Wednesday, August 8, 2012

Rule # 1: Set A Strict Budget and Stick To It

Four words: Easier. Said. Than. Done. However, I can and I will do this. And for the record, I'm almost a week into this challenge and I've managed to stick 100% to budget so far (thanks for picking up the tab for the sangria the other night Dan, that most definitely would have put me in the red).

So, how did I come up with this budget? Well, first I had to figure out what all of my expenses are; those annoying monthly bills and expenditures that suck all the fun out of payday time and time again. They're outlined as follows:

Danne's Current Expenses
  • Rent
  • Utilities (Gas, Electric, and Cable + Internet)
  • Student Loans (I've got 3 of 'em)
  • Cell Phone Bill
  • Car Insurance
  • Credit Card Payment (luckily there's only 1 of these)
  • Fast Lane & Gas (I work way out in the 'burbs)
  • Web Hosting for 2 sites
  • Food & Drink
  • Princess Fatty Fanne's Needs: Food (prescription diabetic cat food), Litter, Insulin & Needles, Pet Insurance
After writing all of this out, I added up how much money I typically take in on the average month, subtracted all of my expenses, and was left with a (smaller than desired) number. From this, I concluded that a reasonable weekly budget for me during this miserly-minded month is about $100 a week. Gulp.

It's tight—especially because food, gas, and any form of fun/entertainment comes out of that little number (thank God the Olympics has been on, talk about my all-time favorite form of entertainment), but it's doable, so...I will do it.

Next step? Freezing my credit card, literally.
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4 comments:

  1. DebbiAugust 9, 2012 at 7:56 AM

    I've teetered back and forth about ditching the credit card. We get (and use) reward points when we use it, and we pay off the balance every month, so I feel like it's under control. But I also feel like I'd probably spend less if I were paying cash for everything. I use the credit card for gas, groceries and internet purchases, and mostly pay cash for everything else.

    It's easier for me to not spend a lot of money because I live in the Middle of Nowhere. Shopping opportunities are very limited, and I have plenty of supplies on hand for my interests and hobbies (reading, knitting, crafting, photography).

    I'm really interested in how not using a credit card works for you. (I love the convenience of paying at the pump, for instance.) Looking forward to the next post!

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  2. AnonymousAugust 9, 2012 at 8:58 AM

    The year after college I lived on about $40/week. You can do this!

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  3. Danne DzenawagisAugust 10, 2012 at 11:02 AM

    Debbi, sounds like you're using your card the right way, especially if you're paying off the balance each month. I however, do things like impulse buy sweaters at lululemon and put them on my card. Once I pay off the balance I'd love to be more smart and intentional with how I use it.

    And Ashley, um $40 a week? I think we need to have a miserly living date so you can share your secrets with me.

    ReplyDelete
  4. AnonymousAugust 10, 2012 at 11:58 AM

    I don't remember how I did it!

    ReplyDelete

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