One of the biggest areas a lot of people struggle in is money management. We live in a world of "Buy it now, pay for it later." I remember going to college and being thrown credit card applications as I walked around my first day of college. Luckily I was scared to get a credit card so I never had one. Lee and I entered our marriage with no debt thanks to our family paying for college as well as good teaching about money.
Even with all of that, we've always lived on one income and have had to be careful about our spending.
Here are a few tips that we have learned:
#1 - Try really hard to have as little debt as possible. I know this is easier said than done, but we only have a mortgage, a van payment, and a couch payment. Our goal is to only have a mortgage payment, but we needed a van (Lee's car was on it's last leg and we were having more children and needed something with more space) and couch (our couch was like 20 years old and was disgusting - we did a same as cash plan and put money down on it). If you have debt, make a plan to pay it off little by little (even if it's just $20 a month extra).
#2 - Try to plan purchases. Again, I know this is easier said than done, but if you really think about what you will need, you can save the money as you can and then purchase the items with the allocated funds. This helps with #1. For instance, we figured up we spend about $1,200 on Christmas presents each year, so we are trying to put away $100 a month all year to cover that expense.
#3 - Make a liveable budget and stick to it. Again, I know this is easier said than done, but it really helps to have a plan for how you are going to spend your money and it helps to see where it goes each month. I did an entire post on the topic of creating a budget http://organizedhomemaking.blogspot.com/2010/01/how-to-create-household-budget.html and how to stick to it http://organizedhomemaking.blogspot.com/2010/03/how-to-stick-to-budget.html.
#4 - Have an organized way to pay your bills. I wrote an entire post on the topic http://organizedhomemaking.blogspot.com/2010/02/organized-bill-paying.html.
I hope these tips have helped.
Showing posts with label Budgeting. Show all posts
Showing posts with label Budgeting. Show all posts
Tuesday, March 1, 2011
Wednesday, December 22, 2010
Organized CHRISTmas Present Giving
As everyone knows CHRISTmas can get so crazy, especially when we get too overwhelmed by all the presents, shopping, parties, and other ruckus that tends to happen this time of year. To combat the craziness, I try to really organize my CHRISTmas present giving. I usually start my shopping after Thanksgiving as I really like to focus on Thanksgiving before all the CHRISTmas stuff starts.
Lee and I sit down and write a list of all of the people we are going to be buying presents for. Then we come up with a budget for each person. Then we like to write down some ideas or things that each person likes or is into. I take my list with me when I shop and I write down everything I purchase for each person. That way I remember what I've bought (yes, if I don't write stuff down, I completely forget). I also keep a tally of how much I've spent so I can stick to my budget.
I try to have all of my shopping done by the week before CHRISTmas. I usually end up picking up a couple of things for Luke as he makes new requests every day (sometimes every hour). I like to wrap as I go as well so I don't end up with a massive pile of presents to wrap two days before CHRISTmas. Plus the presents look pretty under the tree.
I hope these tips have helped. I would love to hear how you organize your CHRISTmas present giving or if you just wing it. :)
MERRY CHRISTMAS!!!
Lee and I sit down and write a list of all of the people we are going to be buying presents for. Then we come up with a budget for each person. Then we like to write down some ideas or things that each person likes or is into. I take my list with me when I shop and I write down everything I purchase for each person. That way I remember what I've bought (yes, if I don't write stuff down, I completely forget). I also keep a tally of how much I've spent so I can stick to my budget.
I try to have all of my shopping done by the week before CHRISTmas. I usually end up picking up a couple of things for Luke as he makes new requests every day (sometimes every hour). I like to wrap as I go as well so I don't end up with a massive pile of presents to wrap two days before CHRISTmas. Plus the presents look pretty under the tree.
I hope these tips have helped. I would love to hear how you organize your CHRISTmas present giving or if you just wing it. :)
MERRY CHRISTMAS!!!
Friday, September 10, 2010
The Payoff of Stockpiling and Meal Planning
So back before I got into this whole "Organized Homemaking" thing, I really struggled with grocery shopping and meal planning (or lack thereof). A lot of the time we would go out to eat, but when I would actually cook, there was zero planning. I would just say, "Let's have spaghetti (or whatever meal sounded good)." It was a totally different experience back then than it is today.
Before:
I would just go to whatever store was closest (usually Harris Teeter or Super Target) and would buy what I needed. I would grab some pasta noodles, sauce, lean ground beef/turkey, a green pepper, an onion, and perhaps some frozen garlic bread/texas toast. I would also usually end up grabbing some other random things (especially if I went to Target).
I wouldn't have a single coupon, but I would grab what brand was the best "deal" that day. I would spend probably around $11.00 just for the stuff for the spaghetti. If I added texas toast, it would be at least $13.00, not to mention the other random things (ie cookie dough/brownie mix for dessert).
After:
Now, I coupon and only buy things when they are great deal and stockpile. I buy all of my meat on sale and individually package it for the freezer. I never spend more than $3.33 on lean ground beef/turkey and usually get it for better than that. I buy pasta noodles (whole wheat) for virtually nothing and spaghetti sauce (even the large jars) for under $1.00. I buy my peppers when they are 50 cents to $1.00 (I cut them up and freeze them in freezer bags). I still buy onions when I need them, but they are usually not that expensive (maybe 50 cents apiece). I also stockpile baking goods (like brownie mix) when it goes on sale. I don't impulse shop anymore.
So, even if I haven't technically meal planned, I can say, "Let's have spaghetti." I go to the pantry and grab my free pasta noodles and cheap spaghetti sauce. I grab a pound of lean ground beef/turkey and my diced peppers from the freezer. I either have an onion from my fresh produce shop or have Lee stop and get one (saving me money - he will not impulse shop). If we want garlic bread, I have it in the freezer (I probably got it for 50 cents). If we want brownies, I have mix in the cupboard that I probably got for free or maybe 25 cents. So, I cook the same meal (if not better since I only buy name brand with coupons) for roughly $5.00 (including bread and dessert).
So by doing all this couponing, stockpiling, and meal planning, I saved myself $6-8 (or more) for just one meal. Not to mention the headache of going, "What's for dinner?" "How about spaghetti?" "I have to go to the store." "It's not worth it." "Let's just get fast food." We have a healthy, home-cooked family dinner which to me means we are building family memories. For me eating around the dinner table at home is very different from eating around 10 other families at McDonalds while your kid plays (and doesn't eat). Of course there is the place and time for that as well (all moms need a break from cooking and kids enjoy playplaces).
Before:
I would just go to whatever store was closest (usually Harris Teeter or Super Target) and would buy what I needed. I would grab some pasta noodles, sauce, lean ground beef/turkey, a green pepper, an onion, and perhaps some frozen garlic bread/texas toast. I would also usually end up grabbing some other random things (especially if I went to Target).
I wouldn't have a single coupon, but I would grab what brand was the best "deal" that day. I would spend probably around $11.00 just for the stuff for the spaghetti. If I added texas toast, it would be at least $13.00, not to mention the other random things (ie cookie dough/brownie mix for dessert).
After:
Now, I coupon and only buy things when they are great deal and stockpile. I buy all of my meat on sale and individually package it for the freezer. I never spend more than $3.33 on lean ground beef/turkey and usually get it for better than that. I buy pasta noodles (whole wheat) for virtually nothing and spaghetti sauce (even the large jars) for under $1.00. I buy my peppers when they are 50 cents to $1.00 (I cut them up and freeze them in freezer bags). I still buy onions when I need them, but they are usually not that expensive (maybe 50 cents apiece). I also stockpile baking goods (like brownie mix) when it goes on sale. I don't impulse shop anymore.
So, even if I haven't technically meal planned, I can say, "Let's have spaghetti." I go to the pantry and grab my free pasta noodles and cheap spaghetti sauce. I grab a pound of lean ground beef/turkey and my diced peppers from the freezer. I either have an onion from my fresh produce shop or have Lee stop and get one (saving me money - he will not impulse shop). If we want garlic bread, I have it in the freezer (I probably got it for 50 cents). If we want brownies, I have mix in the cupboard that I probably got for free or maybe 25 cents. So, I cook the same meal (if not better since I only buy name brand with coupons) for roughly $5.00 (including bread and dessert).
So by doing all this couponing, stockpiling, and meal planning, I saved myself $6-8 (or more) for just one meal. Not to mention the headache of going, "What's for dinner?" "How about spaghetti?" "I have to go to the store." "It's not worth it." "Let's just get fast food." We have a healthy, home-cooked family dinner which to me means we are building family memories. For me eating around the dinner table at home is very different from eating around 10 other families at McDonalds while your kid plays (and doesn't eat). Of course there is the place and time for that as well (all moms need a break from cooking and kids enjoy playplaces).
Monday, March 15, 2010
How to Stick to a Budget
I have written posts previously about how to create a budget, but this post is about how to stick to your budget. Once you have figured out what your budget is for each category each month, you can create a simple chart and use it to keep you updated on where you stand.
The categories Lee and I use are:
Income
Tithe
Housing (Mortgage/Rent, Insurance, Utilities, Household Maintenance Things, HOAs)
Groceries
Auto (Payments, Insurance, Gas, Repairs, Auto Maintenance Things)
Debts (Anything you pay on each month, ie student loans, same-as-cash things)
Entertainment/Recreation (anything we do for fun, excluding eating out)
Eating Out
Clothing
Savings
Medical
Misc (anything that doesn't have a category)
We created an excel spreadsheet with the categories across the top and the days of the month going down the left side. We put a total row on the bottom and entered in the functions to calculate as we put information in. We also set up a row below that with our budgeted amount for each category. Then we put a row below that to show the difference.
If you would like a blank worksheet to use please let me know (ashley-webber@hotmail.com).
The key to a budget is not in creating it, but in sticking to it.
More Tips for Sticking to a Budget:
Set each budgeted amount at a reasonable level-
Go back and see what you've spent in the previous months and then create a number that is obtainable. You can always make it lower the next month to help you get more under control. If you make it too low, you will get discouraged.
Aim to do really well the beginning of the month -
It's a lot easier to stick to your budget when you work really hard at the beginning of the month. Even if the end of the month gets a little more spendy, you were off to a good start.
Remember that if you do go over in one category, you can pull funds from a different category. For example, if we go out to eat a little too much one month, we usually have a little extra in another category.
Plug in the definite expenses and then see how much you have to "play with". For example, you know that you have car insurance of $50.00 and a car payment of $200.00 and a budgeted amount of $500.00. You have $250.00 for gas and other misc things that come up.
Use one main credit card. Lee and I use one credit card and we put basically everything on that. It helps because we get one bill for most of our expenditures and we can see each transaction anytime we need to to keep us on track. Plus we earn rewards.
Budgeting can actually be pretty fun. You know what you have to work with rather than freaking out when the bills come in. It's also fun when you see that you have stuck to your budget and have more money to put into savings. :)
The categories Lee and I use are:
Income
Tithe
Housing (Mortgage/Rent, Insurance, Utilities, Household Maintenance Things, HOAs)
Groceries
Auto (Payments, Insurance, Gas, Repairs, Auto Maintenance Things)
Debts (Anything you pay on each month, ie student loans, same-as-cash things)
Entertainment/Recreation (anything we do for fun, excluding eating out)
Eating Out
Clothing
Savings
Medical
Misc (anything that doesn't have a category)
We created an excel spreadsheet with the categories across the top and the days of the month going down the left side. We put a total row on the bottom and entered in the functions to calculate as we put information in. We also set up a row below that with our budgeted amount for each category. Then we put a row below that to show the difference.
If you would like a blank worksheet to use please let me know (ashley-webber@hotmail.com).
The key to a budget is not in creating it, but in sticking to it.
More Tips for Sticking to a Budget:
Set each budgeted amount at a reasonable level-
Go back and see what you've spent in the previous months and then create a number that is obtainable. You can always make it lower the next month to help you get more under control. If you make it too low, you will get discouraged.
Aim to do really well the beginning of the month -
It's a lot easier to stick to your budget when you work really hard at the beginning of the month. Even if the end of the month gets a little more spendy, you were off to a good start.
Remember that if you do go over in one category, you can pull funds from a different category. For example, if we go out to eat a little too much one month, we usually have a little extra in another category.
Plug in the definite expenses and then see how much you have to "play with". For example, you know that you have car insurance of $50.00 and a car payment of $200.00 and a budgeted amount of $500.00. You have $250.00 for gas and other misc things that come up.
Use one main credit card. Lee and I use one credit card and we put basically everything on that. It helps because we get one bill for most of our expenditures and we can see each transaction anytime we need to to keep us on track. Plus we earn rewards.
Budgeting can actually be pretty fun. You know what you have to work with rather than freaking out when the bills come in. It's also fun when you see that you have stuck to your budget and have more money to put into savings. :)
Thursday, February 25, 2010
Save to Spend
I know that the name of my post sounds funny, but let me explain. I am all about saving money anywhere that I can, on groceries, eating out, holidays, vacations, clothes, and anything else I can find a way to save money on. A lot of people wonder, "Why are you so into saving money?"
Well, I can tell you that one of those reasons is to spend it. :) I know that sounds funny, but here's my logic. If I would have had to spend $80 on groceries, but I because I couponed and matched them to sales, I spent $10, I have "$70". I put quotes around it because I don't actually carry out $70 or necessarily see that in overflow in my budget, but the money we have leftover at the end of the month (which praise the Lord we do now and don't have to dip into savings), can be used for things we really want to do.
When we didn't budget and coupon and save money, we never had any money left over at the end of the month and at times we dipped into our savings to break even. Now, we are able to save some money each month. I would love for it to be more and that rests a lot on me (which actually makes me happy because I can do things to have more money), but either way, having leftover is great.
We can save it for big things that will come up, or we can occassionally use it for fun things we want to do like vacations or special treats like the Circus, where we are going tonight. It is fun to take money I would have wasted on something I still was able to get but for much less money and spend it on something fun for the family.
I would love to hear comments as to what you would like to do with your savings. :)
Well, I can tell you that one of those reasons is to spend it. :) I know that sounds funny, but here's my logic. If I would have had to spend $80 on groceries, but I because I couponed and matched them to sales, I spent $10, I have "$70". I put quotes around it because I don't actually carry out $70 or necessarily see that in overflow in my budget, but the money we have leftover at the end of the month (which praise the Lord we do now and don't have to dip into savings), can be used for things we really want to do.
When we didn't budget and coupon and save money, we never had any money left over at the end of the month and at times we dipped into our savings to break even. Now, we are able to save some money each month. I would love for it to be more and that rests a lot on me (which actually makes me happy because I can do things to have more money), but either way, having leftover is great.
We can save it for big things that will come up, or we can occassionally use it for fun things we want to do like vacations or special treats like the Circus, where we are going tonight. It is fun to take money I would have wasted on something I still was able to get but for much less money and spend it on something fun for the family.
I would love to hear comments as to what you would like to do with your savings. :)
Sunday, February 14, 2010
Organized Grocery Budget
Before I took the couponing class last May, I had no clue what we spent on groceries. Even after I took the class, I got so excited about saving money, that I went out and got almost everything that I found a good deal for. I had no idea how to stop myself from buying up too much. Yeah, I was getting a ton of stuff, but was still spending too much money.
I was plagued when I would see chicken for $2.00 or less a pound and want to buy up a year's worth. ;) I didn't have a way of knowing how much we would use of it or know that it would be on sale at least every other week (most weeks if you go to different stores).
When we sat down to create a budget (as I spoke of in a past post), we came up with $450 as our goal for groceries a month. To some that might seem like too little and to others that might seem like a lot. Our grocery budget includes all food, personal care, and home care products.
I decided to break it down so that I could really figure out how much I wanted to spend on certain things.
I divided it up into three categories:
1) Monthly things - meats, toilet paper, and paper towels (I aim to buy these things for a great deal and get them at the beginning of the month so that I don't have to go looking for them all the time during the month)
2) Weekly things - milk, eggs, and produce (We go about once a week for these things - I don't include yogurt or cheese because those are couponed items)
3) Couponing things - this is what is left over for me to stretch as far as I can to get pantry food items, cleaning products, and personal care items
Monthly Things (I aim to spend $100 a month):
Chicken - aim to get this for less than $2.00 per pound
Ground Beef - aim to get this for less than $3.00 per pound
Roast - aim to get this for less than $3.00 per pound
Fish (Tilapia) - aim to get this for less than $4.00 per pound
Shrimp - aim to get this for less than $5.00 per pound
Toilet Paper - aim to get this for 12pk for $5.00
Paper Towels - aim to get this for 6pk for $5.00
Weekly Things (I aim to spend $25 a week):
I shop around for the best deals on the produce I want. I tend to shop more stores than the average person because it is worth the time for the savings to me.
Couponing Things (I have about $250 a month):
I aim to get as much stuff (especially things we are low or out of) for my budget.
Once you figure out your budget and break it down, you will find that you have a lot more control over getting coupon-crazy.
REMEMBER: There are always good deals. :)
I was plagued when I would see chicken for $2.00 or less a pound and want to buy up a year's worth. ;) I didn't have a way of knowing how much we would use of it or know that it would be on sale at least every other week (most weeks if you go to different stores).
When we sat down to create a budget (as I spoke of in a past post), we came up with $450 as our goal for groceries a month. To some that might seem like too little and to others that might seem like a lot. Our grocery budget includes all food, personal care, and home care products.
I decided to break it down so that I could really figure out how much I wanted to spend on certain things.
I divided it up into three categories:
1) Monthly things - meats, toilet paper, and paper towels (I aim to buy these things for a great deal and get them at the beginning of the month so that I don't have to go looking for them all the time during the month)
2) Weekly things - milk, eggs, and produce (We go about once a week for these things - I don't include yogurt or cheese because those are couponed items)
3) Couponing things - this is what is left over for me to stretch as far as I can to get pantry food items, cleaning products, and personal care items
Monthly Things (I aim to spend $100 a month):
Chicken - aim to get this for less than $2.00 per pound
Ground Beef - aim to get this for less than $3.00 per pound
Roast - aim to get this for less than $3.00 per pound
Fish (Tilapia) - aim to get this for less than $4.00 per pound
Shrimp - aim to get this for less than $5.00 per pound
Toilet Paper - aim to get this for 12pk for $5.00
Paper Towels - aim to get this for 6pk for $5.00
Weekly Things (I aim to spend $25 a week):
I shop around for the best deals on the produce I want. I tend to shop more stores than the average person because it is worth the time for the savings to me.
Couponing Things (I have about $250 a month):
I aim to get as much stuff (especially things we are low or out of) for my budget.
Once you figure out your budget and break it down, you will find that you have a lot more control over getting coupon-crazy.
REMEMBER: There are always good deals. :)
Wednesday, February 3, 2010
Organized Bill Paying
Like I said in my post about creating a budget, I could have cared less about budgeting and bill paying until I started couponing and becoming more aware of where our money went. I am blessed to be married to a man who is very organized, especially in the area of papers and money. For the longest time Lee took care of all of the budgeting and bill paying and he did a fabulous job. After talking with him and looking over all of the accounts, the bill schedule, and the way he kept up with it all, we decided that I would take it over. I didn't want to usurp his territory, but wanted to take the load off of him as well as get a better grasp on our finances.
Bill paying is definitely an area that requires organization. I can't imagine just trying to remember what bills you have and when they are due (not to mention making sure that the outgo doesn't exceed the income at any given point). We pay our bills in a myriad of ways. Some we write checks and mail, some we have to go on the website and enter information, and some are auto drafted from our checking or credit card. This seemed so confusing to me at first wondering, "What do I pay, when, and how?"
I decided to do what I do best, make a chart and check off sheet. I went from the 1st day of the month through the last filling in a chart with the day of the month, what the bill was, how much it was (if it was constant or a guess), what account it came from and how exactly it was paid. This is my cheat sheet so that I can just go to it and follow step-by-step instructions so that each bill gets paid the right way.
I then filled in the 12 month calendar for this year with each bill that was due. I color-coded them (red = take action, green = auto draft from credit card, blue = auto draft from checking). This helps me to see if a bill is coming up and if I will need to do something for it. If I need to, I go to the cheat sheet and follow the steps. If it is auto drafted, I just go check the credit card or checking account statement online to make sure it went through. If it was from the checking account, I reconcile the check book. I then mark out the bill on the calendar so that I can see that I paid everything.
I hope that all of that made sense. I know that I am really OCD and anal about things and some people probably have systems that are really simple and they work great for them. I just thought I would share what I have been doing.
Bill paying is definitely an area that requires organization. I can't imagine just trying to remember what bills you have and when they are due (not to mention making sure that the outgo doesn't exceed the income at any given point). We pay our bills in a myriad of ways. Some we write checks and mail, some we have to go on the website and enter information, and some are auto drafted from our checking or credit card. This seemed so confusing to me at first wondering, "What do I pay, when, and how?"
I decided to do what I do best, make a chart and check off sheet. I went from the 1st day of the month through the last filling in a chart with the day of the month, what the bill was, how much it was (if it was constant or a guess), what account it came from and how exactly it was paid. This is my cheat sheet so that I can just go to it and follow step-by-step instructions so that each bill gets paid the right way.
I then filled in the 12 month calendar for this year with each bill that was due. I color-coded them (red = take action, green = auto draft from credit card, blue = auto draft from checking). This helps me to see if a bill is coming up and if I will need to do something for it. If I need to, I go to the cheat sheet and follow the steps. If it is auto drafted, I just go check the credit card or checking account statement online to make sure it went through. If it was from the checking account, I reconcile the check book. I then mark out the bill on the calendar so that I can see that I paid everything.
I hope that all of that made sense. I know that I am really OCD and anal about things and some people probably have systems that are really simple and they work great for them. I just thought I would share what I have been doing.
Thursday, January 14, 2010
How to Create a Household Budget
Going straight from being my mom's daughter to my husband's wife and never having any time where I lived alone, I never had to figure out how to live on a budget or pay bills. I didn't even have a credit card until I got married and Lee said it would help our credit. The first five years of our marriage, Lee took 100% care of paying the bills and anytime he brought up money, bills, or budgeting I hate to admit that I turned a deaf ear. To me all of those words meant, "You can't spend any money." Well, instead I would just spend and Lee would figure it out.
After taking a couponing class last May, I was painfully aware of not only how little I paid attention to my grocery budget, but also how immature and selfish I had been to not really understand where our money was going. I decided to find a resource that would simplify budgeting and bill paying that Lee and I could go through together. Lee was thrilled that I was finally coming around to caring about our money.
The book I got was "Family Money Management God's Way." It was an easy guide that:
Focused on knowing what your priorities are for your money (ie tithing, savings)
Broke down into percentages where your money should be going (ie groceries, mortgage)
Provided wonderful worksheets to work out a household budget
One night we put Luke to bed, turned off the TV, and sat at the kitchen table with the book, extra sheets of paper, a calculator, and the laptop (to pull up account information). We spent a couple of hours, but I have to say it was actually interesting to see how much money we actually would have if we were more careful with our spending. That fell on me about 90% as I am the one who does the shopping, the cooking, and would pick up those random things (Lee is super disciplined with money).
I thought I would break down how to actually create a household budget.
Step 1 - Figure out your monthly gross income (before taxes, health insurance, and 401K taken out)
Step 2 - Figure out your monthly tithe (10% of your gross income) if that is a priority to you
Step 3 - Figure out your net spendable income (gross income minus tithe)
Step 4 - Figure out your monthly bills
Step 4 Broken Down
Housing -
Mortgage/Rent
Insurance
Taxes
Electricity
Telephone
Water, Sewage, Trash
Maintenance (ie pest control)
HOA Dues
Internet
Misc
Food (Grocery Store)
Auto -
Payments
Gas
Insurance
License Tag
Repairs/Maintanence
Misc
Insurance -
Life
Health
Debts
Entertainment/Recreation -
Dining Out
Entertainment
Babysitters
Trips/Vacations
Activities
Video Rentals
Misc
Clothing -
Savings
Investments -
401K
Misc
Medical Expenses
Miscellaneous -
Beauty/Barber
Dry Cleaning
Subscriptions
Gifts
Misc
Step 5 - Balance it all out
Step 6 - Assess what you see and make adjustments to variable expenses to match or be less than (hopefully) your income
I hope this helps! It helped us to break it down. The next step is in sticking to the budget. That is where the real fun begins! :)
After taking a couponing class last May, I was painfully aware of not only how little I paid attention to my grocery budget, but also how immature and selfish I had been to not really understand where our money was going. I decided to find a resource that would simplify budgeting and bill paying that Lee and I could go through together. Lee was thrilled that I was finally coming around to caring about our money.
The book I got was "Family Money Management God's Way." It was an easy guide that:
Focused on knowing what your priorities are for your money (ie tithing, savings)
Broke down into percentages where your money should be going (ie groceries, mortgage)
Provided wonderful worksheets to work out a household budget
One night we put Luke to bed, turned off the TV, and sat at the kitchen table with the book, extra sheets of paper, a calculator, and the laptop (to pull up account information). We spent a couple of hours, but I have to say it was actually interesting to see how much money we actually would have if we were more careful with our spending. That fell on me about 90% as I am the one who does the shopping, the cooking, and would pick up those random things (Lee is super disciplined with money).
I thought I would break down how to actually create a household budget.
Step 1 - Figure out your monthly gross income (before taxes, health insurance, and 401K taken out)
Step 2 - Figure out your monthly tithe (10% of your gross income) if that is a priority to you
Step 3 - Figure out your net spendable income (gross income minus tithe)
Step 4 - Figure out your monthly bills
Step 4 Broken Down
Housing -
Mortgage/Rent
Insurance
Taxes
Electricity
Telephone
Water, Sewage, Trash
Maintenance (ie pest control)
HOA Dues
Internet
Misc
Food (Grocery Store)
Auto -
Payments
Gas
Insurance
License Tag
Repairs/Maintanence
Misc
Insurance -
Life
Health
Debts
Entertainment/Recreation -
Dining Out
Entertainment
Babysitters
Trips/Vacations
Activities
Video Rentals
Misc
Clothing -
Savings
Investments -
401K
Misc
Medical Expenses
Miscellaneous -
Beauty/Barber
Dry Cleaning
Subscriptions
Gifts
Misc
Step 5 - Balance it all out
Step 6 - Assess what you see and make adjustments to variable expenses to match or be less than (hopefully) your income
I hope this helps! It helped us to break it down. The next step is in sticking to the budget. That is where the real fun begins! :)
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