So that whole budgeting thing…

In one of my very first posts (shouldn’t be too hard to find, considering I only have 7 posts in total), I talked about how I was going to start budgeting.  So, that was back in March…I think.  Back when I was optimistic and looking forward to taking on this new challenge.  Unfortunately my motivation only lasted a couple weeks, and work got busy, and life happened, and really…how important is keeping a budget anyway??  Well, now that I am back from a week’s vacation and broke until my next paycheck, I’m realizing that I should really get back into the budgeting swing.

A couple things I learned from my first, albeit brief, time around:

1.  I really do become more aware of my spending when I’m entering it into a spreadsheet every day.

2. There will always be unexpected expenses that pop up and I can’t let myself get frustrated by them.

3. I could definitely put more into savings every month.

4. I spend way too much money eating out, drinking out, and socializing.

Now let’s focus on that last one.  I’ve noticed that aside from the occasional new piece of clothing or Kindle book, those social activities are where most of my monthly disposable income goes.  The downside to this is that I spend so much money on these activities and they provide a couple hours of entertainment but really nothing else to show for it.  I’ll admit, I love trying new foods and drinks, but do I really need to spend $30 on an average Friday night happy hour at the same places with the same people?

I think in this next phase of budgeting, I will need to incorporate some journaling of my spending habits.  The focus needs to be on how I feel after I spend and was it worth it.  I will think about how I could spend less money next time while still maintaining the same quality of life and social interactions that I love.  It really just boils down to me being smarter in these situations and thinking about the consequences and benefits.  Do I really need to spend $20 on three beers (ah…DC prices…), when I could just have one beer and pocket that other $13 for…umm…well something that’s not beer.

So I’ve Started Budgeting…

Heh…the calculator says “boobs”

I created a budget last night.  Or – more accurately – I tweaked a budget that someone else created.  Either way, it was way overdue.  My financial life was in desperate need of some structure.  I’ve decided that I need to track every single cent for a couple months and figure out where all that leftover money after bills and necessities was disappearing to.

I had a friend email me her budget template, and then I made a few small changes to tailor it to my monthly needs.  It includes my regular monthly bills (rent, student loans, student loans, student loans…etc.) and my other monthly expenditures (food, Kindle books, beer, the occasional article of clothing).  Honestly, I have no idea how much I should be budgeting for food, eating out, entertainment, and those types of things, so I basically winged it.

I’m most curious to know where exactly my money is going.  I’m pretty sure the majority of my discretionary income goes to eating and drinking out.  I don’t buy clothes very often, I don’t do a ton of online shopping, I mostly can’t stand going to the mall, and I’ve kicked that unsuccessful online poker habit, so there’s not much I spend money on these days.

My main goal is to have more money in savings at the end of every month.  I mean, how am I supposed to hike the Appalachian Trail or buy a car  – and I’m not even talking about a new car – on what little savings I have now?

I plan to report back at the end of this pay period and again at the end of the month and document where I stand.  That should be interesting…for me at least.

At the end, I plan to have a large roll of $100 bills…just like this one…yep.