Can't work off a budget!
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Can't work off a budget!
| Tue, 07-12-2005 - 7:42am |
I just don't understand it. I create a budget, but never follow it!!! We don't spend excessive money or anything. We always say we are not going to spend any money the rest of the week, but we always find something we "need" (and that is in quotes). Sometimes it is food that we would buy on the next shopping trip (like milk) so that does not bother me. It's the "little" things. HOW can we actually FOLLOW a budget? We really tried, in fact I think we did better than we have?!?!?!?!

I know exactly what you are talking about. It is the same with us. We are never able to stick to the budget because unexpected stuff comes up, we buy extra things, we don't really need. Or the need to go out to have some form of entertainment is just too overwhelming, when we know we can't afford to. I have no idea on how to curtail that, because you just have no control over some of the things. Maybe if you are able to (we are not) include a $5 unforseen expenses column in your budget and put that aside. It will accumulate each month and if after 6 months you haven't had anything unforseen... hey put 3/4 of it toward the bills and keep 1/4 as a little saftey cushion... don't know if that works. You could try it with less too, I'm sure. Or you use left-over change for that... put it in a piggy-bank and then when you need it take it out. Left-over change does add up. It is amazing... my piggy bank holds about 15 to 20 euros in change.
Sushi
Have you tracked your spending?
All my best,
Danni
Hi there,
I can definitely relate. And here's my two cents to it: Sit down with a good cup of your favorite beverage, think it over, and be honest to yourself: What does sticking to a budget mean for you, you personally? Does it feel like you're a looser 'cause you needed to make up one in the first place? Does the budget symbolize loss of freedom to do with *your* money (you earned it, after all!) whatever *you* feel like doing, instead of adhering to some abstract rules, called 'budget', you set up because people told you to do so to get out of debt?
Or do you see the budget as an aid to achieve a greater goal, the one of debt freedom? Could the budget, once you stick to it, be a means to have some spending money (if you gove yourself an allowance, which I strongly recommend) to spend 100% remorsefree since you spend all those other dollars and cents in a responsible, well-thought-about, rational manner, and thus grant you a greater freedom than simply going on without a budget could ever be?
I strongly believe it depends on what a 'budget' means to you. Find out what 'budget' works for you - for some people, the envelope system is perfect, others divide their income into neat columns and keep a book, listing all expenses etc.
I do not follow a 'budget' in the traditional way, too. I could explain in oh-so-many words why it simply doesn't work for me (just one word of advice to those of you having kids: Teaching them how to keep a budget is a wonderful idea, but one can overdo even that...). Figuring that out was the first step.
The second was scheduling all monthly payments (rent, insurances, my online gaming account etc.) to be deducted from my account the very day my monthly salary arrives.
The third was simple counting: There is a sum left after all that. From that sum (also: automatically) a certain amount goes into a different account, where money for those things which need to be payed only twice a year like tuition fees accumulates. I draw from that account only for those things. And another (very small) amount to another savings account as emergency and X-mas fund.
And the rest is my 'budget'. If I (or we, I am married) spend all of it on food, well, then it is no going to the movies, or new clothes. If we run out of gas because we spent everything on something we found we 'needed' at that time - well, take the bike or walk, simple as that.
That system indeed works for me. It is very direct, a lot less abstract than most budgeting systems I know of, and I don't waste any time with thinking things like "Can I spend these 10$ on a new shirt, or is that part of my budget already overdrafted?".
A word of caution, though: I do not guarantee that that system would work for anyone else. I am not in the business of writing books on the 100% guaranteed method or something like that (if I was, I wouldn't have to live of 1100 Euros a month....) My system of 'budgeting' only works with a lot of self-control, and I also always ask myself "Why do you want to buy this?" which can make shopping together with me quite a nuisance - it takes time and time and is not very emotionally satisfying :-)
A friend of mine tricks herself into sensible spending behaviour by handling her money by the exact same rules like she would handle other people's money. She always imagines herself trying to explain to a stranger why she had to spend on this, or overdrafted that account or whatever. That does help her.
... I think there's about as many ways to come up with a workable idea of 'budgeting' as there are people. I am sure you'll find yours, too!
Greetings, Jordis
ivy_jordis
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When i started my debt reduction journey about four years ago, i did try to keep a stricter budget, but then so many unexpected things came up (my dd's autism dx, my mom's cancer, our cross country move for better services for dd) that the budget wasn't working for us. We took a nosedive, fully knowing what we were getting into...we simply were not making enough to cover our new reality, but we proceeded on, borrowing money to get what we needed for our daughter. Now,we have not used the ccs this year except our trip to Disney in March and occasional use of store cards which get paid as soon as the bill comes in, and our debt is going down nicely.
I think you have to do what works for you. It will be easier to stick with a budget if it is realistic, you probably should track your spending a few months to figure out where your money goes to make sure you are recognizing your spending weakenesses so that you can work on it, if needed. I do this using microsoft money, things don't vary that much. Taking a set amount of cash out of the ATM at the beginning of the week has also helped me control what is spent. It is just a bit more concrete for me.
Do what works for you. i don't think you will figure it out in a month or two, it might take six! But in time, if you keep working at it, you will find your own way which is perfect for you. Good luck, Heather