[Linnette1973]

I am looking for ways that have worked for you for budgeting your expenses. For example, I have calculated all my bills and figured the weekly amount to set aside to cover everything. This can make it a little strenuous on a weekly basis but its workable OR Just pay the smaller bills when they are due and set aside an amount weekly to cover the mortgage.

Will be a new homeowner soon and just looking for additional ways to manage my income so its easy for me and my family.

Any ideas are greatly appreciated.

Thanks

[morgaine300]

Oh, you're right up my alley.

There's different ways this can be handled. You've got the right start by knowing what your bills are and how much you need each week. The question is: have you kept track of literally everything you spend, or just major bills? The small stuff can really add up and surprise you big time. So if you haven't done it already, keep track of every little penny you spend so you know exactly what that is, and where you can cut back.

I actually don't get that complicated about my budgeting anymore, though I'd like to get back to it. What I used to do years ago was separate out the "definite-date" expenses. That is, my rent was due at the beginning of the month, my utility bill on a date, my car insurance every six months, etc. Then I would divide those into the weeks until it was due. That is, insurance got divided into 26 weeks and that would tell me how much of each weekly check to set aside. Rent would get divided by 4 weeks, etc.

Some things are purchases that happen when they happen, like clothes. You don't need clothes on June 15th. You just shop when you shop. So for those types of items I would budget myself an amount, set that amount aside each week, and just keep a running total. When it got spent, it got subtracted back off. If nothing ever went negative, I was OK.

For things like entertainment or hobbies, or the more unnecessary items, I allowed myself a certain amount per check. If I didn't have that much, I didn't get that amount that week. Again, it was a running total, so I added the budget each week and subtracted when I spent.

I also had a certain percent that I saved off each check, a percent for short-term unexpected items, and a long-term for longer-term goals. I tried to stick to these, unless it meant cutting into necessary bills.

Yes, this took some time, and back then, I didn't have a spreadsheet to to do it in. But I sat down every week and devoted some time to doing all this.

Now a days... I basically know I have my major bills covered. I have a budget for bigger items, like things I'm going to do to my reasonably new house. And I just try to watch it on purchasing "me" stuff. I later enter it into the computer under categories and review everything. If something starts getting out of whack, I just keep in mind to watch that item. Much less detail and it reasonably works.

I'd really like to find some compromise between the over-detailed method of years ago, and what I do now. Just haven't had the time.

If you know what your main bills are that you have little control over and come on a regular basis, and you know that you can afford those, then budget the other items. You can lump things together or get detailed if you're so inclined. Be sure to set some aside for stuff for your new house. Keep track of the house expenses so you can get an idea of what it costs you -- I haven't had a house that long so even I am not that well versed in my house expenses yet.

You can always do all this in Excel. Just list all the categories across the top, with a notation as to the dollar amount per paycheck, or percent or whatever. Add it in every paycheck. Then weekly or however often, subtract back off what you spent. If something goes negative, you have to pull it off something else.

[DownUnder]

I also budget like Morgain300 does
Except now it is a little different since I am older and now retired
The one thing I tried to do after my house was paid off was to still make that payment each month but instead of paying the bank I put it my savings account and after a while it really added up. While I was working I put aside a little each pay day for those little things in life that happen (like having to have a hot water heater put in on a Sunday).You sound like you are on the right track.