Beginning a budget

**Newsnerd68** · 08-15-2005, 10:26 PM

This might have been asked and answered before, but I'm not even sure how to begin getting myself on a budget. It seems like we've always just thrown money at the bills and hoped for the best. And so far, that best just ain't workin'!

Just this week, I have worked on getting our bills up to date for the most part, but there are a few that are still behind. It's terrible to be in this kind of shape and have only yourself to blame. But, I'm trying to get back on some solid ground and I'm just not sure how to go about it.

Should I start a savings account right now? (We have checking only) Or should I wait until I actually have a decent amount to put in it?

Does anybody have any budget rehab tips for those of us who have fallen?

**cheapgeek** · 08-16-2005, 12:19 PM

I would say that step one would be to start tracking your current spending. Like, carry a sturdy envelope around in your purse and every receipt you get, save it. Save your bill stubs and paycheque stubs. Then, at the end of the month, sit down and break it all down.

I wouldn't start a savings account unless your credit card bills are pretty much caught up. No sense earning 1% interest on a tiny amount of money when they're charging you 15% interest on your balance...

**Lucky Star** · 08-16-2005, 05:32 PM

I second the suggestion to begin by tracking all of your spending. You don't know how much money to budget until you know how much you actually spend, and where you can cut.

Also, I would recommend Dave Ramsey's books (from the library). I just finished The Total Money Makeover, which helped me create a solid budget and debt payment plan (just did it this past weekend). The book includes some useful forms to help you set up a budget, which is what I used. More than budgeting, however, it really helps you reevaluate how you manage your financial situation. I highly recommend it.

Earlier this year, USA Today ran a series on money management. It included a lesson on budgeting (http://www.usatoday.com/money/perfi/...a-budget_x.htm) - over on the right-hand side of the page, there is a downloadable Excel spreadsheet which you can also use to create your own.

As I've been working on overhauling my financial situation, one thing I have learned is: baby steps. If you try to tackle too much at the same time, it may be hard to keep up and you will feel like a failure for not doing everything perfectly. What worked for me is focusing on one thing at a time... so while there is a LOT more that I could be doing to save money, I find that this way I'm more likely to stick with it.

Finally, keep checking in at FV. I know that it would have been a lot harder for me to keep at it without the support, positive feedback, and inspiration that I get here.

**Newsnerd68** · 08-17-2005, 06:15 PM

Thanks for the suggestions. Fortunately, I don't have any credit cards, so that's one debt I have avoided. Right now, I'm just trying to catch up the bills and keep a little something in the bank, but it seems for every one positive thing I do, there are two negatives waiting to happen! I knoe, I know, this too shall pass but jeez, I wish the passing would get on with it!

Thanks again!!