Okay so for all my household systems, the area I'm falling down in right now is budgeting.
I have in the past had quite good budgeting skillz, but having just been hit with nearly $7000 in bills for cars and motorbikes I really need to get back into savings mode.
I find it easier to stick to a budget when I have something to be saving for. When we were married nearly 10 years ago, we said we would return to our honeymoon destination of Fiji for our tenth anniversary. That was when we were planning on two kids LOL. Seeing as we have a small baby and a not so small mortgage, it isn't going to happen this year. But I would LOVE to be able to go with my family July next year to celebrate the hubster's 40th birthday.
So that's my goal, now how to achieve it? Whilst I assume we will in fact win 1st division Tattslotto at some stage (because I am a winner) I can't say for sure when that will happen. In fact it really is surprising to me that it hasn't as yet! So a concrete plan will serve us well.
It can be a bit tricky with an income that varies week to week. Our big expenses are the mortgage which I put money into weekly, utilities and the like which I try to pay extra into fortnightly or so, and feeding the family. My grocery expenses have dropped since I've been baking more and planning better but I know I can improve even more if I start menu planning properly again.
So. Tell me about your budget. Do you use software? Just wing it? What are your main priorities and what are you saving for?
Thursday, March 3, 2011
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Ohai! I'm Kate. I say stuff.
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Good luck with your budgeting - I have no links to share but interested in any links you find. I have a similar plan to save for a holiday - to go to Bali for my 40th next January. Not sure if it will happen then or the year after, but can always try! (I have a $7000 dental bill this year!!! Must remember to floss - much cheaper). xxx
ReplyDeleteI've linked up, with a link to the software I used last year which worked well :)
ReplyDeleteDeb what's with the $7k thing? 7 is meant to be lucky!!
ReplyDeleteLeah thank you!
I don't use software for it, I have a table of all of our expenses and columns for weekly/fortnightly/monthly/quarterly totals (whichever apply to that expense) and then I group the list by bank account. We have 14 bank accounts between us. I know that seems excessive but bear in mind, 12 of them are free (with credit unions) and a few are not only free but internet only access (no cards)... Up until recently we were paid twice a year, now I'm still paid just 2-4 times per year and Josh is paid weekly so I've adjusted things. So the multiple bank accounts served as "envelope method" of old... monthly bills come out of one account, annual bills out of another (regos, insurances etc)... rent comes out of one... tax comes out of the quarterlies account (cos of my business).
ReplyDeleteAlso in the table I have a "plan" column. In it, I write the due dates by which that account must have a certain amount of money in it - and I put these dates in iCal so that I am reminded often. iCal creates a ToDo List on my computer that I use to list, in order of due date, when what money needs to be where. MY due dates are what I am religious about, so that I am well ahead of actual due dates for individual things -eg my monthly bills account has the total for all bills for the following month in it by the 28th of the previous month. I am never taken by surprise and rarely unprepared for the "usuals". I also have a honeymoon savings where any "spare change" is thrown each week, and another account which is for building up extra funds to pay chunks off our cars over and above the fortnightly payments we make automatically.
It sounds complicated when I write it but it is actually a really simple method now that it's underway - I started it when saving for our wedding and more than 2 years later it is still working for us - I enjoy managing it so I stay on top of things, and each time my "budget cycle" ends, I refresh the info in it for a new cycle (I usually have a 6 month budget as that's what we needed in the past). I also have another table of totals - how much should be in an account on a particular date - this corresponds with my "due dates" so that at any time I know if something is going awry with our spending or in any of our accounts.
Josh and I get a weekly slush fund and petrol money, and we have a combined slush fund (as of him getting this job! Yay, movies and a small social life without guilt!), and I have tweaked it now so that we will repay our cars in as short a time as possible (well before our low fixed interest rates turn variable) without compromising another area of our life.
Sorry for epic explanation. Should probably have just said "envelope method". hehe! But I find that having actual separate accounts for different things (get free ones!) means less temptations and less thinking!
Oooh interesting Kymbo. I was all :o at 14 accounts, but when I think about it we have a joint acct, he has an account at another bank, I have a joint with Mum at yet another bank, we have two ING accounts and a credit card account each as well. The ING's I like as they are linked and one I've only just opened to be for specifically holiday saving. The other we move $ into and out of fairly regularly but I like that it isn't instant access because if I don't have it I can't spend it, and I actually have to think about things before just transferring the $.
ReplyDeleteWe are paying too much on account fees and credit card interest between us I think. I'd really like to reorganise that side of things.
Just thought we actually have yet another account too that is tied in with our mortgage account! Crazy stuff!!!
Kate, 7 may be lucky but having 3 teeth needing root canal isn't! ... Hey 7 is our babies' birthday! MUST be lucky!
ReplyDeleteI'm a 'cash in the envelope' kind of budgeter. We've decided on a set amount per month for certain things like groceries and clothes etc and that cash goes into an envelope (or whatever) and so I can actually see what is left and know how long I have to stretch it for. Not very high tech but it works for me :)
ReplyDeleteI can relate.I also feel it's easier to budget when you are saving for something.
ReplyDeleteI've always been quite good with the budgeting until this year, when two of my little ones started pre-school. Then the budget (and the money) went out the window!
Trying to stay on track because I too would like to go to Fiji for our 10year anniversary haha!!
Good luck :-)