Money has always been a touchy subject for me. Growing up, my family had some tough financial times, but as a kid, you don’t think about where money comes from.
I wasn’t taught how to manage money, save, or even what a credit score was until I was out on my own.
I remember trying to buy furniture for my first home and being shocked that my credit score mattered. That moment changed everything for me. I’m ensuring my kids are financially educated before graduating from high school.
I’ve learned a lot over the years through trial, error, and prayer, and I want to share the budgeting methods that actually worked for me and helped me start my journey to becoming debt-free.
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The Budgeting Methods I Tried (and Why Some Didn't Work)
When I first started budgeting, I had no real plan. My paycheck would come in, and I’d pay the basics: rent, groceries, gas, car note, and that was it. I didn’t track where the rest of the money went. Like that, I’d be back waiting for the next payday, stuck in the paycheck-to-paycheck cycle.
Eventually, I realized this wasn’t sustainable. I tried a few budgeting programs, including Dave Ramsey’s method, which helped many people, but I felt something was missing.
Why Sinking Funds Changed Everything
One thing Dave Ramsey doesn’t teach in-depth is sinking funds. These are planned savings for expected but irregular expenses, like:
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Holiday gifts
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Annual subscriptions (Costco, Sam’s Club)
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Car maintenance and registration
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Vacations or back-to-school shopping
Adding sinking funds to my budget helped me prepare for those “surprise” bills that always come up. Now, when those expenses hit, I’m ready. No stress. No credit cards. Just a plan.
If you’re not sure how to organize your sinking funds, I highly recommend the Sinking Funds Tracker Spreadsheet on Etsy. This is the exact tracker I use to keep my categories organized in Excel or Google Sheets. It’s beginner-friendly and affordable.
What Finally Worked...
After trying different strategies, I found what truly worked for me: Kumiko Love’s Budget by Paycheck Method and the Debt Snowball Method.
What Is the Budget by Paycheck Method?
The Budget by Paycheck Method, created by Kumiko Love (also known as The Budget Mom), helps you budget based on your actual paycheck, not a generic monthly amount.
Here’s how it works:
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Before each payday, you create a detailed plan for how every dollar of that paycheck will be spent.
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After payday, you track exactly how you spent that money.
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At the end of each month, you reflect on your spending, what went well, what didn’t, and what you can improve next time.
This method forces you to be hands-on and intentional with your money. It helped me become more disciplined, and honestly, it made budgeting fun. I look forward to paydays now because I know where my money is going.
Want to try this method? I recommend Kumiko Love’s book, My Money My Way. It breaks down the mindset and strategy behind her approach in an easy-to-follow way.
Free Resources to Start With
You can also start for free! Kumiko offers step-by-step videos on YouTube and has a free Facebook community where you can ask questions, get support, and stay accountable. You don’t have to buy anything to start building a better financial future.
If her workbook or book is out of your budget, here are two more affordable options on Amazon that can help you get started:
Debt Snowball vs Avalanche
Once I had a solid budgeting system in place, I started aggressively tackling my debt using the Debt Snowball Method.
What Is the Debt Snowball Method?
The Debt Snowball Method is a debt repayment strategy where you:
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List all your debts from smallest balance to largest.
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Pay extra on the smallest debt while making minimum payments on the others.
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Once the smallest debt is paid off, roll that payment into the next smallest debt.
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Repeat until all debts are gone.
This method worked for me because I saw quick wins early on, it kept me motivated, and made the process feel doable.
What Is the Debt Avalanche Method?
The Debt Avalanche Method works similarly but prioritizes debt by the highest interest rate instead of the smallest balance. This method helps save the most money over time, but it may take longer to see progress if your highest-interest debt is large.
Want a free spreadsheet that calculates both methods for you?
Check out this free resource from Vertex42:
Debt Reduction Calculator – Snowball vs. Avalanche
You can plug in your numbers and choose the strategy that works best for you.
Setbacks, Mindset Shifts, and Small Wins
Let me be real, this journey hasn’t been perfect.
I’ve had setbacks. I’ve lacked discipline. There were moments when I was embarrassed by my financial choices. But I kept going. I prayed for clarity and the wisdom to choose the right path and found a system that worked for me, my family, and our future.
It wasn’t just about budgeting. It was about changing how I thought about money.
You Can Do This Too
If you’re feeling overwhelmed by debt or frustrated with your budget, take a deep breath. You are not alone.
You may not get it right the first time. That’s okay. The important thing is to keep going until something clicks for your brain and your lifestyle.
Whether it’s Dave Ramsey, the Budget Mom, or your own custom system, there’s a method out there that will work for you.
Let's Grow Together
Are you on a debt-free journey too? Have you found a budgeting method that finally worked for you?
Drop your story in the comments. I’d love to cheer you on!
Or send me a message so we can support each other. Freedom from debt is possible, and you deserve it.
