How do you make sure?

[TxQuiltGirl]

I'm afraid to go back to where I was before, with no credit and no money (or so it always seemed). But I was wondering ... how does everyone keep up with where they're spending their money using credit? Do you keep spreadsheets or do you in some way track where you're spending? How do you stop yourself from making impulse purchases?

 

Living on a cash basis, I could only spend so much (and even then I wasn't great at watching the money!). I've only recently learned how to set up a budget and sort of live by it. I'm far from perfect. But I don't overdraw my bank account anymore (I didn't start writing things down and keeping up with my checkbook until August of last year!).

 

I'm terrified of screwing up ... I don't want to be in financial pergatory anymore!!

[idtheftvictim]

I'm afraid to go back to where I was before, with no credit and no money (or so it always seemed). But I was wondering ... how does everyone keep up with where they're spending their money using credit? Do you keep spreadsheets or do you in some way track where you're spending? How do you stop yourself from making impulse purchases?

 

Living on a cash basis, I could only spend so much (and even then I wasn't great at watching the money!). I've only recently learned how to set up a budget and sort of live by it. I'm far from perfect. But I don't overdraw my bank account anymore (I didn't start writing things down and keeping up with my checkbook until August of last year!).

 

I'm terrified of screwing up ... I don't want to be in financial pergatory anymore!!

<{POST_SNAPBACK}>

 

Well, to be honest, what you should do, is stop using your credit cards on a daily basis...you should only use them MAYBE 1 time a month for a tank of GAS, because that is all you should need to use them for....just to keep them active and your credit looking good.

 

I don't use the credit I have obtained...except to surf balances....but really not much to pay off anymore...

 

When you start using cash and designate WHERE each dollar goes, you stop spending so much....I remember when I used my debit card for groceries...I would sometimes spend about $100-150 a week....and it was only 2 people living off that food. Well, when I started using and sticking to my budget, I went to the store with $60 CASH, and no debit card, no credit card...so I could ONLY use that $60....for the week...I realized within the first 2 weeks that I was buying ALOT of food that would get wasted...we would end up throwing alot of it out because it went bad too quickly...so now we buy the things we need for the week, and that's it. I usually stay at around $50=$55 a week....even though I have $60 in cash....it works out great, our fridge is ALWAYS stocked, and I NEVER spend more then what I have.

 

Not telling you to cut up your cards or anything like that, just stick to the budget...none of this "well, I almost stuck to my bidget" crap....if you want financial peace, what I have suggested is one of the best ways to do so...

 

I used to worry about money all the time, I would litterally stay up at night till 3-5am thinking about Money, and how I was going to pay for food, how I was going to pay for gas, how I was going to pay for EVERYTHING....because I didn't have control of my money...when I got onto a budget and stuck to it, I don't worry about money anymore. I pay my bills, and have PLENTY left over for food, and gas, and all the day to day stuff.

 

Just something to think about.

[Gingerly]

I think you have two choices:

 

- You could just use the card(s) for simple purchases like a tank of gas, then pay in full.

 

- Or, you could track your CC spending the same way you learned to do with your checkbook. In fact, you could use a checkbook register. Another option is this printable spreadsheet made for tracking credit card transactions.

[TxQuiltGirl]

Gingerly's post reminded me that I have Money 2005 Deluxe ... I'm sure it has something to track how much money I spend on a credit card! I have used it for my bank accounts for a while now (starting with 2002 that was on the computer when I decided to actually balance my checkbook in August), but I haven't explored it at all. Maybe that's the best way to handle it ...

 

While I can understand your logic, ID, I have lived on a cash basis for years ... 15 to be exact. And while it does keep you from going over on your budget, I don't like to carry a lot of cash around. I don't buy groceries a week at a time; I buy them for two or three weeks at a time. I do have to buy things like milk more often. And frankly, I want to learn how to manage my money more effectively, not continue on as I have for the last several years. This isn't just about keeping my credit cleaned up (errr ... once it's clean, that is) but more about a total financial approach.

 

I want to be able to use my credit cards for more than the tank of gas once a month ... I want to use them and pay them off (except maybe those occasional great 0% offers) each month. I can do this; I just need to get my mindset right, and remember always where I've been.

 

I'm open to suggestions still, of course, but I would just prefer to move away from the cash basis of life.

[munci98]

Give MS Money a try. It does wonders for our household. I track every cc transaction, every penny spent. For us, ATM cash withdrawals was where our extra was going. We couldnt' account for it at all. Now hubby is on one cc 100%. I can show him EXACTLY how much he spends eating out at lunch and for all his little extras. Way more than he thought he was spending.

 

Once you start building data in Money, I can look at historical income/expense reports. You get a good feeling watching certain categories going down instead of up. It also puts in your face all debt and all balances. I love that. I have to face it every morning. Makes those impulse purchase much easier to avoid because those numbers get burnt into the front part of your brain.

[gigalot]

Love your idea idtheftvictim. I do that for weekly spending money, but I find that I go over the weekly grocery money and I say that I'll make up for it next week, but it doesn't happen. I'm thinking at least for this year, to develop the habit of sticking to the budget it will be cash everywhere.

 

The other day I was even thinking of creating envelopes for things like entertainment and clothes. You don't really spend the money all in one place, so having the lumpsum put in an envelope at the beginning of the month then we could spend out of it is not such a bad idea. When I use my debit card I go over by $5 here, $1 there and it all adds up.

 

I wonder how I could get DH to buy into this.

[idtheftvictim]

Love your idea idtheftvictim. I do that for weekly spending money, but I find that I go over the weekly grocery money and I say that I'll make up for it next week, but it doesn't happen. I'm thinking at least for this year, to develop the habit of sticking to the budget it will be cash everywhere.

 

The other day I was even thinking of creating envelopes for things like entertainment and clothes. You don't really spend the money all in one place, so having the lumpsum put in an envelope at the beginning of the month then we could spend out of it is not such a bad idea. When I use my debit card I go over by $5 here, $1 there and it all adds up.

 

I wonder how I could get DH to buy into this.

<{POST_SNAPBACK}>

 

Right now we have a total of $125 in our clothes envelope...DW is excited...because I have stopped us from spending money on clothes in the past...but now I say...go ahead, spend whatever we got if ya want....

 

It is nice to know we have $125 just sitting there for that purpose and nothing but that purpose....everything else is taken care of! It is WONDERFUL

 

To get DH to buy into it is another thing...I would sit down and talk to him, tell him your concerns, and tell him that you don't want to have to worry anymore(I am assuming that you handle all the bills?)

[bfarber]

Our main problem (DW and I) is OVER-budgeting. We budget right up to our projected paychecks...then when something goes over (groceries for example), or you miss a day at work, you're stuck.

 

This year, we cut our budget down so it's less restrictive, and are going to stick to it. We are going to begin putting money in a savings account each month (and then by June, every 2 weeks), and still leave extra money in the checking account. By the end of the year, we will have a little savings to fall back on in times of need.

[idtheftvictim]

Our main problem (DW and I) is OVER-budgeting.  We budget right up to our projected paychecks...

 

That is how you are supposed to do it honestly....

 

then when something goes over (groceries for example), or you miss a day at work, you're stuck.

 

You aren't supposed to go over on ANYTHING...stick to your budget...and you won't go over...as far as missing a day of work or something like that, you need to budget for those too...if you miss a day from work, you need to adjust your budget for that month....by the amount that you miss out on

 

This year, we cut our budget down so it's less restrictive, and are going to stick to it.  We are going to begin putting money in a savings account each month (and then by June, every 2 weeks), and still leave extra money in the checking account.  By the end of the year, we will have a little savings to fall back on in times of need.

<{POST_SNAPBACK}>

[gigalot]

I am assuming that you handle all the bills?

 

As a matter of fact, I handle anything having to do with money. Bills, budget, business plan, looking into investments, credit, anything. Sometimes it's exhausting, feeling like you're the only one that cares.

 

Sorry to whine

[laurenleigh]

I am assuming that you handle all the bills?

 

As a matter of fact, I handle anything having to do with money. Bills, budget, business plan, looking into investments, credit, anything. Sometimes it's exhausting, feeling like you're the only one that cares.

 

Sorry to whine

<{POST_SNAPBACK}>

 

 

I completely understand that. I'm also the only one who handles the money. It is a bit frustrating at times but at least I know that things are taken care of every month.

[bfarber]

I can understand your point, but up until now (this past tax return), we have had more bills coming in than money. THAT is kind of hard to budget, and no matter what amount of readjusting you do, it doesn't help if you didn't have enough money to begin with.

 

We are doing better now, and will be MUCH better by June.

 

Our main problem (DW and I) is OVER-budgeting.  We budget right up to our projected paychecks...

 

That is how you are supposed to do it honestly....

 

then when something goes over (groceries for example), or you miss a day at work, you're stuck.

 

You aren't supposed to go over on ANYTHING...stick to your budget...and you won't go over...as far as missing a day of work or something like that, you need to budget for those too...if you miss a day from work, you need to adjust your budget for that month....by the amount that you miss out on

 

This year, we cut our budget down so it's less restrictive, and are going to stick to it.  We are going to begin putting money in a savings account each month (and then by June, every 2 weeks), and still leave extra money in the checking account.  By the end of the year, we will have a little savings to fall back on in times of need.

<{POST_SNAPBACK}>

<{POST_SNAPBACK}>

[texastech97]

When I was in college and lived on a fixed income (student loans and grants), I kept track of my spending on a simple spreadsheet and used mostly cash to pay for things. It was hard to buy things when the cash was gone for that month. Sometimes I would have extra money left, which I saved for the times I went over my budget. It was extra cash for a rainy day. I tried to stay away from my credit cards as much as possible since it would usually throw my budget off.

[JessieLyn]

I can't make sure I ever have enough.

 

My job screws me over every week... They give me 24 hours one week, 5 the next, 9 the next, 12, then something dumb like, 4 or not even schedule me...

 

Any clue on wtf I can do? Cuz I was doing fine until aboutfour months ago (when they started this crap..) and now I'm back to where I was before (-900)...

 

 

Ive tried finding more work, theres nothing available but fast food and I dont really want to do that...

Edited February 7, 2005 by JessieLyn

[idtheftvictim]

I can't make sure I ever have enough.

 

My job screws me over every week... They give me 24 hours one week, 5 the next, 9 the next, 12, then something dumb like, 4 or not even schedule me...

 

Any clue on wtf I can do? Cuz I was doing fine until aboutfour months ago (when they started this crap..) and now I'm back to where I was before (-900)...

 

 

Ive tried finding more work, theres nothing available but fast food and I dont really want to do that...

<{POST_SNAPBACK}>

 

Talk to the company that you work for, tell them that you need more time...are you a full time employee, or part time, or what? How are you classified? You need to get your income up somehow...I know you said there is nothing out there, and I know...the econemy SUCKS right now. So, maybe just for a little while you could deliver piza or something, I know that Pizza delivery people make pretty good money after tips....

[JessieLyn]

I can't make sure I ever have enough.

 

My job screws me over every week... They give me 24 hours one week, 5 the next, 9 the next, 12, then something dumb like, 4 or not even schedule me...

 

Any clue on wtf I can do? Cuz I was doing fine until aboutfour months ago (when they started this crap..) and now I'm back to where I was before (-900)...

 

 

Ive tried finding more work, theres nothing available but fast food and I dont really want to do that...

<{POST_SNAPBACK}>

 

Talk to the company that you work for, tell them that you need more time...are you a full time employee, or part time, or what? How are you classified? You need to get your income up somehow...I know you said there is nothing out there, and I know...the econemy SUCKS right now. So, maybe just for a little while you could deliver piza or something, I know that Pizza delivery people make pretty good money after tips....

<{POST_SNAPBACK}>

 

I'm a lowly part time peeon at a grocery store because they "don't hire full timers". They keep saying Ill get more hours, but never come through with them...

 

I am trying so hard to find a new job and found nothing. My other job fired me for lack of transportation in bad weather...

 

If I had a car, I'd deliver pizza but wouldnt want to in the town I live in or surrounding towns... Their not the best places to send a girl, alone, all hours of the night with a wad of cash from delivering pizzas.....

 

Over the summer I had the same problem. Went unemployed for 4 months even after applying at over 40 places... NO ONE wanted to hire me even though I have TONS of retail experience.

 

The only places who did call me back and want to hire me wanted me to temp.... I don't wanna do temp work especially in retail... The experience I have with that, is they give you no notice of them not needing you... Just out of nowhere you don't get scheduled... (at least thats what happens to me...)

[rpatty]

My budget system has protection built in to prevent me from going over budget. Basically, it's just an excel spreadsheet with a list of my expenses running down the column ... and here's the important part ... it has a TOTAL at the end. I know the total absolutely HAS to stay below the amount of money I'm bringing in each month or something is going to blow up. So if I have to spend an extra $20 for groceries, when I bump that numer up I know I have to adjust something else down, or the total isn't going to be right. For me it was pretty easy to justify, "this is so cheap I can afford that little extra" when I'm considering making the purchase, but it's just impossible to ignore when you see the result on paper. If I only make $2000/month, and my written expenses are $2020, something just isn't going to work, and I'd better fix it.

 

I do have a little protection, though, in that I keep a small sum in the bank as an emergency fund that I pretend isn't there. That way, if I absolutely have to dip into it, I'm covered. But I always make sure that my next month's budget includes a line item for "rebuild emergency fund"--making it part of the next month's total, and not something I can ignore.

 

As for credit cards in specific, right now I'm paying them off and intentionally not adding to them. Later on, as part of keeping up the credit rating, I'll probably use them for certain things that I'm less likely to go over on, such as gas. I'll also use them consciously for certain purchases, but only when that item is first written into my budget. For instance, if I decide to get an iPod, that's a line-item on my budget, and I know exactly how much I'm spending for it. It doesn't matter if the money goes through my credit card first, or comes out of a debit card, or is purchased in cash, because it's accounted for already. I probably won't ever let myself use the card for something I haven't budgeted for ahead of time (other than a real emergency, like having my car towed) because I'll already know I can't afford it.

[dacar]

I have a weekly budget, since my dh gets paid weekly. And I use the envelope trick for some things - I put so much each week into envelopes marked car (for unexpected repairs, tires, oil changes, etc.); clothing; haircuts; sports (my kids each play several sports and it can be devastating to write out $300 in one week to cover summer softball); etc. I also have limits for my envelopes. If my car envelope gets over $200 in it, then the surplus each week goes into savings. It may not be the best way to do things, and it isn't very scientific, but we always seem to be able to pay for things without using our credit cards. I'm very strict with our budget and anytime we have extra money (extra paycheck, larger paycheck for me since I'm part time and get paid hourly) the money gets divided - part into savings and part into the envelopes for a little cushion.

 

Hope this helps a little.

[dacar]

Oh yeah, and to answer your original question....

 

A friend of mine deposits a certain amount each paycheck into her savings account, then puts that amount ina check register. This is her credit card money. Everytime she uses the credit card, she writes it in the check register and when the money is gone (like a checkbook) she quits using the card that month. When the bill comes due, she transfers the money electronically from her savings account to the credit card company. She does this to earn her rewards on the credit card without going crazy and spending too much then having to pay interest.

 

I've considered doing this, but not sure if I'm disciplined enough!

[acripps]

I've been using MS Money for the last couple of years <Since we had to file BK7>

Never had a budget before that... < I KNOW DUMB >

Ive gotten everything into money and use the cash flow projection to keep me honest. Currently have more spending cash then ever....Now I hate to spend it frivolusly....Before a large checking account balance was a drunken sailor spree. I budget $600 for Credit cards / Month. If we make a large purchase it might take 2-3 months to pay off that card. But 80% of cards are PIF every month....even the past statement date charges. Paying on line and checking statement/current balance weekly. 18 months post BK we've bought 2 new cheap cars....50% paid off, 18 months to go to PIF.

 

Feels great to be able to sleep at night without the financal terrors.

[cleancredit2004]

What has really helped me is to have access of my CC's and bank accounts online or on an automated phone system.

 

CC's are not used very often and I have email reminders come to me when its time to pay the bill. I call an anutomated system each morning and highlight in my checkbook which checks have come in.

 

A great tool to have is a debit or check cashing card. You can only use them if there is money available and you usually have some sort of online access. I get paid every other week, the week before I get paid I make out all my payments and get them ready to go. Pay bills first then budget the amount that I have left for the next 2 weeks of gas, groceries, etc...

[uuuuut]

I keep enough in the bank for at least a month or two worth of bills. If I notice my account is under about $1500, go into ultra omega frugal mode (which isn't really much of a jump up from my normal spending). I don't really have a strategy for it though, conserving my resources is just something I seem to do naturally. For example, if there is no more orange juice concentrate left in the freezer and I just mixed the last batch, rather than drinking at my normal rate, I just drink smaller and small portions so it lasts until I go back to the store. I guess I do the same type of thing with my money. The best way to do it would be to portion out the orage juice (or money) so I am using a steady amount whether or not I have been to the grocery story (been paid) recently, and time it right so I run out of OJ right before I go to the store again. Unfortnately I'm not organized enough for that, and I admire those who are.