Smart Money Moves: Boost Your Life with Budgeting, Spending Limits, and Tracking
- jaimemoralesj14
- Feb 22
- 6 min read
Money Moves for Budgeting and Tracking
Finances can be a touchy subject for many people. Money is often the reason why we find ourselves in certain situations, and making smart money moves for budgeting and tracking helps how your money works for you, it allows you to become a truly powerful person. Money is a form of power and has the ability to change the course of your life. We believe that money is a language everyone likes to speak.
The main issue we’ve observed in people with financial struggles is the inability to stay organized and the difficulty in resisting impulsive spending. Another major challenge is the lack of financial literacy, which is a concern within the American education system. To make matters worse, many marginalized families come from households where finances weren’t discussed, and the adults you’re supposed to look up to often don't have a clear understanding of managing money.
That being said, this blog post focuses on how using your money more effectively can benefit you in the long run. This is not a post to make you feel ashamed or to control what you do with your money. The main goal of this blog is to create a space that empowers you to take control of your financial habits.
Create a Budget and Track Your Spending
Focus on staying organized. Organization is key to taking control of your finances. In general, staying organized helps in all aspects of life. Whether it's work, relationships, or especially money, having a clear plan and knowing exactly where your money is going and what it's doing is essential. Each dollar should have a task. Think of it as each dollar being the worker in your empire or business—you're the boss, and you tell the money where it goes and why.
Having a tracker helps a lot when trying to stay on top of your money. There are countless tools to choose from. We've seen people buy financial planners, write things down in notebooks, and use online Excel sheets. Work with what works best for you. If you like Excel sheets and enjoy being on the computer, go that route. If you're more of a pen-and-paper person, that's fine too. The structure should be the same: How much money comes in every two weeks or month, and what is the money doing? Paying for rent, car payments, groceries, etc.
When you create a budget and track your spending, you can see where the weak points are and where your money is going. Seeing the patterns in how you spend money and how much you're paying for things can help identify areas to cut back. For example, if you spend each pay period on shoes, coffee, or games, you could scale back and realize there's money to be saved. You can then take the money you save and either put it away or reinvest it.
The goal of budgeting is not to make your life miserable or deny you the happiness of life, but to limit how often money is spent on things you really don't need to survive. Instead of having coffee every day, maybe have it once a week out and the rest of the days at home.
Everybody loves coffee, and it’s something that is consumed worldwide. However, each cup can cost you a lot in the long run. Driveresearch conducted a statistical analysis and came up with key findings about coffee consumption and how much coffee drains our money. The points from the article are posted below:
The average amount of money people spend on coffee both at home and at coffee shops can be summarized as follows:
At Home:
31% spend $11 to $20 a month on making coffee at home.
25% spend $21 to $30.
15% spend $31 to $40.
13% spend less than $10.
11% spend over $40.
6% of college students spend up to $40 a month, while 36% of new parents spend this amount.
At Coffee Shops:
51% of people purchase coffee from a coffee shop at least once a week.
54% of people spend $20 or less a month on coffee from cafes or coffee shops.
16% spend $21 to $30.
14% spend $40+.
12% spend $31 to $40.
The numbers can vary a lot depending on how much you consume coffee at home or outside the home.
Now that we’ve looked at an example, you can see how much money could be spent on things that aren't necessary. However, it's important to keep track of your expenses, even if it's just in the Notes app. My recommendation would be to buy a financial journal or do it online. Pen and paper always work as long as you keep it organized. You want to separate your expenses into categories: Expenses, Life, and Savings.
Expenses | Cost |
Food | $$ |
Heat | $$ |
Laundry | $ |
Gas | $$ |
Water | $$ |
Electricty | $$ |
Life | Cost |
Out to eat | $$$ |
Birthday Party | $$ |
Drinks w/ Friends | $$$ |
Note: The "Life" block is for things that you don’t need to survive but are nice to have, such as shoes and coffee. These items can go on this list as well. A chart for savings will not be made, as we're keeping it limited and simply providing the framework for setting a budget and tracking your spending.
The good thing about these categories is that they are interchangeable. Some of you might have kids, so your list might look different with items like diapers, daycare, and so on. Some might have car payments, while others may not. The basic setup is there; feel free to change it to fit your own needs and how you live your life.
What I would recommend is to track your spending for the past three months so you can see trends in your spending habits. This will allow you to start identifying what to cut out and where to focus your efforts.
Setting Clear Limits
Creating a budget also helps set a clear limit on how much money you're allowed to spend. Let's use the coffee example:
Let’s say you get coffee once a day from a coffee shop chain. On average, you spend $5.00 USD (keeping it simple). That’s $5 x 5 days (for an average work week, Monday through Friday) = $25 a week.
Now, $25 a week x 4 weeks in a month = $100 a month.
Finally, $100 a month x 12 months in a year = $1,200 spent on coffee outside the home each year.
Now, let’s look at a scenario where you only get coffee from the shop once a week on Fridays:
$5 x 1 day a week = $5, $5 x 4 weeks in a month = $20 a monthFinally, $20 a month x 12 months = $240 a year.
By reducing your coffee shop visits to just once a week, you would save $960 yearly. While $960 might not seem like a lot on its own, when you add up savings from other unnecessary expenses, it will begin to add up.
No one is saying you should take away the things you enjoy just to save money. Rather, it's about limiting the frequency with which you visit places that are draining your funds. Make changes like making coffee at home, or if your workplace offers free coffee, take advantage of that. It's all about being mindful of where your money is going and finding ways to still enjoy what you love, without overspending.
Overall Thoughts and Key Takeaways:
Budgeting is Key: By setting clear limits on spending, you can take control of your finances. This allows you to use your money for things that matter, like a family trip or something you’ve been saving for, rather than spending on things that aren’t necessary.
Small Changes Make a Big Impact: You don’t have to completely eliminate the things you enjoy. Instead, limit how often you indulge. For example, making coffee at home or taking advantage of free coffee at work can save a significant amount over time.
Take Control Step-by-Step: Financial control isn’t easy, especially when most people haven’t been taught how to manage money effectively. Start with simple steps, track your spending, and adjust as needed. Over time, you'll build a healthy financial routine.
Live in Harmony with Your Money: With budgeting and mindful spending, you can live a life where you and your finances are in harmony, giving you the freedom to enjoy life while securing your financial future.
How much do you spend on coffee a week?
0%$1-$5 USD
0%$6-$10 USD
0%$11-$14 USD
0%$15-$20 USD
Disclaimer: JPM Collections LLC is not a financial advisory group. The advice shared here is based on personal experience. Please do your own research and find what works best for you.
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