After paying off our final loan payment at the end of 2016 we have quickly realized that you cannot just go back to spending money whenever you want. Even though we do have much more free money every month, it is very easy for spending to get out control. We have continued to track our expenses every month, but have not tried to stick to a budget. Now looking back at the first two months of 2017 we have already spent over $2,900 for dining out, miscellaneous items, and groceries/household items. The spending for those items should have probably been closer to $1,500 for the first two months. This shows how fast spending can start to spiral out of control if you don't make a conscientious effort to limit your expenses. To continue on this path for the rest of the year we would miss a chance to save over $8,500 in 2017. Dining out has always been our most difficult expense to keep under control. Now with a family of four every time we stop to eat somewhere we are spending anywhere from $25 to $50, which can add up quickly. We have 2 boys but do not have teenagers yet, so we can only imagine how our food costs will increase over time.
After reviewing our spending we have decided to go back on a more strict budget. We have decided to challenge ourselves to live off of one income for the next two months. To accomplish this we are going to go back to the cash envelope system to help keep our variable spending in line. The dreaded, I mean, GOOD, ole' envelope system. Here is a look at our projected budget for March:
