[Ongoing] The Budgeting-PVP-Challenge. Fitness-Nerd = Finance Nerd?

[SirHammerlock]

Hey everyone,

 

inspired by ShadowLions No-Soda-PVP-Challenge I thought, if we can have fitness and eating related challenges, why can't we have a challenge regarding other aspects of life like budgeting?

 

I for myself have been struggling with budgeting for years now, and it's kinda like the same as with my old fitness and eating habits - I buy things I don't need when I feel frustrated, just as I would eat out of frustration. Although I mostly mastered my eating and fitness to the extend that I am living much healthier now, I am still struggling with budgeting and paying of my debts. I have tried and tried, and I did fine for a week or two just to fall back into old habits after that. Therefore, I thought, if NF could finally help me getting my eating and fitness together after so many failed attempts at dieting and stuff, why shouldn't that work with my money issues? After all, we all need accountability!

 

So, as I know that there are a lot of people struggling with bugdeting or living on a tight budet around here, I want to challenge you and ask you to go with me on this weight-of-bad-finances-loss journey.

 

Are you in? If you want to tackle this problem in your life, like I do, you are for sure! Let's all kick ass!

[SirHammerlock]

Instructions coming up.

[SirHammerlock]

Rules:

 

• Decide on what your budget should be like in $$ per week (for example 75 $ per week) and make a realistic plan by calculating your dailly food needs etc.
• When you go shopping, make a shopping list in advance and only buy what's on that list.
• Don't buy anything that you don't really need (for example don't buy that new CD of that band you like or the new DVD of X-Men etc.), except you got money of your budget left at the end of the week.
• Post an introduction of yourself and your budgeting goals within this thread (like you want to only spend x amount of money per week etc.)
• You will move up in level when you sticked to your budget-goals for the duration the level requires.
• If you fail, you can restart at the level you are at, if the days you have been off don't negate the days you have been on the budget, that means you will have to substract the days or weeks you have been off your budget and then start at that level again that represents your remaining days on the budget, for example: If you have been on the budget for 35 days and you messed up one week, you'd have 28 days left and would restart at Advanced Level. If you have 40 days and messed up 2 weeks, you'd have 26 days and you would restart with 14 days at Intermediate Level. This way you will get penalized harder if you mess up more time in a row.

 

 

I adapted the Levels from ShadowLion's thread:

 

Pick your Level:

 

 

Novice - Fullfilling your budget (with shopping list) and not buying things you don't need for any string of days greater than one.

Beginner - Fullfilling your budget etc. for at least six days at a time.
Intermediate - Continuous string of 14 or more days fullfilling your budget etc.
Advanced - Continuous string of 28 or more days fullfilling your budget etc.
Beast Mode - Continuous string of 42+ days fullfilling your budget etc.

Steve - Continuous string of 180+ days fullfilling your budget etc.

Zen Mode - Continuous string of 365+ fullfilling your budget etc.

 

 

Players:

(The List will be updated daily by SirHammerlock)

 

Novices (1+ days)

Beaucastle - ?$

Kat on the Run - $25 for entertainment, $150 for food/booze, $80 for health/fitness, $40 for clothing/other

Clarys - $150,00 to spend on food, savings account R$300,00 every month, $ 100,00 every month to "fun" things

NicTheRugger - grocery spending to $55/week, all other spending except for Christmas gifts to $20/week

Zendikara

 

Beginners (6+ days)

Rosiesan - 25$ savings, no overdrafts, shopping with list

Hiroro

 

Intermediates (14+ days)

 

Advanced (28+ days)

 

Beast Mode (42+ days)

SirHammerlock - 75 € per week

 

 

SuperBeast (90+ days)

 

Steve (180+ days)

 

Zen Mode (365+ days)

 

Cheering Section

Picolojones

[SirHammerlock]

My budgeting rules are the following:

 

• I won't spend more than 75€ per week (on any regular expenses, medicine and visits at the doctor excluded).
• I won't buy anything I don't need. My biggest problem here a online-buys (like steam games and mp3s) and food and magazines, since I am travelling a lot. To avoid these expenses, I will prepare food in advance and take enough reading material with me.

[SirHammerlock]

All right, looks like I am doing this on my own so far. Well, it has been going well since I started, it seems I really needed this accountability - I spent 15 € on Wednesday and 12 € on Thursday, today it has been 2,50 €, I'll see how it goes the rest of the day. I really hope, there are people here who wanna join me, feeling a little alone here right now .

[Piccolojones]

This is a good idea. I'm sure there are others struggling with their budget. I'll definitely pop in from time to time as a cheerleader.

 

Personally, the weekly budget thing isn't my cup of tea. I like the flexibility that a monthly budget provides. 

 

Are there any specific resources that you look to when it comes to budgeting?

[SirHammerlock]

Thank you, I'll put you in the cheerleading section.

 

I feel that a weekly budget helps me maintaining more controll and better discipline, but it's probably personal preference.

 

I have been trying to find good resources for budgeting, but most of it is too specifically concentrated on the US, and since I am from Germany, there a things that I can't adapt (I read this "I will teach you to be rich" book by that Indian guy). I also tried YNAB, but the demo didn't convince me to buy it because it was pretty complicated and I know, that I would probably use it for some time and then abandon it again. So I am mostly just writing down my spendings, so I have a decent overview on what I bought.

[Piccolojones]

Ahh.. yeah, I could see how that's a problem. I created my own spreadsheet based roughly on Dave Ramsey's budgeting categories and such, but again that's something created in the US. It might still work for you, since it's based more on an envelope system than something that is actually regionally specific, though.

 

So when you're doing weekly budgets, are you essentially putting spending money in an envelope? Or just setting a mental goal, and then recording expenditures so that you can compare that to your desired goal?

[SirHammerlock]

It's mostly a bit of both. I have a mental goal, but I withdraw a daily account according to my budget, which is 15 € and then I try to do all my expenses that day with that amount.

 

So far, it has been working quite well, and I realize how important this accountability here is for me. I restarted the challenge this week, because I hadn't kept a record of the first days of last week. So far, this has been a 4 day streak for me. I'll keep you posted how it goes on.

[Rosiesan]

My husband and I are starting FPU this Sunday and after that I may join. I don't want to start this then get conflicting numbers after my husband and I sit down and make out our budget, but this will help me stay on track.

[SirHammerlock]

Hey Rosiesan, glad you want to join, just let me know when you start. Of course you can adapt this to your own budgeting-manners, it's just about having some accountability with sticking with your budget.

[SirHammerlock]

Allright, time for a little wrap up: Last week I stayed within my budget, except for some extraordinary, necessary expenses, those were books for work, photos for a funding application, winter pullovers and a new tire for my bicycle yesterday (the old one was broken). Yesterday I also spent 13 €  from my budget plus lunch money, which isn't included in the daily budget, but limited to 5 € per day. Today I only spent my lunch money. I am adding these 9 days to the three I have, so that makes 12 days on the budget.

[Piccolojones]

Looks good, man. Keep it up, till it's not a conscious choice, but the natural result of the way you live.

[SirHammerlock]

Yeah, like building a budgeting habit .

[Beaucastle]

So you all still doing this?

 

Dropped a dress size so far

 

Would like to drop a expense or twelve as I trim the fat off my spending.

 

Would have joined earlier.... but I just found this group.

[SirHammerlock]

Hey Beaucastle,

 

welcome to our challenge! It's great you wanna join. I have been quiet the last few days, since I have a cold and mostly stuck in my bed.. Why don't you tell us your budget-goals? I will add you to the list right now.

[SirHammerlock]

Ok, here's another wrap up now

 

Last week went pretty well, I managed to save 30 €, since I didn't spent any money on two days that week. I spent that 30 € I had saved yesterday when I went out with my spouse and some friends and the rest on some groceries, but I didn't spent anything else, so that's 15 € saved. Today I spent 5 € for some coffee. I am thinking about cutting my budget to 50 € per week, but I'll have to give that some thought. Ok, that's 20 days on the budget now.

[Rosiesan]

Great job Recruit! Looks like you're doing well!

 

With the Financial Peace University we are starting our budget next week, which we also happen to be going on vacation to Disney World so may not be able to "start" this until we get back.

[Beaucastle]

I'm trying to unbury myself.  I have several money sinks. 

house

hobbies

yard

college

balances on cards

vehicles

divorce fall out

 

I switched emotional eating to retail therapy.   I have a house that is beautiful and needs some repairs and things adjusted.

I'm trying to find a better way to manage my money, instead of just..... well doing this the way I have been.

[SirHammerlock]

Ok, that's a start. I know that emotional eating problem and the card balances... Those are my main money sinks, too. Good luck then, we're here to discuss any problems and encourage you .

[Piccolojones]

Great job Recruit! Looks like you're doing well!

 

With the Financial Peace University we are starting our budget next week, which we also happen to be going on vacation to Disney World so may not be able to "start" this until we get back.

I encourage you not to "start" after your vacation. Plan your vacation spending before you go! You want to bring back souvenirs to remind you of the memories, but you don't want those reminders to be your credit card statements!

 

I'm trying to unbury myself.  I have several money sinks. 

house

hobbies

yard

college

balances on cards

vehicles

divorce fall out

 

I switched emotional eating to retail therapy.   I have a house that is beautiful and needs some repairs and things adjusted.

I'm trying to find a better way to manage my money, instead of just..... well doing this the way I have been.

Sounds like you've got quite the list. You can do it! Just remember, one step at a time. Don't try to tackle all of them at once or you'll overwhelm yourself. Pick one area (I'd recommend either the hardest area or the easiest one to change, depending on your temperament) and focus on locking that down. Then, with the success and momentum you create, move on to the next one, then the next one. Pretty soon you'll have wiped the floor with these "money sinks".

 

Ok, here's another wrap up now

 

Last week went pretty well, I managed to save 30 €, since I didn't spent any money on two days that week. I spent that 30 € I had saved yesterday when I went out with my spouse and some friends and the rest on some groceries, but I didn't spent anything else, so that's 15 € saved. Today I spent 5 € for some coffee. I am thinking about cutting my budget to 50 € per week, but I'll have to give that some thought. Ok, that's 20 days on the budget now.

You're doing great, man! I do have a suggestion, though. Your budget was 75€/week if I remember correctly. Rather than cutting your budget, find something that you want to put the excess toward. Maybe you've got a specific debt that you're attacking. Dump the excess to cut the debt faster. Or maybe put it toward a vacation you really want to take, or something you'd like to buy. Or put it into a "I'd love to spoil my spouse" fund. Attacking the debt is practical, but it might be better psychologically to do something fun with the excess. Each time you down your budget, you increase the amount of willpower required to stay in it. But if you create a "reward" for staying in your budget, it becomes like more of a game. And we're all about gamifying your life at NF.

[SirHammerlock]

You're doing great, man! I do have a suggestion, though. Your budget was 75€/week if I remember correctly. Rather than cutting your budget, find something that you want to put the excess toward. Maybe you've got a specific debt that you're attacking. Dump the excess to cut the debt faster. Or maybe put it toward a vacation you really want to take, or something you'd like to buy. Or put it into a "I'd love to spoil my spouse" fund. Attacking the debt is practical, but it might be better psychologically to do something fun with the excess. Each time you down your budget, you increase the amount of willpower required to stay in it. But if you create a "reward" for staying in your budget, it becomes like more of a game. And we're all about gamifying your life at NF.

 

Thanks for the advice! Yeah, I definitely will put the excess towards a goal, probably to attack my debt. This has been worrying me for quite some time now and I do feel really bad about it - it's just that I never was very good with money, as I haven't been with food and sports until I found NF . I guess, with me it's just one extreme or the other (that is spending money I don't have on things I don't need and eating stupidly, both due to emotional problems, or finally staying healthy and fit like I am now, really disciplined with my eating - I really want that with my finances, too). So, for me it is psychologically very important to get off that debt, since it makes me feel almost worse than my old eating habits. So, I should probably put the excess towards my debt goal.

[SirHammerlock]

And I also need a new mixer for my protein-shakes etc., so that will be the first reward before paying off the debt .

[Beaucastle]

I was fortunate to have a very finance minded parent.

One who taught me how to budget and manage money.

Unfortunately I have an excess of sudden expenses, and limited money in.

 

Not complaining, My life is really good.  I have just been very lax in my spending habits since the divorce, and I have really enjoyed living the instant gratification of retail therapy life. 

 

So I now have to get serious and get back into the habit of not buying something until I am sure

   1.  I really need it

   2.  the one I have chosen is the correct  (fill in criteria here)

   3.  I don't already have one somewhere in the garage/closet/shed/Mom's house...

   4.  is it required this paycheck.  Can I put it off a while longer until its on sale or I find one with a better price.

   5.  Can I afford to purchase it outright instead of charging it.  If I have to charge it can I take advantage of a no interest rate promotion

 

 

I also have to limit impulse under $10 dollar spending.

Plan meals, and food requirements   Purchase in bulk when practical.   Stick to my list.

Purchase second hand items when practical to do so, (tools-lawn equip-holiday decorations-furniture)

Wait for sales on items that must be new (clothing-bedding-shoes)

 

 

Keep list up to date on items I am waiting to go on sale.  Nothing will frustrate me faster than seeing something on sale but then can't remember if its one of the items I was waiting to buy.  Then by the time I return to the store it is no longer on sale.

 

I have a very good but complex view on money management.  I just got out of the habit and enjoyed being less strict about my spending habits.  Now I feel the need to tighten things up and get some things paid off and some money set aside for security of it all.

[Piccolojones]

Thanks for the advice! Yeah, I definitely will put the excess towards a goal, probably to attack my debt. This has been worrying me for quite some time now and I do feel really bad about it - it's just that I never was very good with money, as I haven't been with food and sports until I found NF . I guess, with me it's just one extreme or the other (that is spending money I don't have on things I don't need and eating stupidly, both due to emotional problems, or finally staying healthy and fit like I am now, really disciplined with my eating - I really want that with my finances, too). So, for me it is psychologically very important to get off that debt, since it makes me feel almost worse than my old eating habits. So, I should probably put the excess towards my debt goal.

Sounds like a good plan. I have a tendency to go full bore into something, too. But I've noticed that I tend to wear down and grow lax after a while. By leaving your budget a little higher, you're effectively creating a cushion for yourself to get a little bit more lax as you grow weary, but you still have the satisfaction of knowing you're staying within your budget. It's good for motivation.

 

I have a very good but complex view on money management.  I just got out of the habit and enjoyed being less strict about my spending habits.  Now I feel the need to tighten things up and get some things paid off and some money set aside for security of it all.

Looks good. I resonate with your "very good, but complex view on money management". I went through a period where I tried to be less strict, and I'm feeling the repercussions of that, now. I've been spending the last few months really cracking down on my spending, and it's been good to see my money behave when I do. Regarding impulse buys and other decisions, one thing that I've heard to do is wait out spur of the moment decisions. Hold off for one pay period. If you still really need/want it by next pay period, then push around the budget so you can get it. I've tried that a few times, and, frankly, I can't really remember what it was I had wanted to buy, because I didn't end up getting it.

For both of you, I really recommend getting a mini-emergency fund together ASAP. $1000 set aside to use in case of emergency does wonders for relieving anxiety and keeping the credit card demons at bay. I believe this takes priority. (I actually had to dip into mine, so I'm spending the next couple months replenishing it.)

 

Keep up the good work, guys. You can do it!