Budgeting 101

Well now that my first post is out of the way I can get onto my current obsession.  My DH will tell you that once I get interested in something it becomes an obsession until it fizzles out or something more interesting comes along.  Oftentimes I have a minimum of 3 obsessions going at a time.  (I tell you this man is a saint to put up with me!) 

I recently graduated from a private college with my bachelor's degree.  This was no small feat mind you and has been in the works for approximately 7 years (I know...I should be a Dr. by now).  But when you have small children and a full time job outside the home school has to be approached just like you would eat an elephant....one bite at a time.  So one bite at a time, I finally finished the whole thing.  Now I have been finding many things to focus (obsess) on since I no longer have to read books on ethics, or write papers on system analysis.  Budgeting is one of those areas of focus.

Becoming budget conscious is something that was pretty uncharted territory for me in my 20's.  Now that I'm a big girl and will also have a big loan to pay back, I find myself worrying about finances more than ever.  My husband feels this worry is unwarranted, and he is likely right, but I continue to find it occupying my thoughts.  To satisfy this interest I have been looking into several areas of budgeting including paying off debt aggressively such as Dave Ramsey suggests, and other areas like frugal living.  The more I look into it, the more I realize this will be attempting to eat another elephant and should be an excellent test of my patience and stamina yet again.  So with that approach in mind, I intend on taking some initial baby steps and setting attainable goals that will hopefully keep my momentum going.  May's plan:

• Review spending habits from March and April
• Plan budget for May (and do my best to stick to it)
• Find two areas of non-essential spending to cut back on
• Be honest with myself and family about negative spending habits
• Introduce one new frugal habit this month

I think that this is a pretty good start and should hopefully be easy to accomplish.  Once we get some momentum going then it will be time to push the envelope.  The key is to not set yourself up for failure.  Find small goals that you can reach to help build your confidence.  If I can do this, anyone can!

What are your tips for planning and sticking to a budget for your family?  Please add a comment.