Budgeting Part 3

Budgeting is important to controlling your finances. Part 1 and 2 are about finding where your money is going or not going.

We now had all of our expenses coming from our checking account, and we had stopped using our credit card and overdraft loan. So we got to really feel our choices. Because that is all that a budget really is. What are your choices? Our choices were to spend a ton on food. I mean a ton!!! It was nothing to pick up fast food or convenience foods at the grocery store.

We decided that we wanted to pay off our debt as much as possible as fast as possible. So we choose to put more of our money toward debt and less toward other things like food and stuff. Since WE were making the decisions it actually has been empowering. We make the decisions, and we are not just watching our money do whatever.

Making a budget is not that hard. Just decide what is important to you. List all of the categories you spend your money on. Put them in order of imporance (like food and housing first!) Then spend your money on paper from most important to least. When you run out of money you are done. Either spend less on the more important things or none on the less important.

For us it is taking us months and months to refine our choices. Like can I really spend X amount on groceries each month. Can I spend less here? And only after I prove I can spend less is that money given up to another catagory.