Get it together: Handling finances like a grownup

*Note: This is NOT a sponsored post. I’m receiving no compensation for the opinions expressed.*

So…raise your hand if you have a budget.

*moderately impressed*

Keep your hand up if you actually use your budget.

*mmhmm*

You’re not alone, my friends. A lot of us seem to be under the impression that we don’t really need a budget. Perhaps you have rough numbers so you make sure you end up in the black each month. But do we really have control of our finances? Or, if we have money to cover all of our bills, do we just call it good enough?

It can be intimidating and uncomfortable to start budgeting. Whether you’re single or have a large family, budgeting can make your life a lot easier and less stressful. I’m a huge fan of Dave Ramsey and have gone through Financial Peace University. One of his mantras is: If you don’t tell your money where to go, you’ll wonder where it went.

Dave advocates the envelope system in which you keep physical cash in envelopes so that you can cut frivolous spending. The idea is that you can’t physically spend money that isn’t in the envelope. I understand what he’s saying, but since I pretty much pay all of my bills online, the cash system is more of a hassle than anything else. Plus, it might just be me, but I spend cash so much faster than if I have to use my debit card. In my head cash is free money, because I’ve already “spent” it out of my checking account. Maybe a generational thing? Or another step on my ever-increasing psychosis…meh.

Anyway. Cash envelopes aren’t practical for me. Enter: GoodBudget.

An app with accompanying online interface, GoodBudget allows you to track expenses and create virtual envelopes so you can put all of your money to good use. It’s free to use, but does come with a premium upgrade option (still only $5 per month or $45 for a whole year.)

Edit_Envelopes

Set up takes a little time, as you have to create your budget and allocate your money into envelopes. There are tutorials that help you out, though. I recommend doing your setup online and then logging in with your mobile device. Once you get going, though, it’s super user-friendly and intuitive. You can even set up recurring expenses or income so you don’t have to reenter your regular paycheck or your mortgage every month. The app doesn’t connect to your bank account, so you don’t have to worry about security. It also is an easy way to reconcile your bank account as you go, since you can compare your balance on the app and in your account. I may or may not have been known to go hunting through my expenses to find the missing $0.07 so my balances matched. Just saying.

You fill your envelopes at the beginning of each month, even if you get paid sporadically, or bi-monthly (like I do). That way you can keep track of month’s expenses at a time. There is a reports feature to see your spending habits at a glance.

FillDebtEnv

The app also provides support and advice for debt management. I’m staring down the barrel at a mountain of student loans, but having a plan of action for early payoff makes it a bit less stressful.

I’ve been using the app for about 4 months now and I can honestly say that I’ve been spending less, paying off more of my debt, and much less stressed out about money. Adulting means being responsible (bleh) and GoodBudget makes it a little easier to control your funds.

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