utilities: $800
• Groceries: $627
• Car payments, gas, insurance, maintenance, and public transportation: $800
• Health insurance and care: $450
• Eating out: $200
• Clothing and shoes: $150
• Entertainment: $200

You will also spend on income taxes and social security, often taken out before you receive your paycheck, and thus not necessarily a needed category in your family budget.

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• Rules Of Loaning Money To Family (And Friends)

Build a bright financial future with a budget for your family!

Creating a family budget is an evolving process. 

It provides a structured framework that allows everyone to work together towards common goals while ensuring financial stability and avoiding family financial problems.

As you navigate the process, the steps outlined in this guide offer a roadmap to success, and you can also use one of the best budget templates. 

Involving your children in family budgeting fosters financial literacy and open communication about money matters from an early age. By taking charge of your finances through a budget, you’re building a bright future and getting your financial house in order.

The post How To Create A Family Budget That Works For Your Family appeared first on Clever Girl Finance.

Managing your budget is essential, and there are plenty of ways to do it. The cash envelope system is one of the most useful tools you can use to get on top of your finances. However, if you want the best chance of success, you have to choose the right cash envelope categories, and luckily, you’ve come to the right place. 

In the following guide, we will take a look at some example cash envelope system categories to give you some inspiration. Here’s what you need to know to get started!

Benefits of leveraging cash envelope categories

While you can use either a cash envelope wallet or a digital envelope system, the fundamentals of this approach are the same.

And if you’re ready to get started with this budgeting system, you will need clear cash stuffing categories. So let’s take a look at the key reasons planning your categories works: 

Avoid impulse spending

Are you guilty of impulse spending? This habit can drain your finances quickly and leave you wondering where your paycheck went.

However, having solid cash envelope categories helps you decide where to spend your money in advance, giving you total control here. 

Improves your ability to save money

For many of us, saving money can be challenging. If you have struggled with this in the past, using cash envelope categories may be the answer. You have total control over the cash stuffing categories, and so you can create envelopes that suit your lifestyle and help you spend less.

When you feel as though saving is all work and no play, you can account for spending money on fun things in advance with this system and start to live richer.

For example, you may choose to have a “fun” category or an “entertainment” category. 

Better understand your finances

A massive 77% of Americans are anxious about their finances, and failing to understand them plays a major role in that. Deciding on which cash envelope system categories to use will make you think more deeply about the money that you spend. 

Going through this process means that you will have a cold, hard look at your income and also your outgoings. When you do that, you will begin to have a better grasp on your finances. 

Learn where the bulk of your money goes

Do you know where your money goes? When we categorize our spending, it’s easier to visualize our spending habits. There’s an element of trial and error here. 

Once you start using cash envelope categories, you will have to guesstimate how much you spend on each thing.

However, the longer you use this system, the better you will understand your finances and how much you spend in each area.   

20 cash envelope system categories to consider

The cash envelope categories you choose will depend on your lifestyle and how you prefer to spend your money. If you are not sure where to start, we’ve got some inspiration for you. So let’s take a look at 20 of the most common example categories you could use: 

1. Rent or mortgage

Before you start thinking about your other cash envelope categories, here’s one non-negotiable. Chances are, your mortgage or rent payment is the same each month. So, you can set aside the same amount for this ongoing outgoing. 

2. Utilities

On the other hand, your utility payments will fluctuate throughout the year. You may pay more for gas during the winter as your usage goes up. Dealing with the ups and downs in how much you pay can be difficult — that’s where this system comes in. 

Putting an average amount into this cash envelope every month means that you will have some cash left over (though it’s also important to work on how to lower electric bill costs). So, when the cooler months come around, you are well-prepared. 

3. Food and groceries

Many of us have zero idea how much we spend on food and groceries each month. It’s not simply about the main shopping trip you do. You also need to account for the extra items you buy throughout the month.

Having a cash envelope category for this spending is essential in addition to practicing budget meal planning. 

4. Cleaning products

While spending your money on cleaning products may not be fun, it is important.

You need to top up your stock of items every now and then. Setting aside money for this pesky cost will help you with your overall budget management. 

5. Household items

Household items may include toilet rolls, paper towels, plants, ornaments, or even new blankets.

While I won’t always need to buy new things for my home, I know that having a budget for these costs means that my spending never comes as a nasty surprise. 

6. Transport

Are you a jet setter? If you’re always on the go, you’re going to need to put aside some money for travel or a vacation budget.

This cash envelope may cover your fuel costs, train tickets, bus tickets, and also airfare. Whether you commute or just like to get around, make a budget for it. 

7. Eating out (or in!)

The average American family spends $2,375 per year on eating out. If you’re a foodie and love sampling dishes, you need to include this as one of your cash envelope categories.

You can either do separate envelopes for eating out and takeout or combine the two. 

8. Kids fund

If you have a family, there’s no doubt that a large portion of your budget will go to your children. Having a separate cash envelope for your little ones is the way to go.

This money may cover their childcare, days out, clothing, food, and any extras, such as clubs. 

9. Garden

Should you have green fingers, this next cash envelope category is for you. Gardening tools and furniture are not cheap.

Personally, I like to consider how much I spend on this pastime on average. Then I may need to adjust how much I set aside as I go with this one. 

10. Personal care

You can’t put a price on self-care… Okay, maybe you can. When you’re choosing which cash envelope categories to use, don’t overlook this one.

This part of your budget covers haircuts, massages, beauty treatments, an occasional self care week, and also hygiene products.

11. Clothing and shoes

Learning how to stop buying clothes that you don’t wear takes time, but it’s a habit that will drain your finances. To help you stay on track, create a clothing and shoes cash envelope category.

Put the same amount in this envelope every month, and you will find that the budget soon starts to pile up. 

12. “Fun” spending money

We all deserve to have some fun now and then. You work hard, and so you should spend some of your money on enjoying yourself.

That may mean having a day out with the family, doing an activity, or buying a new game. The choice is yours. 

13. Vacations

Want to leave your troubles far behind you? Heading to a remote beach or taking a city break may be the answer.

In a survey from Forbes, almost half of people said they plan to spend $4,000 a year on vacation. Start planning your next trip by saving money in a cash envelope. 

14. Makeup and beauty

When you look your best, you feel even better. We all have unique makeup and beauty routines that work for us. When you are planning your cash envelope categories, it’s smart to include this one in your list. 

15. Pet fund

Do you have a furry friend that you love? Pets are a wonderful addition to any family, but they can also be expensive.

Figure out how much you spend on vet bills, pet food, and pet-related products. You will need to find an average here to create your envelope. 

16. Entertainment

Whether it’s a night out at the movies or attending a Taylor Swift concert, we all need to be entertained.

However, splurging thousands on tickets without having a budget is a mistake. When you set aside money for this particular cost, everything becomes easier. 

17. Events

Next up, let’s talk about events and how much they cost you. That may be your cousin’s bachelorette party, a wedding, or even someone’s 60th birthday party.

All of the above can put a serious dent in your wallet unless you have budgeted for them well in advance. 

18. Date nights

When was the last time you and your partner spent some quality time together? Setting aside both the time and money for this is important.

Think about the type of dates you enjoy and how much they typically cost when planning your budget, and consider at home date night ideas. 

19. Gifts

Giving something special to a loved one is priceless.

While there are plenty of inexpensive thank you gift ideas as well as birthday and holiday gifts, you still need to budget for them. Including this as one of your cash envelope categories means you will have the money to treat your nearest and dearest. 

20. Emergency

Emergencies can arise when you don’t expect it. You might find that your car breaks down or your roof needs fixing. These problems cost a lot to solve, so you need to plan ahead for it. 

More than 50% of Americans cannot afford to spend $1000 on an emergency situation. Set aside a decent amount of money in case of unexpected costs in an emergency fund. 

Expert tip: Switch up your envelopes as needed

As many people start to use the cash envelope system, we will each learn where the majority of our money goes. We can change the amount we use in each envelope depending on what we learn along the way. This way, we can switch up our envelopes as needed.

How should I label my cash envelopes?

You can label your cash envelope categories in a couple of different ways. If you’re using a digital system, you can use a banking or budgeting app to manage your money and divide it into categories digitally.

When you’re using physical envelopes, you can use a marker pen to label each category and put cash in envelopes. 

How do you organize cash envelopes?

You can organize your cash envelopes with a filing system or cash envelope wallet.

Once you have filled each of your cash envelopes, you need to store them. You can keep them in a filing drawer and take out the ones that you want to use. Storing them away could also help you stop spending money in categories you’re not using. 

There are also cash envelope wallets you can buy to keep things organized.

And if you’re using an app or digital device, be sure to check in on it each day and keep it updated when you spend. That way, you’ll know how much money is left in each category.

What is an example of a cash envelope?

Some of the most common cash envelope categories examples are food and groceries, rent and mortgage, utilities, entertainment, fun, gardening, personal care, and emergency funds. 

You may also choose very specific cash stuffing categories based on what you want to buy.

For instance, “shopping for handbags” or “money for books.”

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• How To Use The Cash Envelope System To Master Your Budget
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Choose your cash envelope categories now!

If you are going to use the cash envelope system, deciding which categories suit your lifestyle and needs is the first step. You can take a look at the category examples we have highlighted in this guide and use them or simply come up with your own. 

Each of us has a different income and varying commitments. So, what works for you may not work for someone else, and you can do things differently based on your budget. Take the time to consider your money habits when choosing your cash envelope system categories. 

The post 20 Cash Envelope Categories For Your Cash Budget appeared first on Clever Girl Finance.

Budgeting is one of the most important financial habits to develop. There are so many budgeting methods out there to choose from, but it’s not just creating a budget that will set you up for financial success. Instead, it’s important to learn how to budget well by using a monthly expenses list so you don’t forget about any costs.

In order to budget well, it’s essential that we include all of our monthly bills and costs in our budgets. Unfortunately, this is a little harder than it sounds. And this is because there are so many monthly expenses list items that we tend to forget to include in our budgets.

Hardly anyone would forget to include their rent or mortgage payment in their budget, but there are so many spending and money habits that tend to slip our minds. Not to mention variable expenses! When you forget to include them, it can wreak havoc on your budget.

Whether you already have a budget that is in need of updating or you are creating your first one, here we’ll go over some of these often-overlooked purchases that you should include in your budget so that you, too, can budget well.

Monthly expenses list: 29 Commonly overlooked items

Do you have the items from this commonly overlooked monthly expenses list in your budget? Review the list below to determine what’s applicable to you and incorporate them into your budget starting today!

1. Emergency fund

Just because a third party isn’t billing you monthly for it doesn’t mean you can afford to forget about your emergency fund. Build a contribution to your emergency fund into your budget. That way, you’ll be able to afford any unexpected (and not budgeted for) costs that may arise.

The commonly accepted amount to save is 3-6 months of your living expenses. But you may choose to include more money in your emergency fund, depending on how stable your financial situation is.

2. Retirement fund

Like your emergency fund, nobody is going to force you to contribute to your retirement, but you still should if you can. By adding this amount to your monthly budget, you’ll hold yourself accountable. Plus, you’ll set yourself up to be in the best financial position when it comes time to retire.

There are 401ks and 401k alternatives, IRAs, and other options for investing. There are plenty of tips for retirement planning if you aren’t sure where to start.

Choose the one that works best for you, or combine more than one retirement savings method.

3. Extra debt payments

If you have credit card debt, you want to pay the minimum payment every month, at the very least. If you want to reduce credit card debt, you will want to make more than your monthly minimum payments.

Don’t forget to include these extra debt payments in your list of monthly bills. And if I have debt to pay off, it helps me to come up with a plan to pay off my debt, including a timeline for when I will pay off everything I owe.

4. Quarterly or annual bills

The majority of bills come monthly, but not all. Comb through your past payments and take stock of all bills that you pay less frequently.

For instance, a quarterly water bill or annual professional association membership dues. Then, calculate how much that amount costs on a prorated, monthly basis, and include that figure in your monthly budget.

5. Home or renter’s insurance

Most homeowners choose to insure their belongings with homeowners insurance, and many apartment buildings require renters to carry renter’s insurance.

If you think you might forget or you want to simplify, you can combine your homeowner’s insurance with your mortgage payment.

Renter’s insurance costs are typically quite low, less than $20 per month in most cases. You can think of it as part of your monthly rent payment.

6. Medical visit co-pays and HSA

Your health insurance should cover the cost of most medical appointments, but it is important to budget for co-pays. At around $25 (or more) per visit, these co-pays can add up, even if you only go to the doctor for routine appointments.

If you visit the doctor often, be sure to estimate how many times a month you go. Be sure to account for these costs in your budget.

You may also choose to save money in an HSA (health savings account). There are specific amounts you can contribute, and whether this is an option for you also depends on your health plan. But if you do contribute to an HSA, don’t forget to budget for it.

7. Dental and/or vision costs

Even if you have health insurance, vision and dental expenses are often not covered under that health insurance. Sometimes separate vision and dental insurance will cover part, but not all, of your expenses.

Make sure to include charges such as teeth cleaning, new glasses, and contact lenses as monthly expenses list items in your budget.

First, determine is dental insurance worth it for you, as well as vision insurance, and if not, plan for the costs in advance.

8. Prescription medication

Another one of the medical-related monthly bills that many often forget is prescription medication.

Prescription drugs cost the average American over $1,000 a year! While your health insurance will likely pay for much of that, remember to account for your out-of-pocket costs in your monthly budget.

9. Parking and toll fees

Most people don’t forget their car payments in their monthly costs, but that’s not all it costs for car expenses. Especially if you commute to work, you will likely pay tolls and or parking fees.

Add up the total you spend on all extra fees for your car each month to get an accurate estimate.

10. Subscription renewals

Whether it’s your daily newspaper, a beauty box, Spotify, Hulu, Amazon Prime, Netflix, or gym memberships, there are seemingly endless subscription and membership options.

$12.99 might not seem like a ton of money, but, in my opinion, it can throw off your budget if you forget to include it. Know how much your subscriptions cost and when the money is due, and be sure to get rid of any subscriptions or memberships you don’t use.

11. Beauty expenses

Reports vary widely on how much women spend on makeup and beauty products, but needless to say, it can be a lot. 

One survey found that the average woman spends $300,000 on face products over the course of her lifetime! Even if you are on the low end of the average, you likely replenish a beauty product or two or personal care products every month.

If so, be sure to include those monthly expenses list items in your budget.

12. Cleaning supplies

Grocery store items that don’t need to be replenished every week or month are often overlooked when it comes to a monthly expenses list. Cleaning supplies, laundry detergent, and the like can really add up.

Be prepared for an extra expensive grocery shopping trip once a month or every couple of months to account for these costs, and try frugal grocery shopping during the other weeks.

13. Backup childcare

If you have children you probably pay for childcare of some sort. Or you may count on school to watch your kids for a large portion of most days.

But things interfere with your regular scheduled childcare all of the time. When they do, and you need to find and pay for backup childcare, you’ll be happy when you have anticipated this cost and budgeted for it.

In addition to saving money for backup childcare, you should also save for extra expenses that come up throughout the year, other than regular daycare costs.

For instance, extra costs for school events or tuition payments that cost more than expected.

14. Dry cleaning

Depending on your job and your wardrobe, dry cleaning might be something you do every week, every month, or only occasionally. No matter what, you’ll likely have at least a couple of items that will require a trip to the dry cleaners, and these should be included in your budget, too.

Try to reduce your dry cleaning costs, but plan for them when needed.

15. Formal occasion clothes

You might not need a new formal dress or suit very often, but an occasion will probably arise every so often that requires one. While you can be fashionable on a budget, formal events sometimes call for a splurge or a new pair of shoes, and it’s always best to budget for this in advance.

In addition, you may want to save up a bit of money each month for regular clothing purchases as needed. You won’t need to spend money on this every month, but maybe a few times a year, so it’s good to be prepared.

16. Hobby supplies

Are you an avid gardener, knitter, baker, or something else? Hobbies can keep us sane (especially stress relieving hobbies!) and are definitely worth the cost.

Just remember to account for how much it costs to keep up with your hobby in your budget.

Add up the individual costs that you spend on your hobby each month (supplies, classes, etc.), and then add all of those together to know how much to set aside monthly.

17. Donations

Giving is popular around the holidays, but many people make charitable giving a part of their budget all year long.

Whether you like to support your alma mater, friends participating in half-marathons and the charities they are running for, or any other worthy cause, be sure to remember this when you prepare your budget, too.

18. Gifts

Christmas and birthday gift expenses are big-spending holidays for many people. If they are for you, you should take into account everyone you plan to buy a present, even if you’re planning to do Christmas on a budget.

Don’t forget about other holidays where you might give gifts, too.

For example, that Easter basket doesn’t magically arrive on your kid’s doorstep for free, right (or does it)?

19. Holiday extras

In addition to gifts, there are plenty of other ways to spend money over the holidays. From hosting a cocktail party for friends to decorating my home, I like to be sure to include whatever “extras” I like to spend during the holidays as part of my monthly cost calculation.

Don’t forget about baking and cooking supplies, a Christmas party at work, wrapping paper, etc.

20. Fun money

Lastly, what would a budget or life be without some room for unexpected fun?

By putting aside a fun money amount dedicated to spontaneous events, like a day trip to the beach, drinks with friends, or a date night with your husband, you’ll be able to enjoy these activities without stressing over whether or not they’ll break your budget.

Things like entertainment, shopping purchases, or anything else that comes up during the month are important to include in your budget.

21. Specific utilities

There are several specific utilities you should add to your monthly expenses list. Some of them may be bundled together in one bill, or they may arrive separately. Either way, don’t forget about them!

• Water
• Cable (or cable alternatives)
• Electricity
• Heating and air conditioning
• Cell phone bill
• Internet

22. Gas

Does the amount of money you spend on gas for your car change from month to month? If your commute changes, you start carpooling, or you travel, then you need to account for the changes in your budget. Transportation costs are easy to overlook, but they are unavoidable.

Costs also apply if you take public transportation. You may still have different costs for the bus, subway, or Uber from month to month.

23. Life insurance

If you’re familiar with the importance of life insurance, then you will likely have a monthly cost for this. Depending on the type of insurance you have, your monthly rates will vary quite a bit.

Find out what you are spending each month for your life insurance premium, and don’t forget to include it in your expenses.

24. Pet care and supplies

If you have pets, your list of monthly bills is not complete without adding in this cost. Account for the cost of pet food, vet bills, supplies, etc.

You may want to set up a separate fund just for your pets. That way, you can afford to buy your dog a new toy or leash every now and then.

And keep in mind that pet care costs may vary by month. Especially if you buy pet food in bulk and only visit the vet once or twice a year. Plan in advance for the months that cost more.

If you are a first time dog owner or a first time cat owner, research costs in advance so you can add them to your budget.

25. Traveling funds

If you are someone who travels frequently for work or you just have a vacation coming up, you’ll need to include traveling funds in your vacation budget plans. Traveling costs can end up being quite expensive, so you can split the savings over a few months, that way, it doesn’t seem like as much.

Keep in mind that traveling can often cost more than you think, with airfare, hotel costs, dining out during your trip, etc., so it’s best to overbudget rather than budget less money.

26. HOA fees and property taxes

Since these types of costs are not always monthly costs but sometimes every quarter for HOA fees or even once a year for property taxes, it’s easy to forget them.

Instead, you can set aside a bit of money for them each month so you’ll be ready when the fees are due.

HOA (homeowners association) fees don’t apply to everyone, but if you have them, make sure you’re aware of the amount.

Property taxes apply to all homeowners.

27. Home repairs and costs

Home repairs can be anything from pest control to saving up for unexpected costs like plumbing repairs. Save money each month for your home for both large and small costs.

Consider things like painting, remodels, a new roof, or your a/c or heater breaking that you may need savings for.

28. Sinking funds

For me, a list of monthly expenses would not be complete without sinking funds. If I have a big expense coming up in the next year or the next few years, it’s important to me to start saving now.

You can add a specific amount of money to your sinking fund each month so you are prepared when the charges come up, such as an expensive vacation, buying a home or rental property, etc.

Alternatively, create sinking funds categories and save for several different things.

29. Auto insurance

If you have a car, then you need to have auto insurance. The typical cost for car insurance is about $168 for full coverage each month, though costs can vary.

There are a lot of options for how often you pay car insurance, from monthly to a couple of times a year or even once a year. You can decide what works best for your budget.

Expert tip: Check your bank statements for accuracy often

There are many costs that it can be easy to overlook in your monthly budget. As you look through this list, think about which ones apply to you. Not all of them will and there may be others that aren’t on the list.

To avoid being caught unprepared for extra monthly costs, I recommend looking back over your bank and also credit card statements to see if there is any spending you didn’t account for.

Budgeting tips to stay on top of your monthly expenses

All of these costs are essential to remember in your budget and monthly expenses list.

But don’t forget the most important thing – you need to make a budget to begin with! Here are some tips to help you create a great budget and plan for the unexpected.

Choose the right budget for you

There are several ways that you can make a budget, from the 80/20 budget to using the best budget templates. Find a method that is easy for you to use, even if this takes some trial and error.

You’ll need to divide your expenses by budget category, and then you can figure out your average monthly cost of expenses. A worksheet, budget calendar, or budget calculator can be immensely helpful in this situation. 

Don’t forget to include the financial goals you’re working toward, all your expenses, and make a plan for what you’ll do with any extra money.

Account for changes to your budget

Remember, your budget is not going to look the same every month. After all, you have different obligations, responsibilities, and different plans and events to attend each month.

Use the ideas above to determine what you might normally forget to add to your budget, and spend some time thinking about what your month looks like before you create a budget you want to stick to. 

What are examples of monthly expenses?

There are plenty of examples of monthly expenses, such as rent or a mortgage, utilities, and groceries.

However, there are many less obvious costs that are easy to forget about and will then create budget challenges. These include prescriptions and health costs, birthday gifts, and expenses that are quarterly or annual.

Rather than forgetting about these expenses, you can build them into your budget each month with sinking funds and a detailed plan for your spending.

How do I plan for variable vs fixed expenses in my budget?

You can plan for variable vs fixed expenses in your budget by utilizing an organized spreadsheet or budgeting app and also saving up for variable expenses.

Fixed costs are the same every month, and variable ones may cost different amounts each time.

For instance, your rent payment is probably always the same, but your water bill or light bill may vary each month.

To account for variable costs, you can set aside the average amount that each category costs and assume you’ll spend that amount.

However, it is safer to plan for the charges to cost more than expected, so you’ll have enough money.

Wondering what to do with savings when you overprepare? You can save any excess in a savings account for your variable expenses. When things cost more than you thought they would, you can use the money in that account to cover the difference.

What are average expenses for a household?

The average monthly expenses for a household total about $5,111 a month. There’s a lot to pay for each month for the average household, from housing to food costs, etc.

Although your individual costs may vary for your own household, it’s a good idea to know the average cost that you spend on necessities and extras each month. That way, you can make plans for how much to save and what you can afford in the future.

What is the average person’s monthly expenses?

According to the consumer expenditures report from the U.S Bureau of Labor Statistics, average monthly expenses are about $3,405 each month for a single person. That said, your own spending may or may not match this.

One way to be sure is to total up how much you spent in the last year or so and then see what you typically spend each month and what you spend in more expensive months, such as in December for holidays.

You can try to lower your expenses by spending less on non-essentials and also being prepared for commonly forgotten expenses in advance so you don’t turn to credit cards to pay them.

How can you create a more accurate budget using your list of monthly expenses?

To create a more accurate budget using your list of monthly expenses, think about what’s not working well for you.

It’s easy to forget about certain expenses when calculating your monthly budget. Why? One reason expenses can slip your mind is if you don’t write down your budget, item by item.

If you think you are following a budget, but it’s not written down, you very likely are not sticking to whatever it is you think you are following.

People also often forget to include the full cost of certain expenses because they rely on mental calculations about how much something costs. When you do this, you can end up underestimating the true amount you spend.

Lastly, many people don’t account for sporadic spending or things that aren’t billed monthly. Quarterly or annual fees can surprise you and add up if you forget to prorate them and include them in your monthly budget.

If you are struggling with creating a budget, there are numerous tools available to put you on the right track.

As a first step to creating an accurate budget, review the commonly overlooked expenses we cover in this article. If you remember to include these in your budget going forward, you’ll be that much closer to having an accurate and useful budget.

Articles related to a monthly expenses list

If you enjoyed reading this, you’ll love these other articles about expenses and budgets!

• 10 Of The Best Budget Templates And Tools
• Example Of A Budget To Help You Craft Your Own
• How To Plan Your Finances If You’re Getting Paid Monthly
• The Best Way To Keep Track Of Bills And Payments

Overlook these monthly bills no more!

Budgeting is an art. It takes time to fine-tune your budget so that you’ve properly accounted for all of your expenses at the end of the month.

Hopefully, with these reminders, you’ll remember to include all of your monthly expenses list items in your budget. Even these often overlooked ones. Doing this will help you to achieve more financial success and help you know how to stop spending money on things you don’t need and make room for buying important things.

The post Don’t Forget These 29 Monthly Expenses In Your Budget appeared first on Clever Girl Finance.

If you are moving out of state, you’ll realize that the costs can add up quickly. Although any move will have some expenses to consider, it is possible to curb your moving expenses by planning ahead. Today we will share an extensive moving out of state checklist to help you cut the costs of your upcoming move.

Why use a checklist for moving out of state

When you are preparing for a move, a list can be a helpful way to make sure that everything is accomplished. With any move, many tasks will need to be done for a successful outcome. But if you want to know how to save money while moving out of state, an organized list can be even more helpful.

By preparing in advance, you can potentially avoid any surprise expenses. Plus, you’ll be able to budget in advance for these planned expenses.

Here’s a comprehensive moving out of state checklist to help you create a smooth moving process.

2 months prior to your move

While it might seem like your move is still far away, time can and will move faster and faster the closer you get to moving day! Do these things 2 months in advance to help you stay organized.

1. Visit and research your new hometown

Once you know where you are going, it is a good idea to visit your new hometown. Although a trip out of state can be expensive, the scouting mission might be well worth the cost. If you have the time to be there for a few days, you might even consider making it a vacation with a vacation budget.

Do some research, so you have a better understanding of the cost of living, crime rates, and how close you’ll be to good hospitals, schools, etc.

You’ll be able to look for a new place to live without hauling all of your belongings around with you. Of course, you can skip this step if you already know the area pretty well.

The main purpose of visiting is to determine if you like the new neighborhood you plan on moving into, what the town is like, and overall, to be sure that this is somewhere you want to live before you go through a long-distance move.

2. Contact and make decisions about schools

If you have children, you’ll need to contact the new schools in your current area and your new home. Children can transfer schools, but there will be some paperwork involved on your end.

Create a binder or get a notebook to keep track of paperwork and anything you need to do so that your kids can start school when you arrive.

3. Keep track of expenses and start budgeting

Begin listing expenses and create a moving budget in advance. That way, you’ll be ready for the costs.

As you spend money, be sure to keep track of it by saving receipts or by tracking it in your banking or budgeting app. It’s a good idea to know how much you’ve spent on your cross-country move for future reference and also to know if your move will take more money than you originally thought.

4. Take a couple of days off work to move

Moving to a new state takes some time, even if you are super organized. You should ask for time off from work in advance.

Give yourself at least 2 days off and more if you can afford to. You’ll need the day of the move off from work, and likely the next day, as well, to sort through boxes and get settled.

If driving to your new location is going to take multiple days, then you may want to request 3 or 4 days off or even a whole week.

5. Find an affordable apartment

One key feature of an affordable move is finding an affordable place to live.

In most cases, you’ll likely choose to rent in your new city before buying a house. With that, seeking out an affordable apartment should be a top priority. Check out our top tips for how to find cheap apartments.

You can start your search online with sites like Realtor.com or also Zillow.com to see prices and get an idea of what will be affordable in the area you’re moving to.

You might also choose to work with a real estate agent who can help you with the renting process.

6. Declutter your home

The more items you have to move, the more expensive your move will be.

With that, a crucial pre-moving activity is a spring cleaning of your current space.

Take the time to go through your belongings and pull out what you don’t want anymore. You might be surprised at the sheer amount of stuff you are willing to part with.

Once you have determined what you want to get rid of, try selling the items. You can sell everything from used books to coveted designer handbags. Consider a garage sale if you have enough stuff to get rid of.

As you pocket the cash from selling your stuff, save it to put towards your upcoming moving expenses. Find the best places to sell textbooks online, and also find out how to sell designer handbags for cash!

Don’t skip this task on your moving out of state checklist! It’s a double win because you’ll have less to bring with you and more money in your pocket to fund your move.

7. Hire trustworthy movers or go the DIY route

If you are moving out of state, it can be tricky without the help of movers. And it’s especially true if you have a large amount of stuff to take with you. If you are hiring movers, make sure to do your research ahead of time.

You want to work with a reliable moving company that will take care of your belongings throughout the process. Steer clear of any moving companies with bad reviews.

Although working with trustworthy and professional movers can make your life easier, the DIY moving route will save you a substantial amount of money. Rental moving trucks are more affordable and might not be too cumbersome to drive.

Of course, moving across the country will take a tremendous amount of time and effort. With that, don’t forget to include the cost of your time when making this decision.

1 month prior to your move

One month before the big move is when you’ll start to make major changes and decisions that affect your daily life.

You should take the time to handle important paperwork updates. In addition, you can begin packing.

See these next ideas on your moving out of state checklist for the month before your move!

1. Look into state residency requirements

It’s important to look into residency requirements for tax purposes, and you can also find out how long you have after moving to the state to become a resident.

Check out the rules by state for residency, and find the websites for each state where you can get more information.

2. Get insurance and registration updated

When moving to a new state, you’ll need to update all of your insurance information. It isn’t the most fun part of moving, but it’s better to get it taken care of now.

Some types of insurance that you’ll need to update include:

• Car insurance
• Home insurance (it may not take a full month to get this, but you should at least find out when the best time to change this is)
• Renters insurance (you can also transfer it)
• Health insurance

In addition, you’ll need to register your car in your new state, as well. While you will likely have time to do this after your moving date, it’s important to know what’s needed in advance and have a plan for handling this soon after you move to your new state.

Do research and write down the necessary steps.

3. Get your moving supplies for free

Instead of spending your money to pay for moving supplies like boxes, you can find these items for free. In the weeks leading up to your move, save any shipping boxes that arrive at your home.

You can also find free boxes at big-box retailers. At most stores, all you have to do is ask, and you’ll find a large supply of free boxes.

You can check out your local grocery stores and restaurants to see if they have any boxes that they’re giving away for free. Then just start collecting as many as you can.

4. Start packing any non-essentials

Begin packing up the boxes for anything that you want to take with you but don’t use regularly. Which might be books, out-of-season clothes, and some furniture.

Whatever you can live without for the next few weeks, pack it up. After all, whatever you pack now can save you time when the move is approaching.

2 weeks prior to your move

2 weeks before you move to a new state, things may start to feel hectic. But remember that you’ve already gotten a lot of things done, and there’s still plenty of time when you use the moving out of state checklist.

Do these things a couple of weeks before you move for a smooth transition to your new home:

1. Forward your mail

When you move, you have to let everyone know about your new address. Not only will you want to tell family members, but also let any creditors know ahead of time. Otherwise, you could miss an important notice or a bill that needs payment.

You can use the USPS website to get your mail forwarded. It will give you time to formally change your address and still receive your mail in the meantime.

But of course, if you can inform those that might need to contact you of your address change in advance, that’s even better.

Notify the credit card companies you have a card with, as well as any other companies that you have expenses with, like a phone bill or other expenses affected by your move.

Also, let your doctor or hospital know, and inform social security, insurance providers, the IRS, etc.

2. Pack everything that you can

Don’t leave the packing until the last minute! It can be time-consuming, so now that you’ve packed the non-essentials, start to pack anything that you can do without for a couple of weeks.

Items that fall into this category likely include paperwork, favorite books, unused electronics, and spare dishes.

3. Take care of medical needs in advance

Choose a primary care doctor in your new state, and also be sure you have access to things like prescriptions for the first few weeks after your move. If you can, get your prescriptions filled for the next couple of months.

Research a dentist, a pharmacy, and other medical professionals you need to see often.

Then, forward your medical records to new doctors if possible.

4. Transfer your utilities

You will want the utilities set up at your new place before moving in. It’s one of the most important items on your moving out of state checklist!

With that, you should set up the transfer ahead of time. That way, you’ll be able to enjoy the basics of electricity and water at your new place immediately. Other things you may need include sewer, trash, internet, and anything else you’ll need at your new home.

If you are unable to transfer services, you’ll need to cancel the utilities at your old home. Some utilities you should cancel include water, trash, and electricity, among others.

Then be sure to set up your utilities at your new home before you move in.

5. Cancel all memberships before you move

Before you leave town, take an afternoon to cancel all of your local memberships. You don’t want to be charged for a local gym membership when you no longer live in town. It’s another one you don’t want to skip on your moving out of town list.

Some examples are not just your local gym but also any magazine or newspaper subscriptions that are delivered to your home. You can also cancel any memberships for specific stores that you may no longer need to use or have nearby, like Costco.

1 week prior to your move

A week before your move, you’re down to the details. Here’s what you need to do in your last week with the moving out of state checklist.

1. Host a goodbye party or plan to say goodbye to loved ones

Your friends and family will likely want to spend time with you before your move. Planning to get together with them a week before gives you plenty of time and will keep things from feeling rushed.

Take the time to plan a get-together at someone’s home or, at the very least, meet up for coffee with friends and family before your move. There are also plenty of fun family night ideas you can try while visiting with parents and extended family before leaving.

Be sure to give them your new address and invite them to visit in the future!

2. Finish packing

Everything that you haven’t already packed can now be loaded into boxes, bags, and suitcases. Pack absolutely everything, and be sure to check every nook and cranny for forgotten items.

Pack up items in cupboards, drawers, and don’t leave anything behind. Once you finish packing, don’t forget to double-check every room.

3. Plan your meal budget

Decide how much to spend on food on the day of the move and the first couple of days after. Often, the easiest thing is to eat takeout or fast food during this time since you’ll be so busy.

If you really don’t want to spend money in this way, be prepared with pre-made meals and also plan to run to the grocery store when you arrive at your new home.

It’s helpful to make a plan for your meals in advance either way, so you know how much money to budget for this.

And while you’re thinking about budget meal planning, now is a good time to clear out the fridge. You’ll need to have it empty on the day of the move, so removing everything you don’t plan to take with you or eat before you leave is smart.

3 days prior to your move

3 days before you move, most of your paperwork should be handled, and your items will be packed. Here are the next things on the moving out of state checklist to finish up before leaving.

1. Clean your apartment or home

If you are leaving a rented space, then take the time to clean out your apartment. Without a thorough cleaning, you might not get your security deposit back.

While you are at it, check the lease to see if you need to fill in any holes left behind from your wall hangings. An inexpensive jar of wall putty can help you get hundreds of dollars back.

2. Take photos and walk through the home with your landlord

Taking photos of your old rental can help you get your deposit back, so it’s an important step to take! Be sure to get a record of damages and photos that show what day and time they were taken.

Additionally, walk your rental with the landlord to ensure you can answer their questions and that there are no problems.

If you’re moving from a home that you own, then the process is different. Though it’s probably still a good idea to take photos of any home damage just in case there is a problem in the future.

3. Ship your car

Depending on time constraints and how far you are moving, you might have to ship your car. Although you could drive it yourself, it is not always a good use of your time.

You can decide if shipping your car is worth it by getting a quote. Then weigh the transportation cost with the financial and physical costs of driving to a new state.

4. Keep your essentials available

When you are packing your bags, start by packing a suitcase of everything you need to live for a week or so. With all of your necessary toiletries close at hand, you won’t have to run to the store for items that are buried in your boxes.

It is also a good idea to pack a box of all your important paperwork to keep with you throughout the move. You’ll feel more comfortable knowing that all of your documents are in one place throughout the chaotic moving process.

Additionally, besides clothing, toiletries, and paperwork, pack another few boxes of necessities for your first week in your new home. Which might include things like the coffee maker, towels and bedding, and anything else that you’ll need right away when you move.

Day of your move

The day is finally here! Use these moving out of state checklist ideas to stay organized.

1. Stay organized with paperwork

Keep a list of all necessary numbers for the movers, utility companies, real estate agent, etc. Anyone you might need to contact for information or help with the move.

You can keep all this information in your phone or a binder and have it with you at all times.

2. Pack your meals

Either pack easy meals that are inexpensive, like sandwiches, or use money that was set aside in the budget for eating out.

If you are packing lunches and dinners, then you can do so the night before or the morning of the move.

In addition, you’ll need to have a box of kitchen essentials with you so that you can make coffee, dinner, etc., when you arrive at your new home.

You might also need a cooler to fill with ice and keep drinks and snacks cold during the day. Doing this isn’t much of a hassle if you prepare in advance, and it can save you money!

3. Keep a master to-do list

Keep a master list of everything that you need to do on moving day with you at all times. You can keep this with all the important numbers. Either on your phone or in a notebook.

The important thing is that you have a place to keep track of anything you don’t want to forget, and you can write it down to look over later. Organization will help with stress levels and also in a practical sense.

Some things you might include on your master list:

• Tip movers
• Return keys
• Don’t forget any items
• Drink water
• Walk through the new house
• Double-check with utility companies about dates

4. Do a walk-through of your new house and make note of any problems

Ideally, on the first day before you move furniture in, you should do a walk through of your new house.

Take photos of any damage or maintenance issues you notice, and make note of any problems. That way, you can see if you’re liable to fix a maintenance issue or if the old owner is.

And this is also a good idea for safety, as well. You can check that locks, windows, and doors work properly.

In addition, check smoke detectors, carbon monoxide alarms, etc., to ensure that all are functioning properly.

Doing this soon after you arrive will ensure peace of mind in your new house. Here’s a list of things to check in your new place.

The week after you move

After moving, you can finally breathe easy! Many of the most important things are done, but there are still a few to take care of so you can get settled in your new home and state.

1. Get a new driver’s license

When you move to a new state, you’ll need to update your driver’s license at the DMV.

Additionally, you’ll need to update your car’s registration if you own a car.

According to Bankrate, you’ll need to go to your local DMV, bring paperwork (check the DMV website), and then you’ll simply fill out the paperwork and take any necessary exams. There could also be a fee.

2. Update your voter registration

Don’t forget to update your voter registration! You’ll need to register in order to vote in your new state.

Depending on your opinion, this may not be a high priority, so don’t feel too rushed to get this done.

However, it’s probably something you’ll want to get done in the next couple of months.

3. Get to know the neighborhood

Meet your neighbors, walk around the neighborhood, and drive around. See what stores, parks, and restaurants are nearby. Check out any interesting places.

It’s important to do this so you can feel more grounded in your new environment.

4. Make friends and meet people

Try to introduce yourself to the people you see often, such as the people in your local coffee shop, your neighbors, and the teachers at your kid’s school. That way, you can start feeling more at home quickly.

5. Make changes to your finances

A move is a big deal and counts as one of the major life events, and your budget may be affected. Even if you planned for new or different expenses, it’s a good idea to take a look at your current budget and see if it still works.

Account for any new costs or anything that costs less than it used to. Then you’ll be on track for the next few months.

6. Change the locks at your new home

Changing the locks is the smart thing to do after a move. Even if the old homeowners turned in their keys, multiple other people could have keys to your new home, so it’s essential to get the locks changed as soon as possible.

Although you can do this yourself, the benefit of hiring a locksmith is that you know they will do it correctly. Schedule an appointment right away when you move in.

Expert tip

Although moving out of state is a big project, you can make it easier by using a moving checklist and staying organized. List out any expenses (even possible costs) for your move, so you can have a better idea of your total expenses long before you move.

Even with budgeting and making it a point to make your move inexpensive, if you find that the cost is too much, consider ways you might earn money. Try selling some unneeded items around your home, or take on a temporary side job to save up what you need.

Create a moving budget

Although the moving out of state checklist can seem long, it is important to go through each of the tasks. Otherwise, you could be skipping an important document or way to save money.

Unfortunately, the costs of moving can add up quickly. But if you look at the projected costs ahead of time, you can create a budget with budget categories for your move. With a budget in mind, you can save in advance for the expenses coming your way.

Expenses to consider for your moving checklist

Here are some expenses you should consider adding to your moving budget:

• Cost of movers (overall cost plus tip)
• Gas and car maintenance
• Meals and groceries
• Cleaning supplies
• Fees for paperwork and licenses
• Maintenance and unexpected costs for new home
• First and last month’s rent and security deposit, if needed
• Down payment if needed
• Realtor fees
• Cost of a hotel or Airbnb if you cannot immediately move into your new home
• Moving supplies
• Other expenses

Once you have an estimate of the costs for your out of state move, look for ways to save even more. Don’t be afraid to ask for help from family and friends if you need to! A little bit of creativity can go a long way when it comes to saving during a move.

What is the first step to moving out of state?

One of the first steps when moving out of state is to consider where you are moving to. If you are choosing a new state, do research and visit. If you already know where you’re moving to, consider neighborhoods you might want to live in.

In addition to this, you should make sure you secure a new job in your new state or find one that allows you to work from home with one of the high paying remote jobs.

How do I prepare to move out of state?

You can prepare to move out of state by staying organized and using lists and budgets. You should also take the time to research the new state you’re moving to so you have more information when you do move.

In addition to using lists, you should also be sure that you are mentally and emotionally prepared for your move. Take the time to meet with friends and family to say goodbye, and find ways to meet new people once you move.

What is a good budget for moving out of state?

Creating a good budget for moving out of state will depend on several factors, including whether or not you use a moving company, where you are moving to and from, and how much you need to buy when you arrive.

It’s safe to say there will be some cost involved. After creating a moving budget and listing your expenses, you’ll be able to get a general idea of how much money you’ll spend.

What to do after moving to a new state?

After moving to a new state, make sure everything on your moving checklist is done. That way, you know you didn’t forget anything.

Next, you can take a deep breath and take your time getting used to your new state, your new job, and everything else that is different.

Decorate your home, make new friends, take a class, or join a club, and use this time to try new things.

Articles related to moving out of state

If you enjoyed this article about moving out of state, check out these great reads!

• Can I Afford To Move Out On My Own?
• What Is The Cheapest Way To Move Out Of State?
• 10 Questions To Ask Before Moving In Together
• Closing A Chapter In Life And Moving On: 7 Practical Tips

Use a moving out of state checklist to save money!

Moving out of state is a big undertaking. However, with the help of our moving out of state checklist, you’ll be able to anticipate expenses and cut back where you can.

In addition, take the time to de-stress after your move and get used to your new city. Focus on both financial wellness and mental wellness by budgeting and also taking the time to practice a daily gratitude list as you get used to your new state.

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An 18th birthday is a special occasion. It’s actually one of the big birthday milestones in adulthood. So you are probably trying to brainstorm 18th birthday ideas for yourself, or maybe even a child or friend.

If it is your big day everything will soon change. Whether you plan to go to a university, begin a career, or take off to travel the world. Since it’s a milestone, you’ll want to celebrate with family and friends in style.

This article contains affiliate links that help us grow Clever Girl Finance! Please see our disclosures for more information.

We rounded up some great ideas of what to do for your 18th birthday to make your party the event of the year! But before we dive into what to do for an 18th birthday, let’s discuss some interesting birthday world traditions first!

18th Birthday traditions around the world

So birthdays have evolved a lot over the years, and there are many traditions observed around the world. For example, according to Aimee Hansen of Gifter, “fairy bread” is the traditional birthday food for children in Australia.

However, in Jamaica, you’ll get flour thrown at you for your birthday. While birthday traditions vary across the world, you can be sure that there’s always a way to celebrate.

For an 18th birthday in the Philippines, there are special traditions. For instance, there is an 18th birthday celebration for girls called a debut. It’s an extremely fancy party featuring food, presents, toasts, and more.

In the USA, an 18th birthday is thought of as a milestone and many choose to celebrate in style with a big party. In the UK, you are legally an adult when you turn 18.

So whatever culture or tradition you decide to embrace, there are many unique 18th birthday party ideas you can do. That being said, let’s dive into our epic list of what to do for your 18th birthday.

18th Birthday ideas: What to do for your 18th birthday!

So the big question is, what are the best 18th birthday celebration ideas? Where should you go and what type of activities should you do? Whether you enjoy the great outdoors or need some pampering, this list will help you decide what to do on your big day.

Here is the list of our favorite 18th birthday celebration ideas!

1. Have a spa day

This is a traditional way to celebrate with a group of friends on your birthday. So get everyone together and head to the spa for manicures, massages, and facials.

Or, if you’re on a budget, opt to stay in for an at-home spa day. For example, you could paint each other’s nails, apply face masks, and watch some good movies! Even if you are on a budget, there are plenty of fantastic ways to pamper yourself on your big day.

2. Go hiking

So are you wondering what to do for an 18th birthday that’s outdoorsy? If you enjoy being out in nature, try going hiking for the day.

This is a great way to get out in nature while spending quality time with friends without the distraction of phones or technology. Choose a setting like a lake or a mountain, and have fun!

3. Enjoy a luxury picnic

This is one of the more unique 18th birthday party ideas and an excellent way to celebrate your day while also being outdoors.

Luxury picnic companies will usually set up beautiful decor in an outdoor setting and bring food. So all you have to do is just show up with your friends and family, ready to make some memories and enjoy a meal.

A luxury picnic is one of our favorite 18th birthday celebration ideas because you get to enjoy good food and relax with friends and family.

4. Head to the bowling alley

So how long has it been since you hit the ole’ bowling alley? This is a great activity if you’re wondering what to do for your 18th birthday. There’s food, music, and fun.

You can even let them know it’s your birthday while at the bowling alley to see if they do anything special for birthday visitors, like song dedications.

5. Have a movie night marathon

So there are a few ways to do this. For instance, you could pick out a few favorite films and watch them at home or at a friend’s house.

If you want to do something retro, head over to a drive-in theater. Don’t forget the popcorn!

6. Take an 18th birthday celebration weekend trip

You should consider taking a weekend trip because it could be a fun and unforgettable experience. However, it’s one of the more extravagant 18th birthday celebration ideas. so you will need to plan ahead.

If there’s a big city nearby, you can plan to drive out and enjoy all the city activities for a couple of days. Or you can even hop on a plane and visit a destination (e.g. Disney!) you’ve been wanting to check out.

7. Treat yourself to old fashioned cake and ice cream at home

There’s something nice about getting together with family and friends in a simple way and just enjoying the day. So grab your go-to ice cream, bake a cake, and invite your favorite people to join you.

According to National Day Calendar, some of the most loved cake flavors are chocolate and cheesecake. You might also consider cupcakes or ice cream cake.

8. Host a video game party

If you’re into video games, why not host a marathon? Be sure to also include snacks and a birthday cake along with your favorite game. You can pick a new one or try a game that’s really old school just for fun.

9. Try an escape room

So these are very fun and great for large or small groups. Take a few people with you and try out an escape room. Solve the mystery before time runs out! Then be sure to get some ice cream and cake afterward.

10. Take a creative class

Are you the creative type? If so then grab a couple of close friends and try out an art class. Maybe make a coffee mug in a pottery class or even some jewelry.

It’s a unique way to celebrate, and you’ll create something to help you remember the moment. You can also get together at home and find classes on sites such as YouTube or Yaymaker. Who knows, maybe you will turn it into a new hobby!

11. Ride ATVs

Looking for adventure? Why not ride ATVs with friends or family? You get to be outdoors and enjoy some fresh air while also doing something fun.

They’ll love it, and it’s a cool idea that most people won’t think of for celebrating a birthday. So it’s definitely one of the more unique 18th birthday party ideas!

12. Play a game of paintball

If you love a great game, try paintball. It’s one of the best 18th birthday ideas because not only is it unique, but you get to have a fun and memorable experience.

Side note: You can sometimes rent out a whole place if you have a large enough group. So grab your friends and family and have some fun.

13. Have an old fashioned game night

Want to try out a throwback party? Enjoy an old-fashioned game night. Break out the board games like Uno, Clue, and Monopoly, or try poker. Be sure to also include prizes for the winners.

14. Tour the town for tasty treats

If you can’t decide on just one place to celebrate, why not have your party in more than one location? For example, dinner at one restaurant, and dessert at another. It’s a great way to fill up the night while experiencing your favorite treats.

15. Try an 18th birthday theme party

There are many ways to have a themed party, and yours could be one of the most unique 18th birthday party ideas. You could do a costume party, a beach party, a disco-themed event, a mystery dinner, or whatever 18th birthday party theme you want. All great ideas for Instagram photos too!

So put on your thinking cap birthday girl and get creative for a fun and festive event!

16. Go on a scavenger hunt

There are tons of fun ideas for indoor and outdoor scavenger hunts. For instance, there are nature scavenger hunts or even neighborhood scavenger hunts. So embrace your adventurous side and make a go of it!

17. Invite your friends to a fancy restaurant

Heading out to a fancy restaurant is one of the simplest yet fun 18th birthday ideas. Just a good night of delicious food, and great conversation with your closest friends. Sometimes it’s the simple things that are the most pleasurable!

18. Have a sleepover

Remember how much fun it was to have your friends sleepover when you were a kid? So why not get in touch with your childish side and have a pajama party!

You could really make it fun and find some vintage board games or movies to watch or even have a fun photoshoot. This is one of the best 18th birthday celebration ideas to enjoy with your friends because it makes you feel like a kid again!

Expert tip

When it comes celebrating your 18th birthday, having a plan in advance is key. A plan will help you explore your top ideas, plan your spending, and ensure there are no last minute suprises. A great way to lay out your plan is with a spreadsheet.

Gift ideas to ask for on your 18th birthday

Have you been given the opportunity to get a gift for your 18th birthday? Not sure what gift to ask for? We’ve got some great 18th birthday present ideas. These suggestions are perfect for anyone because they range from jewelry to cash!

1. Jewelry

This is always a winner because let’s face it most of us love jewelry. For an 18th birthday, try something meaningful. A beautiful, high-quality watch, for example. A nice necklace set, or maybe a bracelet with an engraving. Think of something classic and pretty that can be worn for many years.

2. Money

Money is always a good idea if you don’t know what to do for an 18th birthday gift. You know it’s useful, and you can buy whatever you want. You can save or invest this money as you head into your 20s!

So if you’d like to fund your savings account instead of getting stuff, ask for cold hard cash!

3. Gift card

A gift card is an awesome 18th birthday gift idea because you can have a shopping spree and buy what you want. Think about your favorite shops or things you enjoy. Then choose a gift card to a coffee shop, restaurant, towards a trip, or even to buy stock!

4. Dorm room decor

If you’ll be heading off to college soon, some dorm room decor might be a great gift to get. Things like a memo board, string lights, or wall art will brighten up the space. It’s easy to buy and will get you excited about going to college.

5. Great book

A great book is always a great idea. Since this is for your 18th birthday celebration, choose something that fits the occasion. Maybe an inspiring memoir, a career guide, or a financial book. Reading is enjoyable and beneficial!

6. A musical instrument

So if you love music and are musically included, you could ask for a musical instrument as a gift. Maybe you want to learn the piano, guitar, or even the drums. Now might be a great time to get started!

7. Games

Games are something that everyone likes to have around. Try a fancy chess set, a great deck of cards, or even a fun group board game you can play with many people. It’s a nice way to connect with friends and family, and it will provide tons of entertainment.

8. Luggage

If you are the adventurous type, luggage is a great gift. You can use it when you travel, head off to college, or take a weekend trip. It’s a super practical present that’s also fun.

9. Gel nail kit

So if you love manicures, you can ask for your own gel nail set. There are a lot of great nail kits available, and many come with nail colors, too. Plus, it saves money over time.

10. Coffee maker or espresso machine

This is especially useful if you are going to be spending a lot of time studying or working in the future. You’ll appreciate having a way to make your own coffee or espresso from the comfort of your home, and it can save you money.

In fact, let’s say you spend an average of $15 a week on grabbing coffee out. That’s $780 in just a year you could save! So ask for a coffee maker and some delicious gourmet coffee and save some serious cash.

11. Laptop or tablet

This is a great group gift, especially if you will be going off to college soon. A laptop or tablet can be super helpful and make it easy to take notes and get assignments done.

Since it’s a higher-priced item, you can tell your friends they can all chip in on one gift instead of getting you separate gifts.

12. A Fitbit

A fitbit is a fun way to stay in shape, and they’re a great present if you are turning 18. You can use it to count steps and stay fit while at college or when working. It’s also a great way to hold yourself accountable to achieve your step goal for the day!

13. Photo album

A great place to keep memories! Go the extra mile by adding photos from the party or pictures of you and your friends and family. That way, you can look back on all the good times you had.

14. Camera

If you love taking pictures, a camera can be one of the best 18th birthday ideas. A high-quality camera to record your adventures is the perfect thing, especially if you’ll be going somewhere new. You could also use it to take pictures and start your very own blog if you wanted to!

15. A designer handbag (The ultimate 18th birthday idea for a gift!)

A good-quality designer handbag is a staple for every woman’s closet and the perfect thing to buy for an 18th birthday party. Find something with a classic design and a neutral color that goes with everything in your wardrobe.

You could also let your friends know you don’t mind getting a pre-owned designer bag. This will help save them money while you still get a fabulous gift. Plus, shopping second-hand is also good for the environment!

Fast and fabulous 18th birthday ideas for decor

Are you struggling with ideas for decorations? No problem! Check out these fast and simple solutions for 18th birthday ideas.

1. Banners

These are easy to find, and you can use them to decorate easily because they make a big statement. Find one that matches the birthday party colors. You can choose from signs that say things like “Happy 18th!” or “Party” or anything else you like.

2. Balloons

Of course, we have to include balloons in our list of 18th birthday decorations! Balloons are easy and inexpensive, and you can decorate a room with them quickly.

There are all types of balloons, from fancy ones to arches to dollar store ones. So choose something that fits your budget.

3. Table centerpieces

You can do anything here, from making your own to finding something with the number “18” on it. A table centerpiece should be visible, large enough to be the central part of a table, and go with the colors for the party.

4. Online invitations or paper ones

There’s something about getting an old-fashioned invitation in the mail that is really fun. But if you want to be environmentally conscious, you can buy Evites to send via email. This is also great for getting fast R.S.V.P.s from people.

5. Party favors

You’ll need some great party favors to celebrate in style and thank guests for being part of the day. Try candles, gift cards, or something that is part of the event theme. For example, sand in bottles for a day at the beach or a favorite DVD from a movie day.

6. Thank you notes

Thank you; notes are a nice touch and a great way to let your friends and family know you appreciate them. Just write something simple, thanking them for being part of your day and sharing a note about a fun memory.

7. Tablecloths

If you’re having dinner or a dessert table, use a tablecloth. Try using a heavier cloth rather than a plastic one. It adds a touch of elegance. Pick one in a color that compliments the primary color for the party.

8. Photobooth or background

Another great idea is to create a space for people to take photos! You can make a background with streamers and balloons or make a photo booth if you feel creative.

Include props like hats or sunglasses for people to wear. It’s one of the most fun 18th birthday party ideas.

9. Streamers

Crepe streamers are fun and inexpensive, and you can use them to decorate any space. Wrap them around porch posts or balconies, or use them to make a photo background.

Make sure the color matches the theme. Remember to check out stores like the Dollar Store or Big Lots for cheap decor.

10. Candles

Candles are great if the event will be in the evening or at night. Use candles to quickly decorate the space. However, if you’re concerned about fire hazards, you can use battery-operated ones for safety.

They are still beautiful, and you don’t have to worry about accidents!

11. Hanging lights

These are nice to have for an outdoor celebration, especially in the late afternoon or evening. Use them to decorate trees, a backyard, a porch, etc. They look pretty, and they don’t require a lot of effort.

12. Flowers or plants

Any table or event space can benefit from greenery. So add a few plants or some beautiful flowers to the main table. It’s a sophisticated look that is perfect for a birthday party.

13. Canopies or tents for outdoors

Suppose you are celebrating your party in a backyard, at the beach, or anywhere outside. In that case, a pretty canopy or tent will make the decor come together. Include lights, lanterns, and balloons to make the look complete.

Plus, it’s also a great idea just in case the weather switches on you.

14. Dishware

Using dishware is a fancy way to celebrate. Use porcelain, glass, or china dishware when serving dinner. That way, you can prepare a meal for your guests in style. Paired with a tablecloth and some flowers, this is an elegant look.

15. Glass vases or table decorations

So if you are unsure how to decorate a table, you can’t go wrong with some glass vases. You can fill them with candles, pretty rocks, or flowers.

They always look nice and are inexpensive to buy. In addition, you can buy confetti or glitter to sprinkle on the table for a bit of glam.

What are themed 18th birthdays?

A themed 18th birthday is where you decide on a party idea including outfits, look and feel. For instance, you could do a Disney theme, a beach theme, an all-white theme, or a dress-up gala theme.

You could even do a theme after a classic movie like Clueless or Breakfast at Tiffany’s, and much more. Themes are a great way to add uniqueness to your special celebration!

What is the best thing to do on your 18th birthday?

The best thing to do on your 18th birthday is something you will enjoy and can create beautiful memories from! There’s no rule about what you have to do for your birthday, instead do something you love with people you love!

What can I do for my 18th birthday without friends?

If you don’t have any friends around on your 18th birthday, there are still a ton of things you can do alone to celebrate! For instance, you go could for a spa day, where you get your hair and nails done. Or perhaps a massage and facial. You could sign up for a creative and fun class and spend the day with other class goers!

You could also take yourself out on a solo lunch or dinner date and let the servers at the restaurant know you are celebrating a birthday!

How to budget for your 18th birthday ideas

All these 18th birthday ideas vary as far as cost. But any idea works better with a budget. If you don’t know where to start, check out these helpful tips.

1. Create a party budget

The very first thing you need to do is create a party budget. How much do you plan on spending? That’s why it’s good to choose what you want to do and research the estimated costs.

So, make a list of costs based on the activities, food, and decorations. Then figure out your total so you know how much you need to save for the event. For instance, let’s say the total estimated amount for your party is $500. Now you know how much you need to save to stick with your party budget!

2. Open a dedicated savings account

When saving up for something important, it’s a good idea to give your money a specific place to grow. You should open up an account specifically for birthday savings.

That way, you can add to it each month and see the amount grow larger with time. It’s usually easy to name your account, too. Naming it something like “18th birthday celebration” will help keep you focused.

3. Save your pocket money

If you regularly get an allowance or have some money from other birthdays or holidays, save it up for the party. Even though pocket money may seem like a small amount, a bit of cash over time can add up to be quite a lot by the time you need it—especially if you save for several months or maybe even a whole year.

4. Earn extra money for your party

Getting a job is one of the fastest and most steady ways to save up some money. If you already have a part-time job, that’s great. You can start saving your money for your 18th birthday.

If you don’t have a part-time job, but you have some time before the event, such as several months, start applying. You may also consider a side hustle doing something like dog walking and save up that way.

We’ve also got some great ideas for high paying jobs for 18 year olds!

Related posts on party planning and events

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Make the most of these 18th birthday ideas for an amazing celebration!

So now you have great ideas for what to do for an 18th birthday! Your 18th birthday party is a time that will never come again. There are many ways to celebrate it, but the most important thing is to spend it with friends and family.

Since you may soon be heading off to a new town or state, enjoy this time with those you love. Remember to create your birthday budget, so you don’t derail your financial goals too!

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