Staying within your budget

[chloe0724]

I am having the toughest time staying within the budget we set up for ourselves. Since stopping using credit cards, we have had to live on only what we bring home. And the minumum payments we were paying each month have now turned into payments to the attormey. I am floored as to how hard it is to live on what we actualy make. Let me rephrase that, I am amazed at how much above our means we were living with the credit cards. We are definilty going to a cash budget. Even with using the debit card, it's still way too easy to spend more that what you've got. If it's cash, it's gone when it's gone!!

[dragonnfly]

I would have the same problem but we have done that cash route since we filed. I was worried about them questioning every little charge on our bank statements so I just leave $ in there for the bills that are withdrawed automatically and the rest is what we have for food gas etc. I know how my husband got so use to using that debit card all over the place. Know he thinks more. The most annoying thing he use to do was come home from somewhere and then leave again to get a pack of Cigs. Cigarettes are expensive enough with out using a gallon of gas to go and get a pack. (We live in the middle of nowhere) Thats changed, hes better at thinking ahead. If he runs out of money on Wednesday and has to borrow from me he doesn't hear the end of it!!

[Phillymanhere]

Chhoe,
I am with you. I did not have 10 cents left over last month even though I didn't pay any credit cards. I was stunned. Now, I did have an unexpected $100 car expense. But not much else unexpected.

The punchline: I guess that's while I'm facing bk because I have been way out of touch with how much I spend.

Anyway, I vowed to keep track of every dime this month just to see where it was going ... So far it's working. I also started to reduce the amount I was spending on coffee at cafes and lunch at work. It has added up! ..... We'll see, but as of right now, I've been doing quite well.

The trick is to cut spending while not feeling deprived. I am a taking a class this month that I love, so I remind myself everytime I want to spend money on nonsense that "I am paying for a great class. Isn't this great." That helps me quiet the spoiled brat in me that wants to throw a tantrum and go on a spending spree "because I deserve it," .... "because I have to have it."

But here's to all of us getting better at this.

[chloe0724]

Here Here....To us getting better!!!!!!!!!

[JRScott]

The best way to do so is to take the debit card and put it in a glass or container of water and then freeze it in the freezer. This makes it much harder to be tempted to use it.

Next step is on your budget, as you've realized it is necessary to pay cash for most things.

I use cash for food, gas and entertainment. I get this cash out of my paycheck when I put the check into my checking account. I then write checks for utilities and lot rent. I also write checks for charitable donations and car repairs.

It gets kinda stretched some days especially with the rising food/gas prices. But once I run out of cash that means no more gas and no more food. It is rare I actually spend the entertainment budget on entertainment, normally I shift it to food or gas except about once a month I'll go see a movie or do something for fun like that with a small bit.

The hardest thing is not eating out. If you do this you'll find quickly that you cannot afford to eat out. Your meals at home will have to be simple most likely. Typically rice has been a cheap meal but its prices are rising. Still most pasta, beans and the like are still cheap enough to help cut corners. I still manage to get a little variety but not a lot and I do get some fresh fruit and vegetables at the store as well.

Anyway that's how I've done it .

[keepmine]

A budget and economizing are vital. We live below our means-we clip coupns and shop at a store that doubles coupons and use generic brands,etc.
But, that's just half of the equation. The other part is to raise your income. Me, I got a better job a few weeks post bk and a few months later, got a pt job working overnight 2 nights a week {usually weekends}.
Treading water income wise just won't cut it. Inflation will wreck even the most carefully drawn budget over time.

[JRScott]

Very true Keepmine, you do need to plan to get a better job. My plan for a better job is a longer path than most and will take four to five years to get. The truth is without a college degree I can't really get better pay around here. So this fall I plan to start working towards a degree at the local community college. I probably won't take a full load of courses but we'll see.

I wish I was healthier as I was when I was younger or I could work two jobs. I did that some in the early 90s. I've had three back injuries since then and thus the risk of additional injury is greater than just sticking to one income.