Do You Budget?

[lgslgs]

We've kept everything in Microsoft Money for about 6 years now. We've got a very workable budget that accurately predicts where the money will need to go.

We consider each budget category a ceiling for spending, and some have a bit more flexibility than others. It is very rare for us to go over our monthly budget and we are quite aggressive about seeing how far under budget we go.

We don't budget for "fun" money because spending is not a fun form of recreation for us. We do have budget categories that cover leisure activities in case we want a zoo trip or a magazine, but they are very lightly funded and we discuss spending in those areas the same way we'd discuss any other purchase.

We even have separate grocery categories for staples and non-staples. They are all funded as part of the blanket category "groceries", but as we spend we record which part of the grocery bill went where. That way we can see at a glance whether we are spending on food basics or if we are spending on "I wants".

It's nice having a good handle on spending like this - we've planned ahead and prepared (budgeted) for surprises and we know the real cost of how we live.

Lynda

[Aleta]

Some people go shopping for groceries and everything is included in their. I separate and have categories for different things that I may include in my grocery cart. I budget for toiletries, ( toothpaste, deodorant, razors, hand lotion) house supplies (detergent, brooms, paper towels, etc), pet food, beverages(soft drinks or beer or wine). If it's coffee or tea, I include it in my grocery list as food. I find this a better way to keep a lid on excess spending in these areas.

[boefixepa]

I used Quicken for about 5 years before switching to Mvelopes. The difference was staggering. I had a metal block I guess, with my checking register balance and the money I had to spend. It wasn't until I found the program with mvelopes that the wall came tumbling down and I couldn't tell you day to day what the balance of my checking was, just how much I had left in certain envelopes. Once that mental shift happened my checking balance went through the roof as $$ was able to grow for those periodic expenses. I can see the money sitting there in it's envelope waiting for the bill I know will come in 6 months and I have no desire to touch it. I no longer considered it as spendable. It was a VERY odd paradiam shift, but it was the key to my financial turn around. I know people can make ways for it to work for them, but it wasn't until I separated my Checking and CC away from my BUDGET that I was able to see them as two different, but inter-related items. Mvelopes does a good job of visually and easily showing you that difference, but still giving you the tools to keep those accounts balanced and bills paid. I NEVER had that with Quicken and I had to 'rebuy' it every few years when my no longer supported the older version, and I lost it all once, years of history, when my computer crashed....sad.

[vishenda]

nobody plans to fail
they just fail to plan

[The Budget Man]

It's fantastic to hear of people who are using Quicken and Microsoft Money for their budgets. Many people who try to use these programs end up giving up.

I'd love to hear about what people like and dislike about these programs.

Do you find them easy to use and how long did it take you to learn to use them in a way that suited your situation.

I'd also love to ear what people who found these programs unsuitable for their situation are doing with their budget.

Enjoy Your Money
The Budget Man

www.PersonalityBudgeting.com

[rusty@saving]

i immediately take $100 for all my expenses for the week out in $10 bills. i get payed weekly, so it is better for me to budget.
i do all my grocery shopping on friday, and get everything i need, with a list and stick to the list. i get lunch supplies to save $.
i used to fill up my gass tank all the way on friday, but i have a new system. it is kind of a pain, but it REALLY helps me budget. i only frive a total of 1 1/2 miles to work every day, and for the week it is about 150. so with a gas station right near my home, i put 1 gallon of gas in the tank every morning instead of putting $20 in at the beginning of the week.
with the low amount of driving i do, i usually end up with a lot of extra $ left over and my tank around 1/2 full at the end of the week due to the fact that i am putting in more gas than i am driving, and having more $ to budget for the week instead of being broke and struggling all week long.
it also means less to put in the next week, and more savings.
i put the rest of the $ in my account and pay bills out of it, then at the end of the month i put what is left in savings.

[LuxLiving]

Budget Man, I tried Quicken and found it complicated things more. I was forever having to get the book out and read how to do something. I like Jesse's You Need A Budget, but hey I guess I've said that before, huh?

[Broken Arrow]

Originally Posted by vishenda

nobody plans to fail
they just fail to plan

That's a wonderful quote, by the way.

[momx5]

I use Quicken and track my spending daily. This month, we are recording every cent that we spend. The result? We're very careful with the money. AND, I see DH not spending as much as I thought.

Planning isn't done as much as it should be, although the extras (music, choir, trips etc.) are planned for so that when a cheque comes out, the money is saved before it is needed.

[PrincessPerky]

I budget all the 'obligation' categories, then I see what is left in an average month, then we aim to spend less than that.

I wouldn't call it strict, I am pretty easy going (get overtime, buy more groceries, get gift money, go out to eat) but so long as the 'obligations' (and I don't mean needs, phone is an obligation, I agreed to pay it so I will, but I do not need it-same with auto saving, and tithing, ect) are paid, the rest is for us to buy food, gas, gifts, and treats.

[Aleta]

I just started using Quicken and I do find it confusing. For instance, if I transfer money from my money market mutual fund on one day, Quicken automatically enters it on the same day into the other account. Usually, it doesn't come out of the other account until the next day. The banks are using so many different terms now. Quicken uses ETF. Is that just for payments or can I use it for transfers as well. I have no problem transferring from the same bank into another account.

Also, I don't like the way they do the investments. It's not a true picture or maybe I'm doing something wrong. I have heard others say that they like Microsoft money better. Any suggestions?

[The Budget Man]

I was so fed up with some of the big budgeting programs that I wrote my own. Then my friends found out and started using it and making suggestions and it simply grew till today it's used in over 42 countries in all sorts of currencies and as soon as we think we have it nailed down someone comes up with a good idea of how to improve it.
Have any of you done something similar?