I Really Should have Made a Budget Years Ago!!!

So after almost ten years of marriage, my wife and I have finally done it!  We finally sat down and figured out a budget.  All this time, we've literally been living paycheck to paycheck.  We felt so strapped for cash, that we were actually afraid to sit down and create a budget.  We've had our investments that automatically come out of my pay, but we've never really sat down to figure out how much money we have coming in vs. going out.  Well, we finally did it, and it's flat out astonishing.

I can't believe I didn't do this years ago.  More importantly, I can't believe how much money I've thrown away over the years.  To tell the truth, I don't even want to know.  I do know that it is FAR more than I would have imagined we were throwing away.  We didn't even realize how badly we were doing!  So, to share the lesson, I'd like to talk briefly about what we did.

So, I created a quick and simple Excel spreadsheet that does the math for me, though I bet there are even easier ways to do it.  But I added up our income vs. the bills (including estimates for gas, groceries, etc.)  What I realized immediately, was that we were using a HUGE amount of what was left over, like it didn't matter.  And I mean this number was literally SHOCKING to me!  I can't believe how quickly money goes away, just by using the debit card and not really tracking WHERE the money was going.  We had a huge problem.

Here's how we fixed the issue.  We gave ourselves an allowance.  We now go to the ATM after every paycheck, and draw out the cash we are going to use for spending money.  We get x amount of dollars per paycheck to use however we see fit.  I think this is important, or you're defeating the purpose of creating a budget, and trying to gain financial health.  You have to pay yourself as well!  Otherwise, what is the point in getting a pay increase, or anything else, if you don't get to enjoy ANY of it.  But we were able to give ourselves a pretty reasonable allowance. 

So what is the point of the allowance?  Well, it's for everything else!  All the times we stop by the gas station to grab a drink, a snack, or anything else.  Every time we go out to lunch, go to the movies, or anything else, that money all comes from our allowance.  So even by creating an allowance for myself, I now find myself paying even MORE attention to what I'm spending my money on, and looking for the best deals.  Instead of losing change, I am now keeping it in my pocket so I don't have to break any bills if I don't have to.  My frugality has increased ten-fold. 

Anyway, I don't think I will be able to convince you of the importance of creating a budget for yourself.  Nobody was able to convince me of it.  It wasn't until I actually sat down and did it, that I realized how important it really was.  It's RIDICULOUS how much money we were throwing away.  How much you ask?  Well, I won't give specifics, but if I stick to my new budget, I will be saving enough money, to realistically pay cash for a Corvette, in just a few years.  That's how much money we were throwing away!  RIDICULOUS!!!

In closing, do yourself a favor, and go create a budget if you haven't.  I thought I didn't need it.  Actually my wife and I were afraid to sit down and make a budget.  But now I am SO glad that we did.  We REALLY should have done this earlier!!!!