Napkin Finance - An Intro to Budgeting

I am a huge fan of the 50/20/30 method but I keep it fluid too so it's not too restrictive.  I stick to it mostly but also allow myself the freedom to adjust the percentages some months as needed.  Budgeting is like following a diet or any other regimen where flexibility helps one to stay the course -- if the rules are too right, it's very easy to feel deprived and fall off the wagon.

I haven't had a chance to pick up the book yet, but I love how Tina Hay illustrates the 50/20/30 budget on the napkin above. I particularly like the examples at the bottom of finding ways to cut back on seemingly small treats or conveniences so you can save hundreds of dollars each year. Like Nicole, I really like the tip on setting aside money for savings before spending money. Although I've never been the best about keeping a formal budget, this year, I'm prioritizing saving as much as possible and am focusing on where to cut back on my expenses.

I haven't loaded the book yet to Kindle (will do that on Friday). I had heard of this book before when Michelle Obama was doing some promotion I think for it, and took a look around their site and liked the illustrations. It was actually quite addicting, sort of like that Notecard finance book.

So, when I heard PH would be discussing, that meant that instead of being on my backburner, it became on my front burner.

I use Mint app because I like the automation (sometimes, it's off), but I also use an Excel spreadsheet, not so much as a budgeting tool, but as a spending plan. For example, in my January 2021 workbook, I have already red-flagged overspending in the Miscellaneous category. I have a lot of categories, because I like lots of granular detail. Simultaneously, I hand-write entries in my checkbook register (yep, I still use one). I've also hand-written sticky notes of debt paydown and attached to my kitchen cabinets...trying to get 2021 off a good start!

Now that I think about it, I think I want a hardcopy because I like to take physical notes and highlight things, and can't really do that in Kindle.

@Theodora, you're so right — flexibility is KEY when it comes to budgeting!

And @Sushil, I'm cheering you on with your savings journey! Those small things do add up and it's easy to not notice what an impact they make on overall spending over time.

@sthom, I love your debt paydown sticky notes idea! I'm sure whenever you see the notes, you're reminded to stick to your debt payoff plan.

Also, kudos to all your budgeting methods! It sounds like you've got things covered using an app, spreadsheet and a pen-and-paper ledger.

@sthom I have this book on my Kindle, too, but I think the physical book will help bring the napkin illustrations to life.

@Nicole D., I use three methods so I can watch what I'm spending closely. Obviously I'm a bit anal but it also forces me to always be thinking of how I'm using my money.

Yep, @Sushil, that's exactly right. There's something about hand-writing that helps me retain things. While I will use technology tools if they help me see things clearly, I am still pretty old-school (thus, the checkbook register, and the color coding in there actually helps me at tax time).

Once I get the physical book, I'll be able to make more comments about its content.

And, absolutely yes to funding savings first. I've always done that (my Mother forced me to do that with my first teenage job). While sometimes it feels as if as soon as I make a deposit I have to turn around and take some out, I still keep at it. I remember my Dad feeling the same way about this as me🙂.

Does anyone have a link to an Excel spending plan ? Does a stock template exist?

tia,

mike

@Michael J, when you create a new spreadsheet in Excel, you can actually select from various budget templates. There's a "personal monthly budget" template, which is a great option -- but if you have specific needs like budgeting for a small business or budgeting for a wedding, there are other budget templates you can choose from.

Tiller Money is also an excellent spreadsheet budget software. It comes at a cost, but you can test it out with a free trial.

Awesome- thank you for the information!!

I don't have a copy of the book yet, but I just had to chime in. I've heard a lot about the 50/20/30 budget method, but have never tried it. Maybe 2021 will be the year!

I am a pen-to-paper kind of budgeter, and I live by The Budget Mom's method! I have been using it for about 3.5 years and it has worked wonders for me. I find budgeting for myself to be easy enough, its when you have to mix in other people (partner, kids) where it is a challenge. (But I'll happily take those challenges 🙂 )

Yes, @Brigat! Let 2021 be the year you try it!

And @KellyFromKeene — I love The Budget Mom, too. :-) Maybe if you can get your partner and kids interested in The Budget Mom videos or show them the cool graphics from "Napkin Finance," they'll jump on board too. Good luck!

haven't read the book ,its nice to see every ones comment on it, i elarn a lot from you all thank you

I have yet to read this book. Thank you for the highlights! I love and follow The Budget Mom. I first learned of TBM in The Penny Hoarder newsletter in October 2019.

I haven’t read yet but will soon.. I am currently reading Rachel Cruz new book and am enjoying it... I am in for book club..

Yes, please.

@Burgandy, Rachel Cruze's new book is definitely one I want to check out! I'm so interested in the topic of knowing one's money mindset. Glad you're enjoying it!

Thank you!