Writing down every penny spent

[susieb16]

Count me is as well. My DH has gone back to school which has cut our income and I am hoping to make the most out of what we have left! We eat fast food way too much so I am really going to try to plan, and shop carefully so that the temptation to just "pick up" dinner is lessened. My daughter's school sells the grocery store gift cards as well so I think that I will try that to see if it saves me money. The best part is that the money the gift cards earn goes in to her private account to help offset the cost of the senior trip her choir goes on. Luckily it's 2 years away so we'll hopefully be able to pay it off with the card purchases. Good luck everyone, let's hope we can all find and curtail those sneaky money leaks!

 

[Where'sPiglet?]

And I just got a new one for Christmas!

Me too! Now if I could just figure out how to cook with it I'd be doing great!

Those trips to Target are killer. I did find a neat little trick though. I was grocery shopping yesterday, did the big stuff at Sam's and only needed a handful of items from Walmart. To insure I wouldn't buy more, I grabbed a hand basket instead of a cart and it worked. I spent only $23.71 at Walmart.

I don't even get the basket most times. I HATE getting a cart. I don't have a car, so I need to carry home whatever I buy at the store. If I get a cart, I have no idea how heavy stuff is until I check out - bad time to find out it's too heavy to carry.

Most of the time I just carry the stuff I'm buying in my arms. You cannot stop and pick something up to inspect it to "see if you need it". You only have one hand to pick up the stuff that you came to get, that you already know you need. Works like a charm!

 

[chocovrdmicears]

OK....I cannot believe this.

DH and I vowed to get 'financially healthy' this year.
We have kept a budget spreadsheet for about a year and half. It's been helpful...but not the best. We have just spent the last 6 hours working on our 2009 budget.
Step 1. So I started out with a clean slate and detailed every single $$ that we spend each month (bills,food,gas etc..)and then matched it up with our monthly income..I was really scared to do this..It actually kept me up all last night worrying about what it would look like! . I was SHOCKED. After we pay everything...including a nice deposit into savings, we should have almost 1K extra! So why are we struggling so much? WHERE IS MY MONEY????

Step #2 We spent a few hours going through all our bank statements for the past few months...we itemized everything and added it all up.This was painful. I considered us pretty good with money...not eating out a lot, being carefull grocery shopping, not spending a lot on extras, only buying things on sale at Target and the Dollar Store. And we have NO credit card debt....REALITY CHECK: Are you sitting down. Here is one of our months and if I am being honest, it is pretty typical..WARNING...what you are about to see is not pretty.: And I am embarrassed to post this here...
Groceries: $857.39
Walmart/Target/Craft stores: $529.31
eating out: $290.24
and (the ugliest #) The Dollar Tree: $99.00
The thing with these numbers is that there were rarely any LARGE expenses in any of the categories...there were LOTS of little ones (ie..8 trips to McDonalds in one month).
So I spent a good half hour crying at my ignorance, wastefulness and denial. Got over it...and moved on to:
Step #3 We completely re-vamped our spreadsheet. We didn't have nearly enough detailed categories. It's focus was really just on bills and didn't include the 'real' budget-buster categories like 'entertainment' etc. We are also moving the to the 'envelope' system for groceries and entertainment.

Sorry for the LONG winded post...But I thought it might be helpful to those of you who are afraid to look at your financial reality . It can be ugly and painful but you MUST DO IT!!! DH and I now feel 100% confident that we will be MUCH healthier financially in 2009. We both feel like a huge weight has been lifted from us and we can move forward with a realistic and positive financial plan.

 

[Where'sPiglet?]

Sorry for the LONG winded post...But I thought it might be helpful to those of you who are afraid to look at your financial reality . It can be ugly and painful but you MUST DO IT!!! DH and I now feel 100% confident that we will be MUCH healthier financially in 2009. We both feel like a huge weight has been lifted from us and we can move forward with a realistic and positive financial plan.

I think you will find that those 6 hours you spent today will be some of the most productive 6 hours you spend all year!

 

[rentayenta]

Count me is as well. My DH has gone back to school which has cut our income and I am hoping to make the most out of what we have left! We eat fast food way too much so I am really going to try to plan, and shop carefully so that the temptation to just "pick up" dinner is lessened. My daughter's school sells the grocery store gift cards as well so I think that I will try that to see if it saves me money. The best part is that the money the gift cards earn goes in to her private account to help offset the cost of the senior trip her choir goes on. Luckily it's 2 years away so we'll hopefully be able to pay it off with the card purchases. Good luck everyone, let's hope we can all find and curtail those sneaky money leaks!

That's great that he went back to school! An education is a great investment.

I don't even get the basket most times. I HATE getting a cart. I don't have a car, so I need to carry home whatever I buy at the store. If I get a cart, I have no idea how heavy stuff is until I check out - bad time to find out it's too heavy to carry.

Most of the time I just carry the stuff I'm buying in my arms. You cannot stop and pick something up to inspect it to "see if you need it". You only have one hand to pick up the stuff that you came to get, that you already know you need. Works like a charm!

That's so smart. I should just try buying what I can carry. Walking out of Walmart and only having spent less than $50 is nothing short of amazing for me.


I have a few really good crockpot recipes if you are interested.

OK....I cannot believe this.

DH and I vowed to get 'financially healthy' this year.
We have kept a budget spreadsheet for about a year and half. It's been helpful...but not the best. We have just spent the last 6 hours working on our 2009 budget.
Step 1. So I started out with a clean slate and detailed every single $$ that we spend each month (bills,food,gas etc..)and then matched it up with our monthly income..I was really scared to do this..It actually kept me up all last night worrying about what it would look like! . I was SHOCKED. After we pay everything...including a nice deposit into savings, we should have almost 1K extra! So why are we struggling so much? WHERE IS MY MONEY????

I hear ya and you are far from alone!

Step #2 We spent a few hours going through all our bank statements for the past few months...we itemized everything and added it all up.This was painful. I considered us pretty good with money...not eating out a lot, being carefull grocery shopping, not spending a lot on extras, only buying things on sale at Target and the Dollar Store. And we have NO credit card debt....REALITY CHECK: Are you sitting down. Here is one of our months and if I am being honest, it is pretty typical..WARNING...what you are about to see is not pretty.: And I am embarrassed to post this here...
Groceries: $857.39
Walmart/Target/Craft stores: $529.31
eating out: $290.24
and (the ugliest #) The Dollar Tree: $99.00
The thing with these numbers is that there were rarely any LARGE expenses in any of the categories...there were LOTS of little ones (ie..8 trips to McDonalds in one month).
So I spent a good half hour crying at my ignorance, wastefulness and denial. Got over it...and moved on to:
Step #3 We completely re-vamped our spreadsheet. We didn't have nearly enough detailed categories. It's focus was really just on bills and didn't include the 'real' budget-buster categories like 'entertainment' etc. We are also moving the to the 'envelope' system for groceries and entertainment.

Good for you and for being so open. I think it will enable us all to be honest and open with ourselves with regard to where our hard earned money goes.

What is the "envelope system"?

Sorry for the LONG winded post...But I thought it might be helpful to those of you who are afraid to look at your financial reality . It can be ugly and painful but you MUST DO IT!!! DH and I now feel 100% confident that we will be MUCH healthier financially in 2009. We both feel like a huge weight has been lifted from us and we can move forward with a realistic and positive financial plan.

Moving forward is key. I am sure most, if not all of us, have made financial mistakes. I know we have. We used to be credit card crazy. We learned just how dangerous credit can be if not used responsibly.

I think you will find that those 6 hours you spent today will be some of the most productive 6 hours you spend all year!

ITA!

 

[Where'sPiglet?]

What is the "envelope system"?

It's the Dave Ramsey thing. For budget categories that you buy things in (ie, food, entertainment, CVS-type stuff, but NOT rent, utilities, etc) you take out the amount of cash at the beginning of the month that you have budgeted for that category and put it in envelopes - one per category.

For example, if you budget $300 for groceries for the month, you take out $300 in cash and put it in an envelope. When it runs out, it runs out for the month.

 

[rentayenta]

It's the Dave Ramsey thing. For budget categories that you buy things in (ie, food, entertainment, CVS-type stuff, but NOT rent, utilities, etc) you take out the amount of cash at the beginning of the month that you have budgeted for that category and put it in envelopes - one per category.

For example, if you budget $300 for groceries for the month, you take out $300 in cash and put it in an envelope. When it runs out, it runs out for the month.

I bet that keeps people aware! Maybe I will attempt that after this first month of writing everything down so I can get an accurate idea of what we are spending.




Our tires today were $523 That sucked to write down. My battery yesterday was $140. That too sucked to document.

I wonder how many more of these occasional expenses we have?

 

[Karenj2]

I've been budgeting since April using the "virtual envelope" system called YNAB Pro (from www.youneedabudget.com), and it has been the BEST for DH and me!! What I like most about that program is that once you have a buffer saved up, you are basically living off of last month's paychecks, so that you ALWAYS know how much you can spend in that month. (i.e., if I get paid $1k in november, I have that to budget in December, but if in December I also get a $500 bonus, in January I have $1500 to budget.) Plus, it helps me to plan for those occasional bills (quarterly, annually, etc.) and even unexpected expenses (i.e., dog's vet bill).

When we started, DH had just started another new job, we were paying back $20k to his brother which we had borrowed, and we were easily spending $500 a month for the TWO OF US on groceries (anything purchased at the grocery store - not just food), and $400+ on eating out/in!! We were spending more than we had been earning at the time (luckily we had some savings...). Now, we've paid back his brother, cut back on the stupid spending, and are working on putting away one of my paychecks per month into an emergency fund. The biggest thing for us (beyond buying that program, which I love) is the fact that we are in it together. (I am a little bit of a nag, but he's ok with it.)

To the OP - one of the selling points of a budget to MY hubby was that it actually gave us MORE freedom to buy the big-ticket items we'd like, because we'll know exactly when we can buy it. (My hubby is a "we can't buy anything expensive" type of guy, who will then blow $50 on a bunch of piddly junk...) We'd like to get a new HD tv, plus furniture, etc., and so we're putting aside money towards that a little at a time.


This is how I break down my expenses (sorry it's so long, but I like knowing the details...)
01. Housing
Mortgage (incl. escrow for Ins., etc.)
Other
Gardening
Home Repair
Home nick-nacks
HOA (quarterly)
Cleaning
02. Utilities
Gas/Electric
Water
Phone & Internet
Garbage (6 mo)
Cell Phone
Sewer (quarterly)
Security (6 mo)
03. Food
Groceries
Restaurants
Beer and Wine (not incl. beverages bought at restaurants)
Lunch @ work
04. Transportation
Car Replacement
Gas & Oil
Repairs & Tires
Car Insurance
License & Taxes
Misc. (Parking, train, etc.)
AAA
Car Payment
05. Medical/Health
Health Insurance
Doctor
Dentist
Optometrist
Drugs/CVS
Weight Watchers
06. Charity
Tithing
Misc.
World Vision
Young Life
07. Dogs
Food
Other
Health Care
08. Clothing
Clothing
Cleaning & Laundry
Special Occasion Clothing
09. Personal
Life Insurance
Hair Care
Subscriptions
Organization Dues
Gifts - Others
Miscellaneous
Christmas (ING Acct)
Stuff for Us
10. Recreation
Entertainment
Vacation
11. Fun Money
His - Cash
Hers - Cash
12. Taxes
Fed/State Income
Property
Misc
13. Savings
Buffer
Emergency Fund
Retirement Fund
15. Work Expenses
Expensable
Non-expensable
Cash Expenses
16. Things We Want
Big ticket item

 

[rentayenta]

Karen for sharing your categories and the site. I think we are married to the same man.

I've been budgeting since April using the "virtual envelope" system called YNAB Pro (from www.youneedabudget.com), and it has been the BEST for DH and me!! What I like most about that program is that once you have a buffer saved up, you are basically living off of last month's paychecks, so that you ALWAYS know how much you can spend in that month. (i.e., if I get paid $1k in november, I have that to budget in December, but if in December I also get a $500 bonus, in January I have $1500 to budget.) Plus, it helps me to plan for those occasional bills (quarterly, annually, etc.) and even unexpected expenses (i.e., dog's vet bill).

Living off last moths pay sounds wonderful!

To the OP - one of the selling points of a budget to MY hubby was that it actually gave us MORE freedom to buy the big-ticket items we'd like, because we'll know exactly when we can buy it. (My hubby is a "we can't buy anything expensive" type of guy, who will then blow $50 on a bunch of piddly junk...) We'd like to get a new HD tv, plus furniture, etc., and so we're putting aside money towards that a little at a time.

It's that piddly $50 here and there that I am trying to reign in.

This is how I break down my expenses (sorry it's so long, but I like knowing the details...)
01. Housing
Mortgage (incl. escrow for Ins., etc.)
Other
Gardening
Home Repair
Home nick-nacks
HOA (quarterly)
Cleaning
02. Utilities
Gas/Electric
Water
Phone & Internet
Garbage (6 mo)
Cell Phone
Sewer (quarterly)
Security (6 mo)
03. Food
Groceries
Restaurants
Beer and Wine (not incl. beverages bought at restaurants)
Lunch @ work
04. Transportation
Car Replacement
Gas & Oil
Repairs & Tires
Car Insurance
License & Taxes
Misc. (Parking, train, etc.)
AAA
Car Payment
05. Medical/Health
Health Insurance
Doctor
Dentist
Optometrist
Drugs/CVS
Weight Watchers
06. Charity
Tithing
Misc.
World Vision
Young Life
07. Dogs
Food
Other
Health Care
08. Clothing
Clothing
Cleaning & Laundry
Special Occasion Clothing
09. Personal
Life Insurance
Hair Care
Subscriptions
Organization Dues
Gifts - Others
Miscellaneous
Christmas (ING Acct)
Stuff for Us
10. Recreation
Entertainment
Vacation
11. Fun Money
His - Cash
Hers - Cash
12. Taxes
Fed/State Income
Property
Misc
13. Savings
Buffer
Emergency Fund
Retirement Fund
15. Work Expenses
Expensable
Non-expensable
Cash Expenses
16. Things We Want
Big ticket item

I love the list. So it looks like you do it from your gross income?

 

[dahrjo]

How hard would it be to make the chart using excel? I barely know the program.

 

[Karenj2]

I love the list. So it looks like you do it from your gross income?

Oops, sorry, no. I put in our net income (gross minus 401k, FSA, taxes, HMO, etc...). Some of those categories are part of the generic template that comes with Pro, but I don't use all of them (i.e., taxes, retirement savings, etc.). It's there so that if you want to input in the gross pay and take out the taxes, etc., you can. I just don't count that money, 'cause it isn't available to me anyway.

YNAB has two choices for income: primary (what you save for next month if you're not living paycheck to paycheck) and supplemental (gets counted into the budget of the month it's deposited). I usually put our paychecks into primary; DH's commission check depends on what we've got going on, and any other deposits (i.e., returned items, birthday checks) are supplemental.

How hard would it be to make the chart using excel? I barely know the program.

It's not that hard, in fact Microsoft has templates already created... Before I got YNAB I used one of their free templates (dgl.microsoft.com). Just look up budget on that site. (Not to be a total pain in the , but YNAB also has a basic version which uses Excel - it costs ~$20, and it has most of the functionality of the Pro version...)

(I should also mention that I have nothing to do with YNAB other than being a rabid fan/customer/convert - kinda like the Dave Ramsey fans. It's a great site & program!!)

 

[Where'sPiglet?]

How hard would it be to make the chart using excel? I barely know the program.

It's not hard. I just use the border feature a lot. If you get better at it, you can use the functions to have it add for you, but basically I just draw a lot of borders around the grids!

 

[dahrjo]

I am going to look, but I wonder if the Quicken program would have something.

 

[timzagain]

Today was my first day of writing down what I spent. I left home with the expectation of spending approximately $50, and would up spending $124.

Thankfully, I didn't buy junk! I bought a few items for my gift closet (I do my Christmas shopping year). The only purchase I really regretted was the pants I bought on sale - great price, great pants but not essential at the moment. It was a non-refundable item, so I'll just have to live with my buyers' remorse and remind myself to stay focused.

The good news is that I have found some leaks - once I plug those leaks, that will be more money in the bank!

 

[mombare]

My DH and I just started writing down everything we spend (since January 1). So far the only day we spent money was yesterday, simply because it has been the only day we left the house. And while we were pretty good, we did stop in to Shopko (like a regular Target) with the kids...not a good idea. One of the lessons learned is that I need to shop without him or the kids to stay on budget. We didn't even need anything, but were bored and looking for something to do. In the back of my mind I kept thinking, "don't go"..but they won out. It wasn't too bad, but we picked up a few things we really didn't need (and wouldn't have spent the money on if we had just gone home).
This next week will be the true test because I work three days! I tend to stop by Target after work...pretty sure they know me by name! I already bought groceries for the week, so we really don't need anything. I have decided that instead of going shopping after work, I am going to stay in the building an extra 30 minutes and walk in the hallways - that way I will not have time to stop at Target before I need to pick the kids up! We'll see how it goes, though.
I appreciate everyone's feedback on these threads. It is really cool to see different ideas and programs that others have utilized. We are just in the beginning stages of budgeting, and I can't wait to be a veteran!

 

[bluehen]

We use Microsoft money and it works great. Love the reporting aspects etc. The info is pure gold. We are good about not spending frivously but with being retired and the last year in the market, it is nice to know that there is some fat in the budget that could still be trimmed. We got our copy free with the computer but they do not cost much.

Wayne

 

[buzz5985]

We use Microsoft money and it works great. Love the reporting aspects etc. The info is pure gold. We are good about not spending frivously but with being retired and the last year in the market, it is nice to know that there is some fat in the budget that could still be trimmed. We got our copy free with the computer but they do not cost much.

Wayne

We also use Microsoft Money. Received it free one year with Tax Cut. We love it. Also makes it a lot easier at tax time, as long as you set it up correctly and make sure you itemize each expenditure. DH and I never use cash for anything. We will write a check or slide the debit card for purchases, so there is always a receipt.

Janis

 

[Carys]

Where'sPiglet, thanks so much for the peek at your spreadsheets! I tried a couple of years ago to hogtie my budget into excel spreadsheets but they ended up being so convoluted they were more hassle than they were worth. Yours look much more straight forward and user-friendly. I am inspired to start up cent-tracking again from tomorrow

 

[Where'sPiglet?]

Thank you. You have given me some good ideas. Now to see what I can come up with.

WOW! This is awesome! for sharing this. I always forget a category or 2 so seeing yours really helps! I am going to break down my Walmart and Sam's trips into categories because I don't buy all groceries.

Where'sPiglet, thanks so much for the peek at your spreadsheets! I tried a couple of years ago to hogtie my budget into excel spreadsheets but they ended up being so convoluted they were more hassle than they were worth. Yours look much more straight forward and user-friendly. I am inspired to start up cent-tracking again from tomorrow

You're all very

I was trying to describe them then decided a picture could show it so much better! I'm glad it's helping others!
(They are on page 2 of this thread.)

 

[Goofygirl17]

DH and I just finished reading DR's TMM so I decided we should write down everything we spend for a month since I have no idea how much we spend on pretty much anything

So far I've planned dinners for the week, read the sale flyers and made shopping lists. I went to three different stores to get things for the least amount of money DH went out for breakfast this morning $7 and then to Dunkin Donuts for a coffee and donuts for the girls (free, he had a gift card ).

I'm very proud of myself for sticking to my list (in all three stores!) and walking right by the clearance aisles without even looking.

Good luck to everyone!
Goofygirl