The other day, I made up a new budget to help us save more money. It totally sucked a$$ and is too constraining. It’s good to make a budget and try to reduce spending, but it’s important to make it realistic.

I didn’t do that so well, as I am a person who hates strict budgeting. I made a strict budget when I should have made a more flexible one. So, I am going to alter it a bit and see if that helps out.

Here’s what I am going to do, still using the Root Income for budgeting (you can click on the image for a larger view):

The Root Income is $1,100.00 bi-weekly, so after our current commitments ($639.50) that will leave $460.50 left for everything else. When I go to the bank to take out money after payday, I will continue taking out 2 rolls of dimes for my piggy bank ($10) and put $40.00 in our savings account.

So, immediately, we will be saving $50 every paycheck, which is $1,300.00 a year. In addition to that savings, I will continue the transfers of $1.00 every weekday to one of our ING savings accounts. That should be an extra $260.00 a year.

So now, we are up to $1,560.00 in savings for the year. Also, we have an automatic transfer of $5 a month from our checking account to our savings account so the new total for yearly savings is $1,620.00.

Now we should have $400.50 to last us for the next 2 weeks based on the Root Income. If the checks end up being more than planned, I am hoping to be able to save 50% of the difference.

Example:

Actual Paycheck Amount = $1,250.00

Root Income = $1,100.00

Difference = $150.00

50% of Difference = $75.00

Then whatever is left after that, we can use to increase payments on the evil Care Credit card, entertainment, additional savings, clothing, gadgets or whatever. I think this one will work out better because it is more flexible and gives us some wiggle room.