Am I a total screw-up?

Question

I really try hard to keep my life on track. I make lists etc., and try to keep payments current. Most of the time it's OK, and everything works out. Just seems like when I lose track for a second, I end up overdrawn and have to pull money out of savings etc. to stay on top. I hate this, and want to keep better track of money. I've tried writing down every expenditure, but then forget to do it. It's not like I live extravagantly or in any kind of luxury, or try to get out of responsibility. It's like something just disappears from my head for a while, and I can't keep track of what I've spent. Even though they're just little piddly expenses, it doesn't take much to overdraw an account and get overdraft fees. Does anyone know of a good, practical way to manage finances? Please don't dis this, I'm really trying to get my crap together here!

Answer 1

Before you get each paycheck, make yourself a budget, or "spending guide". First, take out all required bills and savings.

For example. Say your check is $400. Then you have an electric bill of $125, insurance payment of $100, and you have to save up for rent, so take out 1/4 of your rent...lets pretend that your rent is only $400 a month. so take out $100 for rent. I find it also helps to take gas out of this figure too, just so that I don't get screwed and have no money to get to work.

So your guide would look a little like this:
+$400
-$125 electric
-$100 insurance
-$100 rent
-$50 gas
-----------------
$25
and you'd have 25 dollars to do with what you needed. Then make sure that you don't spend over $25 dollars. $25 is a lot easier to keep track of than $400. Also, don't carry cash with you. You'd be less tempted to spend.

If you have a checking account and a cell phone, see if your bank does automatic text updates of your account balance. My bank texts me with my balance every time I make a purchase, putting my spending into perspective.

Answer 2

Ah honey.... you are about as screwed up as the rest of us. i hate money!

You'e on the right track tryng to write down evrything you spend. I find it's better to write down what you have actually spent at the end of each day as opposed to writing down a budget of what you think you should or will spend. It's hard though, with busy lives, to actually find teh time to fo it. try and make it part of your routine.

Mind you, I'm not great with money. I seem to spend what I think I should be able to rather than what I actually have. Like, when I've got paid I always think I've worked all month I should be able to buy those shoes. reality is I can't afford to.

Also, is there anything you could give up? Smoking is a good one if you smoke. Or maybe taking lunch into work rather than buying it? Using a land line rather than a mobile phone? i don't know your lifestyle but maybe you can cut back somewhere.

I hate money. I'd love to live like a rich girl just for one ay and see how the other half live....

Good Luck
x

Answer 3

Do you have Microsoft Money or Quicken on your computer? This worked great for me:

First, keep your checkbook register on the computer. Everytime you write a check, do it at your computer desk. Everytime you write a check away from home or use a debit card, keep the receipt in your wallet. Put those receipts in a basket by your computer. Every couple of days, make sure you enter your reciepts in your computerized register.

Next, if you really want to get organized....on the computer set up imaginary cash accounts for your budget. You don't actually put real money in these accounts, they are just for budget purposes....have an account for rent, one for insurance, one for recreation, clothing, food, etc. At the beginning of the month, when you deposit your pay, make deposits to all of these accounts...so much for rent, so much for food, etc. Then, everytime you enter a debit on your check register (on the computer), you should enter a debit on the appropriate account. This is what businesses do. They don't just spend out of the general account. Everything is tied to a certain budget. In this way you know where all of your money goes. You can tell if you are spending too much in any certain area. After a few months, you will have a record of all of your expenses. It will help you control and organize your spending.

Answer 4

Don't be so hard on yourself. We've all screwed up with money.

The most important thing you can do is to come up with a budget that balances at zero every month. This budget includes everything, including savings. Make sure you don't go over your budget.

Another idea to use in conjunction with this is to use envelopes. Make an envelope for each section like groceries, clothes etc. Take the cash and put it in the envelopes. When the money is gone, you can't spend any more on that category until next month.

Good luck.

Answer 5

First, link your checking and savings accounts together so if you do go over, the money will be pulled automatically from your savings. This will save you money on those overdraft fees.

Second, you sound like you are doing the right thing by keeping track of your spending. It just seems like you are living paycheck to paycheck. Unless you reduce something or get additional income, there is no way around this.

Answer 6

Hey there,

I have some suggestions for you.

1. Write down all regular bills and the dates they are due.
2. Use your email account to your advantage and set up reminders for each bill. Set it a week and a day ahead of time.
3. Take out a specific amount of cash each week, and use it for groceries, gasoline, basically anything other than your bills.
4. Start saving money.

Answer 7

I know what you're saying,
i have the same problems and when I really need my money, theres nothing there.

I got an ingdirect savings account. I put in money every so often, it it easy to get money in, but much harder to take it out.

Also I got a paypal account, same thinkg I hide money in there and when I need it, it takes about 3 days to transfer.

When you hide your money, you can forget it's there. I give money to my son (7yrs) he keeps it in his wallet,, I also keep all my change put away I know it sounds petty, but when you need it, it's there.

I make it a habit of checking my bank account online DAILY.
I can never keep track of my spending or balance a checkbook, so most banks have online account access, they do all the keeping track for you. You just have to look up your account and see what you have left.

Answer 8

Nothing will work if you don't do it.

Writing down all your expenses every day is a great way to find out where your money is going and help your to drop some of the things that are eating into your savings.

You have to approach this seriously. Nobody else will care if you go bankrupt and nobody can put a gun to your head and force you to do it.

Answer 9

It is called being HUMAN! we all make mistakes so don't kill yourself over it. Check your balance daily on line and make sure it is what you think it should be if you must. You can keep a good running track record that way. Also have pocket money. That way you are not using debit cards and forget to record all transactions

Answer 10

why don,t you dived the money in how many weeks in a month. but first pay the bills, then give your self a weekly allowance like $50 a week, or just watch the show till debt do us part . that show shows you have to do it right, or get some help. by an fiancer,