Total Money Makeover Week 3: Saving Some Change

So we are on the 3rd week of Total Money Makeover, and I am proud to say I'm embracing it! My main feeling is FREEDOM! I feel free from the worry that I may be spending money that I don't actually have. Before, I would spend it and then feel guilt when I would look at the budget and realize I had mady a horrible mental-miscalculation, and no we didn't actually have that money to spend.

Something we have decided to do in our envelope system is to round up every dollar we spend and save the change. By doing this we saved $9 last week alone. If we average that number for a whole year that would be $468. A nice little chunk of change resulting from very little effort. I'm thinking we will save ours for a nice little Christmas fund :)

So how is it going??

Going better than expected actually! Not perfect, but better than we have ever done before. Week one of the envelope system is under our belt. We stayed within our $60 Dining Budget. We hope to cut that back even more. We eat out way too much, but we don't want to go cold turkey on this luxury. If we did, we might go into withdrawal one day and end up hitting every drive-thru on a binge. We know ourselves well enough to know that gradual alterations to our budget will help us make permanent lifestyle changes!

We did go over our $100 grocery budget by $8. (I had to steal $8 from the Target envelope. A huge no-no I know!) Considering groceries used to be $125 or more every week, I would say we are doing a little better. Not great, but better. I set this week's grocery budget at $92 to attempt to correct the overage.

So, the Target/CVS budget doesn't officially roll over until Sunday, but we still have $12 left to spend out of $60 in that category. When that budget does roll over you will notice a change from $60 to $40. There is no way we should be needing $60 a week for household cleaners/personal care products when I am couponing/CVSing.

Saying 'No' Hurts!

Wow! We have only been on the 'Total Money Makeover' for 5 days, and it is already changing our outlook on certain things we do. Personally, it is making me realize how haphazard I have been with money the last 10 years. This new system makes us much more accountable for our financial actions. In a weird way it is making me feel empowered.

It hurts to have to tell ourselves no, but this is exactly what we need if we ever expect to 'live like no one else.' Dave's plan is making us examine more than just money, it is making us examine our lifestyle as well. We have been wasteful people with our resources. Hopefully, our eyes will continue to be opened to ways we can change for the better.

Today, a friend invited us to a local amusement park. Old me would have jumped on the opportunity because it sounds so fun and we love being with our friends. New budget-minded me had to say no, because I know that we have vacation coming up next week, and the numbers show that I can't spare the money today.

I hated to say no, but I realize these are decisions rational, budget-minded people make everyday. Either we have the money or we don't, but one thing that is going to change is spending it now and searching for it later. That is the way we have lived in the past, and it is NOT the way to be.

Sunday Coupon Preview..No need to wait until Sunday to find out what is lurking.

A must use resource for preplanning!!

This is a great website that tells you what coupons will be available in the Sunday insert. Great way to know how many newspapers you want to buy in order to stock-up on those great deals in the weeks ahead.

http://www.sundaycouponpreview.com/

Rebates Rock!

There have been alot of great rebates lately, and I have finally decided to try my hand at a few. Through buying on sale and using coupons I should be able to score a few moneymakers on this deal.

I just mailed off these rebates:

$5 SC Johnson Rebate
$10 Aveeno Rebate
$8.99 Schick Rebate

I should make $11.08 profit off this deal if the rebates actually make there way back to my mailbox. I have never done this before, and I have always been a bit skeptical of rebates. So, we will wait and see if rebates, in fact, do rock. :)

So with my new system..

...comes the royal 'do-over'. So, you will notice I have changed the dates of my experiment from May 2010 to July 2010, and I've rolled back my totals to $0. Sometimes everyone needs a do-over, and luckily this is my experiment and I have the mighty power to do so :) Now that we are going to the envelope system it is time to kick some money-saving booty!!

I've learned a great amount of info on saving money the past few months, but now is the time to actually APPLY my knowledge.

Okay, so today is July 1st and today is the day to fill up my envelopes. No more check-card purchases on groceries, eating out, or household purchases (i.e. Target, CVS etc.). Since this is the first month I am not going to deviate from our previous budget goals very much. The main goal for the month of July is to simply not go over-budget. If we stay within these numbers we will consider this a major success. Remember, our main problem has always been not sticking to our online/Excel made budget. There was not enough accountability in that system for us. They were more like 'virtual' numbers than real. Once we accomplish this July goal of not going over I hope to be able to lower our monthly budget a little bit every month in all three categories. Within a few months I hope to see a good sum of SAVINGS being applied to our Financial Peace baby steps.

*I'm only trying the envelope system on 3 categories this month as to not be overwhelming. If it goes well I hope to slowly add envelopes until we are completely check card free. Also, I'm only withdrawing money once a week. Some people withdraw money for the whole month. I feel like that is too much temptation for me. I would be likely to pull money from week 2 if I start to run out of money mid-week 1. This way is safer for me.

Weekly Envelopes:
Groceries $100 Thursday-Thursday
Target/CVS/etc. $50 Sunday-Sunday
Dining Out $60 Thursday-Thursday

Going to the dreaded envelopes...

Okay, so I have known about Dave Ramsey for about 5 years now. We have been through the Financial Peace University once, but we have never fully committed to Dave's envelope system. And, when I say 'we' really mean 'me', because frugal hubby would have been down with it from the get go.

Honestly, the envelope system scares me. I start to think about being confined on a 'true budget' and my throat starts to close up. I always told hubby that I might go psycho if forced to put $50 in an envelope and be told that is all I have to work with on food all week (eating out and all.)

I am much more of a fly-by-the-seat-of-your-pants type of girl when it comes to money. I hate to admit it, but I can be rather selfish at times and find it hard to tell myself no. I justify my selfishness in the types of purchases I make. I will tell myself, "Well I know we have spent too much eating out this month, but it is not like we are out spending hundreds on fancy cars or expensive hobbies...so I think we can afford to splurge on that pizza tonight." But, I'm starting to realize that my justification and reasoning is getting us NOWHERE fast when it comes to Dave's baby steps to financial peace.

I'm also starting to realize that this online fantasy 'budget' I have been keeping for the past 6 years is POINTLESS! Yes, it keeps us from spending a ton of money, but honestly, it doesn't keep us from going over budget at all times, and it is nowhere close to getting us on the fast track to saving money. What good does it do to know how much you have spent on groceries if you know you aren't going to stop spending even when you reach your $500 budget cap??

So, while we haven't been going in the hole every year, we also haven't been doing absolutely everything in our power to better our future financial situation. I'm finally ready to do as Dave says, "Live like no one else, so later you can LIVE like no one else!"

I think couponing and shopping the sales is an important part to this equation, but it will only help if it is done properly. I have been couponing for the past few months now, but I have allowed 'impulsive Kari' to keep couponing from really making a positive impact on our budget. I have decided the only way couponing will ever lower or monthy spending is if I put money in an envelope and know that once the money is gone it is gone! No stopping at the ATM for extra cash...it will be time to improvise! Stick with me this month as I explore this journey into the..dare I say it...ENVELOPE SYSTEM! Oh, hubby will be on cloud 9 if this actually works!