Day Three

Creating a Simple Budget

Welcome to day 3! 

By now, you’ve hopefully gained a solid understanding of your spending habits. You’ve started a journal, been tracking your money, and built a healthier awareness of how it flows in and out of your life. More importantly, you’re in the right mindset to take on this challenge successfully.

Now, let’s move into the more practical side of things: creating a simple budget to keep you on track and working toward your goals.

For me, creating a budget was the next biggest step toward thriving—regardless of my circumstances. No one wants to live paycheck to paycheck. And taking the time to sit down and truly examine your income and expenses is hands down the most important part of this entire challenge. (After you’re in the right mindset).

How to Take Action

To start, you’ll need a clear list of essentials—non-negotiable expenses that must be covered each month. These typically include:

  • Rent or mortgage

  • Groceries

  • Bills (utilities, phone, insurance, etc.)

  • Gas or transportation

  • Debt payments

Everyone’s list may look a little different, but the key principles of budgeting remain the same.

A simple and effective method to follow is the 50/30/20 rule:

  • 50% of your income should go toward needs—things like housing, food, transportation, and bills.

  • 30% of your income can be allocated to wants—dining out, hobbies, subscriptions, or vacations.

  • 20% of your income should go toward savings—whether that’s building an emergency fund, contributing to retirement, or working toward a financial goal.

“Do not save what your have left after spending. Spend what you have left after saving.”

-Warren Buffet

This straightforward system can work for almost anyone. The key is to be intentional and realistic about where your money is going. Once you get a handle on your budget, you’ll have more control, less stress, and a clearer path toward financial freedom.

And if your budget is tighter, don’t, worry about fitting into this exact framework. The most important thing is to create a system that works for YOU. 

On a personal level, right now, I’m living in an RV to be able to fit my expenses into what my income is.

If you break down your income vs what budget would work for you, and it’s just not lining up, maybe it’s time for a lifestyle change. Sell the second family car. Opt for the cheaper phones. Whatever you need to do, to make sure your family is living within or below your means.

Goal for the Day

Take 30 minutes to sit down with yourself or your partner and go over your budget. How much are you bringing in? How much do you need to spend on essentials? 

Let’s be Real

All budgets look fine and dandy on paper, but when you put them into your real life experiences they don’t always fit like the perfect puzzle it was when you mapped it all out.

For the rest of the month, make this an ongoing activity. Create a budget that works for you and track your spending.

  • Review your spending – Look through bank statements, receipts, or use a notebook or an app like to see where your money is actually going.

  • Categorize your expenses – Divide your spending into needs, wants, and savings to get a clear picture of where adjustments may be needed.

  • Make changes as needed – If something isn’t working, tweak it! Adjustments are normal and necessary.

A budget isn’t set in stone—it’s meant to evolve with your life. Keep refining it until it truly supports your goals and lifestyle.

That’s it for today. We’re over half way through and you’re doing great! See you in day 4.

If you can’t wait you can skip ahead to day four now, or go back to day two if you need a recap!