Do you ever wonder how moms on a budget manage to stay on top of their finances? Or how they’re able to stay at home and live on one income in a day in age when it seems nearly impossible to live without a two-income household?
I understand the curiosity and I’m here to emphasize that it is definitely possible because after all, who would know better than one of those moms on a budget?
I’ve been a full-time stay-at-home mom (that homeschools, I might add!) to two children for the past five years and while it’s not easy living on a tight budget, there are a few budgeting hacks I’ve picked up along the way that’s made this lifestyle much easier than many would think.
So, whether you’re curious or you’re one of those moms on a budget who needs advice to take control of their finances — these five, easily digestible — budgeting hacks are going to be a game-changer for you.
Let’s not delay any further, here are some tried and true tips from a fellow busy mom that can help you reach your financial goals. All you have to do is get started!
5 Budgeting Hacks for Moms on a Budget
Moms on a budget need to create a master budget (or a bare-bones budget).
The best thing any busy mom can do is forgo a complex budgeting system and start by simply focusing on how much money is coming in and how much is going out. The easiest way to do that is by creating a master budget. This budget doesn’t change much from month to month and is essentially what is known in the personal finance world as a bare-bones budget.
People usually create bare-bones budgets when something financially devastating happens like someone losing their job, but the way I see it is, stay ready and you don’t have to get ready. You need to know your bottom line at all times and a bare-bones budget or master budget will help you stay on top of knowing the minimum you need to make to survive.
A bare-bones budget includes only what you NEED. I’m talking about your mortgage/rent, food, and utilities. Typically, these bills don’t change month to month. You may have to update this budget yearly, but not much more than that.
In the past, my master budget has stayed the same for years before I needed to go in and update some expenses. It’s made budgeting a lot easier because I was able to keep a certain amount in my checking account to assure the master budget expenses were paid. More on that in a minute though.
Related: How to Track Monthly Expenses So You Can Stick To Your Budget
Next, you need to create a variable budget.
Your variable budget fluctuates monthly and should include things that you don’t absolutely need but prefer not to live without. I also prefer to add debt payments like credit card debt or personal loan to this budget as well because payment minimums and payment amounts fluctuate.
A lot of things that don’t go in the master budget will fall here and many items on this list are things you can get rid of if your financial situation should ever change and you need to eliminate expenses. This budget usually needs a review on a month-to-month basis because you can only estimate what the expenses will be.
For example, our water expenses vary each month so I can only guess that the expense will be under $65 each month. We also include Netflix here because it’s something we like to have but we know that if we need to cancel it, we can scrap this expense. Other types of expenses you could include on your variable budget could be grocery shopping, back-to-school shopping, birthday parties, etc.
Related: How To Use a Simple Budget Worksheet
Create two different checking accounts.
Now, this hack is important and it’s what will make budgeting a breeze for moms on a budget even in a one-income household. Remember earlier when I mentioned that I keep a certain amount of money in an account to cover all of my bare-bone expenses? Well, that’s possible because I have an account for those expenses.
My bare-bones expenses like our mortgage, insurance, etc all come out of our master checking account. It comes with a debit card, but we don’t use this card in the grocery store, for example. We would only use the debit card to pay any bills that are associated with our master budget.
The variable expenses come out of another account which also comes with a debit card. In this instance, we would use this debit card to pay for things like our grocery bills since it’s an expense that can vary from month to month.
Since my master budget doesn’t change on a monthly basis, I’m able to add up the total amount of expenses that come from that account and keep my checking account at that threshold. This account never has less than the monthly expenses that need to be met. This keeps the bills paid and my stress levels low.
Related: Budgets: Quick, Easy, Simple Method For Beginners
Update your debt and savings list monthly.
If you have debt, the best way to get out of debt and stay out of debt is to know where you stand each month. Plus, consistent savings will help you plan for future long-term expenses or emergencies. Simply keep a running tab of how much debt you pay off each month.
Alongside this, you will be keeping tabs on how much money you’re adding to your savings account. Your savings should include an emergency fund so you won’t be tempted to use debt to cover unexpected costs. A great way to meet all of your savings-related goals is to create sinking funds, which I discuss more in detail here.
If I know a kid’s birthday is coming up, I can create an expense on my variable budget to set aside a certain amount of money each month that goes into a special sinking fund account. When I need the money, I can withdraw it and eliminate the expense from my variable budget.
Sometimes we are able to make wise choices financially when we can clearly see our expenses categorized this way. From my own personal experience, it’s easier for me to spend money needlessly if it’s all lumped together in one savings account. So, figure out your preferences and go from there.
If you do decide to put all of your savings or money in one account, I would highly encourage moms on a budget to try budgeting with a budgeting spreadsheet so they can stay on top of what the money is supposed to be used for.
Related: How To Save For Unexpected Expenses
Moms on a budget should find creative ways to earn more money.
Having a side hustle is one option, but if you’re a busy mom, sometimes it’s just not in our family’s interest to take ongo additional work that takes us outside of the home. That’s why one of my favorite ways to earn extra money is simply looking for ways to save more money.
For example, by using Fetch, I scan my receipts and accumulate points for free gift cards. I also use a browser app called Honey when I shop online. I use it to scan for coupon codes and in addition to taking money off the total cost of online purchases, it gives you points for certain websites. Those points can be redeemed for gift cards.
I share quite a few ways to earn free gift cards in this post and let me tell you, those free gift cards come in handy and often! I often use them to purchase books and supplies as a homeschooler.
Recap
So, listen here, all of you moms on a budget — staying at home is possible. Is it always easy? Absolutely not. But does it have to be harder than what life is already throwing at us every day? No, it doesn’t. I’ve been budgeting for well over fifteen years now and the budget that’s easiest to stick with is the one that works for you!
Not all of these budgeting hacks may work for you and that’s okay. This is a budgeting system I’ve worked on and tweaked for years that helps my family stay financially afloat.
There are many ways to budget, but if you’re just starting out with this whole mom-and-a-budget thing, don’t become overwhelmed with all the overcomplicated advice you may find on the internet.
Start with these five budgeting hacks for moms on a budget and let your own personal experiences guide you in creating an even more precise budgeting system that works just for you.
More Money Saving Tips for Moms on a Budget
One last thing, if you need some specific money-saving strategies that will help you lower your monthly bills, check these out below:
First, check out this extensive post on frugal living tips. It even comes with a frugal living calendar that can help you save a lot of money throughout the year.
Second, learn more about how to create a meal plan to save even more!
Last, check out this page for all of our money-saving tips. It covers a little bit of EVERYTHING!