Shop Well

For items like groceries, I have a set budget each week. When I stay under budget, whatever is left over goes into a vacation or fun-time fund. When I stretch over my budget, I have to take that amount out of the fund. This definitely motivates me to stay budget-conscious.
Sara Hobson
San Diego, California

After many failed attempts at recording each dime I spent and regularly admonishing myself for my budgeting failures, I have changed tactics. Now I record spending (or not spending) successes. For example: “Monday — I didn’t buy those shoes I wanted!” or “Saturday — I ordered a salad and an appetizer instead of an expensive entrée!” The positive reinforcement is working: For the first time in my adult life, I’m focusing on my financial successes and, in turn, having more of them.
Lisen Roberts
Waynesville, North Carolina

Delayed gratification is the best way to stay on a budget. My husband and I made it a top priority to get out of debt, and based on our salaries we came up with the amount of “fun” money we would each have from every paycheck. The rest of the money we used for bills and to pay off the debt we had. If we really wanted to make a large purchase, we would save up until we could pay cash for it. Delaying spending may not seem fun at the time, but the reward of being debt-free is well worth it.
Jennifer Pool
Herndon, Virginia

Break It Down

Keeping my money in separate bank accounts helps me stick to my budget. The account I have my paycheck deposited into is used for bills, and the bank automatically transfers my shopping budget into a separate account every other week. When I go shopping, I carry only the debit card for my shopping account, so I can’t spend any more money than I am allotted, and I always have money to pay my bills.
Elizabeth Whitehead
Moscow, Idaho

I have my monthly earnings deposited directly into accounts at two different banks, one for savings and one for expenses. The “savings” portion goes into an account that I make inaccessible. I budget the amount needed for regular expenditures and have it deposited into the “expenses” account to pay bills. The rest goes into a personal-use account that I monitor regularly. The key is to monitor personal spending daily via online banking. When you see how much you are spending every day, it helps you stay on your budget. By the end of the year, I always have at least $10,000 in savings.
Salena Chow
Sacramento, California

Every week, I take a certain amount out of my checking account for lunch money. Then, each day before I leave for work, I put a set amount in my wallet. I do not allow myself to use my debit card or credit cards to purchase lunch or miscellaneous items; I must use the cash I have on hand. I have found that this helps me not to spend my money frivolously.
Kristina Smith
Decatur, Georgia

I have opened three savings accounts. When my paycheck is deposited, I use the Internet to transfer a certain amount into one account for rent, the car payment, and insurance, then another amount into my vacation account, and finally another amount for emergencies and “retirement.” On the first of each month, I write out the checks for each bill (or make an electronic debit) and transfer the money into my checking to cover everything. All the bills are budgeted for, it takes little time, and I know how much is left over for other things.
Sheridan Stancliff
Culver City, California

Saving has always been the most difficult budgeting task for me. However, five years ago, I began using an “envelope” system similar to one I used when I was young. Instead of envelopes, I opened a number of savings accounts at my credit union, each earmarked for a different purpose: home, medical, veterinarian, auto repairs, vacation, as well as an all-purpose savings account. Every month, a fixed amount is transferred automatically to each account. I find that I no longer raid my savings, and when I need to repaint my home or plan a trip, I just withdraw the amount from the appropriate account.
Barbara Giles
Florence, Oregon

Quick Draw

My husband and I are both students and work as well, so money is tight. A year ago, we calculated our monthly living expenses. We set up all our monthly bills to be paid through direct debit. We also set aside envelopes for our church giving, groceries, gas, and laundry, and fill them with cash. My husband and I make it a game to see if we can spend less than what is in each envelope. This makes us use cash; using our debit card made it hard for us to keep track of how much we were spending. Any money we have left over goes toward something fun, like movies, going out to dinner, or just a splurge item. We have dramatically cut our living expenses and learned to live without excess.
Danielle Neff
Chicago, Illinois

Have savings contributions and bill payments come directly out of your paycheck. You’ll be amazed how quickly you get used to them, and you’ll find you don’t even miss the money.
Carla MacNeil
Toronto, Ontario

I’ve found that it’s very easy to cheat on a budget, so I have pared down and made everything as simple as possible. I participate in my company’s 401(k). I have $200 directly deposited to savings every month from my first paycheck, and then I pay all my bills through prescheduled transactions from my account. I don’t have to write checks, I don’t have to remember due dates, and I can spend only the leftovers. I just check my account online every few days to make sure everything is running smoothly.
Jamie Britton Blanck
Indianapolis, Indiana

I pay all our bills as soon as I get them (in most cases, at the beginning of the month) or a month in advance. I never hold a bill until its due date. That way, my husband and I know that all our important expenses are covered, and we don’t have to worry about going out to dinner one night or buying a treat for ourselves.
Amanda Snodgrass
Abingdon, Virginia

I use a premade monthly budget spreadsheet that calculates everything for you as you enter in how much you’ve spent. It shows how much you are under or over budget, so you know when you need to slow down or what you can spend. It is very comforting to maintain a budget. I don’t find myself having buyer’s remorse as often, and it also makes shopping a lot more enjoyable.
Heather Hornbeak
Nashville, Tennessee