Sticking To My Budget

I follow a fairly strict Zero balance budget, which includes a weekly spending allowance. For all my cash expenses, meaning those expenses that are not paid through automated payments, I use a cash envelope system. These expenses include my weekly spending allowance, weekly gas budget and weekly grocery budget.

Since my paydays fall on a Friday, my week runs from Friday-Thursday. Yesterday (which was a Thursday), I was tested on my will to stick to my budget. I wanted to treat my son to Jamba Juice since he'd had a long week at school and I had to drag him to an event that I was working at for the evening. 

Of course, prior to going to Jamba Juice, I double checked how much cash I had left to spend for the week. I had $8.00 left in my weekly spending allowance envelope. From previous trips to Jamba Juice I knew that $8.00 wasn't going to be able to buy both of us our normal Jamba Juice order. (Small Orange A-Peel for him and a Medium Aloha Pineapple for me). I contemplated just getting his drink, but I wanted something to tide me over until we could get home and eat dinner. 

I could have taken out cash as an advance for my weekly spending allowance for this week that started today, but I wanted to stick true to my budget, especially since my purchase was more of a want than a need. Instead I remembered that you can get a large and split it into 2 small smoothies. This would only cost me $6.00 for both of our drinks. So I compromised to fit my budget and got a large smoothie of my son's favorite flavor that we split.

You can call me cheap, frugal or a penny pincher. However, I don't mind any of those names at all. I know that the behaviors that I practice today will help me to reach my financial goals and eventually financial freedom. 

So here are a few lessons from this short story that you can apply to your personal finances: 

1. Stick to a budget.
Take control of your money and don't let your money control you. You earned it, you tell it where to go and when. 

2. Use a Cash Envelope System to manage your spending.
By using cash you can visually see how much money you have allowed yourself to spend on certain things. If you just swipe your debit or credit card, chances are you will overspend and maybe even overdraw your bank account. 

3. Save where you can.
If I purchased 2 Small smoothies, it would have cost me about $9.00. Instead I ordered a large and had them split it in two for only $6.00. That's a $3.00 savings and didn't cause me to break my budget. 

4. Assess your purchases as a need or want.
Although to felt like I "needed" to have a Jamba Juice to tide me over until dinner, it was a want. I could have found something else to snack on that wouldn't cost me as much. However, since I'm pregnant, when I have a craving for something I tend to do whatever I can to get it. So I compromised and came up with a solution that was a win-win. 

5. Check before you spend.

I remember when I first started using an envelope system and I went to the checkout and realized I didn't have enough money. As embarrassing as it was to ask the clerk to take off an item or two, that mistake could have been avoided if I had just checked how much money I had before I started shopping.

Stay tuned for more blogs on Using an Envelope System. It's a lot easier than you think!