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Nifty Thrifty:  Budgeting. Ugh.  |
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FebruaryViolet
True Blue Farmgirl
4810 Posts
Jonni
Elsmere
Kentucky
USA
4810 Posts |
 Posted - May 27 2009 : 06:21:31 AM
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How is it that it works on paper? I mean, when I sit down, write out all our bills and expenses, it works--there is money left each pay period and it's enough to do something with.
But when it comes to reality, I'm always running dry by the next paycheck and it seems like I'm not able to split the bills like I'd like to (bi-weekly). There is a little fluctuation in my husband's pay, as he's a server, but it's not that much. I usually margin for that, anyway.
Anyone have any tried and true methods of budgeting? We are facing a large restoration bill for our basement and the financing will help, but I'm concerned about the monthly payment. The flipside is, that if we DON'T get it done, our house will probably be condemned in 5 years.
Musings from our family in the Bluegrass http://sweetvioletmae.blogspot.com/ |
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Bellepepper
True Blue Farmgirl
1207 Posts
Belle
Coffeyville
KS
USA
1207 Posts |
Posted - May 27 2009 : 08:58:01 AM
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| Jonni, do you have any idea of how much your payment will be for the restoration? If you can get an estimate, then start setting back that much money each month. Litterly, take it out of the bank account and put it some where and DON'T touch it. I think you'll find out that you will probably run out of money before you run out of month, just like the rest of us. Except you will know that you can make the monthly payment. May have to cut out a few extras (ours is groceries) but it will be worth it to have a nice basement. |
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countrykatgirly
True Blue Farmgirl
186 Posts
Hallie
Jordan
NY
USA
186 Posts |
Posted - May 27 2009 : 10:10:23 AM
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That what I do, too. I have two Tootsie roll banks; one is for silver and the other for pennies.  All my change goes into it and I'm going to start with dollar bills next, maybe. I got up to $41 in not much time. I'm saving for a piece of land someday.
Get a jar or something and be ruthless. No matter what put something in it and DO NOT TOUCH IT. Write down everything you spend for at least a month. It is an an eye-opener to see where all your money is going. It surely was for me. You could use a program like an easy version of Quickbooks or MS money to track your finances. If you don't like that maybe try a home finances organizer and an expandable check file for receipts. I have a Christian financial one like this:
2009 Household Bill Payer
http://www.bomc2.com/ecom/pages/nm/product/productDetail.jsp?skuId=1030411580
I found out I was spending way too much on groceries and unnecessary items. Little dribbles of money here and there add up fast, a pop from the machine, a magazine at the check out or a candy bar. I've also gotten rid of all credit cards. I only pay cash for things. I buy used when I can. I also drive a 13 year old truck that's paid for. There are many things that we can do without. I have begun cooking more and being really careful what I buy when I go shopping. I'm trying to ask myself. "Do I need this or just want it?" I use the library a lot and I try to look for a million ways to pinch pennies. I think of it as being creative, and that all these businesses want to take my money. I shop around for items before I buy. If I part with money I want to know I got a good deal, since it's so hard to come by and things are uncertain out there. I have heard Ron Blue and Dave Ramsey are great sources for information about finances and I'm going to check them out.
Don't think of yourself as being deprived, most of all. You are being creative, responsible and you're working toward a goal. 
“It is the sweet, simple things of life which are the real ones after all.”
--Laura Ingalls Wilder |
Edited by - countrykatgirly on May 27 2009 10:21:58 AM |
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FebruaryViolet
True Blue Farmgirl
4810 Posts
Jonni
Elsmere
Kentucky
USA
4810 Posts |
Posted - May 27 2009 : 10:54:07 AM
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The payment "seems" reasonable and do-able, but it's for 10 years! I'm soooo gunshy of those kinds of commitments, but, we'd never, ever be able to do it without financing, especially with a newborn.
Belle, that's a very good idea about taking the money out now--they will call us with a start date, should be within 5 weeks or so (agh!). And, you're right--in the end, it will be very worth it. We've had some problems down there for sometime, and I'd like to get it remedied. It's just SCARY taking that step!!!!
I am going to start writing things down, because like you mentioned, Countrykatgirly, money just leaks like a sieve when you don't monitor your spending. I know we can cut out some extras in the groceries and misc. silly spending like a beer or glass of wine here and there (or my flower habit!). The vegetable garden should be coming in soon, so we'll cut costs there, too.
I'm also going to pare down on telephone service (because we don't talk on it anyway!) and reduce that bill each month. We pay cash for everything now, but I do have some credit card debt (around $1500) ...that's not too terrible considering. It's a card that we use for travelling and vacations, and car repairs only.
Good ideas, and I'm determined to make this work. Would love to have a basement that won't condemn my home!
Musings from our family in the Bluegrass http://sweetvioletmae.blogspot.com/ |
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mikesgirl
True Blue Farmgirl
3659 Posts
Sherri
Elma
WA
USA
3659 Posts |
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countrykatgirly
True Blue Farmgirl
186 Posts
Hallie
Jordan
NY
USA
186 Posts |
Posted - May 28 2009 : 04:29:33 AM
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Another thing you might consider for your flower habit, LOL, and for things to renovate your place: Craigslist's Free Stuff Board! I have seen folks giving away daylilies, countertops, doors and a lot more. Me, I got an electric cooktop for free. I had to drive an hour for it but it was a beautiful drive through the country. Also, don't forget about the items for sale. I managed to get my 2 comforter sets for $50 total. These are sets that originally went for $100 and $225 each.
mikesgirl, I think I will give that envelope system a try.
“It is the sweet, simple things of life which are the real ones after all.”
--Laura Ingalls Wilder |
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Amie C.
True Blue Farmgirl
2099 Posts
Finger Lakes Region
NY
2099 Posts |
Posted - May 28 2009 : 05:48:42 AM
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I actually do the opposite of monitoring my expenses. I tried, but careful record keeping and weighing the impact of every tiny purchase just drove me nuts. It was so stifling, it made me want to spend money just to rebel against it. Plus, my husband and I think about money very differently and we could never agree on a spending system.
So what we're doing now is saving first. I have a set amount taken out of my paycheck and diverted into two savings accounts - one for house and car repairs, and the other for long term savings (ie, my upcoming unemployment). My husband also agreed to put a certain amount of money each month into long term savings.
With that money out of the budget, we feel free to juggle the rest however we want. It does get pretty tight between paychecks, but we don't mind that so much as long as we know the big things are being taken care of behind the scenes. We've been doing this for about 4 months now, so not long enough to really put it to the test. But I'm very happy with it so far. |
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kissmekate
True Blue Farmgirl
890 Posts
Kate
Delano
Minnesota
890 Posts |
Posted - May 28 2009 : 7:01:42 PM
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I take out a budgeted/set amount of cash every Friday,for gas and groceries for the week. I only use that all week. Some days I am out of money by Sunday night. But I usually also have a full tank of gas, and fridge.
For something unexpected, I use my check card. I try not to use that.
I have found cash only makes me try harder not to spend it.
I also have all of my bills automatically withdrawn from my checkbook, so the money HAS to be in there, and helps me be more careful/creative.
I have a small savings account that barely has any money in it, then I need it for something...funny how that works. LOL
One thing that helps me, is that I started to pray about my finances. God has never failed me, He truly provides.
I also try to buy used/borrow/trade/make do first.
Target WAS my downfall. I used to spend a lot there on crap I didn't need. So determine if your purchase is a need/want/absolute necessity.
I prayed about the Target issue too. What a difference. I rarely wander out of the grocery side at SuperTarget. The desire to shop for fun/unnecessary items is totally gone.
I am usually in and out of there in a matter of twenty-thirty minutes.
I also shop with coupons, and a list.
I also read MoneySavingMom. She has been a big inspiration on finances and stewardship.
Don't miss out on a blessing, just because it isn't packaged the way you expected. ~MaryJo Copeland |
Edited by - kissmekate on May 28 2009 7:38:51 PM |
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SheilaC
True Blue Farmgirl
1948 Posts
Sheila
Vermont
USA
1948 Posts |
Posted - May 28 2009 : 7:40:54 PM
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| I went to a seminar given by Crown Financial Ministries--I thought I was pretty savvy and frugal, but their budget system really has worked for us SO well for the last two years--we are making definite progress on getting out of debt. . .I think my "aha" moment was when they said to pay your bills/write your checks out of your budget rather than your checkbook (the budgeted amount you have in each section each month). We have set aside $ for medical, dental, etc every month in this system and then when the expenses come up we are at least partly prepared to pay them. I really like the Crown system. They have a book too. |
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kissmekate
True Blue Farmgirl
890 Posts
Kate
Delano
Minnesota
890 Posts |
Posted - May 28 2009 : 7:50:19 PM
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Sheila, if you think of it, or run across it, will you please post the name of the book or website?
Thanks!!
Don't miss out on a blessing, just because it isn't packaged the way you expected. ~MaryJo Copeland |
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Contrary Wife
True Blue Farmgirl
2164 Posts
Teresa Sue
Tekoa
WA
USA
2164 Posts |
Posted - May 29 2009 : 07:12:21 AM
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"I make myself rich by making my wants few" HENRY DAVID THOREAU
It's amazing what you can do money wise with the right mind set.
Teresa Sue
Farmgirl Sister #316
Planting Zone 4
"Learn the rules so you know how to break them properly." The Dalai Lama |
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FebruaryViolet
True Blue Farmgirl
4810 Posts
Jonni
Elsmere
Kentucky
USA
4810 Posts |
Posted - May 29 2009 : 07:28:40 AM
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Thanks, girls. These are all great ideas for budgeting. I did sit down and worked out our expenses and what goes in/out each day.
Amie, I can understand what you mean about rebelling against the strict hold on your finances. I did that, too, at one time. But, I really think I need to just simply take a look at all the silly frivolous spending I do. Prior to getting pregnant, one month I looked at each and everytime we bought a bottle of wine. $9.99 and $12.99 sure does add up a couple times a week, and then by the end of the month it was about $100.00 on something that doesn't last...it's good, but I've nothing to show for it. So we cut that out immediately.
I really do shop very little for items that are new. But, I haven't been to the thrift in a while, either, so my shopping excursions are limited to baby necessities and grocery.
This is a whole lotta good stuff to think about--time to get crackin'!
Musings from our family in the Bluegrass http://sweetvioletmae.blogspot.com/ |
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SheilaC
True Blue Farmgirl
1948 Posts
Sheila
Vermont
USA
1948 Posts |
Posted - May 29 2009 : 11:08:12 AM
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| Hey Kate, it's crown.org the seminar was called Journey to True Financial Freedom (they did the seminar at our church last year) and the book, I don't know what it was called Free and Clear by Howard Dayton. |
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babysmama
True Blue Farmgirl
931 Posts
Elizabeth
Iowa
931 Posts |
Posted - Jun 02 2009 : 7:48:13 PM
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I've been really keeping track of my spending lately and paring it down even more. I gave myself a strict budget of $100 per week for food for a family of five and have been trying to get it even lower. This week I came in at $63 but do plan to run to the store for watermelon, strawberries, and corn that is on sale for add another $5-$8 and we will have come in around $70 for a weej of food.
What you should start with is a tiny notebook where you record ALL your purchases and bills. Write down how much you spend at the gas station, grocery store, Walmart, etc. and how much you paid on electric, gas, phone, cable, etc. Everything, even if you stop to get a soda write it down. Then in a week or two, look through your notebook and see what you needed and what you just wanted. That is the first way to create a budget. You need to know what your "basic needs" cost. Create a budget based on that, for example, here is a made up budget:
Monthly costs:
food-$400
Mortgage-$600
Gas for vehicle-$150
Electric-$100
Gas-$100
Phone and Internet-$100
and so on. You then need to add a "fun account" which will pay for eating out, movies, fun at the thrift stores, etc. and basically, when your money is gone from those accounts for the month you are finished with fun! You learn to stretch it all out and make it last. Anything extra at the end of the month should go into savings.
You will need to rewrite the budget a few times to get everything perfect but soon enough you will stop spending until it is gone and start having money to put into savings. I used to look at the checkbook to see if we had enough to go out to eat or buy something special (Yep, we have $50 left until payday, we can go out to eat tonight") instead of realizing that we already spent $xx.xx amount on eating out that month and didn't "need" to do it again.
I find it a challenge to try to live on as little as possible, such as with my grocery shopping. It makes me more aware of what I do spend and how to spend more wisely. You can even just do this as a social experiment for a month to see how much you really can save from a paycheck.
-Elizabeth |
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countrykatgirly
True Blue Farmgirl
186 Posts
Hallie
Jordan
NY
USA
186 Posts |
Posted - Jun 04 2009 : 04:48:45 AM
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Babysmama, you are doing so great! How the heck are you able to do that amount for groceries?
“It is the sweet, simple things of life which are the real ones after all.”
--Laura Ingalls Wilder |
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countrykatgirly
True Blue Farmgirl
186 Posts
Hallie
Jordan
NY
USA
186 Posts |
Posted - Jun 06 2009 : 07:24:01 AM
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Okay, I sat down yesterday and made out my envelopes. Here goes...
“It is the sweet, simple things of life which are the real ones after all.”
--Laura Ingalls Wilder |
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Bellepepper
True Blue Farmgirl
1207 Posts
Belle
Coffeyville
KS
USA
1207 Posts |
Posted - Jun 06 2009 : 10:12:25 AM
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| About 3 years ago, Ole Ron was spending about $40 a month on lottery tickets. Of course never winning anything. Talked him out of buying tickets but started putting $10 a week in an envelope. I now have over $1500. As soon as I get up to $2000, I am going to run around telling I won $2000 in the lottery. Then go SPEND it!! Hummmmm, wonder what I'll buy?? |
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moxieblossom
True Blue Farmgirl
121 Posts
USA
121 Posts |
Posted - Jul 29 2009 : 11:11:34 AM
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I have my budget worked out on a spreadsheet in Microsoft Excel. There are categories for all the major expenditures, plus entertainment, miscellaneous, lunch money, and so on. Each month's spending is split into 4 time periods so that each week, we have money for entertainment and other weekly expenses. Next to each budgeted dollar amount, I have another field that I keep for reconciliation, as described below.
Once a week or so, I log on to my bank's online account system and start plugging in our spending into that Excel spreadsheet, categorizing expenses where they should go. Excel then keeps a little side-by-side tally of what was budgeted in each category and what was actually spent, which is a GREAT help when I need to figure out where money is leaking. Usually we run over on miscellaneous (keep an eye on that category!) and eating out, so we know to be mindful in those areas.
I also divided out our car/home insurance, car registration & license fees, and other big annual/every 6 months expenses to get a monthly amount, and each month we put back that amount into savings along with our normal savings. Then when it comes time to pay up, we already have the money for it AND it's been earning us a little bit of interest in the meantime. ;)
Farmgirl #242
http://vintage-moxie.blogspot.com |
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Tapestry
True Blue Farmgirl
1223 Posts
Cheryl
Wisconsin
USA
1223 Posts |
Posted - Jul 30 2009 : 01:26:22 AM
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Jonni definitely give Freecycle a look too for your area. Hubby and I have gotten 2 like new mountain bikes, a brand new bike helmet still in the box, huge dracaena palms in very nice planters, an ice cream maker, parrot cages for when I had pet rats (RIP little guys), magazines and other odds and ends and all just like new or new and people just don't have the time or willingness to have a rummage sale or bag for goodwill drop offs. It's amazing what you can get. Just check out http://www.freecycle.com and find your state and closest town to you and join up. You just can't beat free. :)
Happy farmgirl sister #353
Look for rainbows instead of mud puddles
http://fantasm01.imagekind.com/
http://tapestrysimaginings.blogspot.com/ |
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Nifty Thrifty: Budgeting. Ugh. |
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Budgeting. Ugh.
