When it comes to budgets, I've tried to come up with them in the past, and for one thing or another, we end up not sticking with it.  How do you set a budget and STICK with it?  I was reading the envelope budget thingy, but do you put the actual money in the envelopes?  Wouldn't it be safer in the bank?  I really need help.  I keep ending up back in the same situation I'm in now, and have no idea how to get out of it... 

Thank you in advance.

[:'(]

BizzyChicky:

I was reading the envelope budget thingy, but do you put the actual money in the envelopes?  Wouldn't it be safer in the bank? 

 

For categories like food, yes, you put the actual money in the envelopes.  When you go to the grocery store, however, best not to take the entire contents of the envelope with you.  You take only the amount in the budget for the period of time you are shopping to cover, OR the amount to cover what is on your list, whichever is less.  The idea is that you can't spend the $$ you don't have with you, so the hard choices ( item 1 or item 2, not both) get made at the point of purchase, & no debt is created.  You either have the $$ or you don't, & if you don't, you can't spend it.

For something like a mortgage, I would imagine you write out the check right after you get paid. 

Hi BizzyChicky, welcome.

Budgets can be very difficult to stick with.  In my own experience I've found that I do better sticking to one if it has some wiggle room for the things I enjoy, the occasional movie, dinner out on a busy night, a magazine at the check out etc. So I do budget a little for incidentals.  As for the envelope system...I use the concept of the envelope system however I leave the money in the bank and use a spreadsheet to track it.  95% of my groceries/gas are purchased at Walmart so at the beginning of the month I purchase a WM gift card for my budgeted grocery/gas allotment and during the month I will use that gift card.  That helps in the event that if my funds run low later on in the month, I always have grocery and gas money. 

Also, don't feel bad if your budget doesn't work right away, it takes several months to fine tune it to your needs.  Hope this helps.

You will find a tremendous amount of help on these forums as well.  I just joined in July and I've already learned so much.

Lee

Welcome to the forums. There is a psychological & emotional aspect of spending that is often left out of the budgeting equation. There are several things you need to address in order to maintain a successful budget. 1) Sit down and agree on a budget. 2) Agree that you and your spouse will help each other stick with it. 3) Agree on a set of goals that you want to achieve. 4) Figure out what situations or circumstances cause you to stray away from your goals. 5) When you find yourself faced with wanting to spend on something not in your budget try waiting 24 hours or even a week. For big ticket items try 30 days. 6) If it helps, post your goals on notes around the house to keep yourself motivated. 7) Recognize that certain people or places may be interfering with your goals and you may have to step away from them. 8) Don't let children's desires undermine adult goals. This takes patience and willpower. 9) Budget in small treats for sticking with your budget. Hope these tips help you stick with it. Good Luck.

Part of it is having the mental discipline to understand the distinction between wants and needs. You NEED to pay your rent/mortgage, utilities, car payment, groceries (lots of wiggle room there) and so on.

You DO NOT need to go to restaurants or movies, take trips (no one ever died because they couldn't go on a vacation) or frequent the bars or other pricey gathering spots. Not saying you do any of that but it is a problem for many people. They just feel they NEED "to get away" (from what?) but what that really is, is a WANT.

I suspect that what many people want is more variety and they're trying to buy it with money or credit.

So add up your normal monthly expenses (you DO know what that number is, don't you?). Now subtract that number from your income. If the result is a negative number you have two, and only two, options. You can reduce expenses or increase income. That's it. There is no other way.

If the result is a positive number that's good. Now decide what is your comfort level for an emergency fund. That car isn't going to last forever, the rent may increase or if you own your home it WILL need maintenance, because if nothing is broken all that means is that something is about to break. Don't ask how I know that....

Called disapline if you don't have the money then don't get it period we all learn the hard way it just takes reading and set a budget and what is said from walt 34 is so true but me set a budget stick to and if you don't have the money forget it until you have the money then if you don't leave it..

 Precise record keeping will go a long way in helping you stay within a budget.  That means recording all receipts, all expenditures, even cash. Doing this will give you a clear picture of where your money is going, and where you can make adjustments on those expenditures. If you can work with a computer program, it will be quicker, but if not, good old paper and pen, and using columnar paper for bookkeeping will work too. 

At the beginning of each pay period, write down what you expect will come out of that paycheck, basing it on past expenses and total it up. Keep that money aside, either just on paper (meaning the money is actually in the checking account), or phyically put the cash into envelopes. If it is just on paper, then keep that list handy so that if you think you will spend money on something -  look at what you have left of your paycheck and make a judgement if you can spend that money now. Remember to also plan in emergency expenses. 

To get things turned around, you have to spend a few months (or a few years) telling yourself you don't have the money to buy things unless you absolutely need it. Eventually being strict with yourself this way you will come out on the other side better and be more financially secure than when you started, and you will have learned the experience of truely wise money management. It is very much worth it.  Edey