How do you do your budget?

For years, I made excuses. If you're here reading this blog, you've probably done it too.

"I just am not making enough money to pay my bills!"

That might be true, but it usually isn't.

"I could have sworn I had more than that in my account!"

You didn't.

We do stupid things like checking our online statement when we feel like funds might be getting low. We'll call the bank every so often just to do a double-check on things. We feel like we're being so responsible.

We're not.

One of the first things Dave Ramsey tells his pupils in the Financial Peace University course is that you have to "give every dollar a name." 

That really resonated with me. It makes a ton of sense.

The rationale behind it all is that you don't buy a single thing without accounting for it. No matter how small the purchase. Every dollar has a name.

You stop using words like "about" and "approximately." Broke people use words like that. People who overdraft on their bank account use words like that.

That used to be you. It isn't you anymore.

You need to make a decision. Are you content with living the way you have been? Is what you've been doing working?

If you've never done a budget before, I mean a real budget, the task can be daunting. Dave Ramsey has some good forms you can download HERE that will help you get your feet wet.

The point is this: It doesn't matter how you do your budget. If you're not a big numbers person, use the Dave Ramsey forms, or find some other sample budgets online. 

Some of you will want to keep things written down. Some of who are more computer savvy will want to do it all electronically.

I personally prefer to use Microsoft Excel. I'm a huge nerd. I have one spreadsheet file that tracks our monthly bills down to the penny. I have a second spreadsheet file that tracks the sub-budget items.

Here's an example of what I mean.

Every month, my wife and I budget a certain amount of money for certain categories, such as: 

- Eating out

- Medical Expenses

- Car Maintenance

So on and so forth.

But it isn't good enough just to know that much. I need to account for the sub-items as well. 

Let's say we have allotted ourselves $60 a month for eating out. If we go out to Red Robin on Friday night (I love Red Robin!) and spend $25, I need to log that amount in the sub-items spreadsheet. That way, I know where it went and that we've now got $35 left in the budget for eating out this month.

You might think that's extreme, but guess what? I'm never surprised. I never have to approximate how much money we have left. I might not always know off the top of my head, but with a quick look at my spreadsheet, I can give an immediate and exact answer.

I started my budget right when Kim and I got married in October of 2009. I've been faithful to it ever since. If I can do it, you can too.

The spreadsheet method is what works for me. I geek out on numbers and formulas. I enjoy it. If you don't, you need to find the method that works for you.

Remember, you're going to be doing this for the rest of your life. This isn't a trend or a bandwagon that you're hopping on. You're making a life change.

Stop making excuses and start making a budget!

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