Figuring a budget

[mombottoo]

When figuring my budget I have an amount that I set aside that I call "flexible spending", which means if something comes up that I hadn't planned on for that period that money wil be used. I also figure in how much we can donate to charity.

I know the pros recommend paying yourself first. We have income of $2123.32 direct deposited into checking every month and an add'l $3816 from another source. We do not have a house payment, but we do have house insurance and property taxes that total roughly $1900 per year. Our utilities (heat, lights & phone) run an average of $325 per month, cable & internet is $127 per month, newspaper $156.60 year, mag subscriptions (9) $194.55 year, car insurance (2) $692 year, tags $125 year, medical payments $4000+ per year, groceries (inc. pet supplies & hba) generally run $500 per month, donations avg. $2000-$3000 per year and vet bills avg. between $300-$400 per year. We also pay obligations of $1265 per month that have to be paid.

Besides the money we used to spend at the casino (which is an obivous leak) I am having a hard time figuring out where the rest of the money goes. I'm not a shopper and other than the habit of loaning out money I am mystified. How long would I have to feasibly write down every amount spent to figure out where the leaks are? Any suggestions would be really appreciated...

[Marie78]

I was able to see after a mont or two where my money was going. I don't make very much, so I was easily able to see after paying fixed expenses: rent, utilites, car insurance, cell phone, and putting $80 a month toward gasoline where the rest of my money was going.

Grocery prices went up so for me more was leaking into the budget for food and HBA, buying nice holiday and birthday gifts for family tends to be one of my leaks, and collections at work for birthdays, events, retirements, and promotions. I think that's it though, I don't buy things for myself on a regular basis and I budget in my hair cuts and clothes that I need to buy a few times a year.

I think if you keep a small notepad in your purse and write down all of your purchases for a month or two you will see what you have been spending your money on. Sometimes there's not an easy answer, as in the case with the rising cost of groceries or donations for work things.

[G'MaDebbie]

I don't see where you allotted for gasoline for your vehicles...that will take a lot out of your budget. I know when I do a budget, I always forget cigarettes (nasty habit, I know) and my daughters lunch money.

[shoiji]

I think what helps me a lot of the time is keeping a monthly spreadsheet with all the fixed expenses. Then anytime a purchase is made adding that into the spreadsheet. It is really amazing how those $9-10 purchases add up really quickly. I noticed you had newspaper and magazine subscriptions. One suggestion is to see if any are available on the internet. If so you may want to reduce or drop the subscriptions since you can get the same info on the internet. Alot of times you can get the same info for free on the internet. Just a thought.

I am sure you will figure out where the money is going. As some one else suggested you may not have everything budgeted for.

[mombottoo]

Gas for me runs about $100 per month, but I get mileage reimbursement back for most of my running and the mileage checks always equal more than I actually spend.

Hubby's expenses come out of his own money (a fund he set up over the years) that is not tied to household funds...so I don't have to account for anything he spends. I also have a similar fund and that's how I pay for my cigarette making supplies.

I think I am going to sit down and figure everything out to a tee and log spending for a month or two to see what happens. I guess writing it down will also be a way to help me recognize where the money goes. Plus, it will make me think twice before pulling out my cash...

[ladykemma2]

you forgot trash, flood insurance, clothing, shoes, cell phones.

i also notice you are ballparking the numbers. sit down with last years check register and figure it out exactly.

[ladykemma2]

you forgot water bill too

[wannabedebtfree]

I have a couple of different budget spreadsheets that may be helpful. PM me if you are interested in them.
Shandra

[mombottoo]

you forgot trash, flood insurance, clothing, shoes, cell phones.

i also notice you are ballparking the numbers. sit down with last years check register and figure it out exactly.

Yes I did forget trash. Shoes I buy maybe once every 2-3 years, clothing if I buy any is bought from yard sales & such. We don't need flood insurance, we don't have cell phones and we don't have a water or sewer bill. I must be passing out more money to the kids & grandkids than I thought I was. Plus, I do tend to spend a lot on gifts...but, I've already made it a goal to cut back on that type of spending.

Thanks for your input!!!

[mombottoo]

Just wanted to let you know I am still plugging away at the figures. So far I have: electric, natural gas, Trash, cable/internet, newspaper, house insurance, car insurance, property taxes (renting my house from the gov't), vehicle tags, AAA membership, state & federal income tax, charitable contributions, groceries/pet supplies, vet services, medical, auto repair, gas/oil/ect for vehicles, home maintainence, gifts and clothing.

Does anybody see anything I may be forgetting? We don't have sewer or water services in our area so I don't have to worry about those.

[JohnP]

An easy way to do it is to write down every purchase, no matter how small. At the end of the day, total it up. You'll be surprised how fast you spend money if you don't watch the small transactions.