Does anyone have any recommendations for how to put yourself on a strict budget and stay on it? I just added up my "mandatory extracurricular" expenses for the next 60 days, including outstanding bills, vacations (paying off one from July), two upcoming bachelorette parties, three weddings (one of which I'm in, one is across the country) and car repair. It's nearly $2,000. :scared This doesnt include rent, groceries, gas, gym membership, day-to-day life... :wowsers

I'm sitting down tonight and sorting through it all to see where I can cut corners, what I need to pull from savings, etc but would love some guidelines on how to be realistic when budgeting. I NEED to start being smart about how I spend my money.

Do you allow yourself a certain amount of fun money a day/week/month? Does tracking expenditures in a spreadsheet help instead of relying on online banking (my current strategy)?

I'm TERRIBLE at keeping a budget so any tips and tricks you could share would be greatly appreciated!

Seriously, take baby steps..

This is how I started.. It's called :quotethe envelope system:quote
http://www.daveramsey.com/etc/cms/index.cfm?intContentID=3461

I found out that Grandma's way to handle money still works. People used to always use cash envelopes to control their monthly spending, but very few do in today's card swiping culture. The envelope system is a key component of the Total Money Makeover Plan because it works. Here are a few simple basics for starting a cash envelope system:

Budget each paycheck. Budget (http://www.daveramsey.com/the_truth_about/budgeting_3457.html.cfm) is a dirty word to most people, but you must budget down to the last dime if you're going to successfully implement the envelope system.
Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdraw. However, you can create categories like food, gas, clothing and entertainment.
Fill 'er Up. After you've categorized your cash expenses, fill each envelope with the money allotted for it in your budget. For example, if you allow $100 for clothing, put $100 in cash in your clothing envelope for the month.
When it's gone, it's gone. Once you've spent all the money in a given envelope, you're done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can't spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdraw more money!
Don't be tempted. While debit cards can't get you directly into debt, if used carelessly, they can cause you to over-spend. There's something psychological about spending cash that hurts more than swiping a piece of plastic. If spending cash whenever possible can become a habit, you'll be less likely to over-spend or buy on impulse.
Give it time. It will take a few months to perfect your envelope system. Don’t give up after a month or two if it's not clicking. You'll get the hang of it and see how beneficial the envelope system is as you dump debt, build wealth, and achieve financial peace! See....simple!

Certainly, some bills may come in at different times of the month, so you'll need to adjust your written game plan to take it one step further. You need to plan the budget based upon your pay periods.
Say that you get paid twice a month. If you can write down which bills you plan on paying from each paycheck, you will not be left with a surprise bill. Spend each month's income and each individual paycheck on paper BEFORE it comes in.
Have Some Fun

I also have no problem with you adding an envelope with money just to have fun with! As long as you and your spouse have agreed on it, you are fine. There should be no lying. Agree on your budget, agree on your fun money, and be open. Fun money can be anything you want it to be. There are no rules on that envelope, unlike money in the "entertainment" envelope that is used specifically for entertainment.

ETA: This system helped my pay off almost $16,000 in debt while my SO was in Iraq :wink

Wow, thank you!!! I will definitely try this and see how it goes. I'm hoping that since I have to be frugal for the next two months, it'll get my into a habit of being more money-consious.

Wow, thank you!!! I will definitely try this and see how it goes. I'm hoping that since I have to be frugal for the next two months, it'll get my into a habit of being more money-consious.

It's real easy.. Just get a bunch of envelopes together, mark each one "gas" "food" "electricity" "car payment" and ONLY SPEND what you put in the envelope.. You're not allowed to go over...

It really is easy, and it gives you something tangible to hold in your hands.... I made up the rule that money is interchangeable throughout the envelopes... Ex: If you have an overbudget for gasoline, go ahead and put that cash towards your "fun fund".

I will let you know how it goes :D

Seriously, take baby steps..

This is how I started.. It's called :quotethe envelope system:quote
http://www.daveramsey.com/etc/cms/index.cfm?intContentID=3461

I found out that Grandma's way to handle money still works. People used to always use cash envelopes to control their monthly spending, but very few do in today's card swiping culture. The envelope system is a key component of the Total Money Makeover Plan because it works. Here are a few simple basics for starting a cash envelope system:

Budget each paycheck. Budget (http://www.daveramsey.com/the_truth_about/budgeting_3457.html.cfm) is a dirty word to most people, but you must budget down to the last dime if you're going to successfully implement the envelope system.
Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdraw. However, you can create categories like food, gas, clothing and entertainment.
Fill 'er Up. After you've categorized your cash expenses, fill each envelope with the money allotted for it in your budget. For example, if you allow $100 for clothing, put $100 in cash in your clothing envelope for the month.
When it's gone, it's gone. Once you've spent all the money in a given envelope, you're done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can't spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdraw more money!
Don't be tempted. While debit cards can't get you directly into debt, if used carelessly, they can cause you to over-spend. There's something psychological about spending cash that hurts more than swiping a piece of plastic. If spending cash whenever possible can become a habit, you'll be less likely to over-spend or buy on impulse.
Give it time. It will take a few months to perfect your envelope system. Don’t give up after a month or two if it's not clicking. You'll get the hang of it and see how beneficial the envelope system is as you dump debt, build wealth, and achieve financial peace! See....simple!

Certainly, some bills may come in at different times of the month, so you'll need to adjust your written game plan to take it one step further. You need to plan the budget based upon your pay periods.
Say that you get paid twice a month. If you can write down which bills you plan on paying from each paycheck, you will not be left with a surprise bill. Spend each month's income and each individual paycheck on paper BEFORE it comes in.
Have Some Fun

I also have no problem with you adding an envelope with money just to have fun with! As long as you and your spouse have agreed on it, you are fine. There should be no lying. Agree on your budget, agree on your fun money, and be open. Fun money can be anything you want it to be. There are no rules on that envelope, unlike money in the "entertainment" envelope that is used specifically for entertainment.


:yes great tips!!

Wow, thats a good idea. I'm gonna have to try this.

My parents did the exact same thing when they first got married and were really really broke.... they had to cut alot of corners, but the system kept them out of debt.

Seriously, take baby steps..

This is how I started.. It's called :quotethe envelope system:quote
http://www.daveramsey.com/etc/cms/index.cfm?intContentID=3461

I found out that Grandma's way to handle money still works. People used to always use cash envelopes to control their monthly spending, but very few do in today's card swiping culture. The envelope system is a key component of the Total Money Makeover Plan because it works. Here are a few simple basics for starting a cash envelope system:

Budget each paycheck. Budget (http://www.daveramsey.com/the_truth_about/budgeting_3457.html.cfm) is a dirty word to most people, but you must budget down to the last dime if you're going to successfully implement the envelope system.
Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdraw. However, you can create categories like food, gas, clothing and entertainment.
Fill 'er Up. After you've categorized your cash expenses, fill each envelope with the money allotted for it in your budget. For example, if you allow $100 for clothing, put $100 in cash in your clothing envelope for the month.
When it's gone, it's gone. Once you've spent all the money in a given envelope, you're done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can't spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdraw more money!
Don't be tempted. While debit cards can't get you directly into debt, if used carelessly, they can cause you to over-spend. There's something psychological about spending cash that hurts more than swiping a piece of plastic. If spending cash whenever possible can become a habit, you'll be less likely to over-spend or buy on impulse.
Give it time. It will take a few months to perfect your envelope system. Don’t give up after a month or two if it's not clicking. You'll get the hang of it and see how beneficial the envelope system is as you dump debt, build wealth, and achieve financial peace! See....simple!

Certainly, some bills may come in at different times of the month, so you'll need to adjust your written game plan to take it one step further. You need to plan the budget based upon your pay periods.
Say that you get paid twice a month. If you can write down which bills you plan on paying from each paycheck, you will not be left with a surprise bill. Spend each month's income and each individual paycheck on paper BEFORE it comes in.
Have Some Fun

I also have no problem with you adding an envelope with money just to have fun with! As long as you and your spouse have agreed on it, you are fine. There should be no lying. Agree on your budget, agree on your fun money, and be open. Fun money can be anything you want it to be. There are no rules on that envelope, unlike money in the "entertainment" envelope that is used specifically for entertainment.

:yes I was going to say the envelope thing. I have heard it really works

It's real easy.. Just get a bunch of envelopes together, mark each one "gas" "food" "electricity" "car payment" and ONLY SPEND what you put in the envelope.. You're not allowed to go over...

It really is easy, and it gives you something tangible to hold in your hands.... I made up the rule that money is interchangeable throughout the envelopes... Ex: If you have an overbudget for gasoline, go ahead and put that cash towards your "fun fund".

Ok, so I sat down last night and worked out a budget for through the end of January. Let's just say I need a better paying job :wowsers I'm actually SUPER happy I did this because I feel like I have a better handle on my finances than I did before.

I'm going to color code my expenses in my budget spreadsheet put the cash in the corresponding envelopes. I like your rule about carrying the money over!! Wish me luck... I'm actually nervous!

Ok, so I sat down last night and worked out a budget for through the end of January. Let's just say I need a better paying job :wowsers I'm actually SUPER happy I did this because I feel like I have a better handle on my finances than I did before.

I'm going to color code my expenses in my budget spreadsheet put the cash in the corresponding envelopes. I like your rule about carrying the money over!! Wish me luck... I'm actually nervous!


Don't be nervous!! :hugehug

Be excited... Getting out of debt is life changing. :giggle And the first month you go through with it, and DO IT, you will be soo proud and you will feel sooooo good about yourself..

Then you can come on here and brag!!!!:hehe

for me- I cut out buying coffee every morning- my coffee was 4.95 aday saving almost 100 dollars a month.

I also stop eating out at lunch and now pack my lunch- saving at least 120 a month.
I stopped buying bottled water( I was drinking 3-4 a day) and bought a safe reusable bottle and use the filtered water from my fridge, saving another 100 dollars a month.

we stopped going to the movies every weekend- and now only go 1-2 a month- saving 35.00 a movie ( movie, drinks and popcorn) saving 75.00 a month.

we do eat out every weekend- but that is something I refuse to give up LOL

HTH;s

Seriously, take baby steps..

This is how I started.. It's called :quotethe envelope system:quote
http://www.daveramsey.com/etc/cms/index.cfm?intContentID=3461

I found out that Grandma's way to handle money still works. People used to always use cash envelopes to control their monthly spending, but very few do in today's card swiping culture. The envelope system is a key component of the Total Money Makeover Plan because it works. Here are a few simple basics for starting a cash envelope system:

Budget each paycheck. Budget (http://www.daveramsey.com/the_truth_about/budgeting_3457.html.cfm) is a dirty word to most people, but you must budget down to the last dime if you're going to successfully implement the envelope system.
Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdraw. However, you can create categories like food, gas, clothing and entertainment.
Fill 'er Up. After you've categorized your cash expenses, fill each envelope with the money allotted for it in your budget. For example, if you allow $100 for clothing, put $100 in cash in your clothing envelope for the month.
When it's gone, it's gone. Once you've spent all the money in a given envelope, you're done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can't spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdraw more money!
Don't be tempted. While debit cards can't get you directly into debt, if used carelessly, they can cause you to over-spend. There's something psychological about spending cash that hurts more than swiping a piece of plastic. If spending cash whenever possible can become a habit, you'll be less likely to over-spend or buy on impulse.
Give it time. It will take a few months to perfect your envelope system. Don’t give up after a month or two if it's not clicking. You'll get the hang of it and see how beneficial the envelope system is as you dump debt, build wealth, and achieve financial peace! See....simple!

Certainly, some bills may come in at different times of the month, so you'll need to adjust your written game plan to take it one step further. You need to plan the budget based upon your pay periods.
Say that you get paid twice a month. If you can write down which bills you plan on paying from each paycheck, you will not be left with a surprise bill. Spend each month's income and each individual paycheck on paper BEFORE it comes in.
Have Some Fun

I also have no problem with you adding an envelope with money just to have fun with! As long as you and your spouse have agreed on it, you are fine. There should be no lying. Agree on your budget, agree on your fun money, and be open. Fun money can be anything you want it to be. There are no rules on that envelope, unlike money in the "entertainment" envelope that is used specifically for entertainment.

:yesIm going to try this also. I just cant seem to save money these days and DH will be home before we know it and we have so many things and trips planned. I only have 5 months left to save as much as possible.

:tu im gonna try it!

ETA: This system helped my pay off almost $16,000 in debt while my SO was in Iraq :wink

Wow!!!! :wow Gimme ur secret!!! thats alotttt of money!!!!

I downloaded a budget spreadsheet in Excel that's been extremely helpful and broke it out by pay period instead of by month. Today is day one, and I have my envelopes ready to go! I actually may start an accountability thread to help me get through the first few pay periods... best of luck to all of you!!!

we use microsoft money, and set up a budget.
we dont like to carry around cash
but all our banking transactions show how much we spend in each category of our budget, when we reach the amount we budgeted we just dont spend anymore money in that category
and any money that goes unspent, goes towards debt or savings