How I Budgeted My Income Before I Quit My Job

Living paycheck to paycheck on 100k/year is probably one of the most challenging things you can ever encounter your entire life. I have undergone through this trying ordeal and I can say that I am proud to have overcome it – in style.

My Story

During the past few years, I have been contemplating on quitting my job to search for greener pastures, and it was only late last year when I finally mustered enough courage to do it. Lately, I’ve been reading about personal finance and budgeting. I realized that there’s a lot of breakthrough news for women who are now seen as smart budgeters and wise investors.

For one, here is a recent update about budgeting for women. I hope it inspires you in the same way that it encourages me now in terms of saving, investing, and spending money wisely —

The article mainly says that women are as successful as men in terms of investing. In fact, women may be naturally better than men as we women tend to focus more on long-term gains, so instead of trading frequently, women often buy and hold on to their investments, which generally produce more profit in the long run. At home, this attitude is also a highly useful means to save more money to buy high value items, to invest, or probably even to start a small business.

What I did to start saving more money for investing is to budget wisely to help cover for my expenses after I quit my job, and have enough money to buy bonds as well as some stocks. The rest of the money, I placed in the bank for emergencies, while it earns interest at premium time deposit rates.

Steps on How I Budgeted My Income Before I Quit My Job and Started Saving for Investing Activities

You might think that living frugally without losing my mind isn’t something you could possibly do, but I did it. You can do it, too; just put your mind to it. A little strategy also helps, so for some inspiration here is a quote from Dave Ramsey:

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

First, you need to do some accounting of how you or your household typically spend all the money you are earning on a regular basis. This way, you are able determine where the bulk of your income goes or where you need to place more money into (hint: SAVINGS).

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

Second, take note of the part of your budget where you spend money on unnecessary expenses. You then need to account every small detail on where you spend money, no matter how little, even if it’s just for a cup of Starbucks coffee or a manicure at the spa. If you can find more cost-efficient alternatives or do away with these unnecessary expenses, you get to save more money.

“Money looks better in the bank than on your feet.” – Sophia Amoruso

Lastly, realize that you have to make sacrifices if you want to be successful in saving more money for investments, so you can immensely grow your overall income. Every time you see a well-advertised dress or a trendy pair of shoes, ask yourself if you really need it. If you are only after the fame or confidence of wearing these expensive items of clothing, it would be much better to think how victorious and successful you will be if you are able to put your money in the right place (banks, stocks, etc.) instead of being put to waste on virtually useless stuff.

Conclusion

These three methods basically summarize how I budgeted my income before I quit my job to start my journey towards financial freedom. The moment you are able to budget your money wisely via these tips to have enough savings for investing, you can start to sit back, relax and watch your money grow tremendously. One of the best ways to invest your money during summer aside from bonds or stocks is to start your dream business because you definitely earned it.

Start budgeting now, get more tips on how to save and invest, get rich—be empowered.