We've never used a budget...

**JenMarie** · 12-28-2009, 12:58 PM

...and I want to make one, but need some guidance. We've done OK without one. We've paid off student loans and our cars (all early)Right now the only debt we have is our mortgage. I feel like we should be doing a better job watching our money so we can save more.

Every month we pay-
Mortgage
Cell phone
water
elec/cable/internet
insurance
gym membership

also-
food
gas
tithes

Then there are all the other things we pay less often
newspaper
life ins. premiums
car tags
propane
clothing
auto maint./repair
etc...

We have a checking account and savings account. We currently have about five months worth of living expenses in the savings account. We also use it for large purchases, but never let it go below a certain amount. Luckily, we have been blessed and have had no emergencies so far.

I pay the bills, always know how much is in the checking account and base my spending on that...

I have been paying a little extra on the mortgage and want to keep doing that. I also want to add to our savings (emergency fund) and save for a few other things (vacation and furniture this year)

Should I make a new bank account? I am just trying to get all this figured out...

**mama2James** · 12-28-2009, 01:27 PM

You have to do what will work for you, everyone's advice is going to be a little different. Red through the posts here and pick what you think will work well. My best suggestion would be to track your spending for a few month and then set up your budget categories after that. Fixed expenses and bills are already predetermined, focus on the varible things like food, entertainment, clothes etc. After several months have gone by, look and your figures and see how much you spend in each category. Then you can set up a budget that is realistic for your family.

**Backtoreality** · 01-01-2010, 04:27 PM

I have to agree with mama, I have never formally had a budget. Never had it written out, I know in my head how much we owe and when it is due. Every 6 months or so we take a hard look at the bills and try to make cuts somewhere. That is something I'm used to do because three years ago my husband was unemployed or underemployed for 2 years. We were at bare bones. When he returned to good work, our life styles did not change. We are now debt free except mortgage. All without a budget. I just picked out bits and pieces of FVr's!!!

**frugalwarrior2** · 01-01-2010, 05:38 PM

Jenmarie. What you just described in a budget. We alot money,pay our bills on time,have extra in the bank. Do you just want to track it??

**Greebo** · 01-01-2010, 08:39 PM

A written budget each month is a great way to keep you and your spouse very aware of what you can and cannot spend money upon - but it is critical that BOTH of you have a vote. It's ok if only one of you drafts the budget, but the other has to read it FOR REAL, and make changes (and yes, whoever prepares it may have to LET them change it).

A written budget is a way for you to happen to your money rather than it happening to you.

Now that said, you guys have done great - no consumer debt, just a mortgage. I suspect if you budget your money and stick to it, you'll feel like you got a raise.

Do you need a separate account? No - you need to do what works for you. For us, we have 1 account for our EF, 1 for our sinking funds, and 1 for our day to day. That works for us. Others can do it all with one account.