One of the best lessons my father taught me pretty early in life was how to budget. This helps me to live debt free. Interestingly my father never sat me down and showed me how to budget. I learned from his habit of managing money for the household and him explaining why we had to wait for certain things at certain points in time.
When I started working full time in 2001 as a teacher at a high school in Jamaica, I was not making much money. I had to pay my student loan, travel expenses and a few other bills. I was able to do all these things and save monthly because I formed a habit of writing down where all my money would go. Every cent went somewhere. My budget was and is still pretty basic and I write it down every month. I also budget in the same way when I travel to other places. Travel will not cause me to go into debt. I am intentional about planning for trips and remaining debt free.My bare bones budget items are as follows, for those who may be curious: Tithes, Rent, Utilities (Gas, Electricity and Water), Recreation, Groceries, Taxes (residence, health and pension), lunch, travel, gifts, savings, miscellaneous (this is for anything unexpected that crops up) and a new computer in 2018.
I am intentional About Living Debt Free and Here is How I do It
I have a credit card which is unsecured. I love it since I can only spend what I put on it. I include a miscellaneous sum each month that covers things like buying bulk items at Costco a few times a year, ordering things on iherb.com a few times a year, shopping on amazon.co.jp a few times a year and books for my kindle on amazon.com. I live debt free and I keep this life goal in my mind always. and
Japan is very much a cash society so I really only use my credit card to shop on amazon, iherb, book flights and hotels. In the same way one does not swipe his or her debit card here. It is much easier to curtail my spending as I am able to watch my cash supply dwindle. I also have cash envelopes for each thing budgeted above and I ensure that everything goes where it ought to.
Budgeting is addictive and living debt free is liberating. I hope everyone can do this. How do you budget. Please share so we can build out knowledge.