• Celebrity
    • Of The Essence
    • Celebrity News
    • If Not For My Girls
    • The State Of R&B
    • Time Of Essence
  • Fashion
    • 2023 Best In Black Fashion Awards
    • 2023 Fashion House
    • Red Carpet
    • Fashion News
    • Accessories
  • Beauty
    • Girls United: Beautiful Possibilities
    • 2023 Best In Black Beauty
    • Skin
    • Makeup
    • Nails
    • Hair
  • Lifestyle
    • Love
    • Parenting
    • Relationships
    • Bridal Bliss
    • Lifestyle News
    • Health & Wellness
    • ESSENCE Eats
    • Travel
    • Food & Drink
  • Entrepreneurship
    • Power 40
    • Money & Career
    • SOKO MRKT
  • News
    • Latest News
    • Paint The Polls Black
    • Culture
    • Politics
  • Shopping
    • Essence Holiday Gift Guide 2023
  • Video
  • Events
    • 2023 Fashion House
    • 2023 ESSENCE Festival Of Culture
    • 2023 Wellness House
    • 2023 Black Women In Hollywood
    • 2023 ESSENCE Film Festival
    • 2023 HOLLYWOOD HOUSE
  • Studios
  • Girls United

WHERE BLACK CULTURE, COMMUNITY AND CONSCIOUSNESS MEET

Sign up for ESSENCE Newsletters the keep the Black women at the forefront of conversation.

Your email is required.
Your email is in invalid format.
Confirm email is required.
Email did not match.
Select the newsletters you'd like to receive:
Please select at least one option.
By clicking Subscribe Now, you agree to our Terms of Use and Privacy Policy.
Skip to content
SUBSCRIBE
  • MAGAZINE
  • NEWSLETTER
  • Celebrity
    • Of The Essence
    • Celebrity News
    • If Not For My Girls
    • The State Of R&B
    • Time Of Essence
  • Fashion
    • 2023 Best In Black Fashion Awards
    • 2023 Fashion House
    • Red Carpet
    • Fashion News
    • Accessories
  • Beauty
    • Girls United: Beautiful Possibilities
    • 2023 Best In Black Beauty
    • Skin
    • Makeup
    • Nails
    • Hair
      • Hair News
      • Natural
      • Relaxed
      • Transitioning
      • Weave
      • 4C
  • Lifestyle
    • Love
    • Parenting
    • Relationships
    • Bridal Bliss
    • Lifestyle News
    • Health & Wellness
    • ESSENCE Eats
    • Travel
    • Food & Drink
  • Entrepreneurship
    • Power 40
    • Money & Career
    • SOKO MRKT
  • News
    • Latest News
    • Paint The Polls Black
    • Culture
    • Politics
  • Shopping
    • Essence Holiday Gift Guide 2023
  • Video
  • Events
    • 2023 Fashion House
    • 2023 ESSENCE Festival Of Culture
    • 2023 Wellness House
    • 2023 Black Women In Hollywood
    • 2023 ESSENCE Film Festival
    • 2023 HOLLYWOOD HOUSE
  • Studios
  • Girls United
Home • Lifestyle

Make Budgeting Your New BFF

Stop winging it when it comes to your cash flow. Instead, follow these tips to tighten up your money situation.
Make Budgeting Your New BFF
JGI/Jamie Grill/Blend Images LLC
By Tanisha A. Sykes  · Updated October 27, 2020

It’s Payday! Time to pay a few bills online and enjoy a Tini with your crew. Before you head out to the beach, there’s the all-important pit stop at Nordstrom’s for that peep-toe Espadrille. “I earned it; I deserve ‘em,” you assure yourself.

As you swipe your debit card, you think, “Did the car note come out?” After all, it’s the first of the month and seemingly everything—from rent to the car note to the cell bill—is due. “Please Lawd let this transaction go through. I promise I will get this budget together,” you mumble. Yikes! Your card was declined.

It’s easy to spend indiscriminately. Yes, you have to track your dollars and budgeting software like mint.com can help. But if you really want to stop making random purchases, give the categories in your budget a purpose. 

Each payday, divide your money into four categories: save, spend, give, and live. Here’s how to do it. 

Save at least 15% of your income in a savings account not tied to a checking account. Credit unions and online banks are the perfect place to store cash via direct deposit. To find a bank with competitive rates, log on to bankrate.com. 

Spend 50% on bills and eliminating debt. This can be difficult if your rent and car note total more than the recommended amount. Time for some roommates and a smaller car (or better yet, bike it)! Try consolidating student loans, taking public transportation to work, moving home, selling valuables on Ebay, and eliminating cable. Don’t worry ladies! You can still get your Power fix via netflix.com or hulu.com, starting at $8 per month.

Give at least 10% to your favorite charity or local cause. Why? Because even if you’re struggling, there are people out there who are less fortunate. Plus, it’s a write-off. Check out charitynavigator.org to view ratings and financial data for charities

Live with the idea that you can travel in style or pursue your passions by squirreling away 20% of your check. We all want to live free and setting up an account separate from savings will help you do that. 

If you align your money with your values, it will go where you want it to go. So, what to do with the remaining 5%? Whatever you want! 

 

—Tanisha A. Sykes is a writer and editor in New York City. Follow her on Twitter @tanishastips.

COMPANY INFORMATION
  • Our Company
  • Customer Service
  • Essence Ventures
  • Change Your Address
  • Contact Us
  • Job Opportunities
  • Internships
  • Media Kit
  • tag
SUBSCRIBE
  • Newsletters
  • Give a Gift of ESSENCE
  • Magazine Tablet Edition
FOLLOW US
MORE ON ESSENCE
  • Home
  • Love
  • Celebrity
  • Beauty
  • Hair
  • Fashion
  • ESSENCE festival

ESSENCE.com is part of ESSENCE Communications, Inc.

Essence may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.

©2023 ESSENCE Communications Inc. All Rights Reserved. | Privacy Policy | Terms of Use | Essence.com Advertising Terms

Get The ESSENCE Newsletter and
Special Offers delivered to your inbox

By clicking Sign Up, you agree to our Terms of Use and Privacy Policy.

Get The ESSENCE Magazine
by subscribing below
subscribe now