I’ve been a huge fan of Dave Ramsey and his entire Financial Peace system. I’ve blogged about it, shared it with friends, facebooked about it, and I may have even dreamed about it. I’ve started the program so many times over the past year or so for about a week, and then fell off the 2013 financial peace wagon. Now…I’m back on the Financial Peace Wagon.
I got paid yesterday and decided that I was really going to utilize this envelope system FOR REAL this time. Seems I run out of money long before the month is over and end up overspending because I think I can. I’m then struggling to pay things on time, and things do get paid, but it’s a huge stress for me. I can’t even tell you all of the excuses I use as to why I think I’m above any type of “budget”, but I find them.
Friday night, I sat down and made my new envelopes. I did my written budget on paper for the month of March, gave every dollar a name and told it where to go. Saturday morning, I went to the credit union, withdrew the allotted amounts for all envelopes, filled them up and that is how we are living right now.
My envelopes and amounts:
Groceries/Food: 100.00 wk/400.00 monthly (I pre-plan menus for the week and will only shop with a list. I don’t “coupon” and only shop at Walmart because I can get everything in one trip. I also spend $7 on a gallon of raw milk per week from a local farmer that gets taken out of this envelope)
Gas: 60.00 wk/240.00 monthly
Misc: 60.00 month (anything “fun” related. Doesn’t seem like a lot, but this is the amount I’m starting with. I will probably have to “up” this another $25-$40 as anything non-food/non-clothing related will be taken from this envelope as well and we only needed a few things this week, so the amount seems OK for now)
Truck Expenses: 50.00/month. (Based on last years receipts of general maintenance, renewals and a few replacement parts)
Giving: 50.00/month (Donations to any charity that I find worthy. I don’t go to church, so therefore I don’t tithe. Doesn’t seem like a lot, but this is the amount I’m starting with)
Clothing: 100.00/month. (This is for myself and my 14 year old son. I shop mostly at thrift stores for myself and mainly sales for him at the mall)
Saving: I have decided to do the 52 week challenge and deposit the allotted amount every 2 weeks. I’m also adding any overtime from my day job to this fund as well, and the first $1000 will become my emergency fund and anything over the $1000 will become my Christmas 2013 fund. The earnings from my health & fitness coaching/Zumba classes will also be put into this savings after I take 25% out for business taxes/expenses.
Total envelopes: $900 not including the savings envelope (which will be an additional $50-$100 month and a bonus from my day job in September of $750). I take $450 from each pay check, so I’m working with half of those amounts every 2 weeks.
My rent and utility funds are kept in my checking account and will not be included with this.
Every penny is accounted for with my projected income from my day job and child support for one son. These numbers for my envelope spending are just a starting point and may have to be changed as the months go by.
My goal for this month is to NOT overspend and really plan my purchases. I’m also hoping that when I get my emergency fund built up to where I want it to be, that little unexpected expenses don’t set me back.
Time to get creative!
Stacia,
Great job kick-starting it again! I like how you’ve set a realistic budget for yourself and have even allowed for something special (the $7/gal milk). I have a suggestion and a “reality check.”
First, the reality check. You will lose your emergency fund to an emergency. Our first one lasted all of two weeks. Seriously. (I still need to blog about that.) But that’s OK, because it’s there for that. I encourage you, when it happens, not to lose heart, focus or gazelle intensity.
And the suggestion… Dave recommends holding off on charitable giving until you’ve gotten your emergency fund in place and your debt snowball taken care of, so you might want to funnel that “giving” money into your savings for now. If you stick with it, then within the next year, you’ll have the freedom to give spontaneously as you see needs and within your budget (think Salvation Army bell-ringers, a need that will come to your attention and so forth).
I feel confident that you can and WILL make it work this time!
I have had a few emergencies pop up and always someone to help me in a crunch, which has been my safety net. Maybe that’s why I’ve been slacking with that part…and not so much taking advantage of that, but not having to solely rely on myself? Well..that’s the problem for me. I need to switch that up.
Thank you for the suggestion!!
I have thought about that a few different ways, and for me right now, I need to allot money to donate because I AM fortunate enough to do so. It’s my “pay it forward” because I have had others help me years ago when I was struggling immensely with one baby and a husband who took off and didn’t help with anything. I am almost sure that I will be tweaking this next month so I can get a better grip on things.
My debt snowball…well…that’s another blog post!
Have a fantastic weekend and THANK YOU!!
Dave’s mantra- Live like no one today so that tomorrow you can live live no one. Delayed gratification is not a hallmark of our society. Those who master it reap the reward- peace of knowing you are not a slave to the material world. Few attain it. I’m pulling for you!
Thanks Wayne!!! I’m such a slacker as of the last few months which are turning into more months. I’m such a fan of that program, and committing to it once and for all has been the biggest challenge!!!! Love hearing from you and hope your weekend is fab!!
This is my first time reading your post. Love it. I like to read about budgets. I also do Dave Ramsey , but for some reason this month has been a financial disaster. I’ve blow the food budget mostly at Costco. So with my husbands check on the 20 th I’m hoping to get back on track. I’m also doing the 52 weeks ,but started late, so I’m catching up, hopefully this week.
I am not religious but I do totally believe in helping others, so I allot $20 a month, to some charity or organization. Sometimes it’s the friends of the library, sometimes a food bank.
Thanks again for a great blog.
Hey Christina! Thanks so much for finding me!! Budgeting turns me on, too, and I can’t get enough of reading about it. I’m with you on that one! It’s difficult at times to stay on track, and since I am single/no significant other to help me stay focused and on track, I’ve decided to blog about my journey with this and other things as well to keep me focused and on track.
There is also no “catch up” on the 52 weeks, just start with week 1. I was fortunate enough to find that in January, hence my track record so far. Baby steps with that one!!
I also think that as long as we are donating something, that it will make us feel good as we are fortunate enough to help others. It’s like the karma circle…what you give is what you can possibly get. I also am a firm believer in the “uni-verse” and all that encompasses that.
If you want to stay in touch and keep reading, please “follow me” on the right hand side and get my post delivered to your inbox or reader, whichever you have. Would love for you to stay in touch!
Have a great weekend!!
I’m sure you can stick with it! I do my budget on a spreadsheet and am trying to be really committed to allocating/recording every last dollar! I did so well last paycheck that I realized I had $25 extra to put into savings!
Stacia,
I followed David’s plan, tweaked just a little bit because I love to shop, and ended up being debt free, minus my student loans, in about a year. Of course I didn’t have a mortgage or anything like that, but it was so nice and refreshing to be able to see that I had money now for other things and not just for bills. Of course, I have fallen off the no credit wagon… I find I do that a lot, but I’m slowly getting back on track!!! You can do it… just focus on how good it will feel to not live pay check to pay check… that is the best feeling in the world!!! Good Luck!
The whole “living paycheck to paycheck” is stressful for me. I’m working on changing that now. It’s very tempting for me to shop and blow my $$ on stupid things that I don’t need. I think it is a way to “self soothe” when I’m feeling down, or lonely. I’m working on keeping that in check!
Thanks for the comments and keep following!!
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Good for you for getting back on the wagon. I wish you success.
Thank you!!! I’m still ON the wagon and haven’t fallen off yet! Haha!!!
Keep at it. Before too long it will be your new habit.