Mastering the Waffle Technique for Your BudgetsOct 31, 2023
Do you know how much money you spent last month? There was a survey completed by intuit that 65% of Americans do not know how much money was spent last month. A budget is a plan that can help you make sure to cover your monthly fixed and variable expense. Did you know that 1 in 3 people have some money in savings, but not enough to cover three months of living cost. Out of the thought to simplify how to categorize a budget I created the Waffle Technique for Your Budgets to give an idea to how important it is to create a budget that has strong categories.
Mastering the Waffle Technique for Your Budgets
Waffles are a delicious treat, and it's fascinating how their design with distinct squares and the ability to hold syrup can serve as a metaphor for managing your finances. This comparison emphasizes the importance of structure and purpose in budgeting. Your finances are like a well-made waffle with strong, distinct squares that can hold their own cup of syrup. Each square in the waffle symbolizes a specific category in your budget, and the syrup poured into these squares represents the funds allocated for particular financial needs or wants.
Let's break it down further:
The Waffle (Your Budget): The waffle itself serves as your overall budget. It provides structure and a foundation for managing your finances. Just as a waffle is made up of individual squares, your budget is divided into different categories.
Syrup-Filled Squares (Allocated Funds): Each square within the waffle represents a category in your budget. These squares are like compartments that hold a specific amount of syrup (money). The syrup is the money you've set aside for particular purposes within your budget.
Categories within the Waffle: Just as you have various categories in your budget—like housing, food, savings, entertainment— each square in the waffle corresponds to one of these categories. For instance:
- The "Housing" square holds the funds you designate for your rent/mortgage, utilities, phone bill and what you deem as your household expenses.
- The "Food" square contains the money set aside for groceries and dining out.
- The "Savings" square is where you store money for future goals.
- The "Entertainment" square represents funds for leisure activities.
Allocation of Syrup (Allocating Money): You distribute your income into the different squares of the waffle, ensuring that each category receives an appropriate amount of syrup (money) to fulfill its specific purpose. This process helps you organize and manage your finances effectively.
Balance and Prioritization: Just as you'd like for each bite have an even and balanced distribution of syrup in the waffle, you should prioritize and balance your budget categories based on your financial goals and needs. Some squares may get more syrup (money) than others, depending on their importance.
Maintaining Strength: The strong, distinct squares in the waffle represent the strength and organization of your budget. By sticking to your financial plan and not overspending in each category, you ensure that the squares (categories) remain strong and capable of holding the allocated funds. That way the funds aren’t sliding and making a mess of the budget.
The waffle and syrup analogy highlights the importance of structuring your finances, allocating your money wisely, and maintaining a strong, organized budget to meet your financial goals and needs.
It’s about the journey, not the destination
Grab a weekly lesson, motivation, and self-care ideas delivered to your inbox in becoming authentically YOU.
We hate SPAM. We will never sell your information, for any reason.