Do you ever have one of those moments where you sit and wonder where you went wrong? I’ve been having one of those moments for, oh about a year now. At some point in the middle of my first pregnancy I decided that I wanted to stay at home. For me, the person who swore she could NEVER stay at home, this was a huge decision. I agonized over the logistics and made many pros and cons lists. I was certain that I had the details worked out.
Then real life snuck in and worked it’s dirty magic. We started to get behind on our credit card bills little by little. I just kept telling myself that it was just that month, just that one big purchase, surely next month would be better. I think you all know where this is going.
Somehow we became a statistic, living above our means.
It’s a scary situation for anyone to be in but I’m determined to face this problem head on (now that I’ve been ignoring it for a year). I know that there isn’t an immediate fix, or an easy solution. Granted our situation is no where near as bad as what some people are struggling with but I think the steps to freedom are the same no matter what your debt is.
The first step is to get a workable budget. Personally I think the easiest place to start is with fixed monthly bills. For the record I consider utilities, even though they can vary, to be a fixed monthly bill because I have to pay it every month and they can usually be averaged out. Eventually I will use Mint.com to track my spending and keep up with my budget but for me the simplest way to start is with a basic excel spreadsheet. This is how mine started.
Note: I’m willing to share a lot but for some reason I felt the need to blur my mortgage payment, I don’t know why, it just seemed like the thing to do.
These are all of our fixed bills. I have them divided only because I feel like the bottom half is where I can make some immediate adjustments. The top half will take a little more finagling to change.
Another helpful thing about starting in excel is the ability to make notes. For example, I started with our Internet/Phone and Cable bills. I was fairly certain that switching our Cable to the same provider as our Internet/Phone would save us some money. I made a few calls and was able to take notes and itemize our offers from several different companies. Having all the information lined out in front of me made making a decision super easy and clear. I was also able to save my itemized quote and verify my charges on the first bill.
With one change I was able to take our combined payments of $177 to $130. The total savings is less than $50 a month but when it comes to cutting your budget every little bit counts.
To Be Continued…
I’m with Jennifer! Any reason for an excel spreadsheet is a good one! I started mine by downloading my monthly statements (to excel!!) to see where I was using interac. I did some sorting and some organizing and found it really useful to see where I could cut corners. I need to return to it though and get super organized. Great post to get us all moving on it!
Thanks for this! It helps me as a reminder that I am not alone in my financial struggles. We are all, after all…’simply human’.
To be so candid about finances is refreshing. Less than a year ago, my husband and I made a similar life choice (except he’s the one staying home). Recently we also made the decision to reign in our finances. It’s amazing how a little excess here and there can add up!
Our budgeting began with an Excel spread sheet as well (I love Excel spreadsheets and look for any excuse to make one). In addition, we started envelopes for various expenditures. I think what’s helped us the most is putting a limit on what we spend on our daughter every month. We now budget for the cute little outfits and the must-have toys.
I totally get the smudged out mortgage thing but, strangely, can’t articulate it. I wish I could be so organized. Maybe I will start using yours as a template?!
Good for you, Jen! And I think it’s so great when people are honest about finances – I don’t know why there’s so much weird secrecy and gaucheness around this subject… this is a great way to keep track of what’s going out, which in turn can help show the differences between “wants” and “needs” in a hurry. Smart list. Smart lady. 🙂
I need to do this. I used to be SO GOOD at budgeting. Now, not so much.