Hi all, I'm attempting to start a debt snowball in the next month, but I realize that one needs to have a good budget in order first to be successful. I've tried all of the normal, prescribed methods for budgeting but always fail. I am the most scatter-brained person I know and just can't keep it all together. Anyone else out there like me, and if so, what did you do to get your budget in line????

TIA!

I just wrote my net income at the top of the page and then deducted my fixed expenses first, then saw how much I had left for variable expenses/savings. But I'm assuming you've tried that already.

My credit union (BECU) actually offered free budget counseling. It was a three session process where we examined our expenses, created a detailed budget, and then were given the final draft in an Excel spreadsheet. It was the best thing we have ever done and we're still using the spreadsheet 5 years later. I sometimes fall off the wagon at keeping track of stuff (because I'm scatterbrained), but I occasionally jump back on to keep track of our incidental expenses.

I love keeping track of my budget using Excel. You can set it up so it automatically does the math for you....all I have to do is enter expense and income numbers.

Thanks Fishy! I bank with navy fed and there is no local branch so I don't know if that would be feasible.
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Does anyone know of any good excel spreadsheets to use? I'm horrible with excel for creating my own.

I've used Quicken for years with great success. You don't need to pay the retail cost for the 2008 version. You can pick up Quicken 2006 or earlier via Google for around $29 or less. Note: To make a budget WORK you have to enter your spending data on a daily basis or weekly basis. If you're not motivated to do so, NO budget is going to be of assistance.

Good Luck,

If you really want an easy no hassle approach to budgeting pick up the book "All Your Worth", I found it very enlightening and easy to follow.

MAC

Just make sure your budget isn't a wish list... kwim?

Pull your bank records and receipts for the last 3 months and see where your actual spending is going and compare that to the budget you worked out.

For me, a simple spiral notebook was what I needed to get back on track, and once I got in the habit of recording t hings, then I moved on to quicken. I would write the month at the top of the page, and all the bills I knew I had down (elect, daycare, etc) and then when I paid the bill I would write the amount down in the mood. I also used the envelope system for cash spending. What helped me curb my over-use of debit card was put a post-it note over my debit card that I would have to remove to use (I was nickle and diming myself out of budget ) and it simply said "House" on it..... for me that was a reminder of what my goal was.

I'm horribly disorganized and scattered-brain.... sometimes you just have to try different methods until one clicks for you.

I totally agree, a debit card can lead to more spending for some. As much as I would like to use my rewards credit card for everything, I always ending up spending too much and when you make a modest salary like I do, even an extra $50-100 a month can hurt, especially when that can go to savings.

I use a cash budget, it really helps keep me on track.

MAC

Bought a copy of Quicken many years ago.. best $40 investment ever.

Keeps me right on track :-)

I agree with using a notebook to jot down every expenditure.

OP, since you're just starting out on wanting to be on a budget, I agree that a simple notebook and pen would be a great start. Write down every penny you spend and on what. Keep it with you at all times. Once you've done that for about 2 months, you'll have an idea of what you spend your money on. You can categorize it by things like groceries, dining out, utilities, etc. Once you know where your money goes, you can create a budget and determine what is necessary and what isn't. After that, you can move on up to using a spreadsheet or Quicken.

A big dry erase board.
Matter of fact, start off your "budgeting" right by forgoing the $150 big dry erase boards at Office Max and go down to Home Depot, spend $12 on an 4X8 piece of "shower board" and have them cut it in half on the store panel cutter (showerboard works exactly the same as a dry erase board at a fraction of the cost)

Then, head off to your local craft store and in addition to your new set of dry erase markers, get "border tape" or "pinstripe tape". It's a thin, black tape you will use to make permanent columns on your new dry erase board.

Here's how mine is structured.

I have four columns for weekly income. This is my paychecks, ebay funds, etc. I fill in and update all pertinent data using the dry erase markets.

I have a column on the top that acts as a running tally of my checking account balance. I update this whenever my account balance changes by more than $50.

I have a column that represents my savings account balance. Again, updated about once a week.

I have a series of 10 columns that represent an estimation of my monthly recurring debts. Electric, credit cards, insurance, gas, food, rent, etc, etc, etc, etc...

Then, I have a column with about 20 individual "cels" that I use to log every single expense other than what's already accounted for in the "recurring debts" table.

The dry erase board strategy allows all my my debts, incomes and liabilities to be right there, in front of my face, in a very "visual" format that cannot be ignored. It allows me to contrast the figures against each other very quickly and see if anything is deficient.

It's tempting and easy to let the figures sit without updating them, but that's just failing yourself.
If you are a reasonably disciplined person, this strategy is a marvelous way for us "visual types" to keep a leash on our budgets. If you aren't disciplined enough to do this, then you aren't disciplined enough to keep a budget anyway, so this is a good, inexpensive, easy solution that has a large impact.

I picked up an old copy of Microsoft Money a few years ago at Goodwill. I got into the habit of entering data every day. My problem was DH spending money but I came up with a way to solve that. Here's what we did - DH & I are separated now so I only have to keep up with my spending. You didn't say if you are single or not but my methods are working just fine for me as a single person as they did when I had to worry about DH spending as well.

1. Set up an for bills. This money is to pay regular bills/gas/groc, basically any regular monthly expenses.
2. Set up a different account, even at the same bank and transfer a small amount every week. I did this for DH and he got $15 week, which was enough to cover his dip, magazines, etc. This account you can spend on anything you want.
3. You will want to have a savings acct as well and transfer funds regularly into it. I'm using an HSBC checking acct for my savings because I can keep the check card locked in my safety box and we have no local branches. IF, and only IF, I needed the finds for an emergency, I can take the card and use them but by locking the card away, I am not tempted to use it. I also set this acct to online statements only.
4. In Microsoft Money, I have each of my bank accts listed and I enter data daily. I am scatter-brained but, with time, you can train yourself to become compulsive Since one acct is with a CU, I can have stuff clear even on weekends. I check every single bank acct daily to mark cleared transactions in Money. I also log in when I get home and enter my daily spending. All my regular bills are listed and set to post to my acct 1 week in advance so I can see if I will have trouble making the bills. Most of my income is very irregular so I have to closely watch my budget.

I started with pen & paper but kept loosing the notebooks.

(I'm laughing WITH you, I swear. This sounds just like me!)