Under Budget Vacation

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This past weekend, I was invited to go up to northern Utah.  I was born there, but really haven't ever been back, so while a holiday weekend wasn't in the Spending Fast budget, I decided to treat myself and go anyway.  I've heard that flights can be relatively cheap from Las Vegas to Salt Lake City, so I looked into it.  $235.00 for an hour flight, round trip.  Hmm...

I then went over to Gas Buddy and calculated how much my trip would cost in gas.  $137.00.  It was the responsible thing to do.  I had already decided on a $200.00 budget for the weekend which was to include gas, food, and anything else that might need to be purchased, like souvenirs...

I had an amazing time, and was able to see and do so many fun things.  My "tour guide" was so thoughtful to plan and prepare our every activity, and make sure it was Spend-Fast-friendly.  And the best part is, all in all, I spent $197 and change!  Hooray for staying under budget!

The Purchase Process

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For a compulsive spender, like myself, err former self, OK fine, I'm still working on it; buying things I didn't necessarily want or need was just a way of life.  I've mentioned before that I hate shopping, hate it!  But if I happened to run to the store for a white tee shirt, I might pick up a new Spring wardrobe too. 

The hardest part of the Spending Fast so far has been not going to places where I'll spend money (ie. pretty much everywhere).  Target, Walgreens, CVS, the mall, you name it, I'm not going.  However, there are times when I have had to go to the store, for example to buy my groceries.  I had no idea how much fun buying groceries is until I wasn't allowed to buy anything else.

In order to help keep me on track (and this will work for anyone trying to save money), whenever I feel the urge to buy something, I have been doing a little exercise to help me get over it.  I have even gone so far as to put this exercise onto a Post-It note which I have stuck to my debit card.  The exercise is as follows:

1.  Ask yourself "Do I NEED it?"

Yes → Proceed to #2

No → Put it down and walk out of the store.

2.  Ask yourself "Do I already have something like it?"

Yes → Put it down and walk out of the store
No→ Proceed to #3

3.  Ask yourself, "Is it well made? Will it last a long time? Is it a classic style that I won't get sick of? Is it a neutral color that will go with what I already own? Do I LOVE it!?"

Yes → Proceed to #4

No → Put it down and walk out of the store.

4.  Ask yourself, "How much is it really worth?  How long will I have to work to pay for it?  Do I have coupons?  Will it go on sale?  Is it cheaper somewhere else?  Is this the lowest possible price I can pay for it?  Is it worth spending the money on?

Yes → Proceed to #5

No → Put it down and walk out of the store.

5.  Sleep on it. 

6.  Repeat this process.  Do you still want it?

Yes → Buy it.
No → Don't buy it.

Typically, I've found that for every single item mentioned on Ooo, Sparkly Things, I don't need them as much as I thought I did after going through this process.  Does it work for you?

Free Money Tracker!

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I'm not sure if anyone has noticed, but I uploaded a free money tracker to the sidebar of this blog (Click the picture to open the Excel document)!  As I have previously mentioned, I think the word "budget" is a dirty word.  It automatically inflicts overwhelming feelings of failure before one has even begun to create it.

Unfortunately, some way of tracking finances is essential to anyone who wants to come out on top!  I have created a "Money Tracker" if you will.  It is a super simple spreadsheet, allowing you to plug and chug your numbers every month.  There is also an area for "Projected" amounts (ie "budget" ick!), in case you feel so inclined. 

I am finding this spreadsheet very helpful during my Spending Fast.  I know exactly how much is going where, and it also helps me to see where I can cut back.  Below are the simple instructions on using this document.

Using this template is really quite simple. I have tried to include common expenses that most people have. If you need to add to your template to suit your needs, feel free to do so. Also, if there are any categories that do not apply to your current lifestyle, don't use them! This sheet is free for the tinkering! It is here to help you!

Step 1: Input Your Projected Costs.

Your Projected Costs or Projected Monthly Expenses are a guess of what you think you pay for a specific item every month. If you have no clue what you're paying, (yikes!) that's OK! Just grab a recent bill, or look up your last payment online; I recommend rounding to the nearest ten dollars.

For example, if you spent $57.25 on your cable bill last month, project $60.00 (The template will also automatically round to the nearest dollar). This will give you a little leeway until you're more knowledgeable about your finances, and can fine tune your "budget" (ick!).

Step 2: Input Your Projected Monthly Income

Your Projected Monthly Income is where you will put in what you think you make every month. I know it seems strange, but would you believe there are millions of people out there who have no clue how much money they make?!? 

I have included room for two paychecks (for each traditional pay period), if you get paid more than twice a month, you're lucky! Pass go, collect $200 and add another Income row! I have also added space for extra income. This is for money you might make from a side business, extra money from tax refunds, or just money you found on the ground.

Step 3: Your Projected Balance

Now that that's done, it's time to check you Projected Balance.  This is going to be the rough estimate of how much money you'll have leftover after all of your expenses are paid. The Projected Balance takes your Projected Income and subtracts your Projected Expenses. This number will show you a guess of whether you are overspending or not.

If you projected balance shows up in the red (i.e.: ($600)), you have a problem, and need to re-think some of your expenses, or find a way to add extra income. You definitely do not want to be in the red, EVER!  If your projected balance shows up as a green number (i.e.: ($200)), hooray! You're doing alright, and have leftover money - hopefully to add to your savings, or retirement!

Step 4: Input Your Actual Monthly Income

When you get your first paycheck of the month, you are going to enter the Gross Income in your Actual Monthly Income area for paycheck #1. The Gross Income is what you get before Uncle Sam robs you blind. It's the number you were paid for the work you did (not what was actually given to you).

I then want you to go to the Taxes section and enter the actual amount of taxes taken from your check, all of them. The total for this number will show up in blue. I don't want you to get confused and think this is "extra" money you have in your "budget" (ick!), I just want you to know how much you're paying (this will also help you determine what tax bracket you're in- which is useful in planning for retirement.  See here and here).

Next go to the Savings and Investments section. Since many of these contributions come directly out of your paycheck, enter them as well. They will also come out as blue numbers; because it's not money you actually have in hand, its money you've already spent (aka saved).

Step 5:  Input Your Actual Expenses

As you spend money throughout the pay period, find what it is you spent money on and then enter what you spend in the Actual #1 Column.  Actual #1 means "what you actually spent from your first paycheck of the month - typically between the 1st and the 15th.

For example, if you spent $12.13 on hairspray, simply find the category Personal Care, then go down to Hair/nails and in the Actual #1 Column, enter $12.13.  Again, the template will round this number to the nearest whole dollar amount. 

When you are entering your expenses, you have to add them and enter the total, the tracker won't do that for you.  So, if you spend another $75 on a perm, you'd go the same cell mentioned above and enter $87.13 ($12.13 + $75.00) and the tracker would round that number to $83.

Do this with everything. EVERYTHING you spend for the pay period. If you're doing the Spending Fast, this should be easy, because you're not supposed to be spending money, therefore you'll have less receipts to keep track of!

Repeat Steps 4 & 5 for any other paychecks/income you receive for the month.

Step 6: Your Actual Balance

After you've completed the above steps, take a look at your Actual Balance.  This is going to be the actual amount of money you'll have leftover after all of your expenses are paid. The Actual Balance takes your Actual Income and subtracts your Actual Expenses. This number will show you whether you are overspending or not. 

If you Actual Balance shows up in the red (i.e.: ($100)), you have a problem, and need to re-think some of your expenses, or find a way to add extra income. You definitely do not want to be in the red, EVER!  If your projected balance shows up as a green number (i.e.: ($1)), hooray! You're doing alright, and have leftover money - hopefully to add to your savings, or retirement!

Step 7:  Your Total Difference

At the end of the month, look at the Total Difference in the bar one the top left of your template.  This number is your Projected Expenses minus your Actual. This is the only number you want to be in the red! If it is, that means you spent less than you anticipated you would spend. Congratulations!

This number will also match the Difference over on the right side of the template. Here the same number will  appear, but because it is your Actual Balance minus your Projected expenses, the color will be opposite of the Total Difference. You want this number to be green. Green means you saved money! Let's recap to avoid confusion:

1. If the Total Difference is red than Difference is Green = Good!
2. If the Total Difference is green than Difference is Red = Bad!
3. If the Total Difference is $0 and the Difference is $0 = Not great, but at least it's not red!

Tada!  That's it!  Pretty easy right?  I hope you find this template useful, and good luck!  To see a sample of this Money tracker, click the sample below!

Sample Money Tracker

A Forecast of Things to Come? Hopefully Not

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Although I don't plan on starting the Spending Fast until Friday, I tried to get a little practice of "not spending" with my last paycheck.

FAIL.

My goal was to only pay my bills, pay for my trip out of town this past weekend, and I wanted to get an emergency pre-paid debit card in case something comes up during the next year and I absolutely have to spend money. 

Well, I paid my bills, and I paid for double my trip budget (I was going to split the cost of the hotel room, but I ended up having to pay for all of it).  And then there was a forgotten credit report I pulled and paid for, and some stock photography for my garden blog design, some iron on t-shirt transfers, because... I don't know, I just bought them, a few smoothies... Oh yea, and that shopping trip to Old Navy and Forever 21 for some "but I really need summer clothes before it's too late" binge. 

Instead of having close to $325 left over to use to get a head start on my Spending Fast Savings, I actually ended up going over my budget by $95.  Doh!

This "not spending" thing is going to take a lot more discipline than I thought.  I'm determined to do it... because if I don't, I'm only hurting myself.