My eyes have been opened

[mizniteowl]

Tonight I sat down and did my budget for a full year...now until Dec 31/06.  I know many people say that you shouldn't bother with a budget cause you'll never stick to it but I really feel that this will help me.  I know exactly where our money is going and how much.

I'm paying off one debt at a time instead of putting money (over the minimum) on each debt.  I think it'll motivate and encourage me more to see one debt eliminated at a time instead of having all the debt (but lower) till the very end.

Each month is on it's own page divided by each week.  I know how much money will be available each week (could be more which will be a nice surprise - dh's overtime).  By the end of the year we should be debt free.  And seeing my budget for January 2007 with no debt to pay...so encouraging!

This will work!

[Pepper]

I'm glad you have found a system that will work for you......

[SHOPGIRL]

Good for you!

[MysticalRain]

That sounds like a great organizational method.

[canadian gardener]

oh Angela good for you. I am with you. A budget, and knowing where the money is, is the first step in taking control and bringing it back into health.

Blind faith that it will get better without knowing the leaks, or without having a spending plan is incredible.

It can be flexible, it can be somewhat low key but I agree with your efforts.

[mom2matty]

It sounds like a wonderful plan!!! Good for you!!

[canadian gardener]

Originally posted by mizniteowl
I know many people say that you shouldn't bother with a budget cause you'll never stick to it but I really feel that this will help me.  I know exactly where our money is going and how much.

I'm not one of those people and that is for sure.

As for that comment they told you to discourage you, well sticking to a budget, it's like my menu plans. I have a loose list of meals I can make. Sometimes I do, somtimes I don't, and I substitute but at least I have a plan. That plan of mine has saved my grocery budget over and over. Because when I bought my groceries I did it according to my list (spending plan) and I have the fixings on hand to make those meals (like paying the heat and light bill, its there, its done, it's a no brainer)

Which is how a money budget works. You at least have a plan first and now you can choose to deviate from sometimes when it makes sense.

But FIRST you have a plan!!! Way to go girl!!!!

Originally posted by mizniteowl
I'm paying off one debt at a time instead of putting money (over the minimum) on each debt.  I think it'll motivate and encourage me more to see one debt eliminated at a time instead of having all the debt (but lower) till the very end.

that is the snowball method in a nutshell and it works REALLY REALLY WELL!!!! You are very right about the motivation. Mary Hunt got herself out of a huge amount, I think half a million or some such using that snowball debt reduction plan. You are on the way!!!!

Originally posted by mizniteowl
Each month is on it's own page divided by each week.  I know how much money will be available each week (could be more which will be a nice surprise - dh's overtime).  By the end of the year we should be debt free.  And seeing my budget for January 2007 with no debt to pay...so encouraging!

This will work!

You GO GIRL!!!!!

Don't let any naysayers or discouragement divas get in your way. Just roll right over them in your march to debt freedom!!!!

[Lucky Star]

Way to go! I think you're being very smart. Having a budget and focusing on one debt at a time will be a HUGE help in paying down your debts. I completely agree with margery about flexibility. Chances are, you might overspend on some categories, but you also might be able to make up for it in others. The point of having a budget is to know EXACTLY where your money is going. It also helps you easily identify and eliminate any leaks: when you compare your monthly actuals with your budget for that month, you might find that you are spending more money on certain things than you thought. That way, it's easier to put a lid on unnecessary spending.

A budget will also tell you how much you can live on (the absolute minimum - your fixed expenses, as well as your comfort level - your variable expenses). That way, when you get extra income (like your husband's overtime pay, for example), you will not be tempted to spend it but rather you can put it towards your debt.

Congratulations on taking the most important step and creating a plan for yourself. I'm sure you'll do great on it! And please keep us updated on your progress so that we can cheer you on!

[guest7]

Keep it going. You're on the right path!

[Mojjo]

I did this too for the first time. It just feels so good to know where it's going...and it even looks like we'll have enough.

I am even sleeping better.

[ironmaiden]

Can you tell us all your categories? You don't have to share amounts - your choice obviously. I'm just wondering if we could help you think of things you might have forgotten. Plus the rest of us can learn from you too!!

[tervsforme]

Great job! Being single, I kept telling myself I don't need to do a budget, but after 4 months, I'm finding out that yes I do. I need to be accountable to myself. I will put one together tonight when I get home from work. Thank you for the inspiration.

[mizniteowl]

Sure I can tell you the categories.

These are the ones I’ve got right now at the beginning of the year.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>As time goes it’ll dwindle of course.<SPAN style="mso-spacerun: yes">&nbsp;&nbsp;</SPAN>This includes my regular monthly bills too...&nbsp;


<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><?xml:namespace prefix = o ns = "urn:schemas-microsoft-comfficeffice" /><o:p>&nbsp;Rent</o:p>

<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Union Gas


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Cable (internet included)


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Groceries


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Stockpile


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Gasoline


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Chrisco


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Hydro


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Insurance


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Mastercard (cc)


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Citi (cc)


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Sears(cc)


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Bargain Annex(cc)


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">OSAP (dh’s)


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">EF


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Savings (nothing is going in here yet until the debt is gone)


<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p>&nbsp;</o:p>


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">I also looked at each individual month and asked myself whether on not something specific was going on that month that I would need funds for and incorporated those things in the budget so I don’t get surprised.


<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p>&nbsp;</o:p>


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Feb – Adam’s B’day


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Mar – Saved money to get taxes done


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">August – Back to School shopping for supplies and clothing if necessary


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">November – Christmas


<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p>&nbsp;</o:p>


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">By Feb/07 for sure my budget will look like this…


<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p>&nbsp;</o:p>


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Rent


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Gasoline


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Union Gas


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Cable


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Groceries


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Stockpile


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Hydro


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Insurance


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">EF


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Savings


<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p>&nbsp;</o:p>


<P class=MsoNormal style="MARGIN: 0in 0in 0pt">I’ll have an extra $1003.75 <I style="mso-bidi-font-style: normal">per month</I> to put into savings or EF or stockpiling!<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>

<SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA">2007 can’t get here fast enough now.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>I can’t believe by 2008 I’ll have </SPAN><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA">$12000.00 in my bank account.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>The most I’ve ever had in there was $2000.00 and that was so we could move and it was gone! </SPAN>

[mizniteowl]

K, I don't know what's going on with the format of that post or the smilie *shrug*

[PrairieRose]

Great job! We did the snowball method concentrating on one debt at a time and managed to pay off over $140K in 3 yrs. Hang in there, you think it feels good now