Budgeting Project: Baby Step #2, Progress Report 2

Quick update on my  Budgeting Project. I mentioned a few of these items on my Goal Setting post yesterday. Not much progress has actually been made on my debt snowball (unfortunately). However, I haven't added any NEW debt since my last update (Progress Report #1) which is HUGE for me! 

The New YNAB 

I started using the new online YNAB at the beginning of the year. It took me a little bit to get used to it, but now I'm loving it! It's extremely helpful and I like all the tools that they have. I think I'm sticking with new YNAB going forward.

I did have to "restart" my budget in May, which was really easy. I got off track when I was unemployed. Now, things are going smoothly and budgeting is getting easier and easier the more consistent I am. It's also easier as I adjust my budget categories and line items.

Can I say... that budgeting has become "easy!" I try to reconcile once a week, but sometimes only manage 2x's a month. Weekly is easier and faster. I have had to adjust my budget as I go, but I'm getting way better at anticipating expenses and I'm working on curbing my impulsive buys. 

Cash Envelopes 

I didn't think I would EVER use the cash envelopes. I just didn't see the point, as I use my debit card /credit card for everything. But the last few budgeting months I noticed I was going way over in some categories... Like eating out! That's when I decided that I needed to implement the cash envelopes for a few categories that I've been overspending in & obviously don't have the self discipline to not go over budget! 

My cash envelope categories: 

• Babysitting 
• Fun Money 
• Dining Out 
• Kid's Clothes 
• Yard Work
• Kid Commissions

I created a category in YNAB for "cash envelopes." I then pull all the money for these categories at the beginning of the month and put them in their envelopes. I just started this for this month (August). So far... It's working out! It actually has made me not want to spend my money! Lol. We have been dining out for a meal at least 1x a week (sometimes twice). Hoping this will help me curb my spending in these categories and help me develop some discipline. When the money is gone... it's gone and no additional spending in those categories. Or that's the "hope." 

Using Credit Cards

Ok, I know... I shouldn't be using credit cards anymore! But I'll be honest, I'm only using one credit card and it's only being used for a few things:

1. Amazon Prime Account (Subscribe & Save) 
2. Parking Fees for Work 
3. Netflix 
4. Groceries 

That's it! I've been using my debit card for everything else. What I have been doing is paying 100% of what I used for the month (plus the interest). So for example, if I spent $500 on my credit card and interest is $200, I pay $700 for that month. So I haven't been adding more debt. I'm only spending on the CC what I've budgeted for in that category. 

Eventually, I'll stop doing this. But right now I still feel more comfortable tying my CC to these accounts vs my debit card. 

So, just using the ONE credit card and paying off 100% of the charges I charged at the end of the month (plus interest). The CC I'm using is my Debt #2 that I'm working on eliminating. Eventually, I plan to cut up this CC when the balance is paid off. 

Auto Bill Pay

I've requested e-bills for all my accounts that I can and have it auto-paying every month. There's only a few bills I need to manually pay every month. This has helped make things more automated where paying bills are concerned.

Debt Charts 

I mentioned in my Goal setting entry that I started using the Debt Free Charts to color in. I thought at first, "oh that's silly!" But really, it helps! I love the visual and I look at it everyday. It makes me want to color in more debt I'm free of! 

New Snowball Spreadsheet 

I also started a really simple new snowball spreadsheet. It's making me want to attack my debt more fiercely! I've been very conservative and not making much progress. Partly because I was cash-rolling my IVF #3 cycle. Partly because I was trying to build up a month of money (budgeting for next month on last month's money). Now that I'm done with those two goals, it's really time to attack Debt #2. 

Monthly Goal Setting 

Which is where monthly goal setting has come in. It's so easy to get lost in things and lose track of where you are with things. Or just say, "I'll get to that next month" and then things never get done. 

Since I'm budgeting consistently and I'm a month ahead on my expenses, I really have a good idea on how much I can apply to my debt snowball. I'm putting those goals out there every month and going to really start attacking it. 

Planning 

I feel great about my financial position right now. I'm even budgeting for big expenses, like Christmas and my son's birthday. I started individual budget items for some travel we have coming up as well. I've found it useful to create a different budget line item per goal. So instead of a generic "vacation" fund, I have a budget item for each trip - so I know my budget limit for each individual trip and it doesn't dip into another one. I even split out each holiday, instead of having a generic "holiday" line item. I'm thinking this will especially help in January, as I can budget for all the holidays and/or trips for the next year beginning in January, making the monthly contribution less than starting to save in July. 

All of a sudden, it's all manageable! 

I've even started a list I named "Patty's Layaway." Lol. I'm adding items that I WANT, but didn't budget for. Impulsive buying and all. Previously, I would just buy it if it wasn't much. But it started adding up! This was another area that I didn't have much discipline in. So now, all things I want (all of a sudden) goes on the Layaway list - little or big. When it's time to budget for the next month, I make sure it's in the budget, if there's room for it. No more impulsive buys - even small ones! Or that's what I'm trying to prevent anyways.

Really trying to focus on the "DEBT FREE" goal. Need to keep my eyes on the prize. I have a long way to go, but I feel like I'm making positive progress and feel confident I'll get there someday.