Do You Budget?

[dvcgirl]

Re: Do You Budget?

Yes, we budget....always have. We set the "yearly budget" every January, in fact we're doing ours today. My DH has a spreadsheet in which he tracks where and when to move money each month, and then the only two items we track are grocery spending and our "fun money" spending. We have a nice portfolio at this point and are on track to retire in our early 50s, so some might say we're a little anal with writing down each purchase we make in those two categories. But this is always the way we've done it, and for us it works.

[LuxLiving]

Re: Do You Budget?

disneysteve - on leveling out the bumps when finding OJ or other grocery goods on sale and the month's grocery budget is all gone??

Plan for it.

Weekly Grocery Budget 50.00
Weekly Stock Up Budget 15.00

I just budget to allow for it. I know I will GENERALLY always find a great bargain on something because of where I shop. Once the grocery money (menu-planned, shop w/a list) is gone AND the stock-up money is gone, that's it - UNLESS there is some sale

****SO spectacular, SOOOOO deep-discounted****

on stuff that I already know we'll use and like the brand, then I just buy a year's supply of it OR all they have on the CC and go home and move the money from the Grocery Escrow Fund back into checking and pay off the CC.

Works for us. I really enjoy having the money back in Escrow to pull off these extra-inexpensive-great buys. Thankfully I have a huge pantry room 8x12 lined w/shelves in my basement to hold the booty!

[Aleta]

Re: Do You Budget?

When you first start buying alot of supplies, the money does go quickly. I usually will keep some cash around and will replenish it. When you buy in bulk like this, it adds up quickly. Sometimes, I have gotten to the point where I actually can't buy anymore. I then can truly wait for a sale. I usually only buy when it's on sale. That is a particular teaching from Andrew Tobias in The Only Investment Guide You'll Ever Need. Even though it's not a new book , it is updated. You really have to try different ideas to see what works best for you. But, it's a good idea to get even taxable items on sale in bulk because you pay more in tax also.

[boefixepa]

Re: Do You Budget?

I use mvelopes it is an internet based computer envelope system that works for me. I have a yearly budget and it is distrubuted monthly to the envelopes. I can trasfer 'left over' money to savings or let it sit there for next month. I budget to allow for stocking up on bulk purchases and I plan for all the period expenses by putting a little away each month and letting it build so that when the bill is due the money is there. I also use this method to 'balance' my utility bills. I figure the yearly average, add a little to cover usage increase divided by 12 for my monthly amount. I 'pre-fund' things from saving if I am starting at an odd place. (ie in the expesive months instead of the cheap months). This way I always have a positive balance in my utilities and can adjust if needed.

I fund monthly and have a monthly based budget. Meaning the checks I deposit on Jan 10 & 25 will be 'funded' to the envelopes Feb 1st for Feb bills. This did require a chunck of savings to start, but once started it is easy to mantain and you are always have a month to make any needed adjustments.

The stress relief I have felt from this system is beyond description and I would never go back to paycheck to paycheck and thinking the money in my checking account is what I had to live on. Boy was that a LIE!

[The Budget Man]

Re: Do You Budget?

I use the "Personality Budgeting Program" The 20 years it took in development have made it the easiest program there is to use.

There are only three places my money can go...

Bills
Day-To-Day Living
Savings

Each of these areas need to be looked at differently.

With the Bills I let the Personality Budgeting Program work out automatically what is coming up and how much I need to be putting away each pay. I always have enough money in the bill account and the program tells me if a big expense is coming up.

My savings are also on automatic as I don't save unless it is done that way.

Finally my Day-To-Day living money is the amount left after the bills and savings have gone. With the Personality Budgeting Program I alwaus know how much is available and every so often I look carefully at an arrea of spending like the groceries.

All in all since I started using the Personality Budgeting Program my budget has become a friend rather than the enemy I used to hate so much.

When I look at the work some people put into their budgets I couldn't do that so I'm happy with such a simple budget that works for me.

Enjoy Your Money
The Budget Man

https://www.PersonalityBudgeting.com

The budget that is so easy to use that people keep budgeting!

[debtfreeme]

Re: Do You Budget?

I have an excel spread sheet with all of my monthly obligations spelled out, plus retirement, vacation savings, and all the other things I am saving for each month.

I plan where my one pay check a month goes (same amount the first of each month) usually around the 20th of the previous month. I know when I have to pay all those little annoying things: subscriptions, prescriptions, mail box, renters insurance, buying things from my nephew he sells for school, girl scout cookies to send to my sister who lives in Europe, etc. that are not always paid for each month and mark it in the appropriate month and “save” toward that goal monthly or make sure that the check that month can cover everything I need it to.

I use the envelope system for the following items: monthly gas and coil changes for my car, my “fun” money and my groceries. Those I have a set amount each month and when it is gone, it is gone and no more fun for me!

I have used this system for about 2 years and can account for almost any penny I have spent except the fun money.

[s.saver]

Re: Do You Budget?

safari, I am totally with you (not w/3500 a month) but am reasonable, I save, and even though I should I don't budget

[OhioMom7]

Re: Do You Budget?

Most of our expenses are fixed so that part is easy. Mortgage and budget pay on utilities so no surprises there. Auto withdrawal on savings and soon 401K when dh qualifies.
We have another checking account and that is what we can spend. I am always trying to save money in that account but that is for EVERYTHING so some months it's eaten up by prescriptions or eyeglasses, etc.
I don't have a strict budget.

[DC?]

Re: Do You Budget?

I've always kept a checkbook (well, now it's on the computer) register, but I just recently started a formal budget. I'm using these free applications: Pear Budget (a fancy Excel spreadsheet) for the budget and Cashbox for my register.

I'm really happy with these so far. I started off with my own spreadsheet but found Pear Budget more elegant and more advanced than anything I could take the time to do.

[saver25]

Re: Do You Budget?

Has anyone had any success with any of the new online budgeting programs? It seems that there are a lot of new websites that are offering budgeting/tracking software - I haven't tried any of them but I would be curious to see how they stack up to Quicken, Money, etc...

[lgslgs]

Re: Do You Budget?

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]

Re: Do You Budget?

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]

Re: Do You Budget?

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]

Re: Do You Budget?

nobody plans to fail
they just fail to plan

[The Budget Man]

Re: Do You Budget?

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

https://www.PersonalityBudgeting.com