A change is as good as a rest, as they say.
We’re trying two new tactics with our budgeting and debt reduction:
- New tracking app: the previous app I was using, Budget, didn’t have an easy solution for sharing the data. Not great for a couple with shared finances. Chris did some recon work and we’ve moved over to Smart Budget. So far we really like it. It doesn’t do any fancy interfacing with online bank accounts but we don’t need that. We just want to track and review our spending by date and category. And we want to work off of one account. Bonus: you can change the currency.
- Reverse Budgeting: we’re moving to a reverse budgeting system to pay down the rest of our debt. Most people use this system for savings, and we’ll be doing that too once we’re out of debt. With this system we set aside a set amount of our monthly income for debt repayment. We then work with our remaining funds for the rest of our spending and expenses. This means that if we have higher expenses in one area we cut back in another.
Along with a set amount for debt repayment each month, we are also saving for travel and continuing with Henry’s education fund.
When will we be out of non-consumer debt? We actually have the funds in our account right now but we’re still not sure about buying a car. Our debt is also at 0% interest until February of 2012 so we have time to wait on it. We’ll probably pull the trigger and send the money home in November or December.
June has been a great month for tracking and I’ll have a breakdown in early July on our savings and expenses.
Anyone else use reverse budgeting? Interested to hear from savers that have had success with this method. I think it will challenge us to work on our frugality while still giving us room for unexpected expenses and maybe even a date night.
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I am a mother, wife and writer from Vancouver, Canada, currently living in the 

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