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In college, I aced finance. I was the only marketing major who got excited about test day. I was also the only marketing major who was kicking the finance majors’ butts in that class.
Unfortunately, my “expertise” in annuities, perpetuities and stock valuation has done nothing for me in the real world. Maybe I should have taken Personal Finance.
Until now, the “budget” that my parents have so lovingly encouraged me to create consisted of buying necessities first and then emptying the rest of my bank account (and then some) on whatever satisfied me.
Where did that get me? Based on the information given, (hint hint: I spent more money than I had) you can probably assume that after following this budget for 4 years, the results were less than desirable.
And so this week I created a budget!
I estimated what I expect to spend in groceries, gas, bills, dining out, entertainment and even beauty. If all goes well, there will still be money at the end of the month!
Money at the end of the month could mean vacations at the end of the year or a few new pairs of jeans (10 pounds from now).
My first month’s budgeting failures and successes will have their big debut on Feb 1st!
In the meantime, share your money-saving strategies and secrets. Please!
January 6th, 2010 at 8:31 am
You know that I had major spending problems too, so this year I decided to open up a new bank account with a bank that offered great interest on its savings account. I set it up so that all of the money I should theoretically not be spending throughout the month stays there and a transfer to my checking account delays by two days. That way, if I really want something, I have to think hard about is it worth the wait and this gives me time to come to better financial decisions in my life.
Number one thing I’m cutting out of my budget? Going out to eat all the time. I’m limiting myself to three meals out a month, spending no more than $12 at Breakfast, $20 at Lunch, and $30 at dinner with everything (Tip too!) included. Let me know about any help or ideas that you have!
January 6th, 2010 at 8:41 am
I made a budget in excel. It starts with my salary and then all of the expenses that I anticipate (electric, rent, car insurance, groceries etc…), as well as a miscellaneous budget for those unexpected things. I set the sheet up to automatically subtract my anticipated expenses from my salary. The resulting number is what I should have left over at the end of the month. The sheet has a second column for what I actually spend. At the end of the month I have to find out why there is a discrepancy. Knowing that I have to keep my receipts and balance this budget, makes me think twice before I buy something I don’t need!
Eric and I also vowed to eat out less! (Once a week.)
January 6th, 2010 at 10:15 am
well chris and i have stopped eating period. does wonders for the budget! haha