Since the hubby and I are on this road to become debt free one thing that we have learned that has really helped us to save money is by doing a budget. When it is close to the pay period we will sit down with my home management binder, computer, bills, and a calculator. We then work on our "zero based budget" that is recommended by Dave.
With the "zero based budget" you have different categories such as transportation, tithing, groceries, utilities, and other categories that may happen in the future such as birthdays, and Christmas. You then "plug in the spaces" until every last dollar and cent is accounted for; hence "zero based".
We have really saved money by doing this type of budget because everything is really "broken down to barney level" for us. We can see exactly where every dollar and cent will be going. Before we use to sit down write down the bills, pay the bills and whatever was left we would then go grocery shopping and spend the rest. Now we know how much money we have to spend on gas for vehicles, groceries, clothing, and even entertainment. We are now aware of where our money is going compared to us saying "where did the money go".
Over time we will really see a saving by doing the budget because the money that we do not use will be going towards debt. For example, if we have $200 for gas for our vehicles and we use $150, that $50 will be able to be used for a debt.
I say now that I don't mind doing the budget, some day I hope to say I LOVE doing the budget!
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