Are you on a budget?

MrsDe2008 · March 2010

DH and I have been spending WAY too much lately and I'd really like us to be on a budget, but don't know where to start? Also, how do you cut down essential monthly expenses?

lawby2005 · March 2010

Let's just put it this way, Budget is my middle name. LOL Garth and I have been on very tight budgets from the time we got married and that has helped us a lot, even to be able to afford a home. We cut out all non essential bills (well non essential to us, this might not apply to everyone - cable, gym, house phone), we do not shop for clothes and shoes very often (its almost embarassing coz so many of my clothes/shoes are very old), we brown bag our lunches 95% of the time, we shop sales, we do grocery shopping once a month, we clip coupons, we called our phone company to get better plans, we call our credit card companies to lower our interest rate every so often, we drive an old car! I can't think of any more.

My advice is to post your monthly budget on Money Matters Board. They will give you very, very good and sobering advice. I did it once about a year ago and they were brutally honest and it helped. Good luck Bonnie! Wait, aren't you supposed to be on your trip? Are you nesting from there? LOL

Liza3394 · March 2010

Same as Karlien, we're on a super tight budget at the moment. We pretty much manage our money using mint.com. It really helps provide a visual of how much we spend each month, where we spend it and places we can cut back.

We've trimmed our budget in the past by getting rid of cable (and putting our tv in storage), cutting our dining out to once or twice a month, DH started packing lunches to work (my work provides lunch each day, i know, super lucky!), rarely going clothing or shoe shopping and only when we really need something and then its shopping at discount or cheaper stores....what else...planning meals to minimize excess grocery shopping and also shopping for budget friendly meals, making my own cleaning supplies (its amazing what you can do with baking soda and vinegar!), cutting out paper products (paper towels, napkins....), ummm...I know there is probably more.

the best thing is track your spending for a month or two (everything!!) especially cash from the atm - then see where everything goes. From there you can get a realistic idea of where to start your budget and also so you don't forget something. Over the past year, I was really adamant about tracking the cash we withdrew - some months there was $300 - 500 of cash withdraws that we couldn't remember where it was spent. For this year, we've really eliminated that unknown by just really keeping track of what cash is spent where (using the categories on mint.com).

Now that we are facing my upcoming maternity leave and with DH's job uncertain, we've been really hording our money. Last month before we found out about DH's job, we practiced living off of just his income and had a nice amount leftover at the end of the month. It's also helpful to set up an automatic withdraw from your checking to savings each month - or some employers can do that pre-tax in your paycheck, but I like to do it on my own.

tovachava · March 2010

We do. We decide how much we need in each category- food, household, bills, fun... when the money is gone in that category it is gone- no going out to eat if the fun budget is gone

We haven't been very strict lately, but if you are this works really well.

Nova726 · March 2010

We're not real good at budgeting (or I should say I'm not real good) but I've found that I spend a lot less when I really keep track of what I'm spending.

I'll keep a little notebook or an excel sheet (the book is more reliable) and write down every penny that I spend. When I'm doing this I really feel more accountable for the money I spend and think twice before reaching for my wallet. (It's like Weight Watchers for my wallet)

hocus · March 2010

1. Find out your take home pay.

2. Total up all "regular" bills (rent, electric, student loans, metro cards etc). Be sure to include anything not monthly (for annual stuff just divide by 12)

3. Figure out your minimal variable costs (food is the biggest item here, but anything you need regularly but don't have a "bill" for or if the bill varies each time, this also includes pocket money for things like coffee). If you aren't sure what this is go back 3 months and look over your bank and CC statements.

4. Whatever you have "left over" is what you use for fun, savings and/or getting out of debt faster.

4A. If you don't have anything left over you're going to have to figure out how to lower your expenses. Housing a big one. If you can't figure out how to cut the fat then post on MM.

Right now we're trying to stick on budget since childcare is a new and rather large expense. Before that we just had a "loose" budget but there was always a lot of play around with.

When I first got out of college I had a very very lean budget and I used a cash/envelop system that ensured I did go over (so no CC for variable expenses unless it was an emergency, when the cash was gone it was gone).

Rachiemoo · March 2010

we aren't on a tight budget at the moment, however, we recently have started a joint account on mint.com, and I find it very good for keeping track of where you're spending money.

GlowingintheCity · March 2010

Ditto to all of the above-- we've been cutting down on our expenses ever since the wedding, knowing we wanted to save up for future kids and apartment purchase. We don't buy new clothes/shoes a lot, and when we do, it's always bargain hunting online and in stores until we find the best deal. Food was a major cut for us-- we used to order in a lot, and now we cook much much more which saves tons of cash. Usually spend Sunday or Monday night cooking for the week. DH brown bags lunch (my work also pays for my lunch, as someone said above, super lucky!) and when we go food shopping, we spend a little extra time going to the stores where each item is cheaper-- i.e. trader joes for nuts and dried fruits, olive oil, freshdirect for certain items, duane reade for Cheerios... and we've found it really makes a difference. Haircuts we spread out a bit more, manicures are for rare treats only. AND, DH spent a couple nights on the phone with various utilities-- cable, phone etc-- and cut back to basics, catching overcharges, and got them to give us the "promotional" deals they were only giving new customers. Saved us like 100 bucks a month just with that.

Anyway, tons of ways to save, and of course, knowing where your money goes is also helpful. Good luck!

MrsDe2008 · March 2010

Thanks for all the info ladies, I really appreciate it.

I'm surprised no one mentioned cutting back on all the vacations we go on? lol Ok, I know that is what put a big dent into our wallets and we are definitely scaling back on them! (Don't count that 1 night we just went upstate lol).

No seriously, no more vacations and no more ebaying for DH. We've determined he would spend anywhere upwards of $500 a month on stuff he'd call "collectibles"...I'd call "crap". =/ My down fall is definitely going away...I'd forgo a wardrobe over a vacation anyday, so I definitely don't spend on clothes or accessories. =/ As for any type of debt, we only have a mortgage...thankfully our CC's get paid in full each month, we have no car payments (2 clunkers between the both of us). On the whole we're ok, so I'm not complaining about being in debt or not being able to pay the bills, I just want to have a little more insight and control over where it's all going.

We have a house line due to having the triple play, but we don't want it. What service do you use for cable/internet without having to pay for a phone line as well?

ooh, I also did very good food shopping today. I only bought the essentials (especially the ones that were on sale) and clipped coupons. My total bill was $70.40. I saved $56.81 with my Pathmark card and another $8.00 with the coupons I clipped. I was SUPER happy! I like saving!

Are you on a budget?

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