How I Saved $20,000
Today I’d like to share a financial tool that helped Angel and I save $20,000 in about a year and a half. Our goal in saving that amount was to ease the transition of going from full time employee to full time self employed. Whatever you think of that number doesn’t really matter. What matters is that you track your money to achieve the lifestyle you want. I’ve learned it this way, you should INSPECT what you EXPECT.
So, how did we achieve this? By using a budget sheet, which you can grab here. But before you dive in, let me guide you on how to make the most of it!a
START HERE
To illustrate, I've used an example of a household income of $2,000 a month. The sheet comes equipped with all the necessary formulas, making your financial management a lot easier.
Tab 01: Operating Budget
Create a detailed operating budget that clearly defines your money distribution. There are several ways of doing this, I prefer to be as specific as possible. If you’d like to learn more about this, Google “standard budget percentages.”
Add your income (Columns J & K)
Label your money distribution (Column B)
Add your distribution percentages (Column A)
Ensure your percentages add up to 100% (A:16)
✅ Upon completion, you'll have a clear overview of how much you should allocate to each category (Column D).
Tab 02: 2024
This tab provides a detailed financial breakdown, organized annually and adjusted monthly. Each year gets a new sheet, creating a comprehensive document that tracks our financial journey over time. The primary goal of this tab is to align with the operating budget from Tab 01.
Make sure your money labels match those in Tab 01
Input your spending by looking over your bank statements
✅ By doing this, you gain insights into areas where you excel and those that might need attention. Compare your spending in Tab 02 with your Operating Budget in Tab 01.
As you track your money, watch how your financial state transforms from unpredictable to predictably achieving your goals. Grab the sheet and start crafting your financial success! 🚀
