I have been tracking my spending habits and budgeting for six months now. To do this I sit down weekly and go through all my debit card transactions, then I translate the data into a spreadsheet. From here I analyze what changes I need to make in my budget. I will be posting a video soon about this process.
While this method has been working for me, I have decided to try the cash envelope method for the next couple of months. Essentially I will be only using my bank account for any online bill payments, for absolutely everything else I will be using cash. To help me ensure that I don't spend all my cash in one place, I am separating my budgeted categories into their own individual envelope. I am hoping that the cash envelope method is going to help me save money to put towards my debt.
In this video I am stuffing my first cash envelopes, watch to see how I have decided to break down my categories.