Budgeting & System

BUTTERFLY254638 · June 2015

Hi All, I'm new here and I am happy i found this site! My name is Maria, i and a wife to 1 and a mother to 2. I am here looking for some budgting ideas. I have tried everything under the Sun! Right now i am looking for a new budgeting system. What is everyones weekly/monthy/yearly budget?

BUTTERFLY254638 · June 2015

We are a two income household! we bring in about 9800.00 per month! our current expenses are listed below

1. mortgage 30 year fix 3.25 % 2500.00 included taxes and insurance

2. my car payment 2015 lexus 0.00 % 3 years 290.00

3. hubby's car payment 2014- Range rover 0.0 % 3 years 380.00

4. car insurance- Allstate 1000.00 deductable- 108.00

5. electricity- 250.00

6. water- 100. cable & internet- 100.00

7. Life insurance- 120.00

8. groceries- 400.00 a month

9. gas for both vehicles - 400.00 a month

10. clothing- 300.00 ( use as needed)

11. vacation -300.00

12. nails, pedicure, eyebrow wax- 90.00 a month

13. starbucks- 25.00 a month

14. eat out - 150.00 a month

15. other - 400.00 a month (use as needed)

16. toiletries- 100.00

17. savings- 1500.00

18. emergency fund -1500.00

19. fun money 150.00 me

20. fun money 200.00- hubby

we have no credit card debt and if we use them we will pay them off in full everymonth. I'm still trying to figure out if i want ot continue using the all cash system or divert to credit cards.

brij2006 · June 2015

I use a spreadsheet, and just used one of the templates from Excel. It's called "personal monthly budget." That's what we use to categorize our budget. It has a "projected" and "actual" category. So you can plan your budget in one cell, then put in what you actually spent in the other.

Just this month though, I started using everydollar.com. So far so good.

simplyelise · June 2015

H and I were using a spreadsheet we set up in a shared excel doc. We would figure out our monthly budget then input the values in every category. Each time we got paid or had an expense, we added it in the spreadsheet. Some people reconcile it every weekend, but we like to do it the same day so we always know how much is left in the category.

We've been using everydollar.com for the past 2 months and we really like it. H has the app on his iphone and I just update it on my computer. It's nice because it has capabilities for debt payment tracking, sinking funds, and just regular monthly expenses.

I've heard good things about You Need a Budget, but I never felt like paying for a budgeting tool!

vlagrl29 · June 2015

I'm just old school and use an excel spreadsheet that my mom set up for me a long time ago. She knows how to get it to automatically add and subtract whereas I don't. I put in what we spend every month in the appropriate categories so I can track what we are staying budget in and what we are going over in.

als1982 · June 2015

Another Excel user here. We budget each paycheck individually. H gets paid once a month and I get paid every other week, so each check is allocated separately. My income pays for the mortage, utilities, food, insurance, mad money and miscellaneous. H's goes to retirement, savings, student loans and travel.

Xstatic3333 · June 2015

als1982 said:
Another Excel user here. We budget each paycheck individually. H gets paid once a month and I get paid every other week, so each check is allocated separately. My income pays for the mortage, utilities, food, insurance, mad money and miscellaneous. H's goes to retirement, savings, student loans and travel.

We do this too-Excel spreadsheet with each paycheck allocated to different bills.

als1982 · June 2015

@BUTTERFLY254638, what are your goals for budgeting? Finding ways to save, or simply tracking your expenses?

formerlyGDaisy09 · June 2015

we're an excel family too. we use the same method @brij2006 uses, one colum for our budgeted amount and the other for actuals as we go so we can see where we're on track and where we need to reign it in.

AprilZ81 · June 2015

We budget monthly for expenses and saving using two paychecks a month. When we get paid 3 times a month we splurge on something we want or put it towards a common goal. This month DH got paid three times so we bought a new 75 inch tv (but we didn't splurge on a 4k or 3D).

We use an app called "Good Budget" to track our expenses and goals. It works like a virtual envelope system so you can see at a glance how much money is left in each catagory.

Erikan73 · June 2015

I like Good Budget because I can see what stores and what types of things I'm spending my money at. What is nice I can do it online or throught their app. It makes it easy while out to see "how much do I have left in my clothing budget for this month, can I afford this shirt?". The way I look at budget tracking, you may have to try a few different ways before you find that way that works for you. Kind of like diets, if one diet worked for everyone, there wouldn't be so many different types of diets.

FirstMate06 · June 2015

We use an Excel spreadsheet as well. You can Google for free budgeting spreadsheets and see if you find one you like. I like the pre-made "smart" budgeting spreadsheets since they automatically update, add/subtract and estimate the appropriate cells based on what you enter for monthly income and go from there. Also, a lot of them are good about helping you organize your expenses into very specific categories to help you really track where your money is being spent. I wouldn't have been this specific if I had made the spreadsheet myself.

abrewer5 · June 2015

I use excel also. I budget per paycheck so every two weeks for me. I created my own sheet and I highlight things as they're paid/allocated where they should be.

hoffse · June 2015

If you end up switching everything over to credit cards (for points?) then you almost have to use excel. Most budgeting websites track it by month, but your closing date and pay date on credit cards probably won't line up with a calendar month (unless you pay off your card every time you use it).

I think excel is easiest. We actually use a google doc (the excel one) so that H and I can each update it at work, home, wherever. We can edit it at the same time from two different computers, and that's kind of nice.

I'm wondering how you have a 2014 Range Rover with a $380/month payment for 3 years... did you put down a $30K downpayment or something? Same thing for the Lexus - you guys must have put down a $25K downpayment.... Goodness, if you were going to sink that much of your savings into a car all at once, you might as well have bought something else and saved yourselves the monthly payment. I don't really understand the appeal of luxury vehicles though. I park my Honda amidst a sea of BMWs at the office.

A few other things also look really high to me (gas, water, toiletries, etc.)

Xstatic3333 · June 2015

hoffse said:
If you end up switching everything over to credit cards (for points?) then you almost have to use excel. Most budgeting websites track it by month, but your closing date and pay date on credit cards probably won't line up with a calendar month (unless you pay off your card every time you use it).

I think excel is easiest. We actually use a google doc (the excel one) so that H and I can each update it at work, home, wherever. We can edit it at the same time from two different computers, and that's kind of nice.

I'm wondering how you have a 2014 Range Rover with a $380/month payment for 3 years... did you put down a $30K downpayment or something? Same thing for the Lexus - you guys must have put down a $25K downpayment.... Goodness, if you were going to sink that much of your savings into a car all at once, you might as well have bought something else and saved yourselves the monthly payment. I don't really understand the appeal of luxury vehicles though. I park my Honda amidst a sea of BMWs at the office.

A few other things also look really high to me (gas, water, toiletries, etc.)

I was wondering if the cars are leased, given the low payments and 3-year terms.

hoffse · June 2015

Xstatic3333 said:

If you end up switching everything over to credit cards (for points?) then you almost have to use excel. Most budgeting websites track it by month, but your closing date and pay date on credit cards probably won't line up with a calendar month (unless you pay off your card every time you use it).

I think excel is easiest. We actually use a google doc (the excel one) so that H and I can each update it at work, home, wherever. We can edit it at the same time from two different computers, and that's kind of nice.

I'm wondering how you have a 2014 Range Rover with a $380/month payment for 3 years... did you put down a $30K downpayment or something? Same thing for the Lexus - you guys must have put down a $25K downpayment.... Goodness, if you were going to sink that much of your savings into a car all at once, you might as well have bought something else and saved yourselves the monthly payment. I don't really understand the appeal of luxury vehicles though. I park my Honda amidst a sea of BMWs at the office.

A few other things also look really high to me (gas, water, toiletries, etc.)
I was wondering if the cars are leased, given the low payments and 3-year terms.

Smart - that's probably what's happening here. I didn't even think of that, but I bet you are right.

OP, if you are leasing a car, please don't. It's an enormous waste of money.

BUTTERFLY254638 · June 2015

Thanks for all of the respones, the cars are not leased just a big downpayment, No more cars for a very very long time! @Hoffse, hondas are great cars, that what i actually had for 10 years before i purchased my new one! i loved that car

brij2006 · June 2015

I'm coming up with an overage of $537/month in your budget. If I were you I would take the extra $1,500/month you're putting into savings and throw that plus the $537 toward one of the cars to get those paid off. I agree with @hoffse though, and keep doing your great saving for vehicles but instead use that money to buy a vehicle in cash and not have any payments.

Also, is your emergency fully funded to 3-6 months of expenses? If so, then I would stop adding to it and instead use the $1,500/month to pay off the cars. Once those are done, then toss that at paying extra on the house.

formerlyGDaisy09 · June 2015

I'm not debt averse, so to me it looks like you're doing well. I also would not have gone for the luxury cars and would have opted to keep that $670 in my pocket every month for a non-luxury car with all the extras. But, it looks like it works for your income, and the loans are 0% interest. If you are looking to pull some extra money from your budget you might consider trading the cars for something different.

if they're big cars and your commutes are decent, $400 sounds about right for gas, there was a period when H and I were both commuting 50 miles a day and we were spending $400 a month for gas for 2 small sedans.

what's your goal for your e-fund? how far are you from reaching it?

what do your retirement contributions look like?

BUTTERFLY254638 · June 2015

@briji2006 our efunds are fully funded, right now we have over 250,000 liquid in a money market and only 10,000.00 in a regular savings. Are any of you all OK with having debt on this bored or are you all into debt payoff????

BUTTERFLY254638 · June 2015

can you all post your budgets so i can get some ideas!

Xstatic3333 · June 2015

BUTTERFLY254638 said:
@briji2006 our efunds are fully funded, right now we have over 250,000 liquid in a money market and only 10,000.00 in a regular savings. Are any of you all OK with having debt on this bored or are you all into debt payoff????

We have a wide range of opinions about debt. I'm comfortable with some debt, but with the amount you have in your MM I'd probably pay off the cars tomorrow. I'd then keep 3-6 months in an e-fund (maybe $40,000-$50,000?) and put the rest to work for me in the market. Are you doing any investing right now? How is your retirement savings? You guys clearly know how to put money away!

short+sassy · June 2015

Another fan of the Excel spreadsheet. I have different tabs that have slightly different functions. For example, one of my tabs is any debt I have a balance on...whether its my mortgage or a credit card.

Another tab has a date set-up...typically each Friday for 1-2 months...with what money I have coming in and where it will be allocated, ie bills, debts, savings.

hoffse · June 2015

I'm generally in favor of financing vehicles to some degree, because sinking that much money into a depreciating asset kind of makes my head spin. But in this case, OP was already putting a huge payment down to make the monthly payments reasonable.... OP, you could have bought a couple new Hondas or Toyotas cash for that.

OP, those cars are awfully expensive for your income. Even with no other debt, there are other things you might want to be saving for. You mentioned you have two kids.... college? The down payments you guys must have made on those two cars would pay for a year of college at an out of state school. If you had invested it instead.... well, I won't go there in detail, but you could have made some huge progress in a 529 with a lump sum contribution like that.

Obviously with no other debt and with the rate you guys can save, you can afford the monthly payments, and you can also afford to save for things like college separately. I'm just having a hard time wrapping my head around it because I would personally make a different choice.

Sorry, I know this isn't what you asked about. I'm going off on a tangent. Sometimes it's useful for lurkers.

PS: I know different people have different philosophies about paying for college. Many on this board won't do it. Others want to be able to pay for all of it (including myself). It's just an example.

hoffse · June 2015

Xstatic3333 said:

@briji2006 our efunds are fully funded, right now we have over 250,000 liquid in a money market and only 10,000.00 in a regular savings. Are any of you all OK with having debt on this bored or are you all into debt payoff????
We have a wide range of opinions about debt. I'm comfortable with some debt, but with the amount you have in your MM I'd probably pay off the cars tomorrow. I'd then keep 3-6 months in an e-fund (maybe $40,000-$50,000?) and put the rest to work for me in the market. Are you doing any investing right now? How is your retirement savings? You guys clearly know how to put money away!

Agreed - we have many differing opinions. H and I have a huge amount of student loan debt, but we'll pay it off in about 7 years. We could pay it off faster, but it doesn't bother us enough. I'll post my budget here in a bit. It's good to do once in awhile.

cbee817 · June 2015

Are your car loans really 0%? If so I wouldn't pay them off any time soon. What are you doing for retirement? Kids have a 529 plan/are you going to help them with college at all? Are you in your current house for long term? Any large home improvement projects approaching? Are your jobs stable? What is your current e-fund/savings (# of months saved)? $9,800/month is a nice chunk of change- congrats on that!

We use excel for budgeting- one spreadsheet has the month broken out by each checking account as money goes in and out. The other looks at the entire year broken out by month for expenses/savings/retirement/529 plans/vacation account. This spreadsheet references the first so it automatically updates as the first one reflects true data. We also use credit cards for everything and pay them in full each month- lots of points, rewards, cash back to leverage on our everyday expenses.

brij2006 · June 2015

I'm anti-debt, but our family lives by the teachings of Dave Ramsey. So we are anti-debt, anti-credit score as well.

If I were you, I would take the money and do something else with anything above 6 months of expenses. I personally wouldn't include the car payments when figuring up those 6 months. So by my figures your monthly expenses are 5,043. So a $30k emergency fund would be sufficient.

Then with the rest of your $230k in the money market (I'm assuming you have other investments for retirement), I would pay off both of the vehicles and pay off as much of the house as that would touch.

If that $250k money market is considered your retirement, I would invest it in mutual funds instead so it grows more with the changing market.

You guys are doing great though!

brij2006 · June 2015

Oh, if you have kids, I would be putting the full $1,200/year into a 529 plan for each of them as well.

... I'll post my budget in a bit.

brij2006 · June 2015

Here's our budget for an example. We are doing Dave Ramseys' Total Money Makeover to get out of debt, so there are debt payments in our budget as well.

Income: $6,200

Mortgage: $397

Home Insurance: $109

Cell Phones: $163

Electricity: $100

House Gas: $132

Water and Sewer: $76

Television (Hulu & Netflix): $20

House Maintenance (sometimes not used): $100

Internet: $55

Car Payment (2011 Ford Flex): $350

Car Gas: 550 (H drives 100 miles/day, I drive 70)

Auto Insurance: $200 (full coverage, 3 vehicles)

Car Maintenance: $50

DD's Health Insurance: $235

Groceries and Toiletries: $400

Dining Out: $75

Clothing: $75

Postage: $15

Baby Items: $100

Daycare: $500

Entertainment: $75

Tithe to Church: $100

Student Loans: $296

Total Expenses: $4,173

Total toward debt at end of month: $2,027

Our incomes do fluctuate greatly as well. H works a lot of overtime, and I receive commissions and bonuses from my employer. All of that goes toward the next largest debt, which right now are the student loans. Due to bonuses and commissions, an extra $3,000 will go toward debt this month alone.

ETA: We also budget every single expenditure. There are no "miscellaneous" categories in our budget. We want to see what and where every single penny went and why. If it isn't budgeted, we don't spend it. But we're also trying to get rid of the debt.

short+sassy · June 2015

Although I don't drive one now, I'm also a big fan of Hondas. Shortly after I graduated from college, I bought a 2-year-old Honda Civic. Drove it for ELEVEN years with nothing ever going wrong, except the A/C going out in year 7. Then the transmission started slipping in year 11 and I knew it was finally time to say good-bye. I paid it off in year 4 and it was pretty sweet having no car payments for such a long time.

I only wish I'd been on MM then. I would have kept paying myself my car payment to save for a future car purchase. I did put aside a little money when I thought about it for a future car, but after 7 years of no payments only had $5K to show for it .

hoffse · June 2015

Our budget:

Housing

Mortgage/taxes/insurance: $1845

Loans

H's car payment: $585 for 3 years @ 1% - we financed 100% of a Honda Accord because I didn't want to put any savings into it. I'm into debt leveraging though.

H's undergrad loans: $180

H's federal law loans: $616

H's law loans refi'd through my parents: $960

My law loans refi'd through my parents: $757

**All loans should be paid off around July-September of 2022

Fixed costs

H's life insurance ($500K): $14

Car insurance (both): $108

Cell phones: $140 (reimbursed in full twice a year, but must budget for it)

Internet/cable: $100

YMCA: $80 (they just opened a planet fitness near our house, and we're about to switch)

Hulu/netflix/landline: $19

Prescription: $100

Utilities

Water: $30

Gas/Electric: $450 - depends on season

Spending

Gas: $300

Groceries: $400

Misc (eating out, dry cleaning, gifts): $500

Other

Sinking fund for annual dues, my life insurance, etc: $200

Charitable donations (Alabama Symphony): $300

Charitable donations (alma maters): $100

Charitable donations (fundraisers we randomly get roped into): $100

Savings/Investments: $3200

Every year we max out our Roths with our savings. The bulk of the rest of our savings have been going into home renovations recently. We also like to travel. Once our kitchen remodel is complete, we plan on upping the charitable donations, because we really don't give enough away right now. We'll also divert more of it to investments because we won't have another major project like that one anytime soon.

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