Hello again! Two days ago we used some sample budgets to help us brainstorm our own rough draft of spending, saving, and giving. To do that, we worked on adding Envelopes with no amounts. Today, we’ll work on filling out that budget with the amounts we plan to budget.
Today’s Assignment
- Take a look at your budget and review the Envelopes you’ve added so far in your Goodbudget app. Did you think of another category you need? If so, be sure to add an Envelope for it now.
- Now that you’ve added all of the categories you plan to track, it’s time to write in the amount you plan to budget for each Envelope. These might just be guesstimates, and that’s okay. Check out How to Make a Budget (Step 2, Option A shows you how to base your guesses on your past spending). If you feel like it’s been hard to save, now’s the time to set aside money first. By planning ahead and setting aside money for things like repairs, you’ll be prepared to buy those new tires when you need to without using up that extra cash you would have set aside in a Savings Envelope. And if you’re currently living through a financial emergency due to job loss or something else, take a break from 101 and head over to the GB 911: Crash Course instead. There, you’ll see how you can survive, adapt and thrive through your emergency.
- Look at the total of all the Envelopes once you’ve put in these amounts. Is the total amount you’re budgeting equal to or less than your income? If it is, you’re done for now! If it’s more than your income, try adjusting your budget so that you plan to spend less than you earn. Once your budget amount matches your income, you can stop.
- Congrats on finishing a rough draft of your budget! In the comments below, tell us one thing you’ve learned about yourself so far this week.
Note for couples: If you’re having a hard time agreeing on the numbers, take a step back — shut off the computer and put away your phones. Turn off your math mind, and open up your listening ears. Lovingly ask your partner why a certain Envelope is important to them, or ask them what might be on their mind as you try to draft a budget together. Then listen deeply and get curious. And share your own thoughts too. Understanding what’s happening beneath the surface for each person can help you return to the numbers together later with a better sense of what’s important to the two of you, as a team.
And that’s it for this week! Foundation done! Next week, we’ll focus on tracking spending.
Until then, happy budgeting,
-The Goodbudget Team
26 thoughts on “Divide and Conquer”
This was a great activity for me. I’ve used Good Budget on and off for more than a year, but realized today, as I stepped through your instructions, that it wasn’t working because I have numerous accounts, numerous income sources, etc. I upgraded the app to the Plus version and now it all works and makes so much sense. This boot camp is just what I needed.
I’m so glad that my husband and I are on the same page the majority of the time, especially about money. He calls me the CFO of the family, but he’s super helpful and us talking about our money together really helps.
We completed our GB budget in September, but now with two months of life having gone by, we need to go back in envelope by envelope and make some adjustments. A work in progress…
Had started Goodbudget a few months ago and lost my way. Have found the reset and am getting a fresh start. I can see groceries are going to be a challenge for me.
What I learned today is that even though I was using Goodbudget for more than 1 or 2 years, I realized I didn’t exactly know how to fill the envelopes properly hahahahahahaha I know, sounds crazy but it’s the true. I had to erase all data every 3 months as I got lost on the way. I am still learning new things and I am so exited about this 101 course. Thanks for this material!!!!
This has been an eye opener for me and a steep learning curve for my wife.
I’ve always known who and what I’m spending monthly/annually but pushing myself to set up numerous envelopes and then establishing budget amounts for each! The amounts in some of the envelopes, based on past spending has been ……….
As predicted my expenses are far more than my income because I can only estimate my husband’s pay at this time. I made adjustments to some of our expenses and we will begin tracking those with receipts from now on so we can have a better picture. I also added an estimated income from my husband by calculating an average amount which I divided by how long we usually go between commission checks. Hopefully, this will help with the big picture.
This was a tough week. We’ve been budgeting with Goodbudget for years but we have recently entered a new phase of life as home owners. We’re also on a single income because we homeschool our kids.
So we had to make some tough choices about what to cut for 2020 and what our priorities are. However, it feels better to have talked it through and it’s nice to be on the same page.
This was painful yet wonderful. I should have money left over each month if I actually try to stick to the budget. Key is having envelops for money for things I would normally charge.
I learned this week that I was further along in budgeting than I thought. I know I still have a lot to learn, but it’s nice to see that all the research I’ve been doing and effort I’ve put in to making a working budget is actually paying off. My goal is to get it streamlined so it becomes more and more simplified and easy.
I need to start sticking to a budget
Learned that I am still confused on where our money is going.
I learned this week that I was further along in budgeting than I thought.
I barely even need envelopes.
I have learned that I should try managing my own money. I do not learn anything if it is all done for me, after all. If I learn how to budget now, it will help me later.
I learned that I should spend less money on things I do not need at the moment.
I have learned this week that I don’t spend a lot of money. I think that these could be helpful to older people, but for just being in high school. I don’t pay gas, rent, taxes or anything. The only thing I spend my money on is food.
Learning to budget is an important skill.
I learned that I need to care about how I use my money so I can be successful later in life.
I have learned that budgeting is not going to be as hard as I had originally intended it to be.
That’s great to hear! What about budgeting wasn’t as hard as your originally thought?
I learned that I need to think before I spend and save up for more important things.
Thanks for sharing, Zoe!
My income is slightly higher than my spending, (thank goodness). It is very difficult to estimate what you might spend on variable bills. Its also hard to determine how much you should put in each envelope when you get paid several times a month rather than just once.
Thank you for walking us through this a little at a time. It is really helping.
It answers what i suspected all along. I dont need a roomate to survive. Im currently covering most of the bills by myself because of deadbeat roommate and my portion of rent would pay for livable apartment not necssarily decent. The money i would possibly save… Lease is up in May. Coming up with money to move is another thing. I also see where im wasting and could save more money.