How close do you stay to your budget?

[Brighid]

So, I've set up a strict budget for us over the next several months. It's tight...there is no question.

I'm nervous. I'm trying to be realistic about sticking to the budget. I know that it won't go exactly as I plan, but, I am hoping that even when the budget strays a little, I won't see it as complete failure, but just a bump in the road.

I'm NOT prepared to stray from the budget for anything other than true emergencies [ie: gas to get to work, BASIC food] if need be, and I refuse to spoil it for 'extras' and extravagance.

My goal is to have a $1000 EF fund which has been incorporated into the budget, but, until my finances can be alloted in a more basic way (without overdue items included) I am nervous.

Any tips on staying on budget? What things would you 'legitimately' allow yourself to stray from your budget?

[Contrary Housewife]

I don't know what you consider "extra and extravagant" but in my experience a budget is more likely to fail if there is no allowance for any splurges at all. Examples would be allowing yourself $10 or $20 spending money, and allowing some cash for an inexpensive dinner out once in a while, a rental movie, and so on. It's frustrating to stick to a "strict" budget, if you have no wiggle room whatever you're more likely to feel irritated and constrained and eventually just blow it.

I also allow for too-good-to-pass-up deals. We acquired our second fridge this way. I saw it in Home Depot marked way down, it was missing a shelf, and bought it on the spot. It was brand new and something like 70% off regular price. We'd been talking about a 2nd fridge and I knew THIS was the time to do it.

[frugalwarrior]

I can't fail in my budget. Every dollar has a name. If you over spend for one you have to shift for another. That said you must have at least $1000. in place for emergencies. After you pass that keep saving. You must also allow for fun,good deals and such. If you cannot you have too little income. A short term second job may be in order to drop debt fast. As you get better a the budget you will get more automatic in anticipating upcoming expences. Also put utliities on budget so they are a set cost. Put as many things that are necessary expenses on set costs as possible. Even medical-you can always pay more. Constanly reveiw things that are necessary. hope this helps.

[Grainlady]

You'll feel more secure when you get your emergency fund; and keeping on track should be a great reward for a job well-done. What you can do to help alleviate some of the stress is to look for ways to make some extra money - the extra job, as already mentioned. Dog-sit for someone while they are on vacation. Collect aluminum cans (go through the trash cans at baseball diamonds and soccer fields first thing in the morning). If there are any new homes in your area being built, see if you can earn some money cleaning the construction area each day/week/or when the home is done. There are all kinds of little ways to earn more money.

Help your food budget by finding "free" food. I have family and friends who gladly let me pick from their neglected fruit trees and berry bushes. I've even stopped at strangers homes and asked if I could pick fruit. I always offer them a portion of what I pick. Sometimes they take it, sometimes they don't.

A friend of mine told me he never buys wheat that he uses in his grain mill to make flour. He takes a bucket down by the grain elevator and picks up "free" wheat where it's spilled from the grain cars. There are LOTS of things you can do with whole wheatberries if you don't have a grain mill - http://www.suegregg.com/recipes/brea...terwaffles.htm. The same with whole dried corn - http://www.suegregg.com/recipes/brea.../cornbread.htm

Don't forget, a budget is a guideline and it's written on paper, not engraved in stone. If you are just getting started, you'll find you WILL have to make changes - both up and down.... Our cable bill just went up. A few months ago our city tax went up, so there are many bills that have increases just because of that. Those are just a couple of the little things that will cause changes. You just need to address, discuss, and agree on the changes.

Lucky for me I budgeted more for electricity than we actually needed because I've really been watching electric use, but it's now getting hotter than usual (we've already had our first 100°F day, where we didn't have it until August last year), so I'll leave the extra in the envelope because I may need it for the next bill.

Always have a plan for what you can cut, reduce, or alter to add more money in the budget. Switch to basic cable if you have a higher level than that. Especially in the summer when people typically watch less TV. Use your library for videos and books instead of buying or renting them. Get rid of your monthly phone bills and purchase a pre-paid TracFone. We spend $99/year for our cell phone and never use all the minutes. So if you are VERY careful, you could get by with less phone bills. Have a garage sale.

Relax. Worrying never changed anything. Action does.

[Wendy99]

I'm not going to lie to you being on a budget is hard - well thats my opinion!! But it is worthwhile. I'm still trying to master this ... and love reading hints and tips etc as well.

[sabrelvssammy]

while we can't control alot of the 'fixed' expenses, its the 'discretionary spending' that ruins alot of budgets...

even the strictest of individuals occasionally start to crash and burn...it helps that you have a goal you are working towards (re: emergency fund) instead of just saying "i want to save money".

Write your goal or goals down with specific ends you are trying to get to....post them somewhere where you can see them everyday...

write them down and put them in your purse so that they are the first thing you see when you go to pull out that cash or cc...might make you re-think some of your purchases...

read the posts and blogs here as much as possible and visit other frugality sites (sorry fv'ers)...to keep your mind fresh and full of ideas and to help remind yourself that you are working towards something larger....

one guy i know intends to read every financial book ever written (he does reviews on a blog) but anyway when someone asked him how he could stand to read things that were not relevant (he's a married family man-the single girls guide to finances really isn't his cup of tea) but he reads them all and has said that if he can take just one thing from each book then it was well worth his time...and he also said that doing the financial reading as much as he does keeps him focused on his big picture....

i think that you will find (as many others have attested to) that when you start to get things under control you start to feel almost a 'higher power' and things that were so important to spend on in the past become the same things that you have no problem walking away from...

good luck on your endeavors and we know you can do it...after all you are a villager...remember....we rock!

[Brighid]

Thanks to everyone for such awesome responses. I feel better about my goals and what I want to achieve with this new budget. Learning how other people are managing, where to cut, how to save and what to allot where is helping me in a HUGE way.

I've never paid attention to my finances the way I am now -- and I kinda like it.

I feel motivated right now, and yes, I have definitely been using FV to keep me there!

Thanks again!

[Thevail]

I allow a minimum of 5% wiggle room. So if I have $1000 budgeted, I allow $50 wiggle money. It works for us anyway.

[ladykemma2]

if i mess up it comes out of the grocery money.

[strezzed]

one guy i know intends to read every financial book ever written (he does reviews on a blog) but anyway when someone asked him how he could stand to read things that were not relevant (he's a married family man-the single girls guide to finances really isn't his cup of tea) but he reads them all and has said that if he can take just one thing from each book then it was well worth his time...and he also said that doing the financial reading as much as he does keeps him focused on his big picture....

Wow! That's an neat idea. I've been looking for a new hobby and this just may be it.

[Cricketlegs]

First set up the EF. That is the most important part. Nothing kills a budget like and unexpected "surprise" and the EF saves your caboose.

Second Commit to the budget, commit to debt reduction, commit to a new way of looking at your money.

Third pay the bills first, pay whatever you have decided to put towards the debt snowball(never not pay the alloted amount) and then see what is left.

If you have money then great. If you are out of money, well, oh well, your bills are paid, your debt is going down, you have food, gas, shelter and you have your EF.

What else do you NEED?

Also, the EF should not be looked at as a catch all. Set the budget at a place that you can actually do it, setting it to high leads to failure and falling off the wagon. Try to leave the EF alone.

Going without non essentials never hurt anyone. Then when the debt is gone there will be money for fun.

[Brighid]

I'm getting so much out of these comments! Thank you all, again!

[Preston]

I keep a budget in two sections: Discretionary and mandatory.

Mandatory are things that I have little control of -- mortgage, utilities, etc.. however I do look for cheaper ways to do things... like cutting power usage and such.. however, I always use my highest bill of the year (usually in the winter) and my guide for my budget. That way the money is put aside for this purpose.. .and when I don't spend as much the money goes either into the EF or toward debt. I never use it for 'fun' money.

I put my bike gear and maintenance in this category as that is my primary mode of transportation.

Discretionary is a whole different thing -- in this budget I would include fun money so you don't go crazy.. but also in this I would include things like cable TV or internet.. thing you don't necessarily need and could live without (would make things more difficult.) This is also where I'm sticking my home improvement projects... things thatg I WANT to do but don't need to immediately (such as painting a room) The EF is in place for the major home projects and that is part of my 'mandatory' expenses. I also include our second car's expenses in this category as we could make it work with only one car and the second car is a luxury.

I try to over budget my expenses and under budget my income so there is usually a buffer of a few hundred dollars at the end of the money and this money is then applied to debt and EF equally. I don't try to be dead on with my numbers as this is a sure way to fail at a budget.. This buffer makes me feel a little better because every money I will have extra money left over and if I don't the money was already accounted for.

Good luck with your budget and keep us posted.

[Brighid]

Excellent tips, Preston. You touched on a few things I've thought of but wasn't sure if they would be helpful to apply including the 'buffer' (I've already done it) and putting any extra to the EF or debt an not consider it 'freebie' money (something I have done over and over, in the past).

I have put zero into discretionary funds and I'm definitely going to allot an amount each month for that so I don't go nuts...lol.

I'll definitely keep you guys posted. I'm learning so much here and I'm finally, for the first time in a long time, feeling a sense of control over my finances...even if they aren't where I would like them to be. It's very empowering.

[phoeny_moonstar]

When my fiance sit down and talk about our budget and such we usually over estimate the bills and under estimate the income. That way like Preston said there is a buffer. Then we use this buffer as fun money. If there is no buffer at the end of the month, no fun money. We do this because we want to stay on track of our debt and paying for our wedding, and we do better with this system then any others that we have tried. Good luck on your frugality journey.