Tracking Money Sucks

DaBearsBride

I'm still getting the hang of this but as per your suggestions two weeks ago I started tracking every penny along with budgeting for bills and a new house down payment. Let me just say this, tracking money sucks! I spend WAY too much eating out. I'm talking over $100 a week on top of groceries. Gross. In better news, I should be saving a lot more money now that I'm quitting fast food!

HoneyBee973

It is an eye opener!   

LS45

Yeah, just wait until you see how much you spend on things like clothing and entertainment over the course of a whole year!

lifeonthehill

Cutting out things you are so used to is really hard so congratulations on taking this step. It will be great when you can really see that money spent better elsewhere.

I have gotten really good at not spending money on clothes and H had to beg me to buy a pair of jeans I loved that were on sale today. The ones I own are either ripped or too small not to mention all of them are at least 3 years old. I do all of our money related chores but I am starting to think I should let H really take a good look at how much his weekly guys nights are running us. That would wake him up! haha.

Ducktale

HoneyBee973 said:

It is an eye opener!   

Yup. I first started tracking expenses to the penny about 4 years ago, and I know I way underestimated how the little things added up. A Starbucks run was only $5, cute tshirt only $10,target dish on clearance for $8... But then I saw how all of that adds up! Now I consciously think about where every dollar goes, and while we still get Starbucks on occasion, it is not absent minded. Tracking money alone has saved us thousands alone.

hoffse

I think PP's point is spot on - the trick is to get to the point where you aren't spending absentmindedly.  Tracking your spending for a couple months each year helps you see where the leaks are in your spending - the places where you fritter money away without realizing it - and then you can start to plug the leaks.

I do think it's fine to make non-Dave-Ramsey-approved purchases while you're cleaning up your spending habits.  Telling some people to cut out starbucks entirely is like telling a person on a diet that they can never eat another dessert.  That just sets you up for failure.  If the $5 coffee is the only way you can face a Monday morning, then compromise with yourself and swing by the drive thru on Mondays... but not the other days of the week.  That's still spending money thoughtfully, even though you're buying something overpriced.  You're making that choice consciously now, rather than out of force of habit.

I also think it's fine to blow budgets once in awhile when you run into a great deal on something you would be buying in the next couple months anyway.  Not often, but once in awhile.  Example: starting in September of each year I incorporate a $150 gift budget into my spending to make sure I don't bankrupt myself in the fall and winter with all the birthday and holiday gifts I have to buy - literally every birthday I buy for is September through December, so it's a very expensive time of year for me.  Well this past weekend I went over my budget by about $40 because I found some crazy good deals at an estate sale - and my grandparents and mom love antiques.  I'm ok with that because I ended up spending a lot less on them than I normally do, and I was going to be buying them gifts regardless.  So the next few months will be less expensive than I planned.  Once you have some cash stashed away for things like this, then your budgets can become a bit more fluid and you can start to take a more long-term view.  Ultimately you probably save more money this way... as long as you don't fall into absentminded spending during months when you seem to swipe your credit card all the time.  Sticking to a strict budget while you are getting used to it helps curb that, I think.

court115

HoneyBee973 said:

It is an eye opener!   

That's for sure! The first month I started tracking we spent almost $1,000 on fast food and going out! That stopped real quick.

Sisugal

You cannot solve a problem until you properly identify the problem.  Tracking spending opens your eyes to the source of the problem.  From that info, you can adjust your budget/spending accordingly to meet your true goals.

 

You are on your way.  Best of luck.

Mom987

DaBearsBride said:

I'm still getting the hang of this but as per your suggestions two weeks ago I started tracking every penny along with budgeting for bills and a new house down payment. Let me just say this, tracking money sucks! I spend WAY too much eating out. I'm talking over $100 a week on top of groceries. Gross. In better news, I should be saving a lot more money now that I'm quitting fast food!

Yes!!! I recently made a vow to not purchase ANYTHING Monday-Thursday, unless a bill is due. If I do anything Friday-Sunday, it is never overboard. It helps soo much. Also if we DO spend money on the weekend, it seems so much better being "ready" for it vs. just in addition to everything else that week.

Mom987

hoffse said:

I think PP's point is spot on - the trick is to get to the point where you aren't spending absentmindedly.  Tracking your spending for a couple months each year helps you see where the leaks are in your spending - the places where you fritter money away without realizing it - and then you can start to plug the leaks.

I do think it's fine to make non-Dave-Ramsey-approved purchases while you're cleaning up your spending habits.  Telling some people to cut out starbucks entirely is like telling a person on a diet that they can never eat another dessert.  That just sets you up for failure.  If the $5 coffee is the only way you can face a Monday morning, then compromise with yourself and swing by the drive thru on Mondays... but not the other days of the week.  That's still spending money thoughtfully, even though you're buying something overpriced.  You're making that choice consciously now, rather than out of force of habit.

I also think it's fine to blow budgets once in awhile when you run into a great deal on something you would be buying in the next couple months anyway.  Not often, but once in awhile.  Example: starting in September of each year I incorporate a $150 gift budget into my spending to make sure I don't bankrupt myself in the fall and winter with all the birthday and holiday gifts I have to buy - literally every birthday I buy for is September through December, so it's a very expensive time of year for me.  Well this past weekend I went over my budget by about $40 because I found some crazy good deals at an estate sale - and my grandparents and mom love antiques.  I'm ok with that because I ended up spending a lot less on them than I normally do, and I was going to be buying them gifts regardless.  So the next few months will be less expensive than I planned.  Once you have some cash stashed away for things like this, then your budgets can become a bit more fluid and you can start to take a more long-term view.  Ultimately you probably save more money this way... as long as you don't fall into absentminded spending during months when you seem to swipe your credit card all the time.  Sticking to a strict budget while you are getting used to it helps curb that, I think.

Totally agree with your diet analogy! It's so hard to be 100% on anything. I try not to spend M-Th, then spend conservatively Fri-Sun, so it's a great compromise.