Nov 02 2008
Budget It Out
There are many people who live paycheck to paycheck and always wonder where there money goes. I have always been one to write down all my major monthly expenses each month. However, up till a few weeks ago, I never wrote down our dining out money, gas money, or any monthly left from paying the bills.
I am now a huge proponent of writing down everything. Karen and I have devised a budget that includes a weekly allowance for both of us, grocery money, eating out money, miscellaneous money, and gas and car expenses. With the exception of gas, which we pay at the pump with our debit cards, everything else is cash only. I carry an envelope for each kind of money and pull the right one out each time we need to purchase something. Dave Ramsey says it is harder to spend cash and he is right. It is much harder to part with money than with a debit card or credit card. Every dollar is earmarked and we try to stay with in our budget.
We are not perfect but we do seem to be more conscious of our money. We know how much we have and if we run out, we have to wait till the next payday. We both get paid bi-weekly so we fill the envelopes every two weeks. We do borrow back and forth but if we borrow from one envelope, we know that that category is short for the two weeks and we do not go and get more.
I am here to tell you that if you budget out every dollar before the month begins, you will have more money than you thought you had. Any excess goes straight for debt payoff. It also causes you to avoid high price stuff and look for the bargain in everything. No more value meals at McDonald’s, we go straight for the dollar menu. Drinks in diners are now water not the $1.50-$3.00 sodas. It takes some getting use to but we are working toward a long term get out of debt goal!
The key is for the whole family to be on board and stick to the plan. If the the plan is not discussed and agreed on by all, it will not work. Communication is key to successful money management and it makes a much healthier marriage.
Get on board and get a budget done. it will be the smartest decision you ever make!
