Expense Tracking vs Budgeting

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After getting out of debt, I am ready to take action.

I spent considerable amount of time researching for ways to save, invest and eventually secure my family's future.

Though late, I started tracking down my income and expenditures so I could actually see where my money was going. I purchased YNAB or YouNeedABudget, a personal finance software to help me keep track of everything finance-related.

It's all good. For the past year, I'm no longer clueless about my spending patterns and trends. I get to see my net worth and actually monitor the progress each month with a few clicks.

Problem is, until now I'm still using YNAB as an expense tracker instead of its intended purpose which is budgeting. I'm having trouble committing to my budget as evidenced by a lot of reds each month.

I have savings but I'm not even sure if I'm fully buffered.

I thought I have an emergency fund in place, but now I'm not so sure.

I have to immediately transition from expense tracking to real budgeting if I want to achieve my goals, ultimately take control of my finances and afford the future I desire for me and my family.

Since August is already a failure with 4 overspent categories, I will try again next month. I have to think of a strategy that will work and will suit my lifestyle.

I am used to frugal living because I grew up in a poor family, but my husband is quite a spender. He spends a great deal on clothes, he drinks and smokes. But he sacrificed his job to take care of me and our kids so I'm cutting him some slack.

BUT. THERE. GOES. THE. CHALLENGE.