Today is February 1st. It’s my Dad’s birthday (Happy Birthday Billy!) and it’s the day that we are starting our new budget.
Technically we’ve been doing it for a few weeks, but February 1 was our official start date.
Sean started a new job last month and we decided that it was time to start really really being responsible with our money.
We did what we were supposed to to – we went over our past statements and banking info and figured out what we spend a month on everything from mortgage, to gas, to clothes chocolate bars (gulp).
There it was. Right in front of me – all of the point of sale purchases that I’d used my debit card for. I was pretty embarrassed by how much I had spent at WalMart and Superstore in one month – and it wasn’t even a holiday month that we were basing this info on.
We decided that some big changes were in order. We were going to go back to basics.
No more debit card.
We have started using cash for our purchases. We started doing that a few weeks ago and the difference it has made already is definite.
I feel accountable for every cent I spend. Once the wallet is empty – that’s it for the week, so it better be something we need – and if it’s a want – it better be worth it.
If we want to buy something – we need to have the money for it.
If it’s a big purchase (like the dishwasher and microwave I want to replace) we need to save for it.
If it’s a big purchase (like the dishwasher and microwave I want to replace) we need to save for it.
Yesterday I did groceries for the week and spent $96.00. NINETY SIX dollars for a family of 5 (incl. 1 special diet).
Usually our grocery bill is double that for the week. It took a little bit of planning – I asked the boys to give me a list of what they wanted for lunches that week and then cleaned out the fridge and took an inventory of what we had and what we needed. And as I shopped I was mindful of what was going into the cart. I didn’t go into the clothing area – often I’d see a cute t-shirt or turtleneck and toss it into the cart – for 16 bucks why not?? But now I know I don’t need that cute tshirt or turtleneck. So I won’t buy it.
Usually our grocery bill is double that for the week. It took a little bit of planning – I asked the boys to give me a list of what they wanted for lunches that week and then cleaned out the fridge and took an inventory of what we had and what we needed. And as I shopped I was mindful of what was going into the cart. I didn’t go into the clothing area – often I’d see a cute t-shirt or turtleneck and toss it into the cart – for 16 bucks why not?? But now I know I don’t need that cute tshirt or turtleneck. So I won’t buy it.
This morning I needed to go to WalMart for a bathtub mat and a medicine syringe.
I left with only a bathtub mat and a medicine syringe.
I never do that. In the past I would have come home with a couple of boxes of crackers or cookies, chocolate for me and other things that we don’t need.
I thought this budgeting business was going to be a lot of work. In some ways it is, but it’s making so aware of how we spend and what we spend. It was a huge eye opener.
I’m excited to continue on with this new method of budgeting we’ve got going on – in contrast to the NO budgeting we’ve been doing in the past.
Have you got any budgeting strategies that really work for you and your family?
I always wanted to do this, but I just don’t know if I’m disciplined enough. Ugh.
However, I totally meal plan and it’s really easy once you get into the swing of it. Especially if you plan to have a crockpot meal or two each week- makes such a big difference!
I’m doing the whole Gail Vaz-Oxlade thing too, and it’s been working really well for a few months. First of all, we only spend cash. I figured out what I’d need per week and then withdraw that amount of cash every Sunday. Instead of using jars for expenses, I keep all the money together in my wallet and use an app called Spending Lite on my iPhone to keep track of how much money is in the categories Food, Transportation, Entertainment, Clothing and Gifts and Everything Else.
Meal planning and not eating out has been our biggest change. On the 1st of every month I go to Costco and buy all of our meat for the month. Then I come home and portion all the chicken, pork, beef and fish into meal sized portions in ziploc bags. I write down exactly what I have in the freezer and put it into an excel spreadsheet. Then I sit down with our calendar and plot the meat on each day to ensure variety. I plan meals as far ahead as I can – usually 10-14 days at a time. Each Saturday I look through the cupboards and create a shopping list of what I need for the week, and stick to the list. I only go to the grocery store ONCE each week.
Doing this, I have been able to keep us down to $1000 per month in groceries and eating out (this is for a family of 5 plus a dayhome of 6 toddlers and preschoolers) I knew that since we wouldn’t be eating out anymore there would be a huge savings, so I don’t stress myself too much about grocery store prices. Yes, the grapes may be out of season and end up costing me $10, but there is a health price too, which I am happy to pay.
Anyways, there are my tips. Good for you!! Keep it up!
I was thinking last night how the actual transfer of cash from your hand into the hand of a merchant feels different than when you swipe your card… of course, $100 is $100 no matter how you slice it, but there’s something about handing five $20 bills over to someone, and receiving a handful of change in return that feels more concrete than the virtual way. Card swiping is painless – gets me into trouble sometimes. (Poo.)
Good for you. I soooooo need to do that. I’ve been thinking about using the cash only envelope budgeting system for months. You are inspiring. And I can’t believe that grocery bill – wow. I can’t wait for updates….you should make it weekly to inspire us.
What did you do with the $3.35? 🙂
I am VERY proud of you! Don’t look back. Advice – We’ve done well on the cash jar system. Some weeks that meant putting back cheese to make $100 week for groceries. Meal planning is the way!
On-line coupons are great too. Check a store’s web site before your go.
My friends and I have a girls night out to Value Village every season, it’s green and you can get brand names. I get my Gap jeans there.
I read the Smart Cookie book and all of Gail Vax-Oxlade’s books (from the library) SHe has a good website and you can plug in your #’s and made a money jar sheet for yourself.
Keep going, it will become easier. Marley and Eva can do a toy exchange @ Christmas rather than buy gifts.
Argh…my comments aren’t showing up. hmph!
Sara – try doing cash only even for a week and you’ll notice a difference right away!
Jen – the meal planning with the kids was key. It got them involved and I bought only what I needed for meals and snacks. I will likely need to pop into the store one more time before the weekend for some fresh fruit/veggies. But so far I haven’t had the “Oh crap I forgot to get…” moment.
JenB – we did the same. Paid off the credit card and put them away!
Tracey – I will definitely post an update in a few months. I’m hoping that maybe we
can afford a trip by the end of the year with all these good financial decisions 🙂
Dad – I learned from the best – now I just have to put it into practice. I just won’t be using envelopes! xoxo
Bonnie – one of my kids is gluten and dairy free – that food is $$$ so I am doubly proud that I was able to get everybody’s food for under 100 dollars!! It CAN be done!!
You’re doing some GREAT budgeting! we are spending about $350/week for the 6 of us, easily 350, likely closer to $500 these days. I wish my budgeting was much better, ironic as I run a finance firm hahaa. I just can’t control the kids food spending as much since they are trying to go “all organic” which is a total pain in the butt in terms of financing. The organic fad has hit my pocket hard haha
Bonnie Smith
COO/Director FXP
http://www.forexpulse.com
thats my girl……..always knew you could do it. after a couple of weeks it will all be just second nature to you……………… piece of cake!!! lol
dad…….luv you all oxoxoxoxx
You have exactly the right idea, lady – good for you!! It is SOOOOO easy to just toss in that extra stuff… on-sale stuff… these cookies look delicious… wow! Chips!! I know. Shopping with a list is the only thing that helps me – we’re trying to get back on budget-track too, after all that painting and home-improvement stuff, where at the rate you’re spending, what’s another $50 bucks? Or another $100 bucks? Why not $200?
And then you wonder why there’s so much month left at the end of the money… keep us posted on how you’re doing! So inspiring, Christine!!
Oh man, I so need to get my act together this year. If I’m going to continue to stay home with the kids we’ve got some big changes to make. My husband and I tend to be the opposite though, we don’t keep cash on us because we use that more freely so debit cards only for us. Our credit cards are on a hiatus as well.
$96 a week for groceries for 5, wow. I spend at least $125-150 a week for two of us and I do plan out my weekly meals and I only shop once a week. (and I use coupons) Help!!
My big suggestion is meal planning. There’s a grocery store by the subway on my way home from work, and if I don’t know what I’m making for dinner, I’ll pop in and end up spending $50 on dinner supplies and stuff I didn’t realize I needed. If I do that 2-3 times a week (in addition to my one big grocery shop) I’m in $$$ trouble.
For the past couple of weeks I’ve been plotting out my meals and making sure I’ve got all the ingredients for the week. This takes time and effort, but it means I feel more in control of my wallet and my life.
Oh I BOW TO YOU! I have been talking about doing that for months…especially cash only – very inspired by Til Debt Do Us Part and now very inspired by YOU.
I have to do – I can’t wait to hear how you guys do – that’s incredible $96. I spent $45 yesterday on one dinner and some other stuff!!!!