Budget!!! That’s right, I said it. Not only did I say the word (or type it actually!),but at the beginning of January I put myself on one. At the end of 2010 I was looking over my finances wondering where all my money was going. It was just disappearing, funny how that happens. I decided to start off the new year using the envelope system. It’s pretty simple, I have a certain amount of cash at the beginning of the month that’s divided into categories. Once the cash in a certain category is gone there is no more for that month, I have to wait until the next month to replenish the envelope.
I figured if I was going to be on a budget, I might as well do it in style!
I had Jenn over at JennsWay create me a custom set of envelopes, and they are so cute!
I have six envelopes: food, gifts, groceries, entertainment, clothing, & miscellaneous. I still use my debit card for gas, I’m too lazy to actually go inside and pay (how sad is that!?), and I use my checking account for all bills. The envelopes help me to control everyday spending so that it doesn’t get out of control. Having an envelope for things like going out to eat and clothing is nice because I don’t feel bad for spending on those things, they are in the budget.
Now that I am a couple of weeks into my first month of budgeting I can safely say that it is not easy! I do like what it’s doing for my bank account though. Some adjustments will need to be made for next month, but I knew that would be the case. It’s a learn-as-you-go process.
Do any of you set a budget for yourself? If so, how do you manage it?
Have a great weekend!