So – FPU has homework. We were tasked on Tuesday night to do a ‘Quickie Budget’ and bring it back in with us this coming Tuesday. I used the copy provided in our workbooks and after filling in how much I spend each month on 'the necessities,' I was really surprised to see where I can probably knock off about $110.00 from my normal spending habits. Oh sure, my rent is a set amount, my water, electricity and car insurance is pretty much the same amount each month. But my other spending....$200 a month on food, $100 a month on entertainment? No, I can really cut that amount down by almost 50%.
That’s great news…I can put 50% of that money towards my emergency fund, use 25% to pay extra money on the education loan I took out for my daughter and budget the last 25% as savings toward buying a notebook or netbook. My computer died and I have to buy a new one for my writing. However, I refuse to use my new credit card, or even worse, use in-store financing with their outrageous terms so I'll save my cash until I have enough to buy what I want.
We were also tasked to read chapters 1, 2, 3, and 10 to prepare for next week's lesson – I am halfway through the book already! I’ve been reading about using an envelope system ~ the leather folder and envelopes were provided in the tool kit I received the first night ~ and it looks very user-friendly. The concept is so simple that even I, the financial illiterate, understand it. I plan for and then budget out so much for food, entertaining, car expenses, etc., and the CASH goes in separate envelopes that are preprinted on the front with little boxes. I simply enter the date, the amount spent, and what the purchase was for. When the cash is gone, it's gone!
I will read more about it today and put it in practice as soon as I can. The idea is to NOT use credit cards but cash only. The idea is to live within my means. It will be very easy to note on the outside of the envelope just what I purchased and for how much. Of course, I’m not sure what I’m supposed to do with the change as the envelopes don’t seal totally closed but I’m sure I’ll figure that out. Wait…I just looked again and there is a small plastic zip pouch, similar to a mini pencil holder, behind the envelopes. Guess that's where it goes, huh?
It turns out it was a good thing that I lost my debit card – I’m already much more mindful of my money now that I have to physically write a check (which I hate to do), or go to the bank to get cash before making a purchase.
Can you tell I’m excited about this? Me…blogging about money. Who’da thunk it?
I am giving this everything I have to ensure I succeed!
Until next time....
Money is neither my god nor my devil. It is a form of energy that tends to make us more of who we already are, whether it's greedy or loving. ~ Dan Millman
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