This is my Life: Budgeting
Isn't that the truth??!? Budgets are wonderful if you can stick to them. Often times we find ourselves sticking to our budget, money's looking good, then we fall off the wagon. Or, we have husbands that do check the account everyday and we try to hide sneaking in an iced coffee when it's not on the budget, right ladies? Scrapping the house and car for coins!Most helpful tip: We print our monthly reports from our bank to see where our money went. We went through and highlighted any fast food, etc, this includes iced coffees! We were SHOCKED to see how much money each month we were spending on this. $3 here and there does not seem a lot. But, when you have two people doing it more than twice a week!!! $120 a month has been given to Dunkins, McDonalds, etc. It was truly an eye opener. I encourage you to this.
Here's a little glance into how we
1. First start with your income: List your income (if two, add both). This will allow you to see the earnings you have coming in every month.
2. List out all your expenses: Above is a picture I found online. Some of ours would be
Mortgage
Electric
Cable
Phones
Cars
Compassion Int
Hulu
Gas
Condo Fee
Groceries!
Tithe
Medical bills
Just to name a few ;) So, on the spreadsheet, you will list similar to above photo.
3. Now you will subtract your expenses from your income. This will leave you with your "extra" cash.
4. I do recommend budgeting out additional expenses. Such as, if you have a monthly or bi-monthly date night. Deduct that. Try to be as real and precise as you can. This will give you the best idea of how much you can put into savings each month.
5. Include as much as you can so you "high ball" to be on the safe side.
6. Allow an allowance for the both of you. It's unreasonable to think we won't buy something, even a nail polish for ourselves within a WHOLE month. Or, want to treat ourselves to those yummy drive thru treats. :)
7. Put remaining money after deductions into savings or pay down those credit cards.
8. I have read many things that recommend carrying cash instead of using the debit. I, personally, do not agree with this. But, this is just me. If I have cash on me, it feels free. Like I can do anything with it and it won't be tracked because I won't remember where it went. And boy does it leave a lot faster!!! Using your debit card, it's tracked, so when you do look back, you can see TRULY what you spend your money on.
9. Also, touch base with this every few months as things change. For instance, when kids are enrolled in a class or sports. Those are expenses too.
Hope this helps. When we stick to this, it makes a huge difference for us financially. The worst is always having to transfer from another account to make sure anything still out there is covered. Stressful! So, sit down tonight and try this and stick to it :)
A suggested guide and if you like it on facebook, has lots of helpful tips :)
Teaching our children the value of money :) Hard work and using their earnings!