2.0 Building Your Own Budget

In This Section You Will...

  1. take the info you prepared and set up your budget in the template
  2. start entering transactions into your budget

My Journey

When I first started budgeting for real, I made two commitments:

  1. Enter every transaction into a spreadsheet
  2. Pay attention to every dollar and how it was used

I did not police my spending at all. I didn't want to stress myself out by trying to eliminate every source of wasteful spending and downing myself every time I spent too much. I kept spending as I normally would, only now I was aware of what the money was doing.

At this stage, I practiced half of the 8 money management habits (1, 2, 5, & 6). I wasn't saving any money and while I paid my credit cards in full every month, I didn't stop using them because I was dependent on them to carry me to the first paycheck at my new job.

As I started to see areas where I could spend less, I challenged myself to reduce spending in a single area and put that money to use elsewhere. As soon as I could, I stopped using my credit cards and paid down some debt and added some to savings, as much as possible.

Gregory Hardy