These past few months have been hard. Between the hurricanes and life throwing its usual curveballs, I know I’m not the only one feeling a little worn out. It’s been a season of re-strategizing, re-focusing, and finding ways to push through. Like many families, we’ve had to get creative with how we manage our finances, despite making a good income. Living in Central Florida, where the cost of living can be high, even making six figures doesn’t mean you’re immune to budgeting; but it’s not impossible to reach financial freedom.
In August 2023, we moved into our RV while waiting on our house in Wisconsin to sell. Once it did, we realized that staying in the RV a little longer would help us hit some key financial goals like paying down debt, saving for the future, and gaining more financial freedom. We didn’t want to rush into buying a new home; instead, we focused on setting ourselves up for long-term success.
Even though we make a six-figure income, budgeting has been essential in helping us reach these goals. A lot of people think that making more money means you don’t need to budget, but that’s far from the truth. The reality is, no matter your income, planning and discipline are key to financial success.
In mid-October, Hurricane Milton hit and totaled our RV, forcing us to rework our budget and rewrite our financial plan. It was a tough blow, both emotionally and financially, but staying committed to our budgeting strategies and financial goals has helped us push forward. Living in an RV while working toward financial freedom has been far from conventional, and it certainly hasn’t been easy. Sacrificing comfort and space has been a huge adjustment, but we believe the long-term payoff of becoming debt-free and achieving financial stability will be worth it.
To navigate our financial journey successfully, we’ve leaned heavily on practical budgeting strategies that have become essential tools in our arsenal. These strategies not only help us stay accountable but also empower us to make intentional choices with our money.
How budgeting has been key to our financial success
While our lifestyle might seem unconventional, budgeting has been at the core of keeping us on track, even during the challenging times. These budgeting strategies have helped us push through:
- Track every dollar: The first step to successful budgeting is knowing exactly where your money is going. We use apps like Mint and You Need a Budget (YNAB) to monitor our spending. It’s amazing how quickly little expenses add up, and being aware of them has allowed us to cut back on non-essentials and put more money toward our goals.
- Create a realistic budget: Start with your income and list all your fixed and variable expenses. Make sure your budget reflects your lifestyle while allowing for savings and debt repayment.
- Review and adjust regularly: Your budget should be a living document. Review it monthly and make adjustments as needed based on changes in income or expenses.
- Separate wants from needs: Living in a high-cost area has taught us how important it is to distinguish between what we want and what we need. By cutting back on luxuries like eating out or spontaneous purchases, we were able to save more and reduce debt. Sticking to the essentials keeps us on track toward our larger goals.
- Create a zero-based budget: A zero-based budget means allocating every dollar you earn toward something specific, whether it’s bills, savings, or fun money. This system has been invaluable for us. By giving each dollar a purpose, we’ve stayed organized and intentional with our spending.
- Set up sinking funds: Sinking funds are an excellent way to prepare for irregular expenses like holidays, car repairs, or vacations. We save small amounts each month for these events, so when the time comes, we’re ready without scrambling or turning to credit cards.
- Live below your means: Even with a higher income, we’ve committed to living below our means to hit our financial targets faster. Staying in the RV has been a big part of that. Lowering our housing expenses has allowed us to focus on becoming debt-free and boosting our savings.
- Cut unnecessary subscriptions: One quick win in our budgeting was reviewing all our monthly subscriptions. After canceling services we no longer used, we were able to save more each month. It’s an easy way to free up money for more important things.
- Automate savings: Automating savings is a simple way to build wealth over time. We set up automatic transfers to our savings accounts each month, ensuring that we consistently put money aside without having to think about it.
- Prepare for the unexpected: Hurricane Milton was a reminder of how important it is to plan for the unexpected. Having an emergency fund and sticking to our budget meant we could handle the total loss of the RV without completely derailing our financial goals.
Additional tips for staying on track with your financial goals
Beyond budgeting, here are a few other strategies that have kept us on track with our financial journey:
- Set clear financial goals: Having a clear sense of where you’re headed is crucial. Whether it’s paying off a certain amount of debt, saving for a down payment, or building an emergency fund, knowing your destination keeps you motivated.
- Find an accountability partner: Whether it’s a spouse, friend, or financial advisor, having someone to check in with can make a huge difference. They can help you stay accountable and cheer you on when things get tough.
- Celebrate small wins: Financial goals can feel like a marathon, so it’s important to celebrate your progress along the way. Even small milestones like paying off a credit card or hitting a savings goal deserve recognition.
Encouragement for your financial journey
Our journey hasn’t been easy, and the sacrifices we’ve made have been unconventional. Living in an RV, navigating hurricane seasons, and re-strategizing multiple times wasn’t part of the original plan, but we’ve learned that sometimes the most meaningful achievements come with significant sacrifices.
If you’re feeling overwhelmed by your financial situation, remember that progress is progress, no matter how small. Budgeting and making intentional financial choices are powerful tools that can help you achieve your goals, no matter your income level.
The journey may be tough, but every sacrifice and setback is worth it in the long run. Stay focused on your goals, make a plan, and know that you’re capable of achieving financial success. You’ve got this!
