In an effort to stay as much on a budget as possible and track my spending I have finally found an easier way. I keep my check book in my purse and use is to record my deposits and withdrawals, of course, but I also keep a small ledger in my purse.
I have all my bill and savings categories labeled at the top of the page. Every payday each category gets a dollar amount added into its slot. Some categories get 0 and others get the same amount each payday. Luxury categories might only get more than a 0 when I have a overtime check.
Every time I spend money from a category it gets subtracted. Sometimes you have to spend money from one category to cover another categories' expenses especially at first when you do not have a lot built up in each category, but at least you see where your money is going and where your spending weakness lies (like buying too many clothes for yourself or spending too much on gifts each month or fast food etc.)
The sum totals of all the categories must add up to your current checkbook balance to work. You must balance this book just like you do your check book. Do it every time you write a check or use your debit card, it is easier than it sounds and will become habit and fun once you get the hang of it.
It is an easy way to save money for insurance and other large pending bills, Xmas, vacation etc without having to have more than one account. Also it keeps more money available in your checking account for emergencies and helps keep your daily average balance higher in case of accidental overdraw God forbid.
Of course there are Christmas clubs and savings accounts but this way if you have a gift category, a christmas category, etc you have the money readily available all year and can pick up really good sale items for special people as you see them during the year and not feel guilty about it because it is in your budget! You can just store the treasure until the birthday or holiday come along. Hope this is clear. Good luck!
I bought a book called Dome simplified monthly bookkeeping record at Staples; after using it for my small business I decided that if I ran my house budget like a business I could keep better track of spending. It is my dream to end my credit card debt and start a savings account that I really SAVE in and not just put money in to take out a few weeks later for whatever the most recent household breakdown is that occurs!
Login using the form on the top of the page to post feedback (if you are a registered user). If you have not yet registered, click here to do so. It's FREE!.
