For a long time I spent what I had. Whatever that was in the bank, or laying around, that was what I had. As I watched those numbers dwindle, I’d try and cut my spending down. But in the end, there really was no plan or strategy.
It’s also a fallacy to believe just because you have little to no money, that you are spending that money wisely. I guarantee if you have little money, with no plan or budget, you are having a tougher time getting by than if things were planned properly.
So what is one of the things you can do about it? Have a written budget. A monthly one. There are many websites out there that will help you with this, so I’m not going to get too much into specifics, I just want to make the case that you need to do this.
I’m also a big believer in going CASH ONLY. Credit cards and plastic make it too easy to lose track of what you’ve spent and how much left you have. Forgetting the debt trap credit cards will put you in. So, ditch the cards completely.
I use weekly envelopes of cash for variable expenses like food or fun. What’s in the envelope is what I’ve got to work with. I can eyeball it, and decide whether going out to eat at a restaurant is a good idea or not.
It took me a long time to get my act together and budget. And I’ve found, even as I’ve made more money, the need to budget and track my expenses is more important than ever. It is SO easy to overspend. The less money you have, the less opportunity you have to correct from overspending.
If you’d like to go deeper on this, I’d recommend the book Total Money Makeover by Dave Ramsey. You’ll get some bible quotes from him, where he draws inspiration from, but otherwise the advice I’ve found very good and very black and white. He likes to kick people’s asses, and sometimes that is what you need.
If you don’t have a strong mapped out budget, please work on it. It will make a big difference.
