Monday, November 10, 2014

Budget for Blonde - Do You Really Need It?

     You've gotta have a budget - I hear this form every financial guru out there. Without a budget you will not be able to control your money. So, as a girl who wants to have her finances under control I made a budget. It lives in my excel file, it is color coded with fancy formulas that make the math automatic. There, I can find how much I spend on clothes, and shoes, how much my make up costs, petrol for my car, food and bills. I must say I would give me a very clear picture of my finances. I was very excited. There was a little issue with that budget; I had to feed it detailed numbers constantly. Not too sexy I got bored and eventually irritated so ultimately the project budget got abandoned.

     If you don't know where your money is going how are you going to give direction to your finances I read again. Everyone out there is saying it. Everyone must be right. There must be something up with me. So here I go again, making another excel with all the fancy columns and formulas, making it my own. This time I am putting less of details, I make it pink and pretty. My budget looks good and I am pleased. They say that history likes to repeat itself. They are right. I sicked to budged number two for two months the most. Of course,  this project got abandoned just like a previous one.

     Girl track your money, you ought to know how you spend it - another friendly advice about the same B word. I am so not going this path again. Then I had a thought, perhaps blondes and budgets do not mix well. Perhaps there is some quantum mechanics in universe that pairs blondes with fun and budgets with everyone else. In any case I am not doing it. Period.

     I took a piece of paper instead, and a pen. I wrote down all my bills, all my living expenses. Where I knew the numbers I put them down, where I did not I estimated them. Very simple, almost primitive budget template. My big expenses that come once or twice a year, such as taxes or insurance - I added them up accordingly and divided them by 12. This gives me number that I know I need to put aside in for the big bills. I did it only once, and my life is simple now. Moreover I am able to track my expenses since there is only one expense to track.

     Now, when the cheque comes in first thing I put 10 percent in saving. Second I put aside consolidated big boys (such as taxes, car and house insurance). In addition I put aside estimated utilities, and mortgage.

     The rest I spend - literally. I no longer worry which category this fits. I buy whatever I need to buy, or want to buy. Not tracking every penny, in fact not tracking it at all. I just log in into my bank account once a week to see what is the balance. If it is fat I do not worry, if it is thin I trim my spending. This is it!

On the months that I will have something left over from my utilities (I am yet to see that) I will simply transfer this money into saving. Even if it will be just $ 5 dollars, since these $5's do add up. I wrote how powerful are pennies. In no time they turn into thousands.

    Do you keep a budget ? How do you do it? Please share with me your story.

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