Budgeting - A Welcomed Challenge (and Update)

Here it is - the 3rd month already - and I thought I should give a quick update on the budgeting attempt.

The month of February was a little iffy due to travel and needing to tweak the envelope system just a bit. We also traded a car, bought a suburban, and made a few other financial changes, so I had to re-adjust everything on paper.  Throw in the fact that March has three paydays (if you get paid bi-monthly) and it took me awhile to figure out where everything needed to go.

After the initial month of working with the cash envelopes, I decided to change a few of the categories back to the Check card, for several reasons.

First, I like to allocate all the spending categories at the first of the month and have all the numbers in place, rather than split it in two, and wait two weeks to replenish.   This may seem like it would be harder, but for me, I like seeing the whole, rather than parts.  What this means, though, when using cash, is that you have an enormous (well, that's an exaggeration) amount of cash in your envelopes at the beginning of the month.   Not good!

So, rather than risk carrying so much cash around, I decided to leave the bigger categories, such as Groceries and Gas, in the bank and just use the Check Card on these.    I saved the smaller categories for the cash envelopes and especially ones that aren't used very often.  Some of these include Hair cuts, Pets, Allowance and Misc.    

Another pain in the envelope system is finding just the right holder for your money.   I have several Dave Ramsey items, including the Leather Envelope holder and the Leather Organizer Wallet and those are nice.  However, I was trying to use a simple, plastic, accordion file that fit in my purse, but it didn't work out so well.  

You see, here's the deal - I hate standing in line to pay, with people all around, and then pulling out this big (well, purse size) gadget with cash inside.   I'm a private person, so to think that everyone is looking at my system - well, it bugs me!     Secondly -the file was very stiff plastic and hard to get into.  So, I've resorted to white envelopes, stuck in my wallet.   Not the greatest, but basic and private, in the way that I can just grab one at a time. 

Aside from the changes and re-adjustments that need to be made every so often, what I do like about living out of envelopes and using a budget, is that boundaries feel good!

I think I mentioned this in one of the previous posts, but it's worth saying again:
Boundaries feel good!

It's the old idea that "kids need boundaries" - well, so do adults!  We need to have the lines drawn on "how much" and "when to stop".   This keeps us challenged, for our own good.  If we never have to live within the lines, then we will not develop self-control (one of the fruits of the Spirit), and God wants us to have self-control!   I think that's why it feels good; because it's a request that comes from God.

What I enjoy about this challenge is testing myself to see if I can really accomplish the goal.   For instance - knowing that I only have $50 for Haircuts each month, makes me want to get creative - either in finding the best barber (for the boys) for the cheapest price or it even has me contemplating giving haircuts on the front porch once a month (which I used to be very good at, by the way). 

Another example of challenging yourself to save, is in the area of Utilities.  Whereas, you might not have always been conscientious of turning off lights or not running the water needlessly, this changes when on a budget and here's why:  It's not just the idea that you don't want to go OVER your allotted amount.  It's the idea that every penny UNDER your allotted amount, is just money in the bank!  


Since you separate your funds each payday and place them (on paper) in all the assigned categories, you are challenged to stay within your budget and try your best to stay UNDER your budget.   If you do, then whatever is not spent out of each category, stays in that place for future use, or gets moved to the "Extra" category, which you've determined the use for (vacations, hard times, debt payoff, etc.)  So, it's well worth being creative and frugal, just to fill up that Extra savings account and reap the rewards!


So, I am trying to live up to this challenge and I hope I succeed!  It's different; yet, I like it!


I'm not as quick to buy without thinking and I'm even passing up little treats and meals out, just to stay within the lines.   


So far, it's fun and challenging - not confining in the way I used to think of budgeting.  


Have you started your budget yet?  I would love to hear about your successes and areas of trouble that you're working on.   Let's encourage one another!