On this beautiful Saturday morning in Tacoma, I want to share with you our household budget. Not because I think mine is perfect, but because it is helping us SAVE MORE MONEY! And isn’t that really the goal when it comes to your family income? It’s not a good idea to spend every last dime each month just because you have it. What happens when you need a new car? Or all of a sudden, God forbid, you need money for medical bills? I’m showing you what we did, to hopefully inspire you to save more money.
1. CREATE A BUDGET.
I use the Kiplinger worksheet. I like Kiplinger because you can categorize each budget item weekly, bi-weekly or monthly, same with your income. Check it out.
2. CREATE A BUDGET BINDER.
This part is really simple. I bought a black 3-ring folder with pockets on the inside. Then I bought 6 clear pencil cases and put them in the binder. The amount of pencil cases you need to buy depends on the number of categories that you will be using cash for. You see, once you have your binder together you will take out the necessary cash you need each time you get paid. You will use that cash to spend until the next time you get paid. My pencil case categories are:
3. STICK TO IT.
A budget is not about restriction! It’s about giving yourself the money you need and even, WANT! When you go to the store to buy groceries for the week without considering how much you will spend, you will buy unnecessary items that you you really didn’t need and may end up wasting food or letting it sit in your pantry for months. I go to the store each week with my allotted amount of CASH. When I am at the store I purchase only what I need for that week, with THAT WEEK’S MONEY. When it’s cash, you can’t spend more. Leave your debit card in the car. If I don’t use it all, fat chance right, then I roll it over to the next week. 🙂 The categories such as mortgage, utilities, car payment and insurance are either auto-debited or we send a check.
We chose to use our debit card for gas so we don’t have to leave the kids in the car to go inside and pay. If we are following our DIY HOUSEHOLD BUDGET, then we should only be using our debit card for gas. Everything else is cash.
You see, when you have a budget, you can spend money on whatever it is that you want, as long as you are within budget. This will probably save you fights with your spouse on shoe purchases! Simply agree on the monthly amount you will spend on shoes and stick to it!
Good luck! And don’t forget to transfer all of that saved money in your checking account into your savings account each month!