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After Bankrate.com ran a story on the seven-day
money challenge, readers flooded us with e-mails describing
their own savings success stories. They also had lots of advice
and tips for others who need help sticking to a budget.
The money challenge is simple. Figure out how much
cash you need to cover a week's worth of expenses, such as groceries,
gas, food out and entertainment. Then, get that amount of cash and
put away your credit or debit cards. As you go through the week,
jot down in a notepad what you're spending -- or you won't remember
where the money went. Can you make it seven days? Or will you run
out at midweek?
This exercise will help you understand your spending
habits and identify where you can cut back in order to keep within
your budget. If you need to create a budget, just use Bankrate's
handy work
sheet.
The stories that follow are from readers who are conscious
of their spending and proud of their saving abilities. Maybe one
of their tips will help you get on the road to saving.
Cash is king
Cap the Daddy ATM
I took your advice on the seven-day challenge and had some very
interesting results.
I followed your suggestions and carefully calculated the cost of my gasoline, lunches, dry cleaning bills etc. and placed that amount of cash in my pocket.
Early in the week things were going very well. I stayed within budget and even was running a little under, due to the conscious effort placed on the "cash" in my pocket as a budget rather than another trip to the ATM.
Then came the difficulties -- they fell under the category heading of THREE TEENAGE DAUGHTERS. Unfortunately, though I was trying to cut my trips to the ATM, as far as they are concerned, I AM THEIR ATM!
As a result, I had an idea of how to cap my exposure as the "Daddy ATM."
Now every month, I will transfer into each of their new checking accounts a specific amount of money based upon their needs. Once their money is gone, they are out of $$ for the rest of the month. No movies or that new blouse, etc. That extra trip to the beach in the car may not happen because they can't afford the gas. They are actually looking at ways to save their money by packing their lunches for school rather than buying lunch.
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Expected benefits are: |
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| 1. |
I can now limit my exposure to the "Daddy ATM" and can better budget and save. |
| 2. |
They are learning more financial responsibility and how to prioritize their expenditures. |
| 3. |
One of them got a job and the other got a better job to supplement spending money. |
| 4. |
Best of all, I don't
have to say no anymore. |
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The moral of the story is: For a family budget to
work, everyone in the family needs to learn how to budget!
-- David
Teen learns early
As an 18-year-old kid, I enjoyed reading this article. I constantly
tell my dad or my mom that I refuse to get a checking account for
the time being because I have seen many of my friends overspend,
and they are in debt before they even reach "adulthood."
I am probably one of the few people left who do go to the bank every
week and deposit all of my paycheck minus the weekly spending costs.
I find that this is the easiest way to see my savings accumulate.
I don't have easy access to my money, and by midweek if I'm low,
I can slow down my spending. But I rarely ever have to go back to
the bank to withdraw some more money. When the end of the month
comes around, I withdraw enough to pay my "regular" bills
like rent and car payment. Your article brought a big smile to my
face to realize that there are other people out there with the same
type of philosophy as mine.
-- Kirk G.
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