This week is going by fast! I’m so happy that it’s Thursday. Today my post is about budgets and it also happens to match up with Women’s Money Week’s Budget Thursday!
Lately I’ve been getting a lot of e-mails and comments about how I budget and what software I use. First, I’m surprised that so many of you e-mail me about this (this makes me happy because I know that I’m getting everyone to think about their finances more!) but this also surprises me because you guys e-mail me about this! I never honestly thought I’d be the one for people to ask.
I only use Excel and my head. I store a lot in my brain and that’s probably not a good idea. I have a horrible memory but I recently signed up for Mint and that’s been helpful to see where my money is going. Mint does lag a little for me and I hate getting the constant e-mail reminders for bills that I need to pay (even though I paid them 2 weeks before I get all these annoying reminders UGH).
There are SOOO many reasons why I budget and why you should too! A lot of my friends don’t have budgets and they just base everything off of how much cash they have currently in their bank account. That kills me! They have nothing saved and most of them have literally no bills, so I just don’t understand! Ok well I do understand since I used to be like that. But not anymore!
- I love to travel. I have a separate travel fund that I save for within my budget.
- Buy things that I want. I hate buying stupid things that I don’t want. Do I need that cheap shirt that won’t last through 1 wash? No, but I will budget for something nicer.
- So that I can afford experiences. I’m not going to lie, I like materialistic things such as clothes and nice cars, but I greatly value experiences such as concerts, festivals and similar events. These are much more important to me.
- To pay off my debt and retire early. This is a given. If I don’t make more than I spend, and also watch my budget, then I will never be able to pay my debt or retire.
- To be in control. I want to be in control of my life, and without a realistic budget, that’s impossible.
The first step in creating your budget is to make sure it’s realistic. Making your budget be only $1,000 a month for everything when you usually spend $3,500 would be pretty impossible unless you did some drastic things.
You should also re-evaluate your budget every so often. I look at mine as much as I can just because it literally takes a couple of minutes and isn’t hard. Just take a look at your bills and see if there’s any unnecessary spending there.
Miscellaneous expenses should be included as well. Something will most likely come up every month no matter how big or how small. You should definitely be realistic with this area in your budget because it will most likely be the area that varies the most every month.
P.S. I’m messing around with some things with the blog. What do you think so far? I changed the header (yeah I know, not a HUGE change), and I made a new button. Please let me know, anything good or critical, I want to hear it! Even post it as anonymous, I don’t care as long as I’m hearing the truth.
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Live Simply- Live We says
We budget for the same reasons. We want to be able to live and enjoy life.
Anonymous says
On Mint, you can change the settings for receiving the email reminders. I set it up to email me only once a week, and only to give me a general overview. I don't get emails about when bills are due.
Michelle P says
Thanks for telling me that, I'm going to change it now.
Alyx says
Like I said before – I like! I did notice, thought, that the yellow on the header is sort of difficult to read. You could move it down a few pixels and add a shadow, and that would probably improve it x100000 !! Just a thought – take it or leave it, I won't be offended either way! lolAnd you have actually gotten me excited about getting back to the states and making a budget. We don't really have one here, since we're pretty much living on bare minimum anyway, but once we get back to the states, I'm a little worried about what our spending habits will become with Target and Walmart around. 🙂
Michelle P says
Thanks so much for telling me that. I was thinking the same thing but I definitely wanted your opinion since you're better at this stuff than me! I'm going to fix it on my lunch break!
BrokeElizabeth says
I budget because I don't want to go into credit card debt for things like groceries. I don't have a lot of wiggle room, and I need to know that I will be able to buy food for the rest of the month if I spend a little extra on entertainment.
Sarah says
I budget because in the long run I will be in a better place then I would be if I didn't budget.
Lesley @ my lively m says
I don't budget at all and definitely need to. I would be like you though and save for travel and some materialistic things. Nothing wrong with that!
Becky Borgman says
My husband and I are trying to get some student loans paid off and saving money for a new car so we have a lower monthly payment so that when we do have children, I will be able to work part time. The idea of being with my children 5/7 days a week is more push than I need to skip that sale at Banana Republic, eat out less, or to make our home decor instead of buying it. Love your blog!
Sarah says
I was getting ready to say something about the new look. I like it!!! I'll have to switch out the button on my page…..aaaaaand I may be coming to you for help on how to redo my header 🙂
hklover86 says
Hey i was wondering if you can talk about making the transfer over to self-hosting and getting your own domain name?? Crystal (from budgeting in the fun stuff) suggested I do that because it will get more people wanting to advertise on my blog and stuff. Did you pay someone to do all that for you or did you do it yourself?
Marianne says
Budgeting allows me to buy things that I want without feeling guilty. I budget in an allowance for myself and my husband and it's wonderful to know that all of our needs are taken care of and if I want to buy something stupid just because I want it- I can- no guilt! Before, I felt guilty everytime money left my bank account because I didn't exactly know whether I could afford the item or not regardless of whether it was a need or not. Now I am completely in control. It's great. I blogged about our budgeting method here: http://preservingpennies.com/how-we-budget-a-simp…
Newlyweds on a Budge says
you and me kids, we are travel geeks. i budget so i can afford to travel!
bogofdebt says
First: I love your new header.Tips for those new to budgeting: You'll make errors, you'll go over your budget,and like you said, you need to be realistic. My first stint at budgeting left me even more in debt because I was so unrealistic that I gave up at it. The key is to not give up but instead, look at where you went over and evaluate. Was it because you were unrealistic? Bounce back from your mistakes and it gets easier all the time. (Especially if you give yourself goals that you are looking forward to like your vacations)
CeCe @Frugalista Mar says
I budget because I don't know anything else. It was never a conscious choice it seems. It was just something I did way back in high school when I got my very first job. It's definitely a good thing that it came naturally though b/c I hear all kinds of horror stories about what happens when you aren't managing your money well. I like it that you are budget minded BUT also allow yourself to enjoy life. It's good to have that balance. I used to just budget and freak out every time I spent money but I've gotten way better about the enjoyment part too.
Stephanie says
I'm the same way! My parents gave me an allowance from the time I was little, and if I wanted a toy or something I had to either save my money and buy it myself or put it on my birthday/Christmas list and wait. The concept of delayed gratification, and it's natural counterpart of budgeting, was a part of my life for as long as I can remember.
Liz Brown says
I budget. 🙂 I have since I first started making money, probably age 10 or so.I'm about to graduate and get a 'real' job. I'm gearing up for some heavy duty budgeting … there are some big ticket purchases that need to be made in the next year or so, like another car.Your blog is great! I think its so sad how so many people our age have no concept of budgeting, saving, or even just staying within their means.
Fashion Meets Food says
Fabulous post! I do budget – however not very good sometimes so I know that is something I really need to improve! xo
Lindsay R says
this is awesome. i love using google docs with excel so both my husband and i can add to it from anywhere.Lindsay
Michelle P says
That's a very good tip!
Tabitha Mahoney says
Love this. I am going to make one. Tabmy-cliffnotes.blogspot.com
Lena says
We budget to make ends meet at the moment. But we also budget because we want to know where every dollar goes, and how we can enjoy life even on a small income. I usually use excel form and my dear friend notebook. Like the new button and header.
Alice @ Dont Debt says
I do budget! I want to get rid of debt as soon as humanly possible – or sooner. I only get paid once per month and need to know how much is left over after debt payments have been made. If all I have is money for gas for the month, then I know I'm not going to be able to eat lunch out with a friend. Those are the reasons I budget, so I know exactly where each penny of my hard earned money is going. I want to be able to feel good about it and know that I did my best each month of getting rid of debt.
fabulously frugirl says
Budgets are so important! :)Now, I look forward to the beginning of a new month because it's an entirely new budget I can tinker with! I think a great tip for budgeting is to make it a dynamic document. We shouldn't just make a budget at the beginning of the month and then forget about it. If we realized that we forgot to add in our oil change, then our budget should be adjusted to account for such things.
Katie says
I don't use a spreadsheet for my budget. I just use my checking account to pay bills and a cash system for everything else. I think I'm going to give the spreadsheet a chance next month and see if that works better for me.
Michelle P says
I need to do a cash system.
Shaun @ Smart Family says
I use an excel, but only to track and categorize my credit card useage. I'd be using Mint, but for some reason they can't get information from the card I have so, I'm stuck in manual tracking mode.
Kris @ Simple Island says
You what annoys me about mint? Their advice and alert emails. I know they're trying to be helpful, but I still don't really like them. Otherwise, I adore Mint.
Marissa says
Its funny that we have the exact same reasons for saving. Im really passionate about seeing the world and its really hard to do that when you're broke.
parentingandmoney.co says
Love the look is the site. I'm one of those who don't budget but I still save money. My strategy is a bit different. I am trying out Mint.com. So far it shows promise.
Debt Recovery says
This type of thing needs to be introduced into our children's school curriculum, in terms of learning about budgets and saving. Introducing this type of learning will hopefully help future generations to understand how to manage a budget for when they become exposed to these types of things. Michael
[email protected] says
I budget so that I can regain control over my money, and tell every dollar where to go. As a result of budgeting, I'm looking forward to being able to tell every debt/bill where to go too!
Amber says
Are you still using Mint? Do you like it? I agree about the email reminders! I like it overall though. I also have a spreadsheet that I use with all the average amounts for my bills so I can know what's coming out of each check. It's a work in progress though…
My recent post A Load A Day…
Michelle says
I don't really use Mint anymore, but I definitely should be!
My recent post How to Live on One Income