Budgeting ideas

[rainysparadigm]

How do you budget? I read about the envelope system which is pretty cool, except I don't like cash. I dont like fussing with it, and I find I have no less of a problem handing it over than i do swiping a card, so its pointless in my case.

My fiance and I, just starting out (together at least), are working on a system to managing our income. Despite spending large amounts of time on the computer, we simple would never track our spending in software like Quicken (that would be too easy i guess lol). What we have devised so far is a sheet with all the bills, due date, the amount; a sheet with our individual bills (because we are both trying to pay off past debts before marrying/merging); and an all other purchases sheet. we print out a set once a month, and wrote down an allowance for each item such as groceries, fun, household (since we are still setting up house) so as we track we can see where we are at on that budget, and know when we're too close to our limit and that framed art is just gonna stay on the shelf - this month.

Has anyone used a system like this, and have any pointers? Things we may have overlooked. We are *card swipers* and don't intend to change our means of spending, just how much lol

As something to contribute, we went over our monthly spending report from the online bank account and we spent a surprising amount in food. We work really long days, so by the time we are on our way home, its just too tempting to pick up dinner. So we decided that it was about time to get healthy anyway, and started making a conscious effort toward what we are eating. That rules out most restaraunts because sit down diners arent that great for you either when you do the math.

So, not only does it save money there, but we are eating up groceries before going bad which was a double whammy. We just make double batches of dishes when do cook so that we have leftovers to pick at, or we eat big salads for dinner. We also keep a bunch of granola, dried fruits, etc on hand for quick snacking. Not only are we saving a ton, but we're already feel the positive effects of eating better. And actually we don't miss any of it, and we arent saving any real time because it took longer just to decide what to eat, order, eat, pay and leave.

So now we talk about our day while chopping up carrots instead of waiting for the waitress to bring our drinks.

[RedZinnia]

We don't use the envelope system either; we like our debit card just like you do!

About a year ago I started downloading all our transactions into Quicken, and that has been extremely helpful to us. I spent a few hours customizing the categories, so now after a year of tracking, it's a REAL asset for planning expenses. I don't care much for Quicken's budget feature, so I made a simple spreadsheet in word. The top section is for regular monthly bills, the bottom is for variable weekly expenses. The columns divide the month into weeks. So we can see at a glance what our cash flow will be throughout the month.

[Lynnae]

I've been using You Need a Budget (YNAB) since the beginning of the year, and I love it. It's a desktop application, so you don't have to worry about the security of an online program. You download your bank transactions from your bank and then import them into YNAB. Or you could just enter each transaction manually, I suppose.

What I like is that it shows me at a glance how much I have budgeted for the month, how much I've already spent, and how much I have left.

I've gone the paper and pencil route before, but I find I make too many stupid math mistakes to make it really work. And I'm pretty illiterate with spreadsheets, so that doesn't work for me either.

I've found that making a budget is highly personal. The important thing is to do what works for you and stick with it.

[Milehimama]

I use cash for household and groceries, and incidental spending, but debit card for everything else.

A plus on the debit card - you can't go over your limit!

[rachael24]

Debit cards can have a negative balance tho, which will be bad news if you go over. Another thing that is bad about a debit card is you can use it before all your outstanding checks clear, which can overdraw your account later. I love the debit card, but I am extremely careful using it.

[lpkitten]

Instead of a "budget" I try to use "savings goals." That way instead of breaking it down into categories, I know I have a lump sum I can spend. I pay all of my monthly recurring bills and I put all of the money I want to save into my savings account. Then I'm left with my discretionary money in my checking account and I know exactly how much I can spend for the rest of the month. Of course, towards the end of the month has that number gets smaller you start thinking twice about your purchases!

[BuildMyBudget]

When I first starting using these budget programs out of college I was really impressed at how easy it was to categorize expenses and have all of my information in one place. However, what I quickly realized is that none of these programs could help show me where I would be in six months or how long it would take me to pay off debts. They also didn't give me the flexibility to quickly see where my money would take me if I started spending more or less of it.

That is why I created the BuildMyBudget budgeting system. I'm only posting this because it is relevant to this thread, but if you know anybody who is sick of spending their time categorizing expenses, that wants to know where they are headed financially--it might be a good system for them. But ultimately Lynnae is right..you have to find a system that works for you.

[flipchick1127]

I have been using a mixture of Quicken and a monthly budget spreadsheet that I have posted on my blog. I love the combination, although sometimes I get a little lazy and slack off. My budget spreadsheet has a cell for each day of the month in each category and adds up how much I have spent so far in each category compared to the limit that I set for myself. It really helps me see where I am compared to where I would like to be.

[personal-tips]

envelop system work for some software for others, white boards for others(i used that with my co-renter at university and all bill stuff was working great). But all goes to the same idea category with allowed amount to it and tracking for the spending. i would say that software and spreadsheet(printed or not) has the most result. one of my friend used his pocket PC to track his budget on a spreadsheet. the idea is to see where you go over.

cash vs debit card vs credit card. This is also a not fixed rule. if your budget is the tool and you follow it any work if you spend without been able to stick with it the cash end envelop can be used as wall to keep your finance in the room. I personally prefer credit card pay at the end of the month for anti fraud protection but I never miss a payment in full at the end of the month in the last 15 years. if you miss payment of not pay in full debit card or cash are better.

[bendonahower]

This has a bunch of ways to manage your money online: http://www.thriftyapp.com/tag/money-management/

There is an online envelopes system called mvelopes.com