With my new goal of paying for school, I had to come up with a specific budget plan. Previously, I had a general idea of what I spent on a weekly basis, but I didn't pay super-close attention to it. Now, though, I have a dollar amount in mind so I must be vigilant. I check my bank account often to see what the running totals are, but after reviewing my spending for the past few months, I realized that more money was leaving my hands than I thought. To combat this problem, I've added a new checking account to my banking system. It is as follows:
Checking Account #1: Food
Checking Account #2 **new**: Monthly miscellaneous items (toiletries, household products, movies, haircuts, etc.)
Checking Account #3: Rent. Only one check leaves this account monthly.
Savings Account #1: Short-term. Can dip into this as needed, but low amounts cause me stress.
Savings Account #2. Oh @#$% you lost your job/are in the hospital money. Nothing's wrong? Don't touch - save for school.
When school does happen, I'll create another savings account and split Savings #2. Some people might think this many accounts is excessive, but it helps me ration. Previously, I had one checking account and it drove me nuts when my landlord didn't deposit my check right away. So I took it out of the daily spending equation and put it on autopay. Now there is much less stress in my life, because I don't have to worry about how much money is actually in my account. Since my food and misc. expenses are separated as well, I'll know exactly how much I can spend in either category. This weekend, I was planning to make a Costco trip to stock up on a year supply of toilet paper. However, I might buy a semester bus pass instead, which will use up all of my "misc." money. Therefore, toilet paper will have to wait for two more weeks (which will be ok). I kind of like the awareness budgeting brings to my spending habits. I'm sure Future Amy will appreciate it as well.
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