What method do you use?
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|Wed, 09-19-2012 - 2:44pm|
I have a very basic system for budgeting my money and I'm starting to think that it might be part of the problem why I am always so stuck at the end of the payday (that's about as long as the money lasts).
I normally make a schedule a few months out. I put how much I am getting at the top and what bills need to be paid and subtract from the top number. Then something comes along and it screws me up, like a birthday party for one of my daughter's friends or a super expensive car payment. I know from years of reading that you should have an emergency fund of 1000 but even with an emergency fund, it wouldn't have helped me this past year with all the unexpected expenses that I had.
This is what I have a problem with when it comes to the 1000 EF. Let's say I save up the 1000. Then I spend about a month paying my bills and blamo, here comes a 500 dollar bill. Now my EF is down 500 and I have to stop overpaying my ccs to get that fund back up to 1000, which means putting my paying off the ccs are on hold - first to reach the 1000 and then second to get it back up again. Of course, I know that it is counterproductive to not have the EF and end up putting the stuff on the card. That is completely illogical. But I hate how it interferes with getting the debt down. However, if you say that is the way to go, I think I should bite my own bullet and just try it once.
But back to my original question - how do you budget and more importantly, how far in advance do you budget? Do you use an envelope method? Any help is appreciated since I am really a mess lately.