Money Expert: Budgetnista Tiffany Aliche’s 7 Best Tips on Budgeting
Written by
Quinlan Grim
Edited by
Amber Barkley
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Tiffany Aliche, also known as the Budgetnista, helps women of all ages get their finances on track. Her role as a financial educator is important — as many as 84% of Americans admit they need a better financial education, as reported by Gitnux.
Fortunately, budgeting doesn’t have to be complicated. This article will outline seven key takeaways from the Budgetnista’s various interviews. With the right guidance, financial wholeness is more achievable than you might think.
As Aliche said during a CNBC Women & Wealth event, “A budget is a picture of what your money is doing.” If managing your finances is like building a house, your budget is the foundation. It provides a clear picture of your current financial situation, so you can make the necessary changes to save more.
Here are Aliche’s seven tips to support your budgeting process.
Start With a List
If you’ve never created a budget before, you might be overwhelmed by the process. Your income and spending fluctuate, so how can you keep track of it all?
Aliche’s advice is to start with a list. It’s OK if certain parts of your budget change from month to month — just start with a clear picture of where your money is going. Here’s how:
- Write down every monthly expense, including rent, bills, recreational spending, groceries and others.
- Write down your income, including any alternative income sources like a side hustle or trust fund.
- Add up the sum of your expenses and subtract it from your total income.
The result is a basic look at where you stand. As you make changes to your spending and saving habits, repeat this process every few months to see how your budget has grown.
Categorize Your Expenses
The ultimate goal of your budget is to save more than you spend — or put another way, to spend less than you save. To understand where you can make changes, start by categorizing your expenses.
Aliche has a simple process for categorization:
- Mark all bills with a “B.”
- Mark all utilities, or bills that fluctuate by usage, with a “U.”
- Mark every other expense with a “C.”
Expenses labeled with a “C” are your cash expenses, or choice expenses. These are areas where you might be able to cut spending and save more each month. Expenses marked with a “U” should be monitored for monthly changes. For example, your heating bill will probably take up a larger portion of your budget in the winter months.
Find Your Path To Save More
If you’re trying to grow your savings account, your first instinct might be to cut costs wherever possible. However, for some people, the best solution might not be saving more — it might be earning more. For others, the solution could be to become more frugal, Aliche said.
Take a look at your categorized expenses and find the path that makes sense for you. If you’re already living as frugally as possible, it might be time to invest in a side gig or seek a promotion. If you find yourself overspending on things you don’t need, try cutting costs before you focus on generating more income.
Invest In Your Future Self
When it comes to investments, Aliche’s advice to her clients is to “invest in your future self.” That means setting aside money in retirement and investment accounts to grow your wealth for the future.
If you’re struggling with debt or high monthly expenses, it might be difficult to think of your future self. However, any amount of money you can set aside now will make a difference. Start saving whatever you can, no matter how small. Your future self will thank you.
Use the Resources Available to You
According to Aliche, if you’re not taking advantage of your employer’s company match program, you’re throwing money out the window. This applies to any savings and investment opportunities available to you.
Take advantage of your employer’s retirement plan, even if you don’t think you’ll stay with that employer until you retire. That money still belongs to your future self if you leave the company.
Shoot for What’s Achievable
Many financial coaches claim they can help their clients achieve financial freedom. However, that might feel like too lofty of a goal for some Americans. If you’re overwhelmed by your finances, the idea of true financial freedom might seem unachievable, which could discourage you from trying to grow your wealth at all.
Instead of shooting for the stars, Aliche advises her clients to start by going for what’s achievable. Financial wholeness can be a great goal at the beginning. Of course, you might reach a point in your budgeting journey when financial freedom feels like the realistic next step — and that’s awesome. But for now, focus on realistic goals as you track your progress toward the next milestone.
It’s Never Too Late To Get Your Finances on Track
Aliche uses her personal experience to inspire her clients. After struggling through a few poor financial decisions during an economic recession, she felt like there was nothing she could do to get back on track, she told the “Yo Quiero Dinero” podcast. But it’s never too late to start budgeting.
You can start your journey toward financial wholeness at any age or income level. No matter what has happened to set you back, it’s never too late to start at step one.
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