Our updated budget - consideration for fall season.

[MomToTwoBoys]

Our budget has gone through a lot of changes as of recent, especially when it comes to debt payments and planning for the next school year (which starts in August ). We consolidated our debts into one loan payment through the inlaws, which is going smoothly. Both kids are out of school at the end of the week, which also means an increase to our grocery budget.

What changes do we have going on now?

July and August 1st: No $50/month taken out for DS10's lunch program, which means that we can tack $50/mo extra onto the grocery budget. With his ever-growing appetite, he eats enough for three people. When he's home with us on the weekends and days off from school, he usually has a bowl of cereal halfway between breakfast/lunch and then another one between lunch/dinner time.

The month of July: No more $100/mo extra check, which means that we'll have to tighten our belts even more. We'll also see a change in our Child Tax Benefit, which will go up slightly. It doesn't make up for the loss of the extra check, but it cuts the loss in half. We also have an Alberta Family Employment Tax Credit check coming at the end of the month, which will be used to cut out a couple loose end expenses and then put into savings to help us buffer any extra spending in August and September.

The month of August: We'll be paying a $220 upfront fee for DS5's lunch supervision registration, along with $30 for the school fees. This also means we'll be school shopping, which I usually budget for $100. DS10's birthday is the 13th and Mom will be here to visit in the first week of August. DS10's school shopping will also be done at the end of the month.

The month of September: $165 for bus fees, $80 for DS10's school fees, a payment per month for lunch program, my birthday, DS5's birthday and a new addition to the family! This is our hardest month and we usually spend more because of it. The grocery budget will stay above normal due to DS5 being at school all day (I'll have to cover a lunch bag with Thermos purchase for him because of it).

So with everything going on, here is our projected budget as of July 1st:

Income - $2200/mo for DH, $475+250/mo for me (this will be subject to change as soon as we get the tax notice as to what the official payment will be - this is in reference to the $250/mo one, the $475/mo income is dependent on exchange rate but this is the lowest I budget in for) = $2925

Cable - $150/mo (this is for phone, internet and cable TV)
Utilities - $200/mo (this is for electricity, water, natural gas, waste management, recycling fees, etc.)
Cell phone - $80/mo (can't change until December)
Gym membership - $30/mo (I already checked into this and I can't cancel unless I want to pay a huge fee to do so - expires in February 2010)
Debt payments - $400/mo (this will go up $200 depending on when DH gets a third check in the month - next three check month is October)
House insurance - $53/mo (went up about $3/mo)
Car insurance - $61/mo (went down about $34/mo with the switch from one company to another)
House tax payments - $111/mo (went up $6/mo)
Alarm system - $34/mo (stayed the same)
House payments - $334/biweekly (which means we pay between $668 and $1k+ depending on the amount of checks we get that month)
Grocery bill - $600/mo (we raised this due to the fact we were spending $250/biweek anyways and the extra $50/biweek covers the kids extra eating at home)
Entertainment - $65/mo (this is $15 for my gaming subscription and $50 for a PPV event I'm planning on purchasing in July)

Total = $2422

We then subtract gas costs ($30/wk) and smokes for DH ($60/wk), which is about $360/mo. That means our expenses for the month are at about $2782, which means we're under budget.

I budget in the low end of the income, which means that any extra income that comes in goes right into savings. Our biggest issue right now is miscellaneous expenses, but the slush fund should cover that.

The slush fund is separate because not everything will happen at once. I'm still debating cutting the lunchroom supervision fee in half and paying half now, half at the halfway mark of the year. The slush fund will contain the following:

$220 - lunchroom supervision fee
$165 - transporation fee (DS10's school is too far to walk and we have one vehicle)
$30 - DS5's school fee
$80 - DS10's school fee
$200 - both kids' school shopping
$200 - both kids' birthdays (this includes cake, presents, etc.)
$50 - SIL's baby present (she's due around Sept 23rd but I'll get it before then)

Total - $945

We have $550 in savings now and depending on what happens between now and next week, I may have another $300 to put in. I've budgeted a deposit of $300/mo out of my pension into savings for a slush fund. With $850 in there until August 1st, there will be another big deposit at the end of July to accompany it. The slush fund will sit over $1k by the time that August 1st rolls around and will take into account every expense for August.

I'm really hoping this makes sense to anyone else but me. Is it too tight, considering the changes going on?

[frugalfranny]

Just a thought.....is the alarm system necessary? Could you raise your deductible on your car ins. and get it cheaper? Or drop some of the coverage, depending if your car is financed, or how old your car is?
Anyway to cut down more on food?

[MomToTwoBoys]

Just a thought.....is the alarm system necessary? Could you raise your deductible on your car ins. and get it cheaper? Or drop some of the coverage, depending if your car is financed, or how old your car is?
Anyway to cut down more on food?

The alarm system is on a contract for now. It was necessary because back before we moved into this house, DS10 tried to walk out of the front door at 3am and it's most of the reason that we got the system anyways. We also had our van stolen from in front of our house, so the system is for a couple of reasons. It also lowers our house insurance bill and contributes to the lowering of the van's insurance coverage. We get a discount of at least $30/mo because we have it.

We actually can't get it cheaper. Most new drivers end up paying $200/mo in Alberta for automobile insurance and DH has had his license for 17 years now, so that's the cheapest we can get. We're already on a $500 deductible without collision coverage.

Our grocery budget takes into account DH taking lunch to work and a healthier diet. We're cutting down on sodium intake and DS has a dairy restrictive diet due to his Autism, so we can't make it any cheaper. That also covers all non-edible things like laundry detergent, dryer sheets, toilet paper, etc.