How do you control spending within your budget?

Question

Some folks use envelopes full of cash, some graphs. What works best?

Thank you all!

Answer 1

Hi. In 1999, my husband made approximately $125k. I made a meager $32k, which I frivolously wasted on shoes, handbags, clothes, and paying for my car and school loan. My husband paid all other bills from his salary. We gave money each month to his mother and we were fortunate to be able to give to charity. We paid $1300 in rent and had all the regular bills- car payments, school loans, insurance, etc. Fortunately we were always reasonably smart with our money and did not have too much credit card debt. I would say appx $15k. As a young married couple, we had not been bringing in his high salary for long when the tech bubble burst and he was laid off along with 50% of his colleagues at the software company he worked. We had school loans, monthly bills, and a baby due two weeks later. While we had always kept track of our spending using excel, we sat down and made a formal budget to first determine what we had compared to what we owed and where we spent the most. We also listed all credit cards, the balances owed, and the interest rates. We had some savings, appx $7k. (nothing to get too excited about.) We knew that without drastically changing out lifestyle we would go under in about two months time. We immediately cancelled all extra spending- eating out, shopping for clothing, etc. We decided upon a reasonable amount that we could afford to spend per week on groceries- $65, and we stuck to it. If we found that some weeks we spent less, then we would occasionally spend a little extra to make something nice for dinner. No going out for lunch or coffee while at work. We also set solid amounts that we would spend on everything else...baby needs, household goods (cleaning supplies, etc.)

The next thing we did was to contact all credit card companies and ask two questions. The first was we asked for a lower interest rate. The second question was to find out what offer they could make on balance transfers. It is important to only make a balance transfer if there is no transfer fee and if the rate is low. Find out the specifics. For example... the rate may be fixed at 0-10% for say the first six months, but then jumps sky high at the 7th month. We then transferred balances from higher interest cards to those with lower rates. We constantly reviewed the status of the cards and what offers we could get from the companies we did business with. Then we primarily only used our debit card instead of incurring new debt on credit cards. The few instances when we had to buy new tires for the car, or other larger expenses we would use the card with the lowest debt and lowest interest rate.

It was not always easy to overlook buying something that I thought was so cute, or for my husband to not buy new computer equipment, but we did it. The budget was maintained monthly and every dollar we spent was itemized. By drastically changing our way of life and by being proactive and constantly reviewing our debt, after two and a half years, making only $40k per year we managed to pay off all credit card debt, plus the $8000 we owed on our car, and managed to save an additional $5,000. Since then we have been fortunate and are doing better but three years of living frugally really helped to shape our outlook and learn what the important things in life really are.

Best wishes to you

Answer 2

There is no "best" way, it depends on the person. I touched on this in another thread (see link below) about savings.

Basically,
1) Keep track of EVERY penny you spend for 3 months to see where your money is going.
2) Don't buy impulse items and realize how much you spend for certain items. From link below see me talking about Starbucks. You will be surprised how much all the "This only costs $_" adds up to over a month and a year.
3) Don't pay attention to labels, at the grocery store buy generics and don't buy expensive clothes.
4) Can you get a better paying job?
5) Learn how to walk away from buying something.


Good Luck!!

Answer 3

Forget the paper! If you're spending too damn much go on a diet, shop at Aldis, drink less if not stop drinking altogether, reduce travel and get a more economical car next time. Be sure to watch gas station prices and only buy at the lowest price. Shop at the Good Will or Thrift stores.....as well as yard/garage sales. Put a little money in savings. Learn to entertain yourself and don't spend so much on entertainment. THINK before making any expenditure 3X.

Answer 4

Put into a list all necessary items that you really need. Then purchase those items inexpensively. If you use credit card, it is fine as long as you paid the balance in full.

Put the extra leftover money into saving. You do not need graph or chart or envelope, but have the decipline to reach your goal. I believe you will see the result.

Answer 5

1.. Freeze all your credit card, literally stick them in a container of water and put them in the freezer. When you want to buy something wait for the thing thaw out and really think if you need the thing you want to buy

2. Use cash for all your purchaces

3. If you are able to do not buy lunch brown bag it and if you like your A.M. coffees from places like Starbucks or where ever get them occasionally. You will be surprised how much you can save by doing so

Answer 6

I just use a checking account, and try to leave a balance in there. Sometimes it helps to psych yourself into thinking that you have a few hundred less than you do. Helps keep you from overdrawing the account.

The main thing is to say NO to impulse spending.

Don't fool yourself into thinking you have more extra cash than you actually have, and always put a little bit into savings each week.

Answer 7

The debt, deficit and overall abuse has been bipartisan. No doubt. Obama has cranked the numbers up faster then any other man in that office.... That is dollars per time frame. He wated 3.7? trillion, but the senate soundly defeated it ASAP. If we had the Tea Party at the beginning of Bush2, then you could have counted on Bush being on the hot seat. You could count on Bush being blasted by the Tea Party for his ridiculous spending habits. We Tea Party Folk would have carried our lawn chairs and signs to the WH, and sat there! Yeah, well..... That's about all the demonstrating we do. Real scary for society and police! (sarcasm) .

Answer 8

Think of you needs and wants. Only take out what you need and keep treats to the minimum for awhile then reward yourself with something big once you do have enough dough.

Self discipline is the only way to go.

If all fails return back to home :P

Answer 9

put what you want to save into a bank that has complicated withdrawal facilities so that you will not spend it. dont get a cheque or a card for it. you will soon learn to live with whatever you have left

Answer 10

self control and the good old 2 letter word - NO . Simple actually