Mastering Discipline: How I Budgeted My Way to Financial Freedom

Welcome back to the second installment of my debt-free series. It might seem a bit offbeat for a travel and lifestyle blogger, but the essence of my blog roots itself in my financial journey. The ability to leave my job for a three-month travel adventure was only possible because of the groundwork I laid for financial success.

Today’s focus is on one of the most challenging aspects of becoming debt-free: budgeting.

I sense you’re seeking a magic formula in this post, but the reality is, that budgeting is a paradox—it’s both incredibly tough and surprisingly simple. Budgeting boils down to discipline, and let me tell you, discipline hard work!

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Table of Contents

Mastering Discipline: How I Budgeted My Way to Financial Freedom

It could be argued that discipline is the magic behind financial freedom. Discipline involves making intentional, challenging choices to align with daily decisions and long-term goals. It’s a commitment to budgeting, saving, and careful spending that pushes you toward your financial dreams.

The Significance of Budgeting

Budgeting is like having a map for your money. It helps you see where your cash comes from and where it’s going. It helps you make smart choices about spending and saving. By keeping an eye on your budget, you can find places to save money and pay off your debt in a much more effective manner. It’s not just about today; it sets you up for a healthy financial foundation, helping you make better money decisions in the future.

When it comes to budgeting, I often think about what I call the Coffee Shop conundrum. Now, I’m not suggesting avoiding coffee altogether. I am saying that $6 a day on a cup might not be the wisest move for someone working on paying off a loan. Moderation is key. For me, I set aside a weekly allowance of $10 for a coffee treat, understanding that it’s more about the experience than the coffee itself. During tighter budgeting phases, I limited myself to $20 per month, making each café visit a special and mindful occasion.

I know what you’re thinking: OMG that’s SO strict! What did you do instead??

My parents were parting ways with an old espresso machine, so I happily adopted it. I found surprisingly good coffee grounds at HomeGoods, of all places, for a mere $4 a pack. What I enjoyed most was the chance to experiment with a new blend every month. As it turns out, coffee and I aren’t the best of friends—it tends to upset my stomach. So, I switched to being a tea girlie! I now buy my tea in bulk, from Harney & Sons.

Tips and Tools for Effective Budgeting

Here’s my top budgeting advice: write down everything. I started old school with a piece of paper and a pencil and wrote down my entire financial life. I listed all my usual monthly expenses and cross-checked with my bank account. Let me tell you, it was an eye-opener. Turns out, I was throwing money at things I shouldn’t have or plain forgot about.

Take laundry, gas, and books, for instance. I discovered I was shelling out about $15-$20 a month on laundry that I hadn’t accounted for. Gas? Never even made it to the budget list, never-the-less parking downtown. Oh boy. And books?! Well, I started a book-buying ban last year to fix that—more on that saga here.

Setting Realistic Financial Goals

Creating a budget is all about being as humanly realistic as possible. Prepare for some tough questions, but here’s the deal: being on a budget doesn’t mean the fun stops. It’s about planning and budgeting for the fun stuff. Take travel, for instance. I stash away a portion of every paycheck for future trips. So when the wanderlust hits and I’m ready to book flights and hotel, and the funds are there—no borrowing from a credit card to pay off later or stealing from other funds. It’s ready and waiting.

Here are some hard questions to think about:

Can I cut my monthly grocery bill in half? If so – how?
Is it possible to ditch Netflix, Paramount +, Hulu, Peacock, etc for ad-supported TV or explore free content on YouTube, or get entertainment from the library?
Do I need to rethink or find a more budget-friendly approach to my hobbies?
Can I explore more affordable options for car insurance?
Is there a more cost-effective means of transportation to reduce gas expenses?

You don’t need to answer yes to all of these. These are simply examples of the questions I asked myself.

Navigating financial goals often involves a touch of creativity because, let’s face it, we’re bombarded with the idea that we need the latest and greatest. Society nudges us to do and be more. However, as much as I hate to burst that bubble (or de-influence you), living beyond your means until you clear your debt isn’t the wisest move. So, ask yourself – what can I start cutting out?

Tracking Income and Expenses

Moving on to a less exciting but crucial part—once you’ve tallied your monthly income and identified essential expenses, this step helps you determine a practical amount to put towards your loans each month. The goal is to put as much money toward your loan principal as possible, to pay them off more quickly.

Once you’ve established how much you can contribute, it’s time for some trial and error. My initial month of budgeting was a colossal mess. I overcommitted to way too many happy hours and dinners, only to realize it exceeded my spending on food outside of my grocery bill, not to mention the wasted groceries in my fridge. UGH. Let’s be real – lessons are often learned the hard way, right?

After that first month, I recognized the need to decline about 90% of my plans to stick to my budget for the following month. I won’t lie, this was tough to swallow. Once again, I had to get super creative and look for alternative ways to socialize without spending $100 every time I left my house.

Another question to ask yourself:

Can I get creative and make my budget work with my social life?
How can I make my budget work for me, not against me?

Budgeting Tools & Apps

Now, budgeting – it’s not for the faint of heart. I’ve had great months and some really tough ones, but I can proudly say that my successes far outweighed my failures. I kept my focus, hustled quietly, and worked hard. If my monthly loan goal felt out of reach or if I wanted something special for myself, I found ways to make extra money on the side.

I also figured out how to get everything I buy at a lower cost. How? Well, in my last post, I mentioned my mom using coupons when we were kids. Coupons are almost nonexistent these days but there are a lot of ways to save online through apps. Here are a few apps and sites I use every month to save, especially on groceries (which I’ll cover in next month’s financial freedom post).

Banks & Budgeting Tools

High-Interest Yield Savings Bank Account
Mint app/site

Grocery Stores

Safeway app/site
Fred Meyer app/site

Cash Back or Gift Cards

Fetch app (receipt scan for points for gift cards)
Rakuten app/site
eBay app/site
Upside app (percent back on gas)

Memberships

AARP (points and discounts on local activities and restaurants!)

The Discipline Factor

Mastering financial discipline is quite possibly the hardest type of discipline, especially in our consumption-driven society. Resisting impulsive purchases is… well, it’s hard, guys! However, building wealth requires overcoming overconsumption. It also helps us recognize our monetary habits and can guide us away from destructive patterns, ultimately giving us a better financial future.

Honestly, it was a lot easier than I thought it would be. Once I started to see my debt substantially decrease every month, it became more manageable because the reward of not having debt became bigger than overconsumption. Yes, it took years, but the journey has positioned me in the best phase of my life. If I can achieve it, so can you.

What also helped is creating an annual vision board on Pinterest. I charted out my year, planning trips and noting small purchases I wanted. These visuals helped me calculate and save ahead. I also listed major post-loan purchases and hung them where I’d see them daily. It became my motivation to pay off loans faster. Examples of big purchases are a new mattress, a Vitamix, and a fun trip.

If you’re interested in learning more about my debt-free journey, this series, and also travel tips and tricks – please consider joining my email list! My goal this year is to grow it and also send out personalized emails every other week with insights on my travels, personal stories, and essentials!

The most important takeaway I can give is to stick to your budget with discipline and constantly plan ahead. If you made it through this post – you’re amazing. Thanks a bunch for reading. I adore this monthly series and, while I have it all mapped out, feel free to let me know if there’s anything specific you’d like to aid your debt-free journey.

Happy Budgeting! 💕