adjusted monthly budget to reflect reality

**ladykemma2** · 11-22-2009, 08:27 AM

i just went over my 2009 expenditures to reflect reality for the new year 2010.

I added up all grocery trips and discovered that i was spending 383 per month, not the budgeted 350. So now the line item is 400 and includes food storage and the odd clearance walmart clothing item.

I adjusted my pocket money to 30 week to include a social life.

I was astonished at how much i dined out, even after resolving not to do so. the triggers were having dinner late until really, really, really hypoglycemic. (i bring an afternoon sandwich but forget to eat it) or wanting a social life with friends. There is not enough salary to accommodate this. what works for me is having "no dining out months".

i adjusted my shoe budget down and my clothing budget up.

the utilities stayed the same.

i eliminated the "stocking up" freedom account and worked that into my grocery budget.

edited to add: i have been "in a funk" about money lately. feeling like a failure. hopefully this will help. I also looked at my weakness - jewelry purchases - and realized that i am still spending money like when I was married to moneybags. Most of the jewelry purchases were planned and budgeted for as rewards for achieving financial goals but a few were, uh, not.

**nic4549** · 11-22-2009, 09:00 AM

What a great idea. It really puts things in perspective when you sit down and crunch the numbers. Way to go!!!

**lovestolaugh** · 11-22-2009, 09:12 AM

I had to do the same thing with my grocery budget. I would budget $700 a month but would spend $1000 a month. I was always frustrated because I wasn't staying on budget. I have since raised my budget and life has gotten a lot easier. Less feelings of defeat. Plus, going to the grocery is fun now instead of a stresser.

Before any of the judgemental people reply to my amount above, please keep in mind that this money covers food for 4 people, 4 dogs and also gas for 2 cars and eating out occasionally. Food is the one thing I will NOT skimp on. My frig is always full. My father always went to the grocery first upon getting his paycheck and then he paid bills. He would insist that his children's belly's were full before he worried about the rest. Of course, he was a very frugal shopper but I was never hungry even in the lean years.

**ladykemma2** · 11-22-2009, 09:17 AM

Originally Posted by lovestolaugh

I had to do the same thing with my grocery budget. I would budget $700 a month but would spend $1000 a month. I was always frustrated because I wasn't staying on budget. I have since raised my budget and life has gotten a lot easier. Less feelings of defeat. Plus, going to the grocery is fun now instead of a stresser.

Before any of the judgemental people reply to my amount above, please keep in mind that this money covers food for 4 people, 4 dogs and also gas for 2 cars and eating out occasionally. Food is the one thing I will NOT skimp on. My frig is always full. My father always went to the grocery first upon getting his paycheck and then he paid bills. He would insist that his children's belly's were full before he worried about the rest. Of course, he was a very frugal shopper but I was never hungry even in the lean years.

me too, the 400 number is for me a single lady but that includes all food and supplies from walmart, pets too. and the occasional clothing item.

less feelings of defeat. i like that.

**mnmarty03** · 11-22-2009, 10:21 AM

I have a question -

You said you went over all of your spending in 2009 - was this info you had in your check book or did you keep track of all your spending?

Just curious. I love the idea of tracking all of our spending... but we are soooooo bad at actually doing it. How do you do it?

**Grainlady** · 11-22-2009, 10:21 AM

Adjusting budgets must be in the air... or something we do this time of the year like cleaning out the gutters on the house (not all that fun, but necessary LOL).

The first of the year there will be more taxes taken out of the pay check because of the repeal of the Bush tax cuts, so I've been trimming our budget items because our spendable income will automatically go down. I also have a larger-than-normal savings schedule. It's going to be more important than ever to pile-up cash and forgo things we can easily live without until we see how the economy goes. Hubby's job depends on the building industry, and it doesn't look like we'll see a recovery anytime soon.

*Food budget - (2 adults - food only) cut 25%
from $50/week to $75/every 2 weeks. Reduce shopping from every week, to every 2 weeks. Maintain the large amount of food in storage.

*Cable TV - Go from Extended Basic to Basic

*Walking around money (pays for all non-grocery items, occasional eating out, thrift store purchases, small indulgences, etc.) - $50 each.

*Cancel the newspaper. I can get the coupons from the Sunday paper from a neighbor. The savings from coupon clipping hasn't been enough to pay for the Sunday paper.

*No trips/vacations.

*Electricity is going to go up in our area, so we need to lower use. I don't want to increase that budget item if at all possible. We've replaced 75% of the CFL bulbs with LED lights (found several styles at affordable prices at Sam's Club). LED lights aren't appropriate for all uses (unfortunately), but they do use 1/50 what a standard incandescent bulb uses and last 10X longer than CFL.

Use the Solar Ovens as much as possible for cooking/baking.

We have one layer of bubble wrap insulating our windows, so we're going to double it since we can get the bubble wrap free: http://www.builditsolar.com/Projects...bubblewrap.htm

-No new (or used) clothing unless it's absolutely necessary, and it's not likely it's necessary. Same for shoes and household items.

**MaryCarney** · 11-22-2009, 10:21 AM

Inept???? Wow, I think you're doing great!!
It's just about time for our end-of-year new budget meeting, and we've got a few things to contend with, too.
As some of you know, I was let go from a job this time last year. I went from making 70K to about 25K this year. We've spent a little of our FFEF, but it was mostly planned (graduation trip and mortgage payoff)
We will have a new driver next year (DS gets his license mid-December) so need to figure in the extra insurance. We pay this as he is now in charge of grocery shopping and running his sister hither and yon.
He's also starting with a few community college classes in January, and so need to budget in tuition and books for that.
Looks as though DD#4 might be needing braces - I go back and forth on that one, her teeth are not horrible like DS and DD#1s were, but they're not as nice as I'd like, either. Jury is still out on that one.
I'm actively looking for a new job - I should say a second job.
I'd love to be able to take a trip out west before the teens are gone.
The teens also need new mattresses ,and I would LOVE to buy a Sleep Number bed for DH and I.
Lots to think about, and the only way it will happen is with a PLAN!!!

**NikoSan999** · 11-22-2009, 10:52 AM

I think it is amazing how you did this. As the other poster asked, did you do this with a checkbook or do you save receipts? You aren't giving yourself enough credit.

As I understand it ( and could be wrong ) the electric bills are supposed to go up, way up come January. Ours took a 10% increase in July and an acknowledged 31% to 36% come January. But I thought it was supposed to be nationwide. That is going to be alot of money for anyone.

**savvy_sniper** · 11-22-2009, 11:06 AM

We can choose our electricity provider in Houston. Two years ago I got a rate of 12 cents per kwh hour for a year. The next year I got a rate of 13.5 cents per kwh. This year I was able to lock in for four or five years (I can't remember which) for 12 cents per kwh. I could have gotten a rate of 11+ cents for a year, but I figured that the price of electricity will be going up. So I locked in for a long period and I am hoping that it will be a significant savings over the life of the contract.

We have also done everything possible (low cost) and a couple of mid priced things to lower our electricity usage. Those cut our usage about 1/3. We will get a new central a/c and additional attic insulation in the spring. So we should cut our electricity usage by another 1/3 or more.

Originally Posted by NikoSan999

As I understand it (and could be wrong ) the electric bills are supposed to go up, way up come January. Ours took a 10% increase in July and an acknowledged 31% to 36% come January. But I thought it was supposed to be nationwide. That is going to be alot of money for anyone.

**ladykemma2** · 11-22-2009, 11:49 AM

Originally Posted by Grainlady

The first of the year there will be more taxes taken out of the pay check because of the repeal of the Bush tax cuts

wow, i've been so busy working 12 hour days, haven't watched the news. how much is the tax change?

**ladykemma2** · 11-22-2009, 11:51 AM

Originally Posted by NikoSan999

did you do this with a checkbook or do you save receipts?

i don't do cash. i pay for EVERYThING with the debit card and keep a checking account ledger. so it was easy to see what wa spent where.

i don't "do cash" anyway and even more so since getting audited by the IRS.

**ladykemma2** · 11-22-2009, 11:55 AM

Originally Posted by MaryCarney

Inept???? Wow, I think you're doing great!!
It's just about time for our end-of-year new budget meeting, and we've got a few things to contend with, too.
As some of you know, I was let go from a job this time last year. I went from making 70K to about 25K this year.
We will have a I'm actively Lots to think about, and the only way it will happen is with a PLAN!!!

wow, good luck with that job search!

inept - the dave ramsey method was making me feel shame, not measuring up, not making enough money. sometimes i think his method works well for people who make a whole lot more money than me. i simply couldn't juggle all the balls in the air in steps 4-7 that his program required and be able to eat.

the mary hunt method makes me feel calm, peaceful and serene. it is simple, for us simple folks.

**ladykemma2** · 11-22-2009, 12:09 PM

Originally Posted by mnmarty03

I have a question -

You said you went over all of your spending in 2009 - was this info you had in your check book or did you keep track of all your spending?

Just curious. I love the idea of tracking all of our spending... but we are soooooo bad at actually doing it. How do you do it?

i use a simple checking account. I pay for everything with a debit card or check. at the end of each day i enter the receipts in a black ledger book with a tiny notation (clothes, shoes, food, elec, etc.) .

my ex husband, who was really good with money, wanted it done this way and he taught me to do this way. and since i got audited by the IRS I could prove everything with a receipt and they ended up paying ME 2000. stoopid IRS. no cash, no way.

**chevy_chick95** · 11-22-2009, 03:02 PM

you should be really proud of yourself!!! your BEF is done, debt is done, $10,000 in EF, and no mortgage!! that is awesome! you are doing great! keep up the great work

**frugalfriend** · 11-22-2009, 06:15 PM

Originally Posted by ladykemma2

inept - the dave ramsey method was making me feel shame, not measuring up, not making enough money. sometimes i think his method works well for people who make a whole lot more money than me. i simply couldn't juggle all the balls in the air in steps 4-7 that his program required and be able to eat.

You're doing great, ladykemma!

You have no debt, no mortgage, no college to save for, you have 3-6 months in expenses saved, you shouldn't be beating yourself up, but patting yourself on the back! Save 10% for retirement if that works better and go from there!