A prepared pantry means having anywhere from three to six months of storage for your everyday items. Everyday items include food, toiletries, consumables, paper goods, medications, etc. If I were to enter into a no-spend period, that would mean that I would be depleting my storage. That’s not to say that you shouldn’t touch your storage. No! Please cycle through your items to ensure everything stays fresh, but you should always be replenishing. It wouldn’t be great to have a natural disaster hit at the end of your no-spend pantry challenge when you’re coming down to odds and ends and “getting creative.” a  No-spend challenge also restricts you from stocking up on a good deal. What’s the point of doing the challenge if you make tons of exceptions? 

Budgeting and being prepared come hand in hand. It needs to be a lifestyle, not a fad diet. It’s proactive to always be on the lookout for discounts on your everyday product and be working on and restocking your stockpile. Don’t misinterpret that to spend over and buy more than you can afford or consume before it expires, and certainly don’t just buy something because it is a good price. Once you get to a month’s worth of supplies, it’s wise to slow down and make purchases only when you find affordable prices.

Part of what allows this mindset of only shopping sales is the ability to store your items, especially food, properly. Six things that have made it possible for us are (in order of lowest cost to investments) mylar bags, a vacuum sealer, a pressure canner, a dehydrator, a deep freezer, and a freeze dryer.  All of these items give you more control over food preservation and extend the shelf-life of foods. A good example is flour. If you were to buy a large 25 lb bag of flour (and you’re not a baker), the chances of you using that whole bag in six months or before some other pest found its way into the original packaging is slim to none. But suppose you were to package that up into mylar bags, you are extending the shelf life up to 20 years, eliminating the concern of expiration dates and allowing you to make larger, budget-driven purchases without worry.

The scarcity mindset is the other worry you eliminate by not subscribing to no-spend challenges. If you feel restricted, chances are you start your energy on what you can’t have. If you have ever been on a diet, you know that donuts taunt you, and everything sounds better than the salad in front of you. Many people spend their no-spend challenge creating lists of everything they want to buy when the challenge is over. What is the point if you are on an overly restrictive grocery budget this month, only to blow your average budget next month? If you deplete your stockpile this month only to feel uneasy and anxiously restock (regardless of prices) next month, you’re doing more harm to your budget and mindset than any no-spend challenge can help.

No-spend challenges have very limited uses in a budget. They should be seen as habit breakers/makers vs. savings strategies because unless you improve a habit on the other side of the challenge, you probably create worse habits in the long run on top of the stress a no-spend challenge inherently has. 

I would love to hear your thoughts in the comments! Are there any no-spend challenges that helped you, or are you leaving them behind? What are your favorite budgeting tricks?

Habitual Heart is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

Make a Plan

Don’t just head over to Costco and throw the largest items you can find into your cart! You have to have a plan. A plan will ensure you get the best deal, not blowing your budget, and save you from throwing away hundreds of dollars worth of expired items.

Budget

Plan to put aside a portion of your grocery and household goods budget monthly. For our family, this is about 20-25%. You won’t need to shop in bulk every month, but you also don’t want shopping in bulk to be an added expense when it should be helping to lower your overall expenses. Pick up a budget template today and see where all your money goes.

Stick to the budget. You don’t need to buy every bulk item all at once. As you run out of goods, prioritize them on your bulk shopping budget. Spread your expenses out to fit your budget and also help ensure you don’t have all your goods set to expire at the same time.

Don’t buy too much

Just because they sell it in bulk doesn’t mean you should buy it in bulk. There are three common sulk shopping traps.

1. Fresh Food
   1. No matter how good the price, it is going to be rare that you have the storage method, space, or appetite to really capitalize on the savings of fresh produce or meat. Read on for tips to make that assessment for yourself.
2. Food You Don’t Eat or Don’t Eat Enough Of
   1. You probably don’t need five dozen eggs for your family of three or the 50lb bag of peanuts when you have an allergy. Again, a good deal is not a good deal for all.
3. Overestimating how much you need.
   1. We do not waste food here at Habitual Heart. Not only would you be wasting food and the cost associated if you overbuy, but you’re also letting that food take up valuable real estate in your pantry and mind. Don’t underestimate that cost. If a deal is too good, but the quantity is too much, reach out to a friend or family member to see if they will split the haul.

Know how to store your bulk buys

Two keys to being able to buy in bulk are knowing how to store items properly as well as having the space to store them correctly.

Let’s take meat, for example. Meat is highly perishable and is primarily stored in limited quantities because of limited cold storage. In the refrigerator, you are looking at a week, and the deep freezer will get you 4-12 months. Also, keep in mind that this storage is not free. There is a real cost to running large appliances like these. There are options to can, dehydrate, or freeze-dry certain meats, but this requires skills, time, and equipment. Keep this in mind as you make your purchases, and do not buy what you do not have the space or skills to store.

Taking the extra steps to ensure proper storage means less food loss or waste. A good example here is flour. My family of three uses about five pounds of flour a month, but I bulk buy it in two 10-pound bags. If I were to leave it in the original packaging, I’m risking pest infestation and exposure to air and moisture(=spoilage). Within a few days of purchase, I refill the airtight container in my pantry and divide the rest into Mylar bags. Both my pantry container and the Mylar bags perfectly fit five pounds so working my way through the flour without running a high risk of food loss is easy.

Storing dry goods in Mylar also extends the shelf life. Flour can last 10-15 years, well past the best-by dates on original packaging (Who decided that a paper bag was good enough for storing flour?…sus if you ask me). This extra step reduces the risk of food waste and loss but also sets our home up for emergency preparedness in that we have extra, shelf-stable food on hand in sufficient quantities for something unexpected. 

There are tons of products out there that help store food for longer, from simple methods like airtight containers and Mylar bags to canning, dehydrating, freezing, and freeze-drying. Each takes its own mastery and cost investment. I will go into this further in another article but just know these products and skills can significantly increase the shelf life of most foods and therefore make bulk purchases even more cost-effective. 

How to get a good deal

Now that you have navigated the pitfalls of buying in bulk let’s make sure you get a good deal. If you learn nothing else from this article, please learn how to compare costs properly. Sticker price alone is not the way to go. You need to be looking at COST PER UNIT.

You probably already do this in reverse when you shop for meat. You take a look at two packages of chicken breast, and you see that one is $7.43 and one is $6.89. If you compare by price, you might think that the less expensive one is the better deal when, in fact, they are priced at $3.99 per pound and the exact same deal.

Most stores make this easy if you take the time to look at the price tag on the shelf. Get in close and look at the unit cost and compare. Also, ensure the units are the same, ounces to ounces, pounds to pounds, packages to packages, etc. If the cost per unit is not displayed, whip out your calculator and divide the price of the item by the units measured, which should be on the front packaging or on the nutritional label. The more you practice price comparison, the quicker you will be able to find good deals. I personally don’t buy canned tomatoes unless it is better than $.68 a can in my area.

Here is a quick list of categories where you can usually find the best bulk shopping deals.

Grocery

• Cereal
• Oatmeal
• Canned vegetables and fruit
• Soup
• Rice, grains, and pasta
• Beans (canned and dried)
• Frozen food (veggies, fruit, meat, prepared foods) *limited by storage space
• Crackers, cookies, chips
• Nuts
• Sweeteners (Sugar, Honey, Maple)
• Flours
• Spices and extracts
• Coffee & Tea

Household Consumables

• Toilet paper (not shown to have significant savings)
• Paper goods (Paper towels, napkins, paper plates, and bowls)
• Coffee filters
• Laundry or dish detergent
• Cleaning supplies
• Sponges
• Trash bags
• Foil, plastic wrap, parchment paper, plastic storage bags
• Lightbulbs
• Batteries
• Tape

Beauty and Self-Care Products

• Soap
• Shampoo & conditioner
• Lotion
• Toothpaste, toothbrushes, and floss
• Cotton balls, rounds, or swabs
• Contraception (check expiration dates)
• Feminine hygiene Items
• Pain medicine
• Vitamins (check shelf life)
• Over-the-counter allergy medicine
• Bandaids and wound care
• Hand sanitizer or Rubbing alcohol
• Antibacterial wipes

Baby Goods

• Baby food and snacks
• Baby formula (dry is best)
• Powdered Milk
• Baby wipes
• Diapers

Pet Products

• Pet food
• Dog waste bags
• Cat litter

The sad truth is that many of us are just one small accident away from going into debt. In fact, according to a CNBC survey done in January 2020, 41% of Americans couldn’t cover a $1,000 emergency. Don’t get me wrong, there is such a thing as good debt or debt that is working for you, but overall, debt means you couldn’t afford something and now someone else is going to make sure you pay them first. It’s your life, you should be paid first.

Why Should I Have an Emergency Fund?

There are lots of reasons to have an emergency fund. Maybe you have a medical emergency, or a storm tosses a tree into your car, or there’s a Worldwide pandemic and you lose your job. Really, anything is possible. Having an emergency fund is your insurance policy for your goals and dreams to not be derailed because of something out of your control.

How Much Should Be in an Emergency Fund?

3 to 6 Months of Expenses

There are a lot of different perspectives on how much you should have in your emergency fund. Opinions and ability are influenced by competing factors. For example, if you are a recent graduate, you might have another obligation of student loans. If you live at home, you might be saving more money, and meeting a savings goal for an emergency fund while paying off student loans is totally possible. You might be that same student, but this time, you’re braving the “real world” and you might have rent and utilities on top of our student loan making additional savings difficult.

One popular financial influencer, Dave Ramsay, says to start with a $1,000 emergency fund. I think just starting an emergency fund sets you on the right path, but let’s be honest, when it rains, it pours. Your $1,000 might not get you very far. 3-months worth of expenses is the average answer you will find, with it creeping up to six months to be more cautious. With what emergencies I have seen in my 31 years, I’m in the 6-month+ group.

How to Calculate Your Emergency Fund

Emergency funds are calculated from your monthly needed expenses. It is called an emergency fund because it will only cover emergency items like shelter, food, and transportation. It is not meant to cover vacations and splurges. If you want it to cover all of that, change your calculation to be based on total monthly expenses. This is why you need a budget! Grab this template I made to quickly categorize between needs and wants.

Monthly Needed Expenses X #of Months = Emergency Fund Goal

How to Start Saving For An Emergency Fund

The best way to start saving is to just start. Anything you can put aside is more than nothing. It’s a big goal, so don’t get discouraged, but it is one of the most important things you will save for so give it some priority. If you have other savings goals like a vacation or new TV, I would recommend you put those on hold to give your full attention to an emergency fund. You might also come across an emergency while you are still building your emergency fund. That is what it is for! Thank yourself for what you were able to put away for this emergency and keep on going. It’s not fun to think you can’t go on vacation or splurge on a new fall wardrobe right now, but when you have an emergency fund that saves you from having to cancel a trip or one that gives you peace of mind when your company goes through layoffs it’s going to be incredibly worth it.

If you want to learn more about how to not have expenses creep up on you, read this article about sinking funds.

We went from being aggressive savers for big goals like our first home, to those who save to protect our finances. That might reflect in what moves we were able to make, but I hope this is is just a source of inspiration for whatever boat you may find yourself in.

We moved back home.

This might not be an option for everyone, but as the largest expense on most of our budgets, you must look for cost-savings here. Call your landlord, call your insurance company, call all of your utility providers. Most people/companies are just as eager to keep your business as you are to stay. In fact, I do this about once a year with all my utility providers, pandemic or not. Simply give a call and use a phrase like “when reviewing my budget” or “this is not in my budget right now.” It’s a magical phrase whether it saves a couple of bucks or a significant chunk.

We took this to the extreme. We were planning on moving into our first home next, not back in with my parents, but the world had other plans. In March of 2020, knew my husband wouldn’t be able to find comparable, safe work any time soon, and with our rent (and utilities) in the Bay Area being $3,000+/month we knew that was the largest expense we would be facing. We took advantage of my indefinite work-from-home position and packed up for Southern California. We knew we would have the flexibility to return if needed, but even if this thing only lasted for two months, we would save $6,000 and not touch our emergency or down payment savings. Here we are five months in and we’ve saved $15,000 and it doesn’t look like we will be moving out before the new year. We are very fortunate that my parents were able to offer us this cost-saving opportunity and if you have an opportunity to “buddy-up” with parents, relatives, or even friends, now is the time to do so. (Even if that is just on a Netflix subscription!)

Rightsize your car insurance.

My car has literal spiderwebs on it. I went from a modest 1-hour commute a day, to nothing. My husband was even more drastic cutting his 2-hour commute entirely. Make sure to take a few minutes to call your insurance provider to update your projected usage and mileage to better reflect how much time you are actually on the road these days. While a few companies are already issuing credits, there is still more to save. We were able to reduce our 6-month rate by $200 in addition to the ~$20 monthly credits we have been receiving.

Goodbye memberships.

I know there is a debate between continuing to support your local small gyms, classes, daycares, etc. My two-cents here is that if you have the income to do so, continue, but that’s often not the case when you come to read an article like this. There is no shame in putting yourself first. Cut the gyms, cut subscription boxes, and try to pair up with friends on streaming services. Prioritize between wants and needs and get hacking.

Cut entertainment budget.

This one happened naturally, unfortunately. There is not much available to do these days. No movies, no concerts, even dining out is not an option for us. Dining out was our largest “entertainment” category spend because we loved to use date night to experience new restaurants. Ironically all the “free” stuff is what we still can do. Get outside. Have a picnic, go to the park, take a hike. Try and flip your mindset from spending money to just staying busy. It’s not the most fun, but you can still find fun in the free activities.

Spend more time to save more money.

Finding deals and saving money takes more time. But when you lose your job, you have a lot of time to look for another position and time to make sure you are not squandering your savings.

I keep up on all my credit card rewards. My travel rewards cards (Chase Saphire Reserve) are shifting to offer their customers some kind of value in the absence of travel. Now I get 5x points on groceries and I can get free Instacart Express membership. I also get a free year of Doordash Dashpass which we are using to fill the hole of our date night routines. Take the time to read those emails and check bank statements. For me, free deliveries came at the cost of switching my payment method from ApplePay to entering my credit card information.

If you also keep up to date HabitualHeart.com, you will know we are expecting. News flash! Babies are expensive. I checked in with insurance to see what we could get covered and a big one was a breast pump for me, but also check for areas of savings or expenses that can be directed to an HSA or FSA card. Just because you lost your job, does not mean that you will lose what you have already contributed to a health savings account. You will have to spend it before the end of your insurance year, so it is very important you find ways to smartly spend.

Also, if you are on the market for any big-ticket items, make sure you check for secondhand-savings or sales. Facebook Marketplace is quickly becoming an easy and abundant marketplace for nearly everything. Also, install apps and plugins like Honey and Rakuten to make sure you are finding the best codes and getting cash back on necessary purchases. I even go so far as to add items to my carts to watch for price changes or get “cart completion” coupons. (Sharing some not so secret knowledge from my past in e-commerce.)

Learning the Value of Storage Space

At first, we didn’t really understand what all this space was for. After attempting to fit a car in there and failing, we mainly used the space for laundry, a few extra chairs, and the memorabilia of our single lives that didn’t find a place in our shared home. It wasn’t until we started looking at places to cut spending in our budget that we really learned what this space could afford us.

The biggest budget category we felt we had control over was food and household items. After researching ways to save on our grocery bill and getting into batch cooking, we realized that our shelves and freezer were overflowing. That was because the main ways we could really start making an impact on the budget were being able to stock up on shelf-stable or freezable items when items during a sale or buying in bulk. I could never shop at Costco when I lived in the city because where was I supposed to keep 30 rolls of toilet paper?

After having this mini epiphany about the possibilities for the garage we made the investment into three storage shelves and a chest freezer and it seems hard to imagine going back. This space and these items allow us to take advantage of sales, buying in bulk, and freezing any item to prevent spoiling and waste. All which lead to huge cost savings. We nearly cut our food and household goods bill in half.

Space is a Privilege

As our budgeting journey continues to teach us things about cost-saving and the importance of having sinking-funds and savings, it also continues to open our eyes to the privilege we have in even being able to do these things. Of course, I encourage everyone who wants to save money to take similar actions, but even from the small fact that I would have never been able to do this in an apartment, I realize that this is not possible for everyone. I don’t know enough to get too in-depth on the topic but it’s one of those frustrating ironies that those who cannot afford more space are those who could benefit the most from what storage space could afford you to save. Even the idea of stocking up on a sale or buying in bulk means that you have to have enough cash on hand to buy more now to ultimately save money. I don’t have a solution for this double-edged sword, but I write about it in hopes of larger understanding and maybe some comments that would help provide additional ideas for those in a limited situation. I also recommend this video by Two Cents that highlights how it can actually be more expensive to be poor.

When I was living in the city and working late nights, it wasn’t uncommon that I would place a DoorDash order as I was leaving work so I could arrive home to my favorite Indian takeout. And when Brian, my now-husband, and I were dating, we would rarely brave our respective roommate-shared kitchens, so taking turns ordering delivery was common. Even though we thought we were ordering the best deals, cheapest food, and making sure not to get the “extras,” it was about $50 for every meal we shared. $50 + delivery fees and tips added up fast. We were each spending about $500 a month ($1,000 total). And on top of that, I was still buying groceries with all the ambitions of meal prepping (insert facepalm here).

When we finally moved in together that was the first habit we broke. We had our own kitchen, we had all the tools, and one of us was a professional chef. We could no longer live in denial that delivery was an extravagance. It’s not just food, it’s groceries, shipping, streaming, subscriptions, and service fees. It’s the $.99 here the $4.99 there and the 15% tip on top.

One example that really highlights what all these charges are worth is our HBO NOW subscription. We loved it for Game of Thrones, but now there is not a ton of value we get from it. Let’s say we took the $14.99 monthly charge and invested it in a Match-the-Market style stock with the average rate of return on 6% (the recommended calculation rate from NerdWallet.com). Over 30 years, we would have paid about $5,400 to HBO, or we could be looking at $15,000 in savings. And that’s just one subscription.

Take a look for yourself with this compound interest calculator. For those of you new to the idea of compound interest it is the principle of reinvesting the interest back into the principal amount which then can also accrue interest in the following period.

I am a firm believer that you get to spend your money however you want so I say this not to shame anyone, but to encourage you to take a moment and ask yourself if convenience is worth it for you. Is there something in your budget that would make a better investment than service? You’re going to have to pry Amazon Prime from my cold, dead hands (pays for itself in our household), but I make my own Indian Food now.

Habitual Heart is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

The 50-20-30 Rule

The 50-20-30 rule is a great place to set benchmarks for your budget. The basics are splitting your income to spend 50% on essentials (housing, food, transportation, and clothing), 20% on financial goals like savings and debt repayment, and 30% on wants. Again, this is a great place to start. If you are only spending 30% on needs (go you!) you could choose to put that extra 20% towards rapidly paying off debts or saving for retirement or a 5-star vacation. There is a lot of flexibility in this model, but make sure you follow the order of essentials, savings, wants. If your needs are way over 50% that is when you need to be looking for ways to bring in additional income or lower your needed expenses. Check out my Habitual Heart 50/20/30 Budget Template on Etsy for these equations built right in.

• 50% on Essentials
  • Housing (Rent or Mortgage and insurances/taxes)
  • Utilities (Internet yes, Netflix no)
  • Groceries (food you need to live, not the splurges)
  • Transportation (car, fuel, insurance, public transportation)
  • Health (insurance and co-pay)
  • Clothing (shopping sprees not included)
• 20% Financial Goals
  • Debt (Credit Cards, Student Loans, etc. Mortgage and car payments included in Essentials)
  • Savings (401k, retirement, investments)
• 30% Wants
  • Dining Out
  • Entertainment (Netflix goes here)
  • Vacations
  • Toys
  • Treat Yo’ Self
  • Gifting

Take It A Step Further…

Housing = 30% or Less

Housing is the largest expense for most people so it makes sense there are a couple of rules set up just around keeping housing costs manageable. Keeping housing costs at or under 30% is actually important for a couple of reasons. First, it helps ensure that you can afford other essentials, savings, and needs when you keep your largest cost under control. Secondly, when you are applying for a loan, this is one of the factors loan officers look at. They will check to ensure your future mortgage (principal, interest, tax, and insurance payment) will not exceed 28% of your income. If you can manage to have your housing costs below 30%, more power to you!

Another rule of thumb for home buying is that you should always aim to be able to puy 20% or more down so you can avoid PMI (Private Mortgage Insurance). This is an extra fee you will pay as you are a greater risk without 20% down. Along the lines of not purchasing more home than you can afford, the total cost of your home should not be more than three times your annual income and ideally closer to two or two and a half.

Transportation = 15% or less

Transportation can be pricy and the cost doesn’t often slap us in the face, it creeps ups in little ways. When calculating transportation costs you should take into mind car payments, maintenance costs, fuel, insurance, parking, and public transportation. Using this percentage puts some guidelines on what kind of car payment you can afford.

Retirement – 10% or more

Most financial advisors recommend putting 10% of your total income towards retirement savings (in the form of 401k, IRAs, or individual taxable accounts.) Ideally, this savings starts at the beginning of your career or around your early 20s, but that is not always the case. If you are getting started later you will have to increase that savings rate to meet your retirement goal. That being said, ultimately a generalized goal is to have 20x your annual income saved for retirement.

Given that income changes throughout a career, there is another rule to consider based on your goal retirement lifestyle. Members of the F.I.R.E. (Financial Independence Retire Early) Community follow the “4% rule.” This rule is based on 50 years of historical stock and bond performance that has shown you can withdraw up to 4% of your investments a year without running out of money for at least 33 years. People in the F.I.R.E. community aggressively save to get to their retirement goal, sometimes saving up to 50% of their income or more. However, the 4% rule can work for anyone saving at any pace and it’s an easy number to calculate.

25 x Expected Annual Expenses = Retirement Goal

While the F.I.R.E. movement is not for everyone, it has yielded the formula showing your retirement goal should be 25x your expected annual expenses. Working off a number that does not vary as greatly as income seems a little more realistic and it’s also an important reason to always have a clear picture of your overall spending.

Designing Your Budget

The beauty of a budget is that you can design it to fit your life. The rules above are just guidelines, but if the most important thing to you is that you live in the big city, close to work and you would rather spend money on the perfect place to live over travel or going out that is 100% your call. Make your budget work for you.

Do you have budget tips you live by? Make sure to share in the comments!

Sink funds, not budgets! Unfortunately, your paycheck doesn’t just get bigger when you have a big expense due. You have to make the plan (aka the budget) to prepare for those months when your expenses might be bigger than your income. Sinking funds are a way to strategically put aside money in your budget for larger expected and unexpected costs. A common example is Christmas Gifts. We all know that Christmas is December 25 so no one should be surprised when December rolls around and suddenly we are spending more on Amazon than the typical month. A sinking fund makes sure these types of expenses have a place in our budget year-round. Sinking funds make sure your budget isn’t thrown for a loop and you feel prepared when those funds become due.

Why should you have sinking funds and not just savings?

Remember, a budget is what gives you permission to spend. If you just have a lump savings budget, there is nothing stopping you from spending it all on a luxe vacation even though your car insurance is due the very next month. A sinking fund will set up a protective dotted line that makes sure you spend on needs and wants accordingly. They should eliminate stress for large expenses and keep fun-spending fun.

How do sinking funds work?

Let’s use our example of a Christmas sinking fund and say we are starting our budget in January. Our goal is to have $2,000 set aside by November (when we start shopping). So, January – November = 11 Months. $2,000/11= $182 (rounded). In your budget, you are going to want to put aside $182 every month until you’re ready to shop in November.

What are some typical sinking funds?

Sinking funds come in different packages ranging from wants to needs and expected to not-so-expected. Here are some typical items you might want to work into your budget.

• Auto Maintenance
• Home Maintenance
• Medical Fund (Not to be confused with your Emergency Fund. Think of this as known upcoming costs like contacts, new glasses, braces, etc. Some people have this already created in the form of an FSA or HSA)
• Car Insurance
• Home/Renters Insurance
• Utilities (those pesky ones that are due every quarter or saving up for summer when the AC will be on overtime)
• Christmas/Holiday Gifts
• Birthday Gifts & Parties
• Pet Insurance & Medical
• Technology Replacement (new phones or computers)
• Yearly Subscriptions
• School (tuition, books, back-to-school supplies, and clothes)
• Kids (new baby, sports, clubs, classes, camp)
• Vacation (yay!)
• Taxes (April 15th)
• Bonus: Weddings! (Yours or others! Being a guest is expensive sometimes.)

Storing Sinking Funds

Sinking funds need to be in accounts that are readily accessible, unlike your Emergency Fund which should be a little harder to get to in a high-yield savings account. You can opt to create additional checking or savings accounts to help section off sums of money, but I recommend building your will power and budgeting expertise with most of the smaller funds. You should always be referencing your budget first for permission to spend, not your bank account. Download the Habitual Heary Zero-Based Budget Template and get started today. Alternatively, if you already feel comfortable with zero-based budgeting, I recommend YNAB for a great budget and sinking fund tracking app.

The catalyst to finding a better solution was really moving to a larger place where I had more storage space, most importantly, room for a chest freezer. I’ll get into the wonders of a chest freezer at a later time, but know that freezer space is the key to batch cooking.

What is Batch Cooking?

Batch cooking is pretty much what it sounds like, you cook in batches, bigger batches than you need for a single meal. The idea is that you cook one meal for now and freeze at least one meal for later. Over time you have built up a freezer full of ready to reheat meals great for busy nights.

The Benefits of Batch Cooking

• Less Effort. With meal prepping, you usually aim to do all your cooking in one big push, usually taking up a couple of hours on the weekend. With batch cooking, you are just doubling up on recipes which usually adds a minimal amount of extra work and time.
• Variety. Since you are freezing the meals, you can eat leftovers at your own pace. With many meals lasting from a month to six months in the freezer, there is no need to trudge through the same meal for 4 days.
• Works well with bulk shopping. If you are also bulk shopping to save some cash, batch cooking matches really well with the quantities you are made to purchase. No need to portion out that extra-large package of ground beef if you simply cook it up into 4 meals at one time.
• Reduce food waste. Grocery portions of food seldom align with recipe portions of food. Batch cooking gets you comfortable with your kitchen math skills and you will find yourself expanding your meals to match your ingredients. More meals + less waste = happy wallets.
• Save Money. In addition to the two money-saving tips above, simply having ready-made meals at home curbs the urge to turn to DoorDash or a night out. After you have built your freezer stock, you’ll enjoy small grocery bills when you just shop for fresh ingredients.

Partial Batch Cooking

Batch cooking works best with meals that freeze well, but since not everything falls in that category, you could find this limiting at first. Get creative and batch cook as much as you can. For example, I cook up 4-5 portions of taco meat to be used in a variety of dishes. Preparing the fresh ingredients for taco salad can be done in the same amount of time it takes for the meat to reheat.

Batch Cooking Favorites (So Far)

Here’s a quick list of meals or components that are on rotation in our home.

• Soups and Stew. Chili, pozole, and minestrone are on constant rotation but most soups and stews are perfect candidates for batch cooking.
• Ground Meats. Most pre-packaged portions of ground meat are too much for two people so I usually cook it all at once and freeze some for later. Most times I season it, but it’s totally optional.
• Pot Pies. If I’m making pie crust, I’m only doing it once. This freezes especially well and helps make use of leftovers.
• Indian Food. We love Indian food but it requires a lot of small amounts of ingredients, so we batch cook and enjoy for months.
• Rice & Beans. Both these ingredients take a bit of time to cook up from scratch, even with the Instant Pot. Split big batches into meal-sized portions.

If you have any goals that require money (millennial trying to own a home over here!), you need a budget. If you have an income, you need a budget. If you have a bank account or a credit card, you need a budget. I firmly believe that everyone needs a budget, but I also believe that a budget does not control you. You control the budget and being in control should make you feel pretty dang good.

So what is a zero-based budget?

Income – Expense = 0

Simply put, when the money you bring in minus the money that goes out is equal to 0, that is a zero-based budget. At first that might sound terrible. “What? No money left at the end of the month?” you might say. However, I would say “All money was well spent.”

A zero-based budget is an intentional method of budgeting where all your money has a job to do. Jobs come in the form of paying the bills and buying groceries to fun jobs like date night and dog toys. Some of the most impactful jobs are debts and savings. These jobs attack what is weighing you down and prioritize building wealth. It gives you a plan and permission to spend money how you want to.

How does it work?

Again, the goal is to have all the money coming in – all the money going out = 0. There are five steps to getting there.

1. Income. List all your sources of income. Some incomes you might know exactly how much is coming in and some you might have to estimate based on your job type. Err on the side of caution if you are unsure.
2. Expenses. 
   • Required Expenses. Required expenses should be the things you can’t live without. For most people that is food, rent/mortgage, utilities, transportation, and basic clothing. I like to have the required expenses at the top of my budget for 2 reasons. First, if anything should happen to our income, it’s easy to see what we need to fund first and where we can cut from our budget. Second, you take the sum of your required expenses and multiply it by six months to get a comfortable emergency fund goal.
   • Other Monthly Expenses. Think subscriptions, eating out, entertainment, gyms, etc.
3. Goals.
   • Savings. Savings goals should be the bigger things like emergency funds, down payments, new cars or college.
   • Sinking Funds. I’m not exactly sure where sinking funds got their name, but I like to think of these as things that would sink your budget if you didn’t plan for them. They are things you know are coming, but often creep up on you like Christmas/Holidays/Birthdays, car registration and insurance, back-to-school, etc. For this group, take your savings goal and divide it by how many months until payment is due. Example: Start saving for the Holidays in January (Goal $1000/12= $84/month). It feels great to know you have the money on hand for any occasion. 
   • Debts. Just ew. But it’s going to feel so good to say goodbye to these.
4. Get this all to equal 0! This is the balancing part of the budget. If your budget is in the negative, you need to either find places to cut back or bring in more income. If your budget it positive, you need to find more jobs for that money.
5. Invest in the habit. It takes about three months to really get comfortable with a budget and have it working for you. There is trial and error in making a budget and it requires that you check in with honesty, but I think that is worth all your financial dreams coming true.

Tips on Getting Started

Let’s get pen to paper, or more realistically, keys to keyboard! There are a couple tools I recommend to get you started on the right foot. Get them in this order:

• Mint – This is a free tool from Intuit (makers of TurboTax and Quickbooks). They know a few things about finance so this is a great place to start. While this is not a zero-based budget platform, this is going to help you get honest and familiar with your spending habits as it automatically tracks and categorizes spending.
• Habitual Heart Zero-Based Budget Template! – You do not have to be an Excel wizard to enjoy the features I built into this template. It helps you create that zero balance, highlights overspending and keeps you on top of all your categories mentioned above. It also works on Google Sheets if you don’t have Excel. Give it a “favorite” on Etsy for a special 75% discount email. Just tap the little heart.
• You Need a Budget (YNAB) – When you are a zero-based budget master you can graduate to YNAB. This is a super powerful budgeting tool that comes at the price of $84/year. Try 34-days free with my link and see how it will pay for itself. They have cleverly built a huge community around the tool and like-minded budgeters that is as helpful as it is motivating.