Fridays are dedicated to Financial Matters. At the beginning of the year I decided to take the money horse by the reigns buckling down to pay off debt and save for retirement. Every Friday I share a part of what I learned and implemented, whether the outcome was positive or negative, and what I’ve learned.
Budgeting with a Zero Based Budget
The first attempt at a budget, I didn’t see a big difference. Even though I did the cash envelopes, I had missed some categories, ie. saving money for car registrations, major car repairs, school fees, etc. And I also learned which categories I had missed after working with what I had for a month.
There was a lot of information out there about budgeting. I decided to use Chris Hoffman’s spreadsheet developed from Dave Ramsey’s information. Link is here: http://angus65.com/dave-ramsey/dave-ramsey-monthly-budget-1/
I completed a zero based budget using these categories. Ultimately I have implemented a cash envelope system for most things, ie. groceries, entertainment, music lessons, etc., and a few categories in my savings account that would not be used up monthly ie, school fees, car registration and major vehicle repairs.
I felt more in control and headed off for another month to see how everything played out.
What have you done? Cash or implemented a budget alone? What was your success?