{Week 8 Recap} Beyonce’, Credit Cards, & the 52 Week BINGO Money Challenge

Sunday- the end of the week or start of a new one? For me, it is the wrap up to week eight of 2016 and time for the 52 Week BINGO Money Challenge. To chose a number for the week, I start by looking at my bank account and seeing how much I can afford pay on top of my bills and money envelopes. While I manage my money on a zero-based style budget, I do leave a little wiggle room for unexpected expenses and this BINGO Challenge. I then review my credit card statement, since that is how I am using the extra money from this challenge.  Looking at the declining balance of credit card debt gets me right back on track when I start thinking about excess spending. For example, I was on the Ticketmaster site earlier this week determined to get BeeHive presale tickets for  Beyonce’s Formation Tour that went on sale at 10:00am.

beyonce-10-dollar-bill

9:44 am….I had my credit card out on my desk and was ready to purchase up to four tickets on my card.  But why?  I love going to Beyonce’ concerts.  “It’s about the experience”, is what I said to justify the “almost expense”.   I have only missed one of six Beyonce’s World Tours, I Am…Sasha Fierce, so to say that I’m really missing out might be a reach.

9:58am… Credit card is in hand and I am watching the countdown clock for the start of presale tickets.  I’m ready to risk my progress toward my financial milestone dates that I have set for myself as an individual and that my husband and I have set as a couple.

9:59:59… I hit refresh.  Picturing me, hubs, and another friend couple having the time of our lives.  Aww…the fun we are going to have.

10:00am…. I am entering my information trying to get tickets for the Atlanta show. So excited to tell the hubs that I got these tickets for us.

10:03am… “do not refresh or you will lose your place in line” Really Ticketmaster?

10:15am…  The same message is on the screen when the phone rings and I have to stop #OperationFormationTour and take care of business.giphy

Looking back, I have to credit divine intervention for me aborting #OperationFormationTour.  I was saved by the bell…or ring… especially considering  I was prepared to spend up to $150.00 per ticket for this concert.   If I am really being honest with myself, all of this was more about  FOMO (fear of missing out) than seeing my fifth Beyonce’ concert.  Dave Ramsey has famously affirmed, “If you will live like no one else, later you can live like no one else”.  There are a lot of broke people going to see Beyonce’ who are sacrificing responsibilities for what I am sure will be an epic experience.  I’m okay missing this concert (unless someone wants to graciously gift me tickets), if that means I am making strides to get to the point where the question  changes.  I am staying steadfast with my goals and very soon that the question will change from, Should we spend $150.00 per ticket? to What country to you want to see this concert in?  For now, I will focus on getting my finances into formation and I will cross off $15.00 on my BINGO money sheet.

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The Envelope System Saves $$$

Someone pinned this picture on Pinterest of them dividing their money into different envelops as suggested by financial expert, Dave Ramsey. His explanation of the envelope system was simple and made cents/sense, so I thought I’d share it. My thoughts are in PINK, of course. I hope you enjoy!

~Danielle

 

 

 

 

 

 

 

 

 

 

 

Get on a Simple System

The key component to Dave Ramsey’s, “Total Money Makeover” is the envelope system. What is the envelope system, you ask? Well, according to Ramsey, its “way to handle money still works. People used to always use cash envelopes and even Quicken to control their monthly spending, but very few do in today’s card swiping culture”. I will say that it works and the comments to post prove it. Check out Ramsey’s simple basics for starting a cash envelope system.

  1. Budget each paycheck. Budget is a dirty word to most people, but you must budget down to the last dime if you’re going to successfully implement the envelope system. While I know plenty of people who budget a certain percentage of each check, I budget specific figures.
  2. Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdraw. However, you can create categories like food, gas, clothing, and entertainment. I usually work off three main categories: groceries, restaurants/entertainment, personal maintenance (hair, nails, or anything that will help me feel “pretty”). I chose these categories for myself because these are the areas I could be tempted to overspend. I pay my bills off the top and then I budget each paycheck into these categories, which were listed in order of importance.
  3. Fill ‘er Up. After you’ve categorized your cash expenses, fill each envelope with the money allotted for it in your budget. For example, if you allow $100 for clothing, put $100 in cash in your clothing envelope for the month.

From Ramsey

When it’s gone, it’s gone. Once you’ve spent all the money in a given envelope, you’re done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can’t spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdraw more money!

Don’t be tempted. While debit cards can’t get you directly into debt, if used carelessly, they can cause you to over-spend. There’s something psychological about spending cash that hurts more than swiping a piece of plastic. If spending cash whenever possible can become a habit, you’ll be less likely to over-spend or buy on impulse.

Give it time. It will take a few months to perfect your envelope system. Don’t give up after a month or two if it’s not clicking. You’ll get the hang of it and see how beneficial the envelope system is as you dump debt, build wealth, and achieve financial peace! See … simple! Truth… I sort of fell of the wagon for a while. I actually, couldn’t remember what purse I put the envelopes in until today, when I found them, and I had $20 in my restaurant fund. I started back on the system TODAY!!! It takes work but most great things do….

photo credit: Tales From the Coop Keeper | content: David Ramsey

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What are your categories for your envelopes?

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