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3 Tips for budgeting money that work live up to the hype. The only thing, for them to work, the budget skills challenged person has to work. Really, pulling this system off requires a complete change of attitude about money, savings, priorities, and one’s future. 

Bottom line! Budgeting takes practice, but eventually helps keep finances under control. A budget is simply a recipe for managing money wisely. How many of us know people who wouldn’t use a recipe if their life depended on it? 

If you get into the habit of referring to a well-planned budget you can tell your money where to go, and know where it’s going before the month ends.

Before putting together, a budget financial data must be gathered, organized and categorized. Once that’s done there are three more important steps to take.

Basic Budgeting

  • List all your expenses. Listing all expenses requires a thorough review of how money is spent and what it’s spent on. Ramsey, (N.D) “This is your total take-home (after tax) pay for both you and, if you’re married, your spouse.”
  • Subtract expenses from income to equal zero.
  • Track your expenses throughout the month.

Once a budget is layed out, staying on top of it is the only way to keep it up. Knowing what’s coming in, going out, as well as the type of expenses incurred is just as important as staying on top of a budget. (Fontinelle, 2017) wrote, “Basically, it’s making sure that you’re spending less than you’re bringing in and planning for both the short- and long-term.”

Everydollar.com software.

My experience with everydollar.com was; the software is a valuable budgeting tool. I like that it is user-friendly once you figure out that you must check your email to complete the registration. After trying unsuccessfully to register multiple times I took a mental break. While checking my email later that day I found several “everydollar.com” email confirmation requests. Once clicking on a link, I could complete my registration. The site should let users know that they must confirm their email before they can complete the sign-up process. Basically, you get stuck on the registration screen.

For a while I thought I would not be able to complete the registration process. I really love everydollar.com online budgeting software. It’s user-friendly, visually appealing and nicely organized in blocks. Providing users with a summary of their financial health at the end of the budgeting exercise is an added value. I do intend to start using the system each month.

The Envelope System

I love the envelope system because I think the concept would be easy to carry out for people who live on the road or travel a lot. However, my husband is not sold on the system even though it has rules that help keep people from dipping in to any envelope for money meant to use for expenses in categories other than the one the envelope was intended for.

“Ramsey, (N.D.) “If you want to go to the store but don’t have enough money, then raid the fridge for leftovers.” Of course, if an emergency arises it is permissible to use money from whatever envelope has enough in it to cover the emergency. The envelope system may call for practicing better discipline to work for us. My husband still thinks we’ll be spending too much money because the cash is always accessible. Perhaps he’s right. 

A Budget I Would Use

I think I would use the envelope system as a secondary budgeting system. Perhaps, for mad money, meals and food supplies purchased while over the road, toiletries, laundry and other misc. expenses that run under fifty dollars. I like the envelope system because if you use cash for different categories of your budget, and you keep that cash in envelopes. Also, you can see exactly how much money you have left each category by checking in your envelope.

This system allows rewards if there is money left over in the envelope at the end of the month. Knowing that we did not overspend and had money left over would be encouraging. Since the purpose of the envelope system is to curb spending and teach discipline; having money left over at the end of the month shows increased discipline and progress improvement in our budgeting skills. Using the envelope system as a stand-alone budgeting plan is not practical for us now.

The reason we would not use the envelope system as a primary budgeting option is due to exposure of risks. It would not be wise to have large amounts of cash on the truck for obvious reasons.

Budget Updating

Every 3-6 months I would you update our budget. Why?

Income derived from trucking companies is not fixed. Most trucking companies pay their truck drivers every week but no two weeks’ pay are identical. Also, the longer you drive the more you will eventually make, based on experience and money management skills. If income levels are reviewed every few months or so it possible to adjust expenditures and savings accordingly.

Conclusion

Having a budget is not only valuable but it spares people from financial embarrassment, aids in forecasting future accumulated savings while keeping a visual record of how all money received moves. Having different budget system options available makes it possible for anybody to incorporate a budget of some type to track manage and control personal or business finances.

Traditional budget models that involve filtering income through a banking system seems to be more popular than the envelope system for primary budgeting. Perhaps that’s because budgeting requires a high level of discipline, and keeping up an envelope system, even more.

Studying David Ramsey’s techniques provoke the reader/viewer to take a closer look at gifts and talents you’ve been given to steward over. To be a good steward entails being a good budgetary, because God wants his gifts used effectively, wisely, and He wants them to multiply. A budget tells us how well we are doing in those areas.

References

Fontinelle, A. (2017). Budgeting Basics., Retrieved from: http://www.investopedia.com/university/budgeting/#ixzz4pfM5zm1F.

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