I made it through the $100 Challenge. It was harder than I thought it would be, but I learned a few lessons that will help me budget in the future.

The Rules:

1. During a one week period I was only allowed to spend a $100 allowance on all out-of-pocket expenses including: food, gas and going out.
2. I carried one credit card with me for emergencies only. (The items listed in rule #1 were not considered emergencies.)
3. I tracked every purchase in a journal.
4. I couldn’t let my friends pay for anything on my behalf.

The Bad News:

I didn’t do a very good job of holding on to my money. By the fourth night I had spent $100.50 and I had three days to go.

The Good News:

I didn’t spend a penny during the last three days. I ended up 50 cents over budget, but it could have been worse.

What I Learned:

1. I should ask how much things cost before I order when dining out. That’s what got me into a jam by the fourth day.
2. It is easy for me to get carried away when having a good time. I need to learn how to limit my spending when out with friends.
3. When you are paying cash for all your incidentals you get a better understanding of where your money is going.

This experience has helped me become more aware of where I waste money and helped me make more thoughtful purchases. I’m going to try this again in a week and see if I can budget better.