Budget Update

I wrote thirty snail-years ago about my budget strategy, which is to pay myself a weekly allowance that I track using a spreadsheet. I input my bank balance every two weeks, and the spreadsheet does the rest.

All I pay attention to is this graph, which shows the balance of that virtual allowance account. If I spend exactly my allowance and nothing more, it stays flat. In general, it has roughly the same number of negative and positive points, which is our goal.

I’ve made only a few changes to the system since I last wrote about it:

  1. I upped the allowance by twenty percent since I’m cooking for myself and paying my own utilities instead of living with a homestay family.
  2. Instead of updating the spreadsheet on the 9th and 24th of each month, I’m doing it every other Tuesday, which makes it easier to remember and mitigates interference from my tendency to spend more money on the weekend and less on weekdays.
  3. If I discover that I’m significantly ahead of budget on a check-in day, I go ahead and zero out my allowance account (actually, I usually make it slightly negative) to discourage myself from impulse buys. Later on, if I decide to make a major purchase, I can then discount it against those corrections. If I didn’t do this, the graph wouldn’t be very illustrative on the week-to-week level. You’d just see it go up and up and up, then tank every six months when I take a vacation.

This method of budgeting works pretty well for how little effort it requires. On the worst day, April 23, I was down ₩96,974, or about $80. not bad!