This is the first time in my life that I actually sat down and came up with a physical budget. It makes a lot of sense that I’ve never been good at saving money. Like many others, I have a hard time curbing impulsive buying. I come from the mindset of “if something is on sale then buy it,” or “I might need this in the future so I should get it just in case.” This is exactly the kind of thinking that makes it difficult for people to save their money and pay off their debts. Back in the fall when I hadn’t started paying off any of my debt yet, I still felt as if I didn’t have extra money. This is because I was overspending on things that I didn’t need or appreciate. Now I have even less money to work with, due to starting to pay on student loans and medical bills but I’m managing to save.
One of the biggest changes Bea and I have been making is planning out meals for the week and sticking to a carefully constructed grocery list. We do our shopping on the weekends and before we go, we briefly inventory our cupboards and fridge. Based on this we devise a meal plan for the week. We only buy the things that we need to make those meals that we don’t already have. We also exclusively shop at Aldi for groceries and leave places like Walmart for toiletries or other miscellaneous things. We went from spending a combined $120 per week at Walmart to about $60-70 at Aldi. That’s a huge difference! Imagine what we could have spent that money on before! The point of this story is to determine where your spending is out of hand and focus on amending that first. You can live under your means, it’s just a matter of figuring out what you’re willing to cut out. This is my biggest recommendation if you want to save and/or pay off debt.
I started using cash envelopes for gas and groceries. What this means, is that every week I take exactly the money I’ve budgeted for both things out of the bank and put that cash into marked envelopes. I only use this cash for those expenses so that I can physically see where my money is going. This helps me to be more conscious about overspending. I’m working up to creating envelopes for “the cats,” “bowling,”(which we are now doing 2x a month) and “fun.” It’s always a good idea to budget for fun things, that way you don’t feel bad about spending that money and you reduce the risk of overspending.
Anyway, I had a really difficult time coming up with my May budget, which I’ve had to revise because of new payments. It’s difficult to keep track of everything that you owe and I don’t have a good system of planning out when everything is due as things tend to vary. So here is my budget after the most recent revision. I’ve also received some unexpected money so I’ve managed to pay off two medical debts! Yay!
Listing the budgeted amount versus the actual amount spent is important in knowing whether or not you need to adjust your budget or a good way of keeping track of extra money to put toward debts/saving. This is what I’ve been up to lately as far as budgeting and money stuff. Next month Bea and I are going on a trip so I’ll be writing about our budget for that and our process of paying things off!