I have decided that I will keep track of what I spend and on what. I want to see exactly where my money goes to because I think there should be enough for all the things that I have committed myself to pay for.
I was taught how to do budget in high school and have occasionally put it into practice as an adult but honestly not very often. In our household, dh pays for and keeps track of all the major payments and bills. I only have responsibility for a few things and many of those are the things that I myself want and could most likely live without.
I am not going to go looking for a budgeting how-to, because I know how to do it. Now, if I could just find something that would make me do it, that would be marvelously helpful ;) I will probably just use an excel sheet to keep track of things. It will be somewhat difficult because I don't usually keep receipts (it's like pennies, I don't like carrying them around although they are beneficial!). That is something to work on.
I think to start with I will list all the recurring bills/payments that go out each month. Then I will try to estimate what I spend on other things (such as my beloved coffee, dc's occasional toy/treat, randomness that steals my money). Of course, I am thinking my estimations will be off by far from the true amounts and so I will need to start to keep those receipts.
So much fun... imagine if I were to stop buying the coffee drinks and cremosas, stop buying frivolous items that are used just once and left on a shelf (or given to Goodwill within a short time). Imagine how much money I will recapture (because it isn't saving it...it's just not spending it). I could put that to better use...such as buying healthier food for the family, buying the plants/seeds for my garden that I can't at the moment (because, I am sure, I spent too much on the coffee/cremosa drinks this month) or just for things that are needed here and there, like new pants for either of my kids. Or even a special treat like a trip to the zoo (I can't afford that either right now but I think I should be able to).
It will mean sacrifice though. Mostly on my part...perhaps some on the kids' part. Oh, I know of one sacrifice that I will gladly make: the morning headache I have from the caffeine!
Blossom, years ago long before you were even thought of, I used the envelope method. I had X amount of money a month and I made a list of the things that I had to pay monthly and then I put the name of each item or category on an envelope. The money for that would go in the envelope. BUT, in my opinion, having spending money is important also so allot yourself so much a month to spend on those frivolous things and when that envelope is empty - there is just no more until next month. Back then things were super tight too, but everything got paid.
ReplyDeleteAfter, once I started using the bank and I didn't have cash on hand anymore, I used a computer program that added up everything I spent so I could keep track, probably much like your spreadsheet. But even today I think that envelope method was the best of all... a spreadsheet would require input every day of what you spend, and many times I get to lazy these days to do it.
That's a good point BUT I never (okay, almost never) have actual cash. I use my debit card almost entirely, sometimes use checks (that's rare). So the envelope system wouldn't work for me. At least I don't think. The best way I think I could do it that way is to keep a running tally of how much I have and how much I spent, with the use of receipts that I put in the envelope.
ReplyDeleteOh ya, I understand that! I use a debit card almost exclusively these days too. I have used the receipt method as well... I am sure you will figure something out.
ReplyDeleteI was resistant to the envelope system for YEARS, but we finally did it and it made a HUGE difference in our spending. I can hardly even express how fantastic it was. We did track our spending for a couple of months and list in an excel spreadsheet, and from there we began the envelope system for pretty much everything except bills we paid by check or online. It totally helped us get our finances in order.
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