Alrighty guys: I'm not claiming to be a financial expert, but a well thought out budget is essential to being wise with your hard-earned cash. The Hubs and I keep track of our finances through Mint.com. It's safe, secure, and user-friendly, plus I love that I can look up our financial information any time I want. (They don't pay me to say this, I just freaking love Mint.)
The Hubs gave me free-reign over the budget this year, and I don't think he knew what he was in for. Y'all - it's confession time. When I was in grad school I didn't have time to cook (or grocery shop), so The Hubs and I ate out at restaurants all the damn time. In case you didn't know, restaurant food makes you broke and fat. Over the past few years we've been dwindling the overall budget down, but I gave it a massive overhaul this year.
And guess what? We don't have disagreements over money anymore. Or spending. Instead, we fight over other things...like why I keep forgetting to empty the recycling bin. Or serious issues, such as when The Hubs steals the last bite of my steak and I stab him with my fork. True story. Involuntary reflex. We were at dinner with The Hubs' family and they were sympathetic to my plight.
Here is how to start:
1) Take inventory of your monthly fixed expenses - bills you have to pay no matter what. Examples are mortgage/rent, car payments, insurance, bills (phone, internet, cable), and utilities. Allocate these items to your budget.
Your minimum credit card payment should fall into this category. Always pay your credit card bill since not doing so can negatively effect your credit score!
Advice: look over your bills, particularly utilities, and look for ways to save money. Last month, I had The Hubs look over our TV and phone bills, and guess what? They over billed us!
2) Set a budget for your necessities - gas/transportation, groceries, pet food. If you know ahead of time that you will have an expense that month (birthday gift, vet visit), go ahead and budget for that as well.
For example: The Demon Dogs had a vet visit this month and I knew
they needed more flea meds and heartworm prevention, so I budgeted for
this. I hate surprise expenses!
I have managed to shave down our budget, particularly on groceries, dog food, and household items. Yay coupons! Shop smart and use sales to your advantage.
3) Budget for your variable expenses - expenses you can control, such as entertainment/movies, dining out, books/magazines, and shopping. Prioritize your expenses, too. Is it more important to go out to dinner a few times a month, or put money into savings? Cut expenses that you don't use regularly or need. Again, if you know that you will be spending money on something, plan ahead!
4) If you can afford to, put money into savings. Like I said before, I hate surprises to my budget. Any extra money at the end of the month goes towards paying off more of my credit card bill (preferably the entire thing so I don't rack up interest charges), and some goes to savings. Many finance-gurus suggest having 3+ months of emergency funds, which can be daunting when your savings are at a $0.00 balance.
Start small - set aside $20 per month, or use a debit card with a savings account attached. I get $1 transferred to my savings account every time I use my debit card. Since I use my card for most of my daily transactions, I end up automatically putting $20+ in my account every month. How easy is that?
If you have suggestions let me know! I think that everyone is in a different financial situation, so this may or may not work for you. However, it works for us...Happy budgeting!
- Maggie White
No comments:
Post a Comment