Budget update

[Moses Yoder]

I have set up a nice page in Excel that I will copy as a monthly spread sheet. Balances will be carried over from one month to the next. I am living simple right now so my budget is simple but I think will work good. I will enter each expenditure date and description on the left then enter the cost or deposit in the correct column. On Friday when I get paid a deposit would be made in each column then through the week as money is spent it would be deducted. A balance shows at the top. I am getting a debit card and most expenditures will be paid with it, the rest cash. What do you think?

301738

[Phil Thien]

LOL, I know I'm going to regret this but what is "Blow?"

[Jason Roehl]

LOL, I know I'm going to regret this but what is "Blow?"

Despite what "blow" often means in terms of a white powdery substance, I think that's his column for disposable income, i.e., "money he can blow".

[Kevin Godshall]

I've done some counseling as far as people and their personal budgets, and one thing I would suggest, is that you re-consider your "Blow" category. Different people call it different things: Play, Free, Misc, Excess, etc., but one thing everyone has in common: If you list it as such, you will use it as such.

IMO, you're much better off to label it with a more specialized, more constructive term such as "Short Term Emergency Fund", or even designate it specifically for what you plan to use it for ("plan" being the key word)- "Grizzly Bandsaw Purchase" or "32" Flat Screen TV".

One of the keys to doing a budget, is not calling it a "budget" or looking at it like a "budget". The connotation is restrictive and encumbering to most. Call it a "Spending Plan". This puts you in control and allows you to feel like you're dictating where your money is distributed, and not the other way around: Your money telling you how to live your life.

Everyone has to find the technique that works best for them, and usually the first attempt is just that. You modify it as you go, and your perfect it as you tweak it.

Wishing you the best with it. It can be a life changer.

[Pat Barry]

Pay yourself first. Ie: Savings first, then bills, then leftover Blow.

[Mark Bolton]

LOL, I know I'm going to regret this but what is "Blow?"

It is funny. With a budget category for "blow" its generally very difficult to save money.

[Mark Bolton]

I have set up a nice page in Excel that I will copy as a monthly spread sheet. Balances will be carried over from one month to the next. I am living simple right now so my budget is simple but I think will work good. I will enter each expenditure date and description on the left then enter the cost or deposit in the correct column. On Friday when I get paid a deposit would be made in each column then through the week as money is spent it would be deducted. A balance shows at the top. I am getting a debit card and most expenditures will be paid with it, the rest cash. What do you think?

301738

It seems to me that if you want to take this to the limit (not that you necessarily want to) your missing a lot of items in the list though it may be just a start. Vehicle repair/replacement, oil changes. Personal property tax? Excise tax? I see rent in the list so I am assuming there is no property and so on.

Whenever I do one of these (usually for the business) I try to include each an ever dollar that goes into my annual fee to breath oxygen on this planet in this country. When you actually include all of that, including new tires, an annual inspection sticker, auto registration, and so on.. the total can become staggeringly more than most realize and it can really help to quantify how much you need to hunker down. When you lump all these "knowns" (tires, inspection sticker, oil changes, tv blows up, stoves kicks the bucket, etc) into a "discretionary account" I think for many it allows them to act like they arent real, or "well thats just something small". But thats what usually cripples people. The nickles and dimes.

[Moses Yoder]

It has been a while since I read Dave Ramsey but I specifically remember him talking about budgeting an amount as free to spend on stuff you want. I think you have to buy a little stuff or it seems like all the work you do is meaningless; If you are just living, and not accomplishing something, then why live? A hobby has to be controlled though or it will control you. My savings fund is for stuff like car repairs, an emergency fund. As mentioned, this is version 1.0, I am sure version 8.1 will look a lot different. THank you for all the comments, I will take them to heart.

[Matt Meiser]

8.1 is terrible. Stick with 7 and wait for 10.

(Windows joke)

[Scott Shepherd]

It has been a while since I read Dave Ramsey but I specifically remember him talking about budgeting an amount as free to spend on stuff you want.

I don't think he recommends you do that until you reach a certain level of savings. If you're starting a zero, then I'm pretty sure he'd be telling you to suffer for a while and sock every penny you can into an emergency fund. Once you get that going and have some retirement savings, then it's okay to start spending a little on yourself.

[Myk Rian]

10 is an even number. No Windows version with an even number has been worth a hoot. Wait for 9.

[Kent A Bathurst]

LOL, I know I'm going to regret this but what is "Blow?"

Legend has it that George Hurst [Hurst shifter, Hurst performance parts - that guy] pretty much vanished from sight in the 70's after he sold the company.

He reappeared some years later [late 80's?], and met up with his friends and colleagues in the industry, looking for opportunities to get back in business.

He was asked: "Why?"
"Because I need the money."
"But - what happened to that pile of money you got when you sold out?"

"Well......most of it went to booze, broads, and boats. The rest of I just wasted."

Phil - That right there is the classic definition of "money to blow".

[Matt Meiser]

10 is an even number. No Windows version with an even number has been worth a hoot. Wait for 9.

There isn't going to be a 9. 10 is the new 9.

[Kevin Godshall]

Here's the thing: Every time you get some money in your "Blow" column, you will "blow" it on stuff that is meaningless and usually not necessary. Eventually, you will really want something, or worse yet, NEED something, and you will find yourself lamenting all the stuff you "blew" your money on.

I've done this type of planning work with individuals, and I've seen some get a handle on this to the point that they have reduced their cigarettes or alcohol use, (or whatever: Starbucks, lottery, candy bars, etc) or even abandon it, realizing that these were "blow" categories. However, the opposite applies too: When "blow" money exists, there is always an outlet for it, and that addiction grows and grows, whatever it is (and I'm not demeaning or decrying any one for their own particular "vice".)

True planning (budgeting) is discipline. The more discipline and the better discipline, and the more successful the individual is. If you smoke, plan for it. If you drink Starbucks once a week, plan for it. If and when you decide you don't need it, or as much of it, you instantly start making money for yourself.

Remember, it's a plan, and you can change it, but the best way to change it, is intelligently and with correct information.

Best.

[David Cramer]

It has been a while since I read Dave Ramsey but I specifically remember him talking about budgeting an amount as free to spend on stuff you want. I think you have to buy a little stuff or it seems like all the work you do is meaningless; If you are just living, and not accomplishing something, then why live? A hobby has to be controlled though or it will control you. My savings fund is for stuff like car repairs, an emergency fund. As mentioned, this is version 1.0, I am sure version 8.1 will look a lot different. THank you for all the comments, I will take them to heart.


Moses, you're stuck at 666 for posts numbers, please post again, and quickly:):):)

[Bert Kemp]

I don't understand why people make this so hard. making spreadsheets and enter data all the time.
A debit card with a good fraud policy, (mine is as good as most credit cards. )A good bill pay service, free checking and no fee's for atm use anywhere. I let the bank do all the work.My check is direct deposited into my account. They put what I designate into savings, they write all the checks and pay the bills.They keep an up to the min account of everything. They even send me a text message and an email ever time my debit card is used, which is nice. I was having a burger in phoenix last year and my phone dinged, thought it might be my daughter so I looked and it was a text that $1400 was just spent someplace in Cail. I called the # on my card said hey I'm in Phoenix , The women said ok go to an atm take out what cash I might need for 3 days and she would cancel the card and I'll have a new one in 3 days and the 1400 will be reimbursed .So why keep a sheet when someone else can do all the work and all you have to do is take a look at it once a week?