Anyone working on their 2005 household budget

[Lisa loves Pooh]

We are crunching #'s this week and working on our budget to make 2005 the year that we do NOT go over budget.

Anybody else doing this? I'm sure there are those who are always following their budget--but we aren't that way.

I've discovered in years past--I am a very pictorial person--I have to see the big picture on one page--or I just don't get it. So we are going to take hubby's budget and put in on a one or 2 page spreadsheet that has all of our budgeted items broken down by paydays--plots in the things I'd like to do over the next year for our family, house, and travel--and then I'll be able to see visually what needs to be postponed, what we can do extra, why I can't go and get a shirt on sale for 5 bucks if I want to go on this trip or do that thing in the next month or so.

Nohting else has been working for me--and this method that we are switching to--sort of worked for me when we didn't have children--so we're trying it again with our children.

I do have good incentive--we want to go to Hawaii in late 2006 We already have 3 days hotel in points saved and the trip is feasible--as long as I quit $5 and $10 shopping us to budget death!

 

[MrsPete]

We're very good at sticking to a budget in this house, and -- believe me -- the rewards of knowing that we're where we should be financially far outweigh the joy of buying an occasional $5 shirt on sale.

Your post gives me the impression that impulse purchases are a problem. Here's my biggest tip: Don't use shopping as a hobby. Stay out of the mall, Walmart, Target . . . where ever you usually shop and overspend. Going into these places "creates needs". Example: Right now you probably have plenty of clothes. But if you go to the mall this afternoon, you'll probably see a nice top or a sweater that you'd like to have. If you never SEE it, chances are good that you will never DESIRE it.

 

[trampslady]

I admire you guys!! We have never even contemplated a budget, and I wouldn't know where to begin. I just don't think I'm stringent enough to keep up with something like that. However, we are in the planning stages for four exciting trips next year, and I'm already working to set aside money for those.

 

[spiceycat]

yes - I use to follow one - and I need to get back to during that....thanks for the reminder!!!

 

[kilee]

I wish I had the discipline to follow a budget. Then maybe I'd have a savings worth something. I'm a terrible spender. I get my bills paid, but I overspend something fierce.

 

[dizcrazy]

Thanks, OP, for bringing up this topic!

can anyone give budgeting advice? We always try and then fail, because we forget to budget for things like car repais and birthdays.

 

[iNTeNSeBLue98]

When my DH lost his job last year we scraped by each month until he found his current job in July. I started a new spreadsheet in Excel that I access daily. It has really helped me control when and how we spend our money, moreso than before he lost his job. I can see exactly where I foresee money going in one column, along side a column of the actual expense and income received. I track for the week, month, and quarter on one page. I've been able to account for expenses that have come up unexpectedly and now know to look forward to similar in the future. It has been so helpful to see where our income is going and to notice trends.

 

[kfeuer]

I don't follow a strict budget, but here's a tip that's really helped us:

Sit down and add up all the expenses that come up quarterly, annually--anything that's not a normal monthly expense (this will commonly include things like car insurance, auto maintenance, garbage pickup, vet fees, taxes, etc.). Divide your total by 12 and have this amount automatically transferred to a savings account each month. Then when these expenses come up, you already have the money on hand and you don't have to think about it.

 

[ptrbryant]

That's a really good tip...seems like the vet bills always trip us up. Also, the "small" great-sale-price temptations. When I look at my cc bill, it amazes me that hardly any individual charge is over $30...but the number of charges adds up surprisingly fast!
We did better on managing our money in 2004, but hope to improve in 2005.

Karla B.

 

[spiceycat]

you also have to put a little more away for the unexpected stuff - new tires, new engine, your pet got in a fight - that type of stuff that is hard to decide a real number.

my budget - food, gas, doctor and prescription not paid for by insurance, insurance for auto and home, condo fee, clothes, games, DVD, books, plus some extras. Then the auto draft stuff - DVC dues, mortgage payment, utilities, loans that is paid by my bank directly.

I don't include the stuff that is paid for at work - life insurance, my medical insurance, 401 K, savings - because I am working with my take home paid.

 

[Lisa loves Pooh]

We're very good at sticking to a budget in this house, and -- believe me -- the rewards of knowing that we're where we should be financially far outweigh the joy of buying an occasional $5 shirt on sale.

Your post gives me the impression that impulse purchases are a problem. Here's my biggest tip: Don't use shopping as a hobby. Stay out of the mall, Walmart, Target . . . where ever you usually shop and overspend. Going into these places "creates needs". Example: Right now you probably have plenty of clothes. But if you go to the mall this afternoon, you'll probably see a nice top or a sweater that you'd like to have. If you never SEE it, chances are good that you will never DESIRE it.

I didn't mean to misrepresent myself. I am not an impulse purchaser as you imply. We can afford a $5 shirt...but say by the end of the month--I bought a $5 thing, a $2 thing, et cetera..it all adds up and that is the part where I have a problem visualizing. I would rather afford that Hawaii trip than 1000-$5 purchases..does that make sense?

I do need clothes--b/c of weight loss--but I am holding off. I do know that my favorite store has a super super clearance just around Christmas--so instead of budgeting say $20 a month for clothing--I would budget similar amounts..but then plug them into the budget as my planned shopping excursions for necessities for example. So instead of 5 one month budget items for a $20 clothing purchase--I'll plug $100 in December to cover a sales clothing purchase. Make sense.

Yes--I do avoid those stores! I used to frequent the mall when DD4 was a baby--but alas, we don't do that anymore.

 

[Lisa loves Pooh]

OOPS--double post...very busy server today.

 

[lsteadman]

Last December I purchase Microsoft Money and I cannot tell you how much it has help my family in planning our budget. I start January 01, 2004 with a clean slate! I set-up my budget and I set up my checking and savings accounts within as well. The next thing I did was NOT SPEND ANY CASH!!! I have only went to the ATM 9 times in 2004. If I cannot buy it with my check debit card or credit card then it doesn't get purchased. I track all of my expenses and I down load all of my bank statements to reconcile my accounts.

This has given my the "TRUE BIG PICTURE" of my OVER SPENDING! I notice in June that we had "meal aways from home" to the tune of $1,300 in June. Why in the world was we spending so much money eating out. So put a stop to that right away - bag lunches all around. Then, I also noticed that I didn't budget enough for car gas! It didn't help that gas was over $2.00 a gallon most of the year. So I adjusted the budget for that as well.

I love the forecast feature of Microsoft Money because I can see where I am going to have negative months and adjust my spending before to accommodate my "WANTS."

Sound like a commerical but I just finished my 2005 budget using the same system. I can account for every penny of my 2004 earnings with the exeception of .17 cents. I don't know where that went

 

[SlightlyGoofy]

lsteadman, I totally concur with what you said. After years of work I had it down pretty well budgetwise but when we retired and went to a once monthly paycheck (mostly) it was a whole new ballgame and also a different life. I set up my first Money program and budgeted it within categories making sure to put in wiggle room for possible disasters. Any money saved during the year goes , where else, our next DW trip. LOL

I just love the feature that I can click and see exactly how I am doing on my budget, penny by penny. You can also tweak things if necessary during the year. I still use the 2000 version even though I have a newer one also (came with new computer) as I like it.

I always do my budget on New Year's Day. If I had a hangover I might wait for another day but I am a sober, if not sane, individual.

Being free of debt sets you free and sure does save a lot of worry.

SG/Linda

 

[HenDuck]

I usually rework the household budget every 6 months, or whenever something major changes (like preschool tuition ).

I also do a personal budget for my own finances.

We have a few things that will change this year, so we'll have to readjust as we go along. We'll finally get rid of our mortgage insurance this year (woohoo! ) so we'll need to discuss where to put the extra $$. I also got a raise so I need to figure out how much will go towards retirement and then to savings.

I do a spreadsheet for the joint household budget for every expense we have. I show it to DH, he ignores it, I bug him to look at it, he ignores it, I yell at him, he glances at it...you get the picture. Then I just TELL him what his contribution is and he says, "ok".

We do stray from the budget when necessary, but having the figures on paper makes it easier to see where we stand every month and if we're short, we know what needs to be cut, etc.

I won't be able to implement my new personal budget until I pay off my credit card bill from our DL trip earlier this month!

Whew! Just talking about it makes me tired.

Good luck to everyone else with their new year's budgets and resolutions!

 

[HenDuck]

I also do a separate column in my budget spreadsheet which addresses whether we "need" the item or not (cel phones, cable tv, etc.), or whether we can lower the expense and by how much. This has helped me tremendously to see the "bare bones" of our budget. Then I know where to cut if DH has a bad month(s) at work or if something catastrophic happens.

Hope that helps someone.

 

[RobinMarie]

I don't budget into categories like I used to (reminds me too much of work!)

Some of the things I do to maintain spending AND ensure saving is:

- Pay myself first
- % of 401k each pay period (pre-tax)
- savings for college (dd) and household savings right out of paycheck
- For the sake of the environment and your budget try http://www.freecycle.org/ and join your local group. You'd be amazed at what people want to be rid of and you could use!

- I don't use credit cards if I can't pay the balance

In the past some of the areas I have miscalculated are: transportation, household maintanence, pet needs (frontline flea protection and heartguard are expensive!), and fundraisers/charitable donations.

I also do not track my cash spending. I allow myself a certain amount of cash which requires no reporting - I may use it for lunch, coffee, popcorn at the movies etc. My day-to-day spending does not include any routine purchases.

I always found household budget planning required advanced planning: recreation - buy movie tickets at a reduced rate in advance, restaurant.com gc, Entertainment book coupons.

meals - crockpots, casseroles, chilli, soups are hearty and serve as multi-meals.

Cleaners - white vinegar & baking soda are inexpensive, effective and safe!

I applaud folks who set up a budget and stick to it. It helps create good habits and awareness.

Happy New Year!

 

[westjones]

We are starting on a new budget this year also. We are not going to Disney this year (I still can't believe we will have a year without Disney). I have to save all year to be able to pay for our next Disney Cruise in March 2006. I already told the girls to stop asking for silly little things and that we are really watching our pennies this year in order to be able to do this next trip.

I am going to work on getting a 'coupon' organizer organized this weekend, and next week when the girls go back to school, I am going to go through my pantry and see how creative I can be with our dinners for awhile.

Anyway, I am right there with you guys!

DJ

 

[iNTeNSeBLue98]

I also do a separate column in my budget spreadsheet which addresses whether we "need" the item or not (cel phones, cable tv, etc.), or whether we can lower the expense and by how much. This has helped me tremendously to see the "bare bones" of our budget. Then I know where to cut if DH has a bad month(s) at work or if something catastrophic happens.

Hope that helps someone.

Similarly, I have my spreadsheet grouped by category (rent, groceries/food, car payment/gas/insurance, charge cards, etc.), organized by most important at the top to least important (things that pop up occasionally) at the bottom. I recently added little codes to each item, signifying how I pay - online, in person, or by mail.

I plug in our anticipated income and expected amount(s) due in column 1 then the spreadsheet calculates how much is left over. When payday rolls around I fill in the actual take home numbers and amount(s) paid in column 2, that also calculates how much is left or carried over week to week.

 

[minnie1928]

We've been using Quicken for over 10 years and I can honestly say that I don't know how people do their finances with only a check register! I usually key in 2 months of paychecks, bills and savings in advance. The graphing function in it allows me to chart how my expenses/savings have been tracking in a certain time period. For example, I can tell in an instant if my efforts to cut my grocery bill have been paying off or not. I also like the ability to see my WHOLE financial picture at any moment. I update my 401k every 2 weeks, update investments every week or so, all my loans are amortizing within Quicken so I can see exactly what the balance is. Also, if I have a little extra $ to put on a payment, I can see what impact that extra money will have over the life of the loan. I pay a few dollars extra on my mortgage each month (I like working in round dollars, don't know why?) and I've already cut several months off the term!

Granted, I am an accountant so I may be a bit more anal about my financials than most , but it gives me a sense of comfort knowing EXACTLY where I stand today and where I'm going tomorrow.