Budgeting Your Income
by hollynoelsims on Apr 15, 2009 with 1 Comments
A simple way to save money by simply budgeting your monthly finances.
With the economy today, dealing with your finances can be a huge obstacle. In my case, finances are very stressful and can inconveniently make your life a lot harder than it has to be. I am your average American making somewhat of a decent wage, and still battling with past due bills and trying to consolidate my debt.
I am very antsy about setting goals and reaching them. So I was stressed to the bone when I could not seem to get anywhere, because all of my income was drained by my bills. My life had a huge turn around when I decided to write out a monthly budgeting plan. I simply totaled up my husbands and my own monthly gross income. Next, I wrote out all of our expenses (not just basic power bill and utilites, but everything. Childcare expenses, gas, groceries, even cigarettes).
So many families out there are fighting this same battle and I would like to share with you exactly how budgeting helped my family. I am going to show you the same chart I made for myself 6 months ago, and then I will show you how my chart is today.
Monthly Budget – 6 months ago
MONTH: November 2008
|
INCOME |
EXPENSES |
||
|
Week 1 |
|||
|
Description |
Amount |
Description |
Amount |
|
My income |
$300.00 |
Daycare |
$115.00 |
|
Spouse’s income |
$400.00 |
Power Bill |
$50.00 |
|
|
|
Groceries |
$75.00 |
|
|
|
Gas |
$50.00 |
|
|
|
Car Payment |
$50.00 |
|
|
|
Debt |
$100.00 |
|
|
|
Other |
$100.00 |
|
|
|
Phone Bill |
$50.00 |
|
Total |
$700.00 |
Total |
$590.00 |
|
Week 2 |
|||
|
My income |
$300.00 |
Daycare |
$115.00 |
|
Spouse’s income |
$400.00 |
Power Bill |
$50.00 |
|
|
|
Groceries |
$75.00 |
|
|
|
Gas |
$50.00 |
|
|
|
Car Payment |
$50.00 |
|
|
|
Debt |
$100.00 |
|
|
|
Other |
$100.00 |
|
|
|
Satellite |
$45.00 |
|
Total |
$700.00 |
Total |
$595.00 |
|
Week 3 |
|||
|
My income |
$300.00 |
Daycare |
$115.00 |
|
Spouse’s income |
$400.00 |
Power Bill |
$50.00 |
|
|
|
Groceries |
$75.00 |
|
|
|
Gas |
$50.00 |
|
|
|
Car Payment |
$50.00 |
|
|
|
Debt |
$100.00 |
|
|
|
Other |
$100.00 |
|
|
|
Water Bill |
$15.00 |
|
Total |
$700.00 |
Total |
$555.00 |
|
Week 4 |
|||
|
My income |
$300.00 |
Daycare |
$115.00 |
|
Spouse’s income |
$400.00 |
Power Bill |
$50.00 |
|
|
|
Groceries |
$75.00 |
|
|
|
Gas |
$50.00 |
|
|
|
Car Payment |
$50.00 |
|
|
|
Debt |
$100.00 |
|
|
|
Other |
$100.00 |
|
|
|
Car Insurance |
$30.00 |
|
Total |
$700.00 |
Total |
$570.00 |
|
Income Total $2800.00 |
Expense Total $2310.00 |
Ending Balance $490.00 |
Now keep in mind that when you see, for example, the powerbill on each week, that is only to put a small amount back each week so when it comes time to pay your bills, you will have the amount needed. Now I know that people like to do leisure activies too. My husband and I love to go out. I also would enjoy taking my husband and my son on a nice vacation to the beach. Well we’re almost there. Just tough it out for a little while.
Monthly Budget – Today
MONTH: April 2009
|
INCOME |
EXPENSES |
||
|
Week 1 |
|||
|
Description |
Amount |
Description |
Amount |
|
My income |
$300.00 |
Daycare |
$115.00 |
|
Spouse’s income |
$400.00 |
Power Bill |
$45.00 |
|
|
|
Groceries |
$50.00 |
|
|
|
Gas |
$50.00 |
|
|
|
Car Payment |
$50.00 |
|
|
|
Debt |
$50.00 |
|
|
|
Other |
$100.00 |
|
|
|
Phone Bill |
$50.00 |
|
Total |
$700.00 |
Total |
$510.00 |
|
Week 2 |
|||
|
My income |
$300.00 |
Daycare |
$115.00 |
|
Spouse’s income |
$400.00 |
Power Bill |
$45.00 |
|
|
|
Groceries |
$50.00 |
|
|
|
Gas |
$50.00 |
|
|
|
Car Payment |
$50.00 |
|
|
|
Debt |
$50.00 |
|
|
|
Other |
$100.00 |
|
|
|
Satellite |
$45.00 |
|
Total |
$700.00 |
Total |
$505.00 |
|
Week 3 |
|||
|
My income |
$300.00 |
Daycare |
$115.00 |
|
Spouse’s income |
$400.00 |
Power Bill |
$45.00 |
|
|
|
Groceries |
$50.00 |
|
|
|
Gas |
$50.00 |
|
|
|
Car Payment |
$50.00 |
|
|
|
Debt |
$50.00 |
|
|
|
Other |
$100.00 |
|
|
|
Water Bill |
$15.00 |
|
Total |
$700.00 |
Total |
$475.00 |
|
Week 4 |
|||
|
My income |
$300.00 |
Daycare |
$115.00 |
|
Spouse’s income |
$400.00 |
Power Bill |
$45.00 |
|
|
|
Groceries |
$50.00 |
|
|
|
Gas |
$50.00 |
|
|
|
Car Payment |
$50.00 |
|
|
|
Debt |
$50.00 |
|
|
|
Other |
$100.00 |
|
|
|
Car Insurance |
$30.00 |
|
Total |
$700.00 |
Total |
$490.00 |
|
Income Total $2800.00 |
Expense Total $1980.00 |
Ending Balance $820.00 |
Now within 6 months I have started saving nearly double what I was before. I made sure every time we left the house, all the lights were off. By simply watching the powerbill, we saved $20.00 each month on power. We paid off much of our debt paying $400.00 every month. So we cut back to paying $200.00 each month and we’re almost debt free. We also found cheaper brands in groceries that tasted just as good, we just didn’t pay near as much for the regular brand we bought. We saved around $100.00 each month on groceries.
I know it is sometimes hard to cut back on things, and sometimes you need what you need. But to discipline yourself with your money will very much pay for itself within a short period of time. And do you know what I am doing with the extra $400.00 per month I am saving? I am planning a vacation to Myrtle Beach this summer with my family. For the first time in 4 years, I will get a vacation. I will admit, it was not easy getting to this spot, but the short wait and small amount of self-discipline was well worth it.
I hope this article has helped some of you that straggled with finances like I did.
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Published in: Personal Finance
Peter Cimino | Sep 10, 2009 | Reply
Excellent piece with sound advice. I have been budgeting my money and using spreadsheets since I was about 18 years old! Well done.