Greetings from the chicken farm, I love being home .
Even for people who has the best savings and budgeting intentions, it does not always go according to plans. I have a spending tracking app, has an excel spreadsheet with the jars system and also have a diary that I write a lot of my financial plan but comes pay day my brain is a different person.
Because of the lack of consistency in how we budget, having a budget can be a futile exercise if its really not realistic. Why bother putting numbers that you will not stick to anyways? But even if you do not stick to the budget, having something is better than nothing as your money decisions have parameters within which you can spend and save.
This months, I am going back to square one, and starting over from scratch. Remember when we used February a trial month? ( read it here), I am going to write down every single money that comes in my account and what goes out. But that does not mean I must just be reckless as I have a limited supply of money. Every new expenses that comes my way should meet the following questions:
- Is it necessary?
- Was it there last months?
- Should I maybe get rid of it?
- Is it urgent?
- Does it contribute toward the financial future I am looking for?
- And a bonus question will be does it allow me to meet my big hairy goal ( read it here)
- Most importantly can I afford to have it.
If amajority of the answers are yes and most importantly the last one, I will spend it, otherwise, I will move on to the next one. This sort of budgeting is called Zero based budgeting. You start off with nothing and you motivate why every expenses in your budget should be there (i,e why it is worth spending your money on).
How are you doing it this month?