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Funding: The Magic to Budgeting

January 10th, 2008 at 03:20 pm

I have started to reach a really weird point in this budgeting project. I知 looking forward to paying bills.

Let me explain. Each month, ok I知 on my second budget, I create a budget and every week I get paid and allocate that paycheck into different items on the budget. During the week, we try not to go over the funded part of the budget.

I am currently $1.20 over budget on my groceries and $20 over the funded amount on eating out, but way within budget. BAD MERCH!!!! I should allocate other money from a different envelope, but I get paid tomorrow. So, I値l take care of this tomorrow.

I use credit cards for all my transactions. Mvelopes.com keep track of all the transactions and I drop them into the right envelopes. When I need to pay the credit card, I look at the balance in Mvelopes and pay that to the CC, usually the same day I receive the bill.

No sense in waiting. The money is already spent on paper, just send out the check.

Now the worst thing about my bills is that they all are due at about the same time. For me, I have a mortgage, car payment, health insurance, escrow payment (house insurance and taxes), and medical bills all due around the 15th. This in the financial world is called a liquidity issue. For that week, my outflows are way greater than my inflows.

So what do I do? I save a piece of these bills every week, so when the 15th comes, the money is there. For me, it will take we 2 months to burn in my funding plan. In other words, January is going to be tight but it should set me up for a good February.

So, I知 keeping my eye on this month will looking forward to February. I still have goals on the left side that are realistic but I値l need to keep a tight leash on the budget to accomplish everything.

Secretly, I知 wishing to accomplish more.

3 Responses to “Funding: The Magic to Budgeting”

  1. Aleta Says:

    The only way that we were able to get ahead of the budget was by saving up money to be 1 month ahead in those items needing to be paid out that month.

    I just recently called my private health insurance company and asked them to change the date on my ACH and they did. Alot of companies will work with you. By the way, if you can save up for a month, you could consider that 1 month of your emergency money. Good luck!

  2. sagegirl Says:

    Merch this is exactly the position I want to be in next month. I also like the idea of having a total month's expenses so I am always one month ahead. I need to be more diligent in tracking my expenses.

  3. merch Says:

    I agree. Goal = a month ahead

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