Money Talks December 2020 | Stephanie Garcia

Basic Tracking Budget

Basic Tracking Budget

Chess players write down all their moves to make sure their games are on point. ♟Pero, you don’t have to be a (chess) maestro for you to get your budget in check (mate). ♚ Just like Argentinian actress Anya Taylor-Joy in The Queen’s Gambit♛, you can work towards becoming a budgeting jef@ by writing down all your money moves.

 

Just like there are several chess moves to grab your opponent’s King, there are a few different methods to get your budget on track. One of the simplest and best if you’re just starting our at it, is the Basic Tracking Budget. ✍🏽

 

A Basic Tracking Budget is just that: basic. Pero, where IRL people try to avoid being “basic,” 🙃 approaching your budget with this method is great for anyone starting out on their financial journey. This method keeps track of your money coming in 💵 versus the money you have going out. 💸

 

First, you look at what your after-tax income is every month. Then you list your expenses, every expense. Check credit card 💳and bank statements to make sure you aren’t missing any recurring payments. 🧾You want to make sure that the money going out isn’t more than the money coming in. Debt to Abundance describes it as the “shoot-from-the-hip” model. It will, at the very least, show you what lifestyle changes you can consider making if the money going out is mucho más then the money coming in, just like you will change your game-plan mid chess game if you find your King is being compromised.

 

The upside to this method is that you’ll keep yourself out of debt, just like your simple pawns are your first line of defense. 👍🏽 The downside is it’s not a great way to accrue savings, so, kinda like how pawns aren’t the best defense to keep your King safe. 👎🏽

 

If you’ve never even tried or considered budgeting before, the Basic Tracking Budget is easy to follow and keep track of month-to-month. And once you master this basic method, you may be ready to take on more complicated game moves. ♞

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