Why do you budget?

[Tinkerbellie16]

I budget because I am a freak - love spreadsheets, love numbers and am a BIG worry-wart! Husband is NOT. But he lets me manage our money and I come to him once a month with how it is all going. I am always a pessimist though which can be a good thing when you are trying to save. I want to save more and more and more. EVERY year I save for a Disney trip. When it comes time to pay, I can't let go of my saved money so we pay it out of pocket - it's pretty funny actually but it works. No credit card debt for me but we use credit for everything to get disney dollars, cash back, and points for gift cards which we use for christmas. Yup, I budget because I like the feeling of having money and making money by spending it wisely (cashback!!!)

Knock on wood - I also save for a rainy day and just in case. It's that pessimist thing. Thank goodness for Disney for that is the time that I am happy, happy, happy and an optimist.

 

[KAMKIM]

Everyone elses reasons sound so much better than mine. But mine is simple...so I dont overspend. If I know I have $500 that I can spend I will spend $500....if I dont know what I have to spend I'll spend $20 afraid that I will go over, or impulse shop and spend $600. This way its clear for me what I can allow for the up coming month and that makes me feel better, even if I dont follow it to a T.

 

[MScott1851]

I don't feel bad I was just curious as to what others think of budgetting.

I am just fascinated by the responses and enjoy reading them. Thank you to everyone who has responded.

I don't feel bad for budgetting or saving, it has served my family well. I just get a little confused by some of the posts in the BB and this thread is helping me to see all the differnet perspectives.

I think our idea of a cushion is much different than everyone elses which often makes me feel like the odd man out when people talk about spending and saving.

Dh and I worked hard stuffing those cushions and both of our names are on every single one.

I agree with you. It all boils down to your comfort level. Often you will see posts where people have budgeted down to the penny what a trip will cost, and there is NO margin for error. Or, when they are depending on a check that will be direct-deposited WHILE they are at WDW to cover their bill at checkout. I just couldn't live that way...I'd be in a constant state of panic.

I didn't mean that all mine and DH money was completely separate...we're both on ALL the accounts, we just generally leave the others' accounts alone. I don't spend out of his, he doesn't spend out of mine, etc. It's all fluid and it works out...I don't fuss because he ate out three days for lunch last week and he doesn't ask me why I went to Target twice in the last week. But, we still kind of keep up with the other's balance, and know how much each other's bills are. For example, he pays all the car/house/life insurance every 6 months. But every month, I transfer an amount equal to what he pays for my car and life insurance into his checking account. He's better at saving up to pay BIG bills once a year like property taxes, etc, whereas I do better paying things on a monthly basis like utilities, phone, stuff like that.

I have enjoyed reading the others' responses as well. I am well aware things might change once we have the baby and I'm cutting my work back. But again...that is something that we pseudo-budgeted for. Each payday, I have transfers taken directly out of my check into four different savings accounts. We have our joint savings that is our "big" savings account, and we both have our own smaller 'spend it however you want to' savings accounts. Mine usually goes to vacation, DH tends to buy electronics. I have been putting money into a 'take off work and have a baby account' for a couple of years. I didn't even entertain the notion of getting pregnant until I had at least 6 months of replacement income cushion. I'm probably only going to take 3-4 months off, so whatever is left is going to roll into the baby's account, which my parents and DH's parents are also automatically contributing to.

SO...I guess we DO budget in a way, but it's more a matter of budgeting so that we have a lot of savings as opposed to budgeting how we spend our income.

 

[DVC Sadie]

To me budgeting means living within ones income, no matter what that income happens to be. So, I guess everyone budgets in their own way whether or not they live paycheck to paycheck or are completely financially free of worry.

ETA: Whenever I hear the read or hear someone say that they are on a fixed income I always found that a bit odd.

 

[wdwfan16]

We have always been careful with our money.

We started with nothing and have experienced a lot of things that would be financially devastaing to most families but we are fine because we are always spending less and saving more.

I am getting the impression that most people think budgetting is something for people who are severely in debt or living paycheck to paycheck.

I am wondering why you budget? When do you plan to stop? Are you waiting to pay something off, saving for a big item, or are you like me and just do it because there is no reason to spend more than you must?

Also what is your idea of financially secure? Is it having 6 months of savings, a 401K , a paid off house, or winning the lottery?

I am looking forward to the responses.

Early in our marriage we made very little. We had to work to just pay the bills. Then we made more money and realized we needed to save to get our student loans paid off, save for a home and our retirement (not kids then).

I never thought of budgeting for those only in debt or living paycheck-to-paycheck. For us it is to prevent ourselves from getting into more debt (above what we already had for college and our then future mortgage - before the house) or living paycheck-to-paycheck.

I don't foreseeing us ever living without a budget.

Financial security is when you have enough to pay all of your bills, a great cushion for a unexpected bought of unemployment or a medical emergency, enough to continue to save and a plan for today, tomorrow and retirement.

I figure that is "financially independent." Financially secure happens before that.

I agree that is FI. I hope to have FI when I retire.

 

[rentayenta]

We budget to plan for the unexpected, to enjoy where we are, and to keep current with where we are at (financially).

 

[Reginat]

Hi!

When I went from a two-income family to being on my own with one income, at first I was still spending as I had with 2 incomes, lol! Then I realized, wait a minute, I want to be more aware of my finances!

When I was growing up, my family didn't talk about money, and I felt very uncomfortable thinking about it, much less talking about it!

I found a local budgeting group & started going regularly. After 1+ year, I finally got to where it feels "ok" to talk about money, budgeting, ask questions, etc.

In 2008, I tried keeping track of my finances, but wasn't as successful as I had hoped. In 2009, I have done a great job of keeping track of my finances. I'm on track to have a REALISTIC plan for 2010, not just a vague, who-knows-how-much-anything-costs plan

Budgeting helps me know I am on track for my Disney vacation each year!

So that's why I budget.

Regina in NC