Budgetting Hack.

It’s payday! The day I run to the Trafford Centre and immediately start spending all of my disposable income on treats that I have convinced myself I need in my life. Well, NOT ANYMORE!!  I have a terrible relationship with money. It burns a hole in my pocket and no matter how hard I try to save, I always end up spending way more than I should. But now it’s time to stop.

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I have a wedding to pay for, a house to look after for and savings to grow!

I’ve realised that part of my problem is that I never spend physical cash; I always use my card and so I never actually see the money leaving my purse. This removal from my earnings means I’m not as responsible as I should be so this month I’m challenging myself to only spend cash. Not just that, but I’m pre- budgeting my spending for the month and I’m using the envelope method to keep track of what I buy.

What is the envelope method?

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It’s really simple. Basically, I’ve labelled some envelopes with different categories: nails and beauty, eating out, food shopping, petrol and wedding fund. I’m filling each envelope with the money I will need for the month and I can only spend the cash in the envelopes. I’m not allowed to use my card and I’m not allowed to spend more than is inside each pocket!

This should mean I’m more careful with what I buy and will try to save as much as I can throughout the month – the fear of running out of money should put an end to my impulse purchases! It also guarantees that the cash I leave in my bank as savings actually stays there – unless there is some sort of emergency, there is no need to touch that money. (That last sentence was more of a note to self than guidance for you readers!) Payday is now going to become much more productive . Not an excuse to go on a shopping spree, but a reason to sit down (probably with a nice coffee) and look over my financial situation; monitor my expenses and feel proud (fingers crossed!) of what I have managed to save in the past months.

As I always promise; I will update you as time goes on: I’m aware I have a lot of  positive changes I’m trying to implement in my life and this blog is a way for me to keep track and reflect on my progress! If you have any tips on how to best look after my money and expand my savings, I’d love to hear your ideas!

Much love,

Laura x

 

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