We’re at that point in the year when we’re looking ahead to the fall, scratching our heads and wondering how on earth we’re going to pay for all of the expenses looming in September. Now that our second daughter is nearly three, she will be old enough for preschool and ballet and swimming and….there goes our disposable income.
We need to sit down and really take a look at the money coming in vs. the money going out to see what our actual expenses are. I use an Excel spreadsheet to enter our personal receipts (although there is a stack of them about a foot high from this winter when I wasn’t sleeping, dealing with three little kids and working my tail off on my real estate course work…I’ll get to them, uh, later….riiight) and it’s always eye-opening to see just how much we (read: I) actually blow on lattes and crap from WalMart.
My husband and I are very different in our spending habits. He cannot justify spending money on coffee or snacks or trinkets, but has no problem dropping a wad of cash on an expensive dirtbike. Whereas I am ALL ABOUT the mochas, the doo-dads from Winners and the lunches out. I like the little things. But too many little things can become a problem, too.
Anyways, we’re just trying to figure out how we’re going to make it work this fall, but there are so many unknowns, like whether I am actually going to make any money in my new real estate career (PS: anyone want to buy a house?), how the childcare expenses will pan out with my new job (PS: anyone want to watch our kids for free?) and what kind of apple crop we’ll harvest this year. Hard to plan for that stuff, you know?
How do you deal with your family finances? Do you set a budget and stick to it? How do you keep track of your expenses and income? Do you and your spouse have different ideas about how to handle the money?
I used to use the system Gail Vaz-Oxlade has on her show (as mentioned by Aileen). You budget what you can spend, then take out the cash and put it in separate mason jars/envelopes, etc. When you go to buy groceries, you take the $200 out of the grocery jar, and you ONLY spend that money. Whatever is left over, you can put in your “discretionary spending” jar. At the end of each week/month, you can put the surplus in the bank or spend it. The point is you are not overspending. It worked really well. Problem is: I didn’t stick with it! Gotta get back on track…
Gail Vaz-Oxlade (I think I’m spelling that right) – she does the Till Debt Do Us Part show on tv – also has an excellent web site with lots of suggestions and tools.
I use Mint.com too. Which track most of my spending, except when I withdraw cash. However, I’m not very good about following the old budget, yes I have one. Not that I’m a big spender it’s just, we don’t have much disposable income. I really want to use the “envelope system”. Just Do It, I say to myself, but, alas, not yet. I will though, I will.
Since I separated I have had full control over money as it is just me. Also full responsibility for everything. This is invigorating and scary at the same time. I don’t budget I am afraid. I think I might not sleep if I did. I do underspend typically but recently overspent BIG TIME on fixing up my home. I decided it was an asset that needed work to increase its value. I don’t regret it but it is scary.
I think it is a great idea to plan and be on the same page financially. I also think in retrospect kids need fewer activities than we think they do.
We use mint.com. It track everything for you if you use you debit card 🙂 it sends notifications to my phone if I’ve gone over our budget in that category! Christian set it all up for me.
Yeah, that’s a toughie. The apple crop and real estate income are total unknowns. Hmm…. We are in full-on budgeting mode as well. We’re actually doing the cash in jars thing to get on track because the money going out has been more than the money coming in lately.