How to FOLLOW through with my set budget????

Question

I need some advice please!:) I am quite good at sitting down and creating a budget, but following it is a different story....
I tend to "nickel and dime" myself right out of money!!!! If that makes any sense...
I just need some ideas on how to follow and stick to the budget. The only idea I heard years and years ago, was to use only cash and set the amount for each item (food, gas, etc) in different envelopes. That sounds great, but obviously, who wants to carry around that much cash!!!
I know that I waste cash every month that I could be using to pay off my credit card debt or save towards a small vacation!
To most people this type of thing come easily...but not for me:( TIA for the ideas!

Answer 1

I would highly recommend getting Dave Ramsey's book "Total Money Makeover".

Write a realistic budget, and use the envelope system if you can not follow the budget by using a Debit card/checks.

This teaches you discipline on how to follow the budget, because once you use the money set aside for food, entertainment, etc, then you can't "cheat" on the budget.

You don't carry the envelopes around, only take what you need (If you are going to the store, take the grocery envelope, etc...).

It is really pretty simple, and does get you to follow the budget.

Answer 2

carry a small notebook with you- write down each purchase and keep a receipt no matter how small....for a month...this will help show you your problem areas- go through the list and the receipts and look at how much needless or unnecessary stuff you bought that month and add up the amount

then next month when you are going to do the same habits you will remember not to spend the money because of the notebook

its really all about mindset and resisting spending on your problem areas. you may also want to cancel some of your credit cards and look into debt consolodation if that is a problem.

good luck.

Answer 3

I agree with Robert S. We carry cash but our envelopes remain at home with the bulk of the cash and if we are saving for a big ticket item we put it in a special savings account at our credit union.

The total money make over is a great book. His other book Financial Peace University Revisited is also good (a lot of the same info, just different format).

Answer 4

I have a system that worked great for me. I set up cash accounts on Microsoft Money. Realize that there is not actually money in these accounts, they are just for accounting. I set up an account for each budget item. When I deposit monthly pay in my checking account, the entire amount of the deposit is spread (on paper) throughout the cash accounts. Then, throughout the month, everytime we use the debit card or write a check, we debit the appropriate account. I don't spend money based on what is in my checking account. I never look at my checking account balance, instead I look at the balance in the appropriate pretend cash account to see if I can spend money in that account. This does two things. It helps to enforce your staying on budget and after a few months, you will see where every single dime that you spent went. You will be shocked on how many places you will see where you can reduce spending when you start tracking every single dollar spent. This really worked for me. A few years ago, I owed over 100,000K in debt (not including my home). In October of this year, I will be debt free.