So we are now in the new year of 2014 and one of the first things that I did was to go and do a revamp of the budget. I also focused on a few areas I need to work on in my daily life but the budget is the main point here.
I reset all of the categories to zero in the rolling budget so that I can track the entire year of income and expenses without the effect of 2013’s numbers. I reduced the budget for housing expenses because I had it a little too high as my rent went down. I will now have my housing expense at $30 less than what it was in the last rolling budget.
I also shaved $10 off my gas budget because I do not really drive all that much now that I am in school. During the long semesters I can catch the shuttle from my apartment to my office and to class on most days. Last semester I only needed to drive one school day because my classes ended later than the buses ran. This spring I am faced with the same situation so I will be able to save on gas as well. Church and the grocery stores are close by and many times when I hang out with friends it is directly after class, so that cuts down on my driving as well.
I have a dedicated $100 going to my Tuition sub fund in the rolling budget so that I can smooth out the tuition costs over the year. I will add that money in from the savings from reducing other budget categories. $50 of that will come from a direct budget allocation and the other $50 came from savings in certain areas.
I will supplement the reduction in food and shopping categories with the gift cards I get from redeeming my Swagbucks and that should keep me at about the same actual spending level as last year, without affecting this year’s numbers.
Mint is getting better, much better. But in terms of truly effective money management, the budget still falls short of a true envelope based budgeting that encourages you to budget for every dollar you make. Without such, there’s still room for money to slip away without being noticed.
Well I don’t use a physical envelope because I don’t use cash…but I do have a ‘virtual’ envelope as I have each category in a spreadsheet in Google docs. I enter my receipts nightly and when a category gets low I just don’t shop in that ‘envelope’ any more.