2.0 Building Your Own Budget
In This Section You Will...
- take the info you prepared and set up your budget in the template
- start entering transactions into your budget
When I first started budgeting for real, I made two commitments:
- Enter every transaction into a spreadsheet
- 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.