top of page

MASTER THE BASICS OF BUDGETING FOR A STRONG FINANCIAL FOUNDATION

  1. Here is Why if you Work in Healthcare you need a budget

  2. The Life Benefits of Having a Budget

  3. Budgeting Myths

  4. Budgeting Basics

  5. Types of Budgets with Quick Pros & Cons

6. Take-Home Points

7. More Resources


Here is Why if you work in Healthcare, You Need a Budget


With the rampant rise of healthcare burnout & the disappointing and inhumane state of the business of medicine, If you are not already keeping a close eye on how your money moves, you need to.


Getting a good feel for your patterns of spending and saving can unlock unexpected & priceless freedoms in your life.


The freedom to shift jobs, location and have more time to do more of the things that you hold dearest in your heart & make your bucket list come to life.


With many health care professionals still burdened with the immoral student loan debt, many members of the workforce are feeling trapped & betrayed by their careers.


For many, working in healthcare has become a dystopian nightmare.




It seems that people I speak with that work in healthcare right now are being stretched, overworked, overextended, and underpaid more than ever before.


So it is an exceptionally great time to sort your money out and get great with money if only to have enough of savings cushion to walk away from any unsafe or unsustainable situation.



The Life Benefits of Having a Budget


Imagine having the freedom to work your career on your terms?


Imagine having the option to take a break, work less, or even have the option to walk away if you wanted to?


I’m here to tell you it’s absolutely possible & you don’t have to wait until you’re in your golden years to do it.


Whether it is to confidently walk away from that toxic job, relationship, or living arrangement- You Need a Budget.


If you want to plan your bucket list, no matter how big or small, sooner rather than later- You Need a Budget.


Although most of us weren’t really taught how to take care of ourselves in a way that offsets the toll of working in healthcare, part of taking care of your wellness & longevity is financial housekeeping.


Taking impeccable care of your personal finances and doing it in such a way that your finances are completely in alignment with your life goals, is the ultimate form of self-care.

Moreover, allow me to introduce the following concept:


The better you manage your money, the more money you have


The more money you can keep long-term, The less you need to work.


The less you need to work the less you need to put up with systemic abuse working in healthcare.


Giving yourself the option to walk away will give you the freedom to choose whichever ways you wish to enjoy life more.


The more you enjoy your life and what you do with it, the happier you will be.


& isn’t that the point?


Budgeting Myths


No, you don’t need to make more money right now.


The biggest misconception is thinking that you need to make a lot of money and have a huge budget in order to have a need to organize it, but it could not be further from the truth.


When I had to take a sabbatical from work for being physically ill from extreme burnout as a PA in the pandemic, I was no longer able to work or contribute my income to our household, and my husband and I were forced to go down to 1 income.


Although financially we had been doing everything we were supposed to do like


Having an Emergency Fund,

Saving for retirement,

Making higher payments on student loans,

& Lived way below our means,


When taking a closer look at our ability to bankroll an indefinite hiatus from 2 incomes we were completely unprepared.


Not knowing whether we were going to survive financially and the fear that comes with not knowing what was going to happen by going down to one income caused us a lot of anxiety and angst.


I would even venture to say that, I probably should have taken time off a lot sooner than I did, I needed it, but I think my inability to get off the work hamster wheel and thinking not working because I was burned out was not an option, was probably what eventually lead my body to literally shut down and stop the madness.


This is when opening pandora's box of the state of our finances and budgeting every dollar became absolutely imperative.



gif


Budgeting Basics



Simply defined a budget is simply a ledger of your expenses. It is a way to keep track of where your income goes using categories with the goal of predicting your expenses for more financial security and a clearer picture of your current financial picture.


The goal with choosing a budgeting style is to choose one that you can easily maintain long-term. Any budgeting is better than no budgeting.



Types of Budgets

Traditional

When thinking of a traditional budget think primarily for the purpose of keeping track of stuff not to get overdrawn & having basic categories of your monthly expenses so you see where your money is going.


It’s probably exactly the first thing you picture when thinking of any type of budgeting. 👇





With traditional budgeting, you track every expense manually in a notebook or digitally with a spreadsheet, banking, or budgeting app.


Then & at the end of the month, you separate the expenses into major categories.


After a few months of doing this, you will get a good idea of what your average costs are and thus are able to predict future expenses.


Quick Pros & Cons of the Traditional Budget


This is a good budget for people with fixed income and expenses, however, it does not account well for the fluidity of money because if life gets busy & you don’t manually input your expenses or forget to do it one or several months- then you have to play catch up and its a pain in the butt, which may create too much friction for people to stick with it. With budgeting, the aim is to create a system you can easily stay consistent with but


Cash Only Envelope System



This is a really popular one- especially for beginners because of its simplicity.


  1. You pay for everything in cash.

  2. You buy a pack of envelopes and give every category in your budget an envelope.

  3. Take all the cash you’ll need for the month & set money aside in each category.

  4. When the money runs out of an envelope that’s it for the month.