UNBOXING THE 2021 BUDGET BY PAYCHECK WORKBOOK

One of the things that inspired me to start taking more initiative when it comes to my money + finances was finding The Budget Mom and purchasing her Budget by Paycheck Workbook! Miko has a wealth of knowledge when it comes to money and I love that the design and setup of her workbooks is user friendly. If you aren't familiar, the workbooks help track and organize your financial goals, expenses, income, spending + more. I started the year with last year's book which I have loved for tracking my spending and overall financial position. Since I decided to purchase another one this year, I thought we'd do a little unboxing!

This year's workbook came in two sizes- a full size version and mini monthly workbooks. I went for the full size because I love looking over the larger spread + having more room to write. I also loved the "Peony" theme so that's the one I went with! It has a gorgeous floral cover with the signature TBM graphics + blueish green accent tones. You can view the other styles and purchase a workbook in the TBM shop here. 

Let's talk about the layout! The workbook has a ton of pages but the bulk of it is organized with monthly tabs. Each one has a full calendar and separate trackers for your income, expenses, debt and net worth, meal prepping + a breakdown of your entire financial picture for the month. I like that it covers all of these aspects but is separated-- it could easily be overwhelming but is very well organized. It also gives me a feeling of starting fresh every month but still allows me to compare + flip back and forth. Outside of the monthly tabs, there are also worksheets for yearly financial goals + spending, bill/subscription trackers, savings trackers, a how-to guide with instructions and more. I wanted to share a little glimpse inside of mine but you can also go on the https://budgetbypaycheck.com website and flip through every page of the book with their 3D preview feature. You can do that for all of the options too!

One of the best parts about an unboxing is the packaging, I love when companies think of little extra details! The workbooks arrive in a fun, printed shipping box with matching tissue + a little flyer card. That detail also extends to the actual workbooks too-- the quality is top notch for everything from the cover to the paper and it comes with stickers! 

Hopefully this was interesting if you were curious about the BBP Workbook or are wanting to start managing your finances all in one place. I like the pen + paper aspect of the workbook, however you can also purchase a digital version of it too. Be sure to visit TheBudgetMom.com or click here for more info :) 

Also read: 

Why You Need to Open a ROTH IRA Now

How I Save Money Shopping

Money Moves I'm Making in 2021

SUMMER SPENDING + MONEY UPDATES

Back in May, I shared an update on my 2021 Financial Progress. This post was a recap of the year so far and a comparison to the original money goals I set for myself in January (you can read more on those in this post). Since my update, I've had a few changes in my spending + overall budget. I like to review things periodically so I thought I'd also update you on my summer spending + how things have been going! 

SUMMER SPENDING + MONEY UPDATES

+ I've been working a lot more hours these past few months which has led to more income. While I've splurged a little bit more here and there, I've challenged myself to save anything extra for specific or future financial goals. I'm still in the process of figuring out exactly what those are-- potentially a future home one day, travel, etc. 

+ One small step in that direction for me was to start defining a few sinking funds. Because I've always just left any savings or unspent money in the same account, putting money into a sinking fund seemed like an unnecessary step. I've recently started to view them as a means for me to make the most out of my dollars. 

If I know I want/need X dollars for X purpose, I'll then know how much I have left for everything else. After opening a high-yield savings account this year, I decided to move some of my non-emergency funds to the account for these sinking funds. Some of them (like Christmas spending or taxes) I have an idea of how much I want/need to have, others like a future home fund I don't. 

+ My spending has mostly stayed the same with the exception of food and gas. Between working more, higher prices and just being out and about, I've been spending way more on gas. My food category has also teetered back and forth-- some months I've been about the same, some I have been way up. Part of this I attribute to not being home as much and eating out more for convenience. Both of these I think of as additional costs for working more hours (and therefore earning more) so I'm fine with a little bit of an increase. I've also been trying to eat healthier which has increased my grocery cost + some of my eating out spending (healthier options always cost more). 

+ Ya'll know I'm all about the ROTH IRA. In June I started my contributions for 2021+ you can too! Be sure to read my post on Why You Need to Open a ROTH IRA Now. 

+ This one's a doozie but hopefully a helpful reminder. Last month I totally checked out and forgot to pay one of my credit card bills. It was the first time I've EVER missed a payment on any of my cards. Honestly I was more upset by that than anything else, lol. By some miracle, I thankfully didn't end up getting charged a late fee! It was a store card that I rarely use + only owed $50 on. I paid it off with my extra $1 of interest + bought myself a lesson. Here's a PSA to schedule on auto-pay or just don't forget! 

That's the spiel today! What do you spend the most money on during the Summer? 

2021 FINANCIAL GOAL PROGRESS + UPDATE!

Back in January, I put up a post titled Money Moves I'm Making in 2021. This outlined the top financial goals + priorities I set for myself at the beginning of the year. I decided that I wanted to really hone-in and focus on improving my finances in 2021. I've always been financially responsible and "good with money," however I want to go beyond the basics and just saving money. I've been challenging myself to really be intentional with my spending and to create a purpose + plan for my dollars. Like with anything in life, our finances are an area that I think we can always continue to grow, adapt and improve upon!

It's hard to believe that we're almost halfway through the year now! I thought I'd share a little recap of how things have been going so far with my goals + finances. I'm excited to document this to reflect and look back on my progress, however I also hope this will help inspire you to take action with your own money and financial goals. I am by no means an expert or offering financial advice- just sharing what I'm doing as I figure it all out :) 

To quickly recap, the top goals listed in my Money Moves post were: Max out ROTH IRA Contributions, Increase my Emergency Fund, Follow a Budget, Start Non-Retirement Investments + Open a High-Yield Savings Account. You can read more on those in this post!

2021 FINANCIAL GOAL PROGRESS

To keep things simple, I'm going to separate which goals I've accomplished (financial "hits") of 2021 and the areas that I think I need to expand or improve upon (aka "misses").

"FINANCIAL HITS" // ACCOMPLISHMENTS (SO FAR)

• 2020 ROTH IRA contributions
• Monthly emergency fund savings
• Opened an individual brokerage account
• Opened a high-yield savings account 
• Tracking my spending daily + creating monthly budgets
• Switched to a cash back credit card 

So far, I feel like I've been making great progress towards my yearly goals. I feel the most accomplished for maxing out my 2020 ROTH IRA contributions!! Right now I have low expenses so I'm able to take advantage of this. I'm trying to ride the wave + max it out for as long as I'm able to! Being prepared for the future is important to me so I do my best to prioritize + plan for this. 

Be sure to check out my post on Why You Need to Open a ROTH IRA Now. 

I also took care of a lot of the "administrative" things on my list. For months I've been telling myself I need to start investing outside of retirement, open a high-yield savings account, etc. I finally decided to take the first step by getting all of these set up. I also finally opened a cash back credit card for everyday spending. I've been thinking about doing this for about a year now! It's easy for me to keep pushing these things off as "I need to's" or "I want to's." They were all super easy to do + took me less than five minutes. If you keep putting off something super simple, just do it now! 

"FINANCIAL MISSES" // AREAS OF IMPROVEMENT 

• 2021 ROTH IRA contributions 
• Funding + investing individual brokerage account
• Finding a place/purpose for every dollar 
• Exploring cryptocurrencies 

These are the areas I want to tackle + improve upon. Of course, starting my 2021 ROTH IRA contributions is first on the list! I tend to be pretty sporadic on when I make contributions so I'm going to try to start doing them on a more consistent, monthly basis. 

Coming up with a place for every dollar is something that I also need to challenge myself on. I'm really good at saving, however I don't save everything with a purpose in mind. I have certain things like my ROTH and my emergency fund that I plan for, however anything else that is leftover usually just gets left sitting or lost in the shuffle. I probably need to establish some sinking funds or start investing the rest! 

I keep seeing a ton of information out there on cryptocurrencies. I'm intrigued by them, however they are also very unknown and volatile at times. I don't know too much about them so I can definitely do some research here. 

That's a quick overview of how some of my financial goals are coming along for the year! I hope you all enjoy these types of posts- I love talking about the topic of money & finance. I get a lot of inspiration and insight from others so I'm just hoping to pass some of that along to you :) As always, feel free to share your thoughts + catch up with my on IG (@TheKristenDiary).

Also read: 

Why You Need to Open a ROTH IRA Now

How I Save Money Shopping

Money Moves I'm Making in 2021

WHY YOU NEED TO OPEN A ROTH IRA NOW

Hi, friends! It’s been several weeks since my last “Money Monday” post so let's just get back to it! I've been excited to share these posts with you here on TheKristenDiary. As I've gotten into my *cringe* upper twenties, I've become a lot more invested (pun intended!) in improving my finances, planning for the future, etc. I am NOT a financial expert or investment advisor, however I've learned a lot from doing my own research. I'm hoping that by sharing what I've learned to improve my money game, it can help you to improve yours too!

WHY YOU NEED TO OPEN A ROTH IRA NOW

This week marks what is normally considered “tax week” in the financial world. April 15th is usually known as "tax day" or the cutoff for filing taxes in addition to making any retirement contributions for the previous year (in this case, 2020). Most of you are probably aware that this has now been postponed until May 17th thanks to Ms. Rona. Because we've been given this extra month, I wanted to chat about the importance of opening a ROTH IRA retirement account. 

One of the best financial decisions I've made within the past several years is opening and funding a ROTH IRA. If you're earning any income at all, you need to open a ROTH IRA now. I know it can feel crazy to think about retirement and saving money for forty or fifty years down the road, however the earlier you start the better. Retirement accounts offer the advantage known as compounding interest (continued growth on both your initial investment AND it's earned interest). It's definitely not as glamorous or exciting as it would be to just spend everything now but it pays to be both prepared and disciplined. Your future self will be glad you did!

WHAT IS A ROTH IRA RETIREMENT ACCOUNT? 

 Since it can be overwhelming if you're new to the game, let's break it down. A retirement account is a place to put your money where it can then be invested for long-term growth. It's similar to a savings account but there are some differences. Instead of earning a flat interest rate like you do in a savings account, your money is invested into the market (usually through stocks, index funds, mutual funds, etc.). This gives you the ability to grow and earn a lot more money than a savings account will, however it also adds some risk. There are no guarantees in the stock market and anything you invest, you always have the ability to lose. Despite the risk, the overall growth rate of the stock market for the last century has been right around 10% annually. While it can go up and down, most people see consistent, big returns over a long span of time. 

Retirement accounts also have more restrictions than savings accounts do. Because they are intended to build money for retirement, they are a lot harder to access and take money back out of. Most of them have penalties and limits on how much or when you can withdraw funds. There are also several different retirement accounts available, the most common ones being 401(K) plans, ROTH IRAs and Traditional IRAs (IRA = Individual Retirement Account). 

If you work for a large company, you might have the option to contribute to a 401(K) plan. If you're like me, you might not have this option but can still open either a ROTH IRA or a Traditional IRA (you can also do this in addition to a 401(K)). Unless you're in a high income bracket, a ROTH IRA is likely the best option as it's tax-exempt. This means that you fund it now with money you earn (and already pay taxes on) so you won't have to pay taxes on anything you earn and take out during retirement. 

WHO CAN OPEN A ROTH IRA? 

Anyone over the age of 18 can open a ROTH IRA that has a source of earned income. If you're under the age of 18, you can still have a parent open a custodial ROTH for you. There are some earned income limits in place. Your adjusted yearly gross income must be under $139,000 / $140,000 (2020, 2021) as an individual or $206,000 / $208,000 (2020, 2021) as married/joint filers. **If you earn over these income limits, you can still do what is known as a "Backdoor ROTH IRA." This is a little more complicated but can offer some advantages.** 

HOW DO I OPEN A ROTH IRA? 

Opening a ROTH IRA is simple and easy! To do so, you'll need to create an account with a brokerage firm such as Fidelity, TD Ameritrade or Charles Schwab. It is completely free to open an account and setup a ROTH IRA. There is also no minimum contribution requirement to open a ROTH IRA, however there are limits on how much you can contribute. Currently, you can contribute up to $6,000 per year ($7,000 if over the age of 50). I opened my brokerage account and ROTH IRA directly online. All you should have to do is sign up and link your bank account in order to start funding your ROTH. 

**Don't forget there are NO MINIMUMS required for a ROTH IRA. Even if you only have $1 to start, open one today and transfer that over! Every little bit helps!** 

HOW DO I INVEST WITH A ROTH IRA? 

After you setup a ROTH, in order to start growing your money you'll need to start investing. This can seem daunting, however with a little bit of research it is very simple. I currently invest in mutual funds -- funds that are made up of a variety of different stocks, bonds or other securities. This is a great, low maintenance way to invest your money. It allows you to diversity your investment into different companies that are managed by the fund. You can easily research funds to invest in and a lot of the brokerage companies offer their own lists to choose from. **One tip is to make sure you watch out for fees and loads.** Be sure to do some research or ask a financial expert/investment advisor for help! 

There's a lot of information when it comes to the investing world, however I tried to simplify the basics on ROTH IRAs. I too am still learning! Don't be afraid to do your own research or talk with someone who can help answer questions for you. It's also a great idea to check out a compounding interest calculator. This gives you an idea on the power of compounding interest and how you can turn X dollars today in XXXX dollars in the future. 

I wanted to get this post up with enough time left before May 17th! If you're able to open and fund an account before then, you still can contribute to your account for 2020. After the 17th, you'll only be able to do 2021. The more you can put in, the better. You'll also have the next year to add to 2021 so be sure to do 2020 first! **If you want to open an account but aren't sure where to start investing, you can still fund your account before the deadline. You can allow the funds to sit uninvested in a cash account which will give you credit for the contribution year without having to invest anything right away.** 

Hopefully this post is insightful and not too much information overload! Finance and investing can seem overwhelming at times but is easy enough to understand once you get started. Google can also be your best friend! 

I'd love to know some of your finance tips, let's chat on IG (@TheKristenDiary)!

Also read: 

How I Save Money Shopping

March Money To-Do List

Money Moves I'm Making in 2021

HOW TO SPEND YOUR STIMULUS CHECK

Since a third round of stimulus checks are going out as we speak, let's chat about some ways you can use the money to your advantage! If you're in a position right now where you don't need the money to cover basic expenses and necessities, it's easy to view it as extra spending money to go on a shopping spree with. Instead of blowing all of the money on unnecessary purchases, here are some alternatives on how to wisely spend your stimulus check to better your financial situation!

**These are my own personal opinions + is not intended to be expert financial advice. Be sure to do your own research + contact a financial advisor to discuss what works best for you.** 

1. BUILD YOUR EMERGENCY FUND - I'm a big fan of the emergency fund + having a financial safety net. With all of the uncertainties of life and the world we're currently living in, it's essential to have some extra savings available for emergencies. Most financial experts recommend building your emergency fund to $1,000 first and then over time increasing it to cover three to six months of your expenses. I always veer on the side of caution so I'm passively working on building mine up to a year's worth of expenses. This is a great opportunity to help you financially that your future self will thank you for!

**Even if you can only save a small amount, start now! Every dollar counts. It might not seem significant but small steps in the right direction is better than no action at all.** 

2. PAY OFF BAD DEBT - If you have any high-interest debt (credit cards, personal loans, etc.) it's a good idea to get rid of them as soon as possible! The rule of thumb on this one is usually anything with an interest rate of over 5%. Typically if your interest is higher than 5%, you are losing more money to interest than you could earn by investing. Use your stimulus check to help reduce or get rid of bad debt! 

3. INVEST + GROW MORE $$$ - If you have "good" debt that is under 5% or no debt, chances are you can grow + earn more by investing the money. The average return on most investments is around 10% per year so with investing you can use the money to your advantage. A few ways to invest your money is through a retirement account such as ROTH IRA/Traditional IRA, with an individual brokerage account, etc. 

**Do your research or consult a financial expert to find out what the best option for you is!**

4. TREAT YOURSELF (WITHIN REASON!) - If you know it's not realistic for you to save/invest/pay off debt using all of your stimulus money, it's okay to treat yourself A LITTLE. I'd recommend budging out a percentage of your check for spending money + then utilize the rest to your benefit via savings, investing, etc. 

**I also like to spend locally where I can so if you're planning on shopping or eating out, it's also nice to help support small businesses and restaurants in your area!** 

Are you a spender or a saver? Comment down below!

 

ALSO READ: 

Money Moves I'm Making in 2021

How I Save Money Shopping

March Money To-Do List

MARCH MONEY TO-DO LIST

It's another Money Monday here on TheKristenDiary! I have a few important goals I'd like to tackle this month relating to my money + finances. Tax season is coming to an end soon so it's a good month to cross t's and dot i's with filing taxes, retirement funds, etc. It's also a great time to reevaluate your yearly financial goals + see how things are going! If there's something on your goal list you haven't accomplished yet, look into making it happen this month! Here are a few of mine. 

**This post is not intended nor meant to be financial advice. Just sharing my own goals + things that work for me!** 

MARCH MONEY TO-DO LIST

• Boost retirement contributions for 2020 - This is my top financial goal for the next month. The cutoff date for 2020 retirement contributions is on tax day, April 15th. I've already funded some of my ROTH IRA for the year, however I plan to max out the $6,000 contribution limit. I still need to transfer over the difference within the next month. 

          **If you don't have a ROTH IRA, I highly recommend you look into opening one! It's free to open + you can add any amount of money up to $6,000. If you contribute by April 15th, you can also still get credit for the 2020 year!**

• Diversify retirement portfolio - I like to invest in mutual funds within my retirement account. I currently have investments in a few different sectors but I'd like to expand + diversify. It's on my list to research new funds in different sectors + invest in those. 

• Fund + invest brokerage account -  I finally set up a new individual brokerage (non-retirement) account! This was one of my goals for 2021 (read Money Moves I'm Making in 2021 for more). My main priority is to max out my ROTH first, however I also want to start investing in this account soon. I'm thinking of making a small initial investment this month to just get started! I also haven't decided what I want to invest in yet so I need to do some research on mutual/index funds, stocks, etc. 

• List + sell unwanted items - Over the years I've sold some of my old/unwanted things online. I'd like to clean out my closet and get rid of some things I no longer want or wear. This is a great way to make more room in your space + also make a little bit of money! 

That's a wrap! I've been really into sharing + talking more about money and finances on the blog. I think it's a great way to share information + learn how to improve. Let me know if you like these? Also if you have any topics + or ideas you'd like me to share feel free to comment below or message me on IG! You can find me @TheKristenDiary :) 

Have a great week!! 

xx,

Kristen

MONEY MOVES I'M MAKING IN 2021

H A P P Y  N E W  Y E A R! Is everyone excited to dive into a fresh start? It's now 2021 which means NEW YEAR, NEW MONEY. My resolutions and goals each year always revolve around improving my money game and overall financial situation. Saving, investing + managing money is crucial to living the life you want now and in the future. While I'm not an expert or financial advisor, I love researching and learning from others. I think adding a money section to the blog can create some great conversations + I would love to learn from you all as well. Feel free to comment below what money moves you're making in 2021 + your best money advice. 

PS-- it's easy (& normal) to feel overwhelmed by what we are, aren't, should or could be doing. When it comes to $$$, it's never too late to start or to keep improving. Progress over perfection! 

MONEY MOVES I'M MAKING IN 2021

1. MAX OUT ROTH IRA CONTRIBUTIONS - I've been very fortunate over the past several years to be in a position to max out the yearly contribution limits for my Roth IRA retirement account. Being in my mid-20s, I have very low expenses which have allowed me to throw a lot of savings into my Roth. My plan is to max out the $6,000 contribution limit for 2020 by the deadline (April 15th) and begin contributions for the 2021 year after that ($6,000 limit due by April 2022).

**If you don't currently have a Roth IRA or some form of retirement account, I would HIGHLY encourage you to do some research + open one. You don't have to have a lot of $$$ to start one + every dollar invested now will pay off in the future.** 

2. INCREASE EMERGENCY FUND - I've been actively setting aside money into a savings account for years. I've always viewed it as money you leave alone for a rainy day without much thought or any goal amount of how much I wanted to save. Something I learned last year is the importance of being intentional with your money and having a plan for every dollar. I decided that long term, I would like to have a year's worth of living expenses saved in a designated "emergency fund." Because I have a healthy savings now, rushing to complete this goal isn't my top priority. I am more focused on investing and growing my money right now over saving. I've decided to keep some of my savings in this "emergency fund" and continue adding to it monthly. My goal is to save another year's worth of expenses this year.

**Most financial experts recommend starting with a $1,000 emergency fund + then growing it to 3-6 months worth of living expenses. Even if you can only save a few dollars a month, do it! Every bit helps!** 

3. FOLLOW A BUDGET - For years, I HATED the idea of budgeting. I always viewed it as being kept on a leash which was not for me. "If I want to buy something, I should be able to buy it" was my mentality. I've always been responsible with money so I didn't really see the point. After following several budget/finance gurus, I started to see the importance of being intentional with your money and knowing where it's going. In 2020, I began tracking my spending to see how much of my income I was spending/saving/etc. I then started to create a rough goal amount of how much I wanted to spend on things like food, etc. for the month. I was never super restrictive with this, however it did make me aware of how much I was spending throughout the month which I think helped me spend less and be more intentional. 

**I use the free version of the Every Dollar budgeting app by Dave Ramsey/Ramsey Solutions. You can input your income + budget for expenses each month. I like that I can easily log purchases on the go + see them all in one place!**

I then decided that I needed to order The Budget Mom's Budget By Paycheck Workbook. After watching The Budget Mom on YouTube and Instagram, I thought that tracking and budgeting in her workbook looked like fun. I even ordered these highlighters to use with the book. Who am I now??? Lol! On a serious note, I liked the idea of being able to write everything down in a book and look back on my progress for an entire year. I've started using it this month so we'll see how things go! I'll keep you posted. 

4. NON-RETIREMENT INVESTMENTS - This is a little bit of unchartered territory for me. One of my goals the past few months is to begin investing outside of just my retirement fund. While I'm young with low financial obligations, I feel it's important that I use my money to my advantage. How much I want to invest, what I want to invest in + capital gains/taxes are all things I'm working to figure out.

5. HIGH-YIELD SAVINGS - I would like to transfer my savings account over to a High-Yield Savings Account with a higher interest rate. Essentially this lets you earn a little bit more interest on your savings balance to help combat inflation, etc. I planned on doing this in 2020, however there have been dramatic drops in interest rates. Most went from 1.5%-2% down to around 0.5%-0.6%. These are still higher than my bank savings generates, however right now the ease of convenience and familiarity I have with my bank seems more valuable to me than moving everything for the interest rate. 

That is the main bulk of my financial goals + money moves for 2021. Every year I try to take a few steps to improve and increase my situation. If you're just starting a financial journey or you haven't started yet, starting small is better than not starting at all. I know it can seem stressful or overwhelming but I wanted to share my goals in hopes of inspiring you to save + better your own financial situation. 

What money moves are you making this year?

xx,

Kristen