Thursday, September 16, 2010

Household Budgeting: When Budgeting is a Bore

Who can say that they enjoy budgeting? Me? Nope. I even hold a finance degree and have held several Accounting roles in the past. I did have my spreadsheets and I knew how much we were SUPPOSED to be spending. However, neither my husband or myself actually adhered to the guidelines that had been set.

The key to having any type of household budget is to pay yourself first. What does that mean? We set aside a predetermined amount to be transferred to savings via a payroll transfer. The remainder is used for household bills, mortgage payments, and household expenses. My husband and I keep separate accounts and each pay for bills separately but evenly. For example when my daughter was in daycare he paid the mortgage and insurance, I paid for daycare and utilities. My advice to all women is to have their own account. You never know when you will need to have your own money.

Using a spreadsheet from sites such as 10 Free Budgeting Spreadsheets  helped us determine what bills are revolving and what we really are paying for everything.  Browse what you think will work for you. Then, the kicker is for you to save ALL your receipts. At the end of the month separate the receipts by type and enter into the spreadsheet of your choice. That should help you determine where you need to adjust your discretionary spending.

For example after using the same method we determined that we could not afford pet insurance. Though we love our pets very much we just knew that we could not afford the $90 + per month payment and cut it out. We exercise our pugs and feed them well, so they have remained healthy. Their shots are taken care of at pet clinics that run on the weekend at the local pet store.

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