Budget Time!

It’s the first of the month. For most, that means many bills are due. What a great time to do a budget! There are many templates out there through finance websites and banks, but I find the most helpful way to do a budget is to write down all your expenses in a list of when they are due and figure out which paychecks will pay them. I always round down my usual paycheck amount so I am sure not to go over and get in the red. Sometimes that means it’s tight, but that’s what we have to do in order to survive. On www.frugalliving.about.com, I found a debt load worksheet to write down all my revolving and installment debts as well as APR rates, due dates, and minimum payment amount. This can help me decide which debts need to be paid down first to help reduce interest payments. Once paid off, I can either close them or see if I can get a better rate from the company.

I’m a card cutter as well. If I know I want to close a high interest card, I immediately cut it and forget I even have it (except that I pay each month). I’m the kind of person that needs to play tricks in order to keep me from over-spending. This is also why I have three checking accounts. I keep one that my parents are on in case I need to transfer or they need to transfer money, one for my main banking, and one for “vacation” saving. I’m thinking of opening a savings account at a small town bank down the street from my house so I can put a little in there every now and then without realizing that there’s money there. It’s the tricks I tell ya!

Since I get paid the 15th and the last day of the month, I do this process at least every two weeks, sometimes more. Situations always change and you need to adapt. I went to the hospital last week, so I need to adapt and adjust my budget to compensate for the prescription and copay.

Happy budgeting!