Hey guys! Tessa here with another travel
budgeting video. Today I’m talking about budgeting for life, travel, anything on inconsistent income. Every job I’ve ever worked has one thing in common: I kind of never knew what I was gonna be paid. A couple of years ago I was serving and
bartending I never knew if it was gonna be a good month or a bad month for tips. Now I’m a freelance writer and I never know if it’s gonna be a good month or
bad month for articles. Different profession, same problems. After a lot of trial and error, I figured out some tricks that have helped me stop stressing about bills and help me save for retirement and travel, all the same
time. First, I figured out a budget and started paying myself a monthly salary. Second, I started thinking of saving as an additional bill each month and added
that directly into my budget. And third, I got to the point where I was living off last month’s earnings. First was figuring out what I call my
make-it-or-break-it money. These are the bills that I have to pay
every month, no matter what. Mine included: rent, utilities, groceries, …Zelda treats… Yours might also include: car payments, student loans, insurance, stuff like that. Next, since I was working off
tips, I figured out what I would owe in taxes at the end of the years off of a hypothetical – and highly inflated –
income. I divided this by 12 and added that
monthly tax bill into my budget. If you’re the type of worker who pays your
taxes mostly at the end of the year, I highly suggest adding this to your
budget. Finally, I looked at my travel goals
and created a monthly travel bill. This was the amount of money I was going to add
each month to my savings, so I could get to that dream vacation. I also created a savings bill money that I was setting aside for retirement. Seriously, even if it’s just a little, start saving for retirement when you’re young. These numbers were all added together
and created my monthly salary. We’ll come back to this. Next, I opened up three bank
accounts: Account A for income
Account B for bills and
Account C for savings. Throughout the month, as I worked, I paid all my earnings into Account A. Every tip, every paycheck, every side hustle went into that account. Beginning of the next month, I paid my salary, aka that budget we just made, from
Account A into Account B. That way my money from last month
were paying for all my bills this month. Then, I paid any savings bills from
Account B to Account C. Having a separate account for savings
really helped me. It helped isolate my savings so that I didn’t spend it. I’m sure you’re wondering about fun money
for things other than expenses and savings, I’m not just a drill sergeant whose idea of fun is creating budget spreadsheets. Although, I am kind of lying…
that’s totally fun for me. After you pay your salary from Account A to Account B, anything left over in account A is your fun money. In the beginning, I actually went to an ATM and withdrew almost all the money from account A. For every fun purchase
(shopping, eating out, whatever) I used actual cash to stop myself from
overspending. Once the cash ran out, I was done for the
month And lastly guys, getting to the point where you’re using last month’s money for this month’s bills is the hardest part. My best advice, and what I did, is to open an additional account and start saving money in that account. You can cut off fun spending to really plump up your account, or pick up extra shifts. Eventually that account
will have a full month salary in it. Congrats, you made it. Check out the article below for more in-depth health budgeting and setting up accounts. Make sure to follow Mint and my social handles so you don’t miss a thing. On my Instagram, I even post some really funny outtakes from these videos. Zelda is asleep, so I guess I’ll just say bye for the both of us. Bye guys! See you next