Budgeting Tips

This was actually taken the day we moved to Missouri.
Since our car had no working heater, we purchased a few
Hot Hands and kept them in our hands and shoes the
whole ride. NOT fun.

My mother was the one who created our budget. At the time, the hubby and I had only been married a couple months. He was working a minimum-wage job and officiating, and I had been searching (unsuccessfully) for work in the area. We were "flying by the seat of our pants" as far as money goes. Don't get me wrong, we weren't spending willy-nilly, but keeping a mental tab isn't exactly the best way to make sure you stay out of debt. And we weren't.

Thing is, I'm the kind of person who likes to see things written-out. Want to make sure something gets done? Make me a list. Shopping trip? Make a list. Have a favor to ask? You'd better write it down, or I may unwittingly forget. So, while my mother was plugging in our bills and I saw our money draining down into oblivion and beyond, I went with it for a while. To this day, if you ask my mother about that experience, she will tell you she almost regretted putting together a budget for us because of what it did to me. As our money continued to burn into dust before my eyes and gaping holes begging for more money emerged, I tuned out altogether - not without a river of tears - and ended up having to go to sleep for a while and let the shock wear off.

She's there in the background - our '91 Honda.
(I don't know why I grabbed my brother-in-law's arm. I got in trouble for that - haa.
I'm also wearing my other BIL's hat.)

This may come as a surprise to you, but minimum wage isn't exactly great for supporting someone - not even a couple living in a TINY one-bedroom duplex. We did not live extravagantly. We slept on a second-hand mattress and box spring which sat on the floor, used second-hand furniture, and second-hand appliances (with the exception of our wedding gifts.) Our bathroom was so small we either had to sit on the toilet sideways or spread-eagle, and forget having two people in there at once. Our microwave sat on a thin fold-out table we received as a wedding gift (one of the best, by the way) because we had about 4 square feet of kitchen space, and couldn't fit the microwave on there if we hoped to be able to prepare anything at all. Oh, and don't get me started on our car - $600 off of craigslist, no air conditioning, questionable integrity.... 

That's not even mentioning the debt my darling sweetheart had gotten himself into before I knew him. Ugh.

We were happy in our modest surroundings, but didn't have enough money to keep them. Thankfully, we were alerted to a job opportunity in Missouri, and we soon moved down to take advantage of it with the help of my wonderful family. We ended up living with my mother for a few months, but that enabled us to buy a used car at a wonderful dealership (they do their own financing - email me for info!) after our car bit the dust. 

Since then, I have maintained and expanded our budget to fit our changing needs. Although our first introduction sent me into a coma, I am so very grateful to have it. I knew we weren't doing too well, I just didn't know how poorly we were doing. Having a budget sparked a desire for bigger, necessary changes, and has allowed an element of peace now that our bank account isn't gasping for air.

With that in mind, I wanted to offer a few budgeting tips I've come across, in the hopes that our experience can convince someone else to begin budgeting as well.

Found here.

1) Just do it. Budgeting may seem intimidating at first, but, once you get the hang of it, it's a piece of cake and can drastically improve your spending habits. There's no set way that you have to set up your budget. However, I am partial to using a spreadsheet where you use formulas to automatically calculate totals and subtract pending bills. Below are a couple of websites to help you along the way:

This website offers a few simple bullet points to help you determine what should be a part of your budget.

 website offers some great tips on how to improve your budget, and a couple of potential goals you might want to strive for once you're up and running. 

This link not only offers a ton of great advice for setting up your own budget, but they also have a couple links to pre-made Excel spreadsheets you can download to start your own budget! They also offer a few tips and goals in this link which you might want to aspire to once you're really up and running. From what I can see, that's a pretty neat website. I would recommend looking around a bit to see what gems you can glean. It looks like they even have free finance courses! Sweet!

Found here.

2) Don't be afraid to seek help. There are plenty of people willing to share their budgeting tips with you. If you have a friend or loved one who is particularly savvy about money, don't be afraid to ask them to share their personal tips. They might even be willing to help you overhaul your budget - a fresh pair of eyes is always beneficial.

Also, Pinterest is chocked full of budgeting tips. These include ways to save money while grocery shopping, better and more budget-friendly ways to make a certain meal, or even how to make your favorite furniture on the cheap. I challenge you to sign on, type "budget" into the search bar, and see what pops up. You'd be surprised. 

3) Keep accurate, updated records. Keeping an eye on your bank account and budget ensures they stay in-sync. It's a lot easier to deal with problems if you deal with them early-on. Additionally, it's a good idea to use a register. These typically come with your checks, or can be obtained at your bank. It's just a way to keep track of what you've spent, to whom, and when. 

For example, there are certain things I typically write checks for such as tithing. In our current ward, these typically come out of our account about a week after we hand them over. However, I've been in wards where several weeks go by without the check being withdrawn. It can be pretty upsetting to feel like you're on top of things when a lingering check suddenly comes out and messes with your plans. In my budget, I keep a couple separate rows for checks which have yet to clear, and they move over every week until they've cleared.

4) Be realistic in your planning. I know we're not the only family in the world who has to guess what we'll be getting in our check from week to week. Still, it just takes some attention to determine an average check and your typical spending habits.

With incoming money, it is a lot safer to plan for a smaller check than you think you'll be getting than it is to rely on money you may or may not end up with. Then when you do get a nicer check than expected, rejoice!... and save the excess. I'll get to that next.

With outgoing money (particularly bills which aren't a set amount each time) it's best to budget for a little bit extra unless you can be certain you will only spend a particular amount. 

You are doing yourself no favors if you estimate a higher income and lower expenditures unless they're actually going to happen. Try to keep to what you have budgeted, or you will have to re-adjust your figures.

5) Save, save, save. There's no such thing as "extra money" when you're on a budget - only opportunities to save. Even stray coins from cash purchases can add up quickly. Every time you put money you don't currently need away, you're ensuring money is there when you do need it, and those times will come - most often unbidden. Do you need to go to the movies every weekend? If you have extra money No. Watching a movie at home is often just as fun.

Found here.

That's not to say you should cut your social life down to nothing. Budget for it! If you don't have the money, don't spend it. If you have money but don't need to spend it, don't! Keep in mind that unexpected circumstances do arise, and you need to be ready for them. If you've spent all your money on frivolous desires, you won't be prepared when something truly important comes up.

I have often fallen prey to the idea that sales help me save money. However, this is untrue. First of all, if you don't have the money, you're not saving anything. Second of all, there's always something to save on. One week it's this, another week it's that. All those "savings" add up - and not in the way you want them to. Third, especially when it comes to groceries, don't buy more than you'll actually use before you can't use it anymore. I have learned not to buy more, say, sour cream than the hubby and I can use before it goes bad. Sure, the huge family size tub is "cheaper" ounce for ounce, but you're not saving any money if you're just going to have to rinse most of your purchase down the drain.

6) Don't give up. I didn't personally enjoy budgeting until I'd been doing it for a while (and let's be honest - having enough to meet our basic needs helped ease the pending insanity too.) Your budget can be your friend if you take care of it. If you mess up, don't throw the whole thing out. Just adjust your figures and move on. You'll get the hang of it.  

Found here.

Please realize that even people who budget carefully will make mistakes. That's life. You'll have expenses come up which you weren't anticipating, and they may set you back in your plans a bit. That's life. But you can move on from it, and your budget can help you with those plans.

The hubby and I don't have a lot of money, and most of the time things are very tight - but that doesn't mean we don't enjoy life. Our budget helps us know when we can afford to make necessary purchases, and helps us make important financial decisions. Start yours today, and I promise it will be a valuable tool in your financial arsenal.

Sincerely,

Lora.