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|Mon, 09-24-2012 - 8:22am|
Hi all. Over the weekend I gathered up as much information as I could on my expenses and today I want to try to tackle creating the budget the right way, since I have been doing it wrong for so many years. I know that in my other post, people raised concern that all the budgeting in the world won't help if I am not ready to be committed. I can tell you that I am, otherwise I wouldn't be here. For a very long time, I was not only budgeting wrong but I wasn't committed either. That's a terrible recipe. Things are different now.
I made mention in my introductary post that my weight issues and spending are the same in that in both cases, I have a hard time delaying gratification. In both instances, however, I have learned that I need to make them into games. Everyone knows themselves best and so far, this is what is working for me. I turn things into a competition - not a cutthroat competition or anything like that but where the loser had to tell the winner on the winner's FB page how great they were. lol It sounds silly and it was, but let me tell you, so far, it has worked. My first competition involved giving up soda. That was in February 2010 and the other person lost in November 2011. Since November 2011, I have had 4 sodas meaning in 2 1/2 years, I have had 4 sodas. My next bed was with my brother. He lost that one. Since April of this year, I haven't had candy or cookies. We started up again in June. Since June, I haven't had chips. Also in June I could only use cash for my grocery shopping and I did it just fine. No this weekend but the weekend before was a wrestling PPV. I soooo wanted to order that ppv, especially since there was a rumor that my favorite guy might win a belt, but I held strong and didn't order it. Last night I wanted to order a ppv movie but didn't. So yes, my will power is much stronger than it has in the past and now I'm ready to begin.
So here is my question. Let's pretend my monthy combined income is 1,000. Its not but lets just say. Is this how it works?
I pay rent, gas and electric, phone, cable, food, gas, laundry, child support, transportation every month. Let's say total it's 400.
1000-400 = 600
CC1 minimum is 50
CC2 minimum is 75
student loan is 100
100 + 75 +50 = 225
I have a car maintnenace category, a gift category, a personal care category and a clothing category. I determine how much I want in each, divide by 12 and that's how much I put in there. So for the purpose of this, lets say each category is 25 bucks. 25 x 4 = 100
375 - 100 = 275
I put 275 into the EF.
Next pay I get a haircut at 20 bucks. I take the 20 bucks out of personal care. I put 45 next month and then only put 255 into the EF fund (I would have put 275 into the EF but since I had to use 20 bucks out of personal care, I had to put the already budgeted 25 and then additional 20 so the EF is 255 instead).
Is this how it works? Sorry for being so long winded. In order to get the best advice, I know I have to be honest about everything.