Mental Meanderings

Budgeting

Now I've got my mortgage account (Equityline) sorted out I've been knuckling down to developing a habit of budgeting. I'm new to it all and it certainly seems fairly complicated but hopefully by keeping track of my spending, and sticking to my goals I'll be able to develop a sound saving plan as well as get the renovations on my house done.

For the moment things seem distant because what I earn comfortably fits what I currently spend but doesn't leave much left over for savings. I think over the next few weeks I'll be searching out ways to save money and I know I'll be surprised by how much I save because I always over estimate rather than underestimate. For example, I say my electric bill is $100 every two months when usually it comes in under $80. I budget for $100 that way if I have a high month I'm not left short but more often than not I don't need that much so I save money there. Same goes for my Gas and Telephone bills. I round up all expenses and round down all income.

I downloaded a terrific spread sheet for tracking my expenses. It's very full with details and gives you a great idea how much your spending. To that excel book I added another page where I can keep track of how much within my limits each fortnight I've spent. For example, I budget $100 for food each week so within the fortnight I have two weeks of food listed at $100 each. If I go shopping, like I did this morning, for milk and bread etc. I put in how much I spent and subtract it from the $100 limit to see how much shopping budget I have left that week. Same goes for other categories like medical, entertainment, electric, gas etc.

I'm also aiming to keep strictly to my shopping lists when I'm out. I plan to stop buying chocolate and other junk stuff that doesn't satisfy hunger and is an impulse purchase which I don't need. By sticking to my list it helps take away the temptation. Now it's a process of sticking to my list until the temptations no longer jump out at me. I have to break the habit of buying those items just because they are there. Today in the shop I was tempted to get a cherry ripe for the ride home, it's not on my list so no cherry ripe. I miss the cherry ripe but I've saved money that can go towards my goals for the house. Those little purchases add up quickly if you aren't watching them carefully.

I know, I'm only 23 remember, so it's understandable that I'm only now coming into this sort of process. Most of the people who read my journal have probably been doing their own personal budgeting in the way that works for them for years. If you have then idea's and comments are very welcome.

It's one small step for the financial world, one giant leap for Rebecca's bank account. Wish me luck and will power lol.