Who Uses Budgets....?

[TexasOaks]

Give us your feedback on how you liked it or not and or tips for implementing one or maintaining one.

[Megan]

Until very recently my budgeting method was "I make X. I will put Y into my savings account. That leaves me with Z. I will spend less than Z this month."

And it worked fine. But I realized I could be making much better spending choices, and planning ahead for expenses. I was tracking everything in Microsoft Money, but I wasn't really looking at what I was tracking. I was just plugging it in and occasionally looking at reports.

This past month, I decided to implement the YNAB system. I purchased the spreadsheet version (I am a geek and I like spreadsheets). I have been categorizing my expenses and seeing where I can tighten the reins. For example, I budgeted a certain amount for eating out. I have a pricey dinner scheduled for next week with a friend, so when a co-worker asked me to do lunch today, I turned her down, because I knew I had to save that budgeted money for next week's dinner. Normally, I would have said "Hey, I haven't spent all my money this month. I can totally afford a lunch out!"

[habh44]

I'm with you Meghan. I am a list maker and an excel lover. I keep everything I spend in catagories. 1 Savings 2 Mortgage 3 Club dues 4 Mobile Phone 5 Automobile 6 Groceries 7 Eating Out and 8 Miscellaneous. The 8th catagory includes anything that is not in the previous 7. This is the hardest one to budget on. Then at the end of each month, whatever I have left in the checking account the day before my next check is deposited goes straight into my higher interest online savings - etrade account. I have summary worksheets from the previous two years, since I've started doing this. I try and stay at or below my previous yearly average in all of the above catagories. I've started printing these monthly and posting them on my refrigerator so I can be reminded of how good I'm doing or if I need some catching up to do if the previous month was a bit over. So, it all balances out. I find that it helps me eat what I have in the house, rather than thinking I need to run to the store and buy something fun or get carry-out. Because you and I know that it is impossible to just buy the couple of things you want when you get in there.

[rstlne]

Thus far, I haven't had a budget. I buy what I need, cut every expense I see that isn't nailed down, and at the end of the month, whatever's left has to be invested somehow. I think the only reason this has worked is because I got bored with shopping a long time ago.

[Xin Lu]

I wrote about my "budget" here: http://baglady.dreamhosters.com/2007...aglady-budget/

That was written six months ago and now I'm married and we're actually contributing even more to savings. The hubby also saved up a lot in his games budget.

[jdp]

For most of the year I just go with "Pay my bills, stick this much in an envelope for food and fun and save the rest" but from about sept - dec I have to use a budget. It reminds me why to stop buying, going, doing lol.

[Gootsy]

I use a budget. It's being refined/improved every couple months. Originally was just pure basics to 'ballpark it' so I don't spend more than I make. Now I include things like entertainment (and what type), eating out, and clothing.

Next I plan on doing the 'rollover' thing where what you don't spend on 'wants' for the month, gets moved to the next month. So I can save for something a little more expensive without having to break up the budget. Thinking about this sorta makes me feel bad, since I really hate spending large sums of money on things I know I don't need. Hate the thought of spending the money, and then finding out it was a waste since I'm not using the product as much as I had originally intended...

[Miss Rosie]

I don't use a budget, but that's mostly because my expenses are what they are.

What I find that helps, though, is to give both me and my son an allowance. Pure mad money. It's not much, but it can be spent as we choose. This month, I bought a wire basket for my desk. Could have gotten something less attractive cheaper, but I liked this one. My son bought a used copy of Kirby: Squeak Squad with his plus some Christmas money.

With everything else, it's an ongoing task to trim, trim, trim while not having us go cold, hungry, unclothed or without transportation. That allowance, however, makes this process much easier and our lives more comfortable.

I've also discovered some interesting things in the process. One is that video games are cheap entertainment once you get the cost of the console itself out of the way, and if you're willing to do your homework with reviews and buy used. Squeak Squad cost less than $27 and has been amusing both of us for days. Animal Crossing has been an even bigger bargain.

Another is that if your home is comfortable and attractive, and you have decent food in the fridge, you have less of an urge to go out to eat or take vacations.

Which could be summed up as: Don't budget all of the fun and comfort out of your life, or you will lash out somehow. Come to think of it, I wonder how much of people's credit card spending is a backlash from trying to be a kind of responsible that results in asceticism?

[72Tiger]

I am a fairly recent convert to budgets. To live by one was the best financial decision I have made in a long time.

[Kathryn]

Call me a heretic, but I've never really enforced a budget. I've occasionally gone through periods when I track my spending as an FYI sort of thing.

When money was tight, I just didn't buy stuff unless I needed it, and if I needed it, I bought it as cheaply as possible. I was in tight-money mode for an extremely long time, and it is so deeply ingrained that I get anxious about spending money now, even though our income is quite comfortable. I've never had a problem with overspending--just underearning and, if such a thing were possible, underspending now.