Sunday, May 19, 2013

A Simple Girl's Guide to Budgeting

I like detail.  I like the nitty gritty.  I like down to the minute planning.  But sometimes, I tend to over think it.  I've racked my brain trying to figure out a budget that would work for us.  I tried the Dave Ramsey style of budgeting every penny.  I've tried setting aside money each month for long term needs (car repairs, taxes, vacation).  I crunched the numbers and I crunched them again.  I just couldn't get things to add up.  My head would spin trying to figure out how I was ever going to keep track of all of these running numbers without 45 envelopes of cash floating around my home.
Somehow, I just couldn't grasp the intricacies of this type of budgeting.  So...I decided to make it simple, and this is what I came up with.

Set aside money for immediate needs and save the rest.

Simple, isn't it?  And for now, that's exactly what I plan to do.  When we got paid this week, I sat down and removed my immediate expenses (first on paper to make sure I didn't overspend).

1)Tithe (online)
2) Groceries (cash)
3) Power bill (check)
4) Medical bills (check)
5) Loan payment (check)
6) Credit card bill (online)
7) Change for the yard sale (cash)
8) Spending money for Brandon and I:  this is a must or we will simply spend money we don't have (cash)
9) Gas (leave money in checking account so we can use our debit cards)

After making sure I had enough money to pay all of these things, I either paid them or got the cash from the bank.  Then, I went online and transferred the remaining money into savings.  Now, I have my expenses covered and when something "extra" comes up, I can move the money from my stash and pay for it.


1 comment:

  1. Mmmm... love your method :) We don't have much room in the budget for "sinking funds" and such. But when we do, I think we're more likely to go with this approach. Thanks for sharing it!