Thursday, 8 February 2018

Cash Budget for January..month one under my belt!

Month 1 of cash budgeting! I did not die! These are the 6 areas I generally overspend on so these are my cash envelope categories. Now. Let’s chat & do a recap of categories, shall we? 
1. Groceries
This one is at the top and is the biggest most impactful change to me. When I look at my total which I have circled in red for all six categories… That is the amount that I typically have spent on average per month, on groceries. So I budgeted $500 for January and I went over by $11.68. I am impressed BEYOND! 

2. Fuel
So because this was my first month travelling for work I really had no idea how much it was going to cost me for fuel. Clearly it’s been a while since I have been on the road and when I was, my fuel was paid for by my previous companies so I had no idea and I budgeted $150 to start which was super low. This was an eye-opener as to how much fuel really is.

3. Dining Out
To be honest I do not eat out very much so I budgeted myself $80 and I still had money to spare. There are days that I stayed late after work and had to buy something for supper so that pretty much takes care of what I spent. 

4. Clothing
I budgeted $100 for this because hello, I work at a clothing store with amazing pre-loved items and I thought $100 would be a great starting point. I also had purchase a bra which was that extra $55.79. Two things… GOOD Bras are not cheap which we all know. I need to keep adding to my wardrobe because my clothing for work has been limited simply because my wardrobe falls between yoga wear and super dressy. But fortunately I have options where I work. 

5. Creative Team & Thrifting
This one is a new category...sort of. I am part of a creative team with lady that I admire and it involved be having to purchase a few things up front, but it will pay for itself AND this will not be a recurring amount. I expect next month will be around the same and then after that it will be reduced greatly. This is a bit of a new career opportunity so to me it’s an amazing investment.

6. Starbucks
OK no let me just preface this by saying just because I am on a budget does not mean that I will be eliminating my Starbucks bevvies. It just means that instead of going a few times a week. I will just be reducing that down. Also, I did purchase egg bites twice, which I left in this category instead of moving to dining out. Next month I want it to be less.

I also want to mention that I was not perfect in this month one. Nor did I expect to be. I actually had to purchase fuel and a few other items on debit because I did not make it to the bank in time and just wanted to literally get the hell home after a long day of work and snowy crazy weather. But for 99.9% of the time, all my purchases were cash and that impresses me.

To be honest, a few years ago I thought that this would never be for me… Ever! But I want things to change and I don’t want debt to be holding me back. I want to be in control of my money instead of it controlling me.

I’m not sure why this is not taught in school because this is a life skill that everybody needs to know starting at a young age instead of when they are like me and in their freaking 40’s. But hey, better late than never. And if I can do this, really, there is hope for all mankind. 

Also in the past month my husband and I have paid down a substantial amount on our credit card, which right now is our goal…to get rid of that. I have also paid off one other debt early with extra cash from taking this job.

This is definitely a work in progress and this is the first time I have ever been excited to look at my bank account and make entries into my YNAB tracker and have all the numbers down on paper. Before it terrified me, so literally I ignored it a lot, which is the WORST thing ever. Ignoring doesn’t fix makes it worse.

It’s been challenging for sure, but being in debt is way more challenging. So I am choosing my hard. And funny story, even through the challenges (Winners, Marshalls, Michaels & all the shiny things) I still have very smartly made some incredible purchases that were part of my budgeted amounts instead of buying ALL the things. And I learned to give myself a breather and consider if this was something I just wanted in the moment or if it was something that I really needed to have. That made the decision easier. 

This is a bit of a novel, but I wanted to share my first month with you. Maybe it will inspire you to make some changes to your finances if that is what you are aiming for. 

I am still a newbie, but each month, it’s going to get better. That excites me BEYOND words!  😀

Two books that really helped me get a grip on things (and I HIGHLY recommend) were:
1. The Total Money Makeover by Dave Ramsey
2. Love Your Life Not Theirs  by Rachel Cruze 

If you have any questions, totally just ask!!  I am learning lots along the way but am happy to share! 

Stay weird,

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