Budgeting software/ideas

[jmac323]

So how many of you actually write out a budget? I always thought I was budgeting by watching my purchases but I'd never written everything out before. I really want to get on board and make it a habit of budgeting properly. I have read Dave Ramsey (love his stuff) and Suze Orman tips and budgeting ideas. I'm wondering what budgeting software you use? Or budgeting style? I was thinking of using mint.com but would like some feedback. Tips and tricks to stay on track are appreciated as well.

 

[prncess674]

I am not a super budgeter with the envelope system, etc, but I do download all my checking, debit and credit card transactions quarterly and see where my money is going. One quarter I realized I was getting lazy and eating lunch out almost every day and after seeing the quarterly outlay I changed my ways.

Also even if you don't do a formal budget you may want to write out what you "think" you spend on certain activities then compare it to the actuals in your accounts. You may be surprised by the difference.

If you are looking for easy software then check out Quicken.

 

[mrodgers]

On the note of the first reply, budgeting is not looking and seeing where your money went. Budgeting is looking and noting where your money is going to go.

I do my budget in Excel. I budget weekly as my wife and I get paid on opposite weeks. I have it laid out for the year and have cells in Excel marked for which paycheck each bill is due. I have section and categories for a separate account in which I save up for non-monthly bills such as heating oil and car insurance and also categories for stuff like medical, vacation, car and home repair/maintenance, etc.

I have a budgeted amount listed for the paycheck, but they are variable so I usually have to overwrite the actual amount. The Excel file calculates how much goes out for monthly bills and how much is left. What is left I distribute amongst the categories that are being saved for until I have a specific amount saved up.

 

[jmac323]

On the note of the first reply, budgeting is not looking and seeing where your money went. Budgeting is looking and noting where your money is going to go.

I do my budget in Excel. I budget weekly as my wife and I get paid on opposite weeks. I have it laid out for the year and have cells in Excel marked for which paycheck each bill is due. I have section and categories for a separate account in which I save up for non-monthly bills such as heating oil and car insurance and also categories for stuff like medical, vacation, car and home repair/maintenance, etc.

I have a budgeted amount listed for the paycheck, but they are variable so I usually have to overwrite the actual amount. The Excel file calculates how much goes out for monthly bills and how much is left. What is left I distribute amongst the categories that are being saved for until I have a specific amount saved up.

Thanks for your ideas. I think I'll probably end up just drafting somethign up in excel too. It's free and not too difficult to use.

Unfortunately my husbands pay changes weekly by location he works, the job he's at and if there is a job so his pay is always our wildcard and I have trouble budgeting with that because I never know exactly how much the check will be until we get it.

 

[Where'sPiglet?]

I also use a system I created using Excel. I am using the same system I created years ago, but each year I make adjustments to improve it.

I do a combination of budgeting (telling money where it's going) and then following up with tracking what I've spent. For each budget category, I have a "projected" and an "actual" column. I compare both columns to make sure I am following my budget.

In your situation with the variable income, I'd list all your monthly expenses as well as any recurring annual expenses. You might consider dividing the amount of annual expenses by 12 so you get a monthly amount to save for those. I'd find out what your normal monthly outflow is and I would try to get to a point where you are budgeting off the previous month's income.

I'd consider having a savings account designated for "topping off" leaner months. For example, if one month you make $3000 and the next you make $2000 but your monthly expenses are $2500, you could put $500 in savings during the better month to save for the leaner month and still come out even.

 

[Karenj2]

Thanks for your ideas. I think I'll probably end up just drafting somethign up in excel too. It's free and not too difficult to use.

Unfortunately my husbands pay changes weekly by location he works, the job he's at and if there is a job so his pay is always our wildcard and I have trouble budgeting with that because I never know exactly how much the check will be until we get it.

That's why I like www.youneedabudget.com. (Also called YNAB, you might have seen it mentioned here before.) I've been using it for a long time, although I still haven't completely mastered the "I have X amount to spend in A category, so that's all I'm going to spend", but I've been able to not go overboard in my categories, and I've been able to put aside money (that I would normally "nickel & dime away") for fun things, rainy days, etc.

Regarding the bolded portion of your quote - the premise of the YNAB program that you buy is that as you build a buffer (not quite the same as Dave Ramsey's $1k BEF - it's one month's EXPENSES), you're working towards budgeting only money you physically have. So, in your case, with your DH's variable pay, say DH gets paid $1000 in December. When you have the YNAB buffer in full, then the December paycheck actually goes towards January's expenses, so you know exactly how much you have available to spend... (And if next month it's only $750, or even if it's $2000, you know exactly how much you have to spend for the following month.) My husband gets comission, so we have variable pay too. On the months we're flush, we put the "extra" $$$ into our bigger categories.

PLUS, the key to budgeting (using ANY program) is to budget for the expected, unexpected expenses (like that quarterly bill you always forget about, or your annual membership, or new tires, or home repair - you know at some point you'll have an expense like that - why not sock away some $$ to cover or at least contribute to that expese when it finally happens?)

 

[jmac323]

I also use a system I created using Excel. I am using the same system I created years ago, but each year I make adjustments to improve it.

I do a combination of budgeting (telling money where it's going) and then following up with tracking what I've spent. For each budget category, I have a "projected" and an "actual" column. I compare both columns to make sure I am following my budget.

In your situation with the variable income, I'd list all your monthly expenses as well as any recurring annual expenses. You might consider dividing the amount of annual expenses by 12 so you get a monthly amount to save for those. I'd find out what your normal monthly outflow is and I would try to get to a point where you are budgeting off the previous month's income.

I'd consider having a savings account designated for "topping off" leaner months. For example, if one month you make $3000 and the next you make $2000 but your monthly expenses are $2500, you could put $500 in savings during the better month to save for the leaner month and still come out even.

I love the topping off idea and we've kinda been doing that in order to get a larger emergency fund in our savings, which is so nice to have.

That's why I like www.youneedabudget.com. (Also called YNAB, you might have seen it mentioned here before.) I've been using it for a long time, although I still haven't completely mastered the "I have X amount to spend in A category, so that's all I'm going to spend", but I've been able to not go overboard in my categories, and I've been able to put aside money (that I would normally "nickel & dime away") for fun things, rainy days, etc.

Regarding the bolded portion of your quote - the premise of the YNAB program that you buy is that as you build a buffer (not quite the same as Dave Ramsey's $1k BEF - it's one month's EXPENSES), you're working towards budgeting only money you physically have. So, in your case, with your DH's variable pay, say DH gets paid $1000 in December. When you have the YNAB buffer in full, then the December paycheck actually goes towards January's expenses, so you know exactly how much you have available to spend... (And if next month it's only $750, or even if it's $2000, you know exactly how much you have to spend for the following month.) My husband gets comission, so we have variable pay too. On the months we're flush, we put the "extra" $$$ into our bigger categories.

PLUS, the key to budgeting (using ANY program) is to budget for the expected, unexpected expenses (like that quarterly bill you always forget about, or your annual membership, or new tires, or home repair - you know at some point you'll have an expense like that - why not sock away some $$ to cover or at least contribute to that expese when it finally happens?)

I"m going to check out YNAB too. Sounds like it might work for us. Thanks for all the helpful info and sharing your tips with me. I finally got DH to agree to a monthly family budget meeting so we can buckle down and be done with the debt we have in as little time as possible.