Comments on: A Simple Way To Budget? (Your Advice)

By: HeadWrench

HeadWrench — Fri, 15 Jun 2007 00:33:46 +0000

I second the motion for “You Need a Budget.com”
Jesse also has very sound and practical budgeting advice.

By: LuxLivingFrugalis

LuxLivingFrugalis — Thu, 14 Jun 2007 22:59:01 +0000

I use Jesse’s “You Need A Budget” software from youneedabudget.com – being careful to enter expenditures every three or four days.

By: Jim

Jim — Wed, 13 Jun 2007 22:07:16 +0000

I would recommend using Quicken or MS Money and downloading transactions directly into the software from the bank, credit card company, etc. This saves juggling receipts but allows you to track your spending, etc.

By: A Tentative Personal Finance Blog

A Tentative Personal Finance Blog — Wed, 13 Jun 2007 04:57:27 +0000

First thing I would do would be to draw up a list of all your monthly expenses that are non-negotiable. Then list for things that you purchase throughout the month: groceries, dining, etc. Keep the money in envelopes. That way at the end of the month, if you don’t have anymore money for a certain thing… that’s it.

I don’t personally use that method, but I heard it work for some people.

By: Andy

Andy — Tue, 12 Jun 2007 17:30:38 +0000

Tracking your spending through a computer program or notebook is not budgeting. That can help you understand where your money is going, but budgeting is telling your money where to go. This means spending your money on paper before you get it in hand. This paycheck I get X dollars. This much goes to rent, this much for entertainment, this much for groceries, etc.

This is a very simple way to know where your money is going. I don’t need to track my money through receipts or enter it into the computer. I know where my money is spent because I decided beforehand where it will go.

By: crankywench

crankywench — Tue, 12 Jun 2007 15:12:07 +0000

Moneydance (www.moneydance.com) is much easier to use than MS Money or Quicken. I’m also trying out Mvelopes (mvelopes.com), which uses the envelope method to keep one aware of how much money is budgeted for each item.

For keeping track of receipts, get a receipt spindle, and put it near wherever you tend to unload packages. Place the receipt on the spindle when you unpack, then check at the end of the week/month.

Good luck!

By: Jen

Jen — Tue, 12 Jun 2007 14:59:37 +0000

Similarly to the reader’s practice of putting monthly receipts into a box, I use a pocket folder. One thing I do to make the task of tallying receipts less daunting – before I put them in, I circle the total and write a quick note on them such as “ent.” for entertainment, or “gas”, etc. That makes it easier for me to put receipts together when totaling each type at the end of the month.

By: Nathan

Nathan — Tue, 12 Jun 2007 14:02:30 +0000

We use an excel spreadsheet that keeps track of all income and expenses similar to a corporate balance sheet. Day to day reciepts are entered on a weekly basis in columns for the corresponding week of the month. Monthly expenses are tracked in a separate column on the side. This allows us to see recurring expenses subtracted from income, allot savings and budget weekly discretionary spending. It sounds a lot more complicated than it actually is. We’ve been using it for 7 years now and it works very well. Much simpler than the budgeting tools in Quicken.

I think everybody needs to come up with a solution that works for them, the key is just picking a system and sticking with it on a regular basis. If you start getting behind, that’s when it seems like too much effort to bother with.

By: Spokane Al

Spokane Al — Tue, 12 Jun 2007 13:32:07 +0000

I use MS Money and, like Monica, enter the expenditures as they occur.

Frankly, if you are not willing or able to spend a few minutes each day to enter this information, then you will never get your budget under control. There is no magic bullet, you must keep track of your spending to know where the money goes. I think it works best to enter as you go, rather than allowing all the paper to pile up and then hope that you get around to it.

Also, if you consolidate your purchases and then pay with checks or debit cards, you can easily break out the expenses via category with MS Money.

The solution is to develop a process that you can live with, and then follow through while not letting the paperwork pile up.

It is a matter of discipline which is how we succeed in this world.

Good luck.

By: Monica

Monica — Tue, 12 Jun 2007 13:07:10 +0000

I record my expenditures as they occur, rather than tallying them up at the end of the month. I have a looseleaf notebook, and for every month I start a new section with one page for each category. If I buy groceries I will record it on the “Groceries June 2007″ page. Then at the end of the month I add up each page, and record the totals for each category on a summary page.