We've always been budget conscious.
Bargain shop, sale shop, chase deals, coupon, put extra money into savings every month etc.
2 years ago we followed quite a strict budget, utilized Microsoft Money, but when I got pregnant we strayed away from tracking like we used to and started spending... a little here, a little there, yummy dinner etc. Mistake.
I am stressed. I dread looking at our bank account daily. Medical Bills, mini trips to the grocery store or random stops out on the weekend that are piling up at an uncontrollable amount.
Bottom Line: We need to get a grip.
We laid out all of our fixed expenses. WHOA. Life is expensive even at the bare minimum.
Life Insurance, Car Insurance, Disability, Home Owners Dues, Electric, Gas, Car Payments (one is ALMOST done!), Mortgage, Medical Insurance, Deductibles...and the list goes on.
Step 1 - Equal Payment Plans for Gas/Electric
Step 2 - Lay out Fixed Expenses - Elimintate anything unnecessary
Step 3 - What is left ... make the budget
Step 4 - We must keep each other in check. We tend to crumble to each other's weaknesses and give in. Stick to our budget. Just say NO!
Step 5 - Utilize what we have currently to do things. ie. I want to paint a wall in our bonus room. DIY and use paint we already have.
Step 6 - Re-Finance our house....one day we will be able to do this. Our neighborhood and the market have sabotaged several attempts at this.
Step 7 - Continue to save anything extra to continue building our savings/money market!
A lot of things are going to change for us over the next year (no, I am not pregnant) and we need to Get a Grip on the spending PRONTO. 2010 is a time to turn a new leaf!
What is your best budgeting advice? Please feel free to share!
Jamie and I have read and love the book by Dave Ramsey, The Total Money Makeover. We have used it to eliminate our debt and build up our money market account. There are still areas that we need to spruce up, like kids' college fun and more investments, but it has given us a clear focus and pointed us in the right direction. I highly recommend it!
ReplyDeleteWhen we color coded our bank statements we were SHOCKED at how much we were spending on food between groceries and eating out. That's a good place to start saving. Plus, cutting out anything unnecessary obviously helps, like movie-rental memberships, expensive haircuts, etc. Good luck!
ReplyDeleteI adore mint.com. I have it linked to all of our bank accounts, stocks, 401Ks, student loans, mortgage, ANYWHERE we owe money or have money sitting. It can track upcoming payments, you can set your budget goals, look at where your money's going (and create your own categories - wedding was a big one for us this year!) and your net worth. Oy. And it's super secure. Love it!
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