BUDGETING IS SO MUCH FUN! Yeah, I’m sure that’s the first thought that comes to people’s minds… but let me tell you that it can be fun, especially if you’re using the right program to help you along the way.
Let me tell you my story. I don’t have any debt, but I was still in what they call “the credit card float,” meaning that I kept having to withdraw from my savings to pay off my credit card. It felt like I wasn’t saving any money because the money I set aside for savings each pay period was being pulled right back out. So what’s the point? Then I discovered this group on Facebook called JenPlans.com Budgeting and Personal Finance, and a lot of people brought up the Dave Ramsey plan. His plan is mainly for people who have debt, but I made it work for me.
The thing is that his system is a cash envelope system, meaning you withdraw cash from your bank and put it in an envelope. You label the envelope whatever category you want, like groceries, etc. I tried that for a few weeks, but it really hard whenever I was shopping at Target or Walmart. Would I have to do separate all of my items whenever I went to the cash register? Annoying. Instead, I only do the cash envelope system for certain things I want to save up for.
For everyday things, like groceries and toiletries, I use my debit card and You Need A Budget (YNAB). I love YNAB because it allows me to be flexible with my budget, and I don’t have to worry about how I’m going to pay for things. The only thing about YNAB is that you’ll have to manually enter your transactions, which might be a deal breaker to some, but I like that because it forces me to stay on top of things.
YNAB has four rules when it comes to budgeting.
Rule 1: Give every dollar a job
You enter your paycheck into YNAB and tell your dollars where to go.
Rule 2: Save for a rainy day
Rule 3: Roll with the punches
If you overspend in one category, it’s not the end of the world. You just subtract money from another category to cover your overspending.
Rule 4: Put this month’s income to next month
Basically, when you get paid, you just send some of your money to next month’s income. If you keep doing that, you’ll eventually accumulate enough money to live on last month’s income. It’ll make it easier for you to budget your necessities and bills.
If you’re interested in budgeting, why not give YNAB a try? You can try it for free for 34 days and then buy it using my referral code: http://ynab.refr.cc/J6JMJVX. You’ll save $6 using my code. The original price is $60, which might seem steep, but it’s worth it.
More information about YNAB: YNAB videos
I was not paid to write this post.