The Game Plan for Financial Freedom

If you read my last blog, you know that my first goal for 2016 is to get out of some debt and become more financially stable. To achieve any goal, you have to have a game plan. I want to share with you guys my first three strategies to save money and keep track of my spending. 

Step 1: Make a Budget

This year I have created a budget binder to keep track of our bills and other payment priorities. Some people budget for the whole month, but I find that budgeting bi-weekly works better for us since we get paid bi-weekly. Whatever needs paid in that two weeks gets put into our budget for that paycheck. As much as I'd like to say I plan out every dollar, I just don't think that's possible. Life happens and sometimes I just want a .79 polar pop from the gas station. Can I get a hallelujah? I leave a little cushion in our bank account for those moments. Anything extra gets put into savings and/or to pay off a debt. 

Step 2: A cash envelope system

My husband is anti-Dave Ramsey and laughs at this way of watching our spending. But just in the month of January I have paid off a credit card and even found the money to start paying on the new windows we decided to finance. So who's laughing now? 

So why use cash when you have a debit card? Because it is so much easier to see where your money is going! I have created a cash envelope system for the following categories: groceries, gas, eating out, entertainment, horseback riding lessons, and blow money. Whatever I budget for that week gets put into the envelope in cash and when it's gone you just have to make due. 

If there is money leftover, discuss what you want to do with it. Save it? Pay off some debt? Buy yourself something nice? (Hey, you earned it!) Usually, I will take that money and redistribute it back into the cash envelopes for the following two weeks so we either have more cushion or more money to pay debts or bills in the bank account. 

This is a work in progress. Every week I find I could use more money here and less money there. My husband also requested a little personal spending money, so he could spend or save it however he chose so that will also become part of our budget. But practice makes perfect and it's all about planning and finding something that works for you. 

Step 3: Shop at Aldi

Groceries shopping is always one of the first things you can cut back on to save money. You wouldn't believe what you'll save by shopping at Aldi. My husband, the King of Brand Snobs, has even adjusted (and even likes) the meals I make from the groceries I buy at Aldi's. They even have a Double Guarantee where if you don't like the product you can return it for another product AND get your money back. I love when people stand behind their products! Just remember to bring a quarter and your own shopping bags! 

Share with me some of your best tips for better spending and saving!