Ninedays Blog

Lately I go to be and think the same thing to myself, how can I make my life feel neat and organized? Increasing my happiness and decreasing my debt are usually the two that stand out the most. I've put myself on successful debt reduction plans before so when I found the Better Budget Challenge I thought to myself, I really ought to give this a chance. You can't fail if you don't try.

So I'll start from the beginning and play a little catchup.

Better Budget Challenge No. 1

Response to: Better Budget Challenge #1 — Our budgeting experiences

1. How have you used a budget in the past? Be specific. How did you set it up? Did you use a spreadsheet? Pen and paper? A software program? What are the nuts and bolts of how your budgeting system(s) worked?
   At one point I was using Quicken, I really liked it, I liked the way I could chart and graph things and organize where all my spending was going. I was really bad about holding onto receipts for cash purchases but most everything I did was on a credit or debit card and that made it super easy to track. It would also remind me when bills were coming up. The reason I stopped using it was that I could not seamlessly transition from my laptop to desktop after using it for four months, i became disillusioned and gave up. I really ought to do it this month: get back on the Quicken track.
2. If you’ve never had a budget, how have you made decisions on how to manage your household finances?
   I've never had an official budget, I spend my money willy-nilly. Well I make sure that my expenses are spread and paid as soon after I get my paycheck as possible, then I do my best to save and not overspend till the next paycheck. That really is the epitome of living paycheck-to-paycheck isn't it?
3. How did you put your budget to work? Did you use a cash envelope system every month? Track your expenses and purchases in a database of some kind? How did you do it? How many people (i.e., you and your spouse) participated in that budget?
   It's always just been me participating in my budget. Since it was all in my head...well I guess that's why it failed.
4. In what ways did your budget (or lack of) work for you?
   When I had limited social life and only a handful of bills to deal with it worked great.
5. In what ways did it fail?
   Now that I have a crazy social life as well as four new bills I've never had before...it's getting out of control.
6. Think about your past experiences with budgets and your home finances. How do you want to use a budget in your personal finances? Do you want a system that you update every time you make a purchase? Every month? Do you want to have spending guidelines?
   I like systems that already have my information entered and then I can just add more 'petty cash' type entries and then customize what the computer has already done for me. I'm channeling Quicken if you can't tell. I liked being able to login whenever and easily fill in any of my blanks.
7. What is your overall purpose in establishing a household budget? What do you hope to gain from it? Do you want to get out of debt? Have money to save or invest? Reduce your expenses? Have a better idea of where your money is going?
   I hope to get my debt (especially car/student loans) in better control and pay off as much as I can of any of my debts to hopefully refinance my current loans to get lower rates. By September is my goal to have excessive debt paid off and be read to negotiate lower rates.
8. Anything else you want to mention about your past or future budgets?
   I am a spender and I need to start being a saver or my future is doomed.

Let's see how this goes!