[kita]

I recently went from working two jobs to one very part time job, and for the first time in my life had to make a budget to make sure I can pay my bills.

I'm been working things out on paper by writing out when my bills are due, when and how much I get paid, and whatever is left over is what I can spent on things like food or entertainment that week. Even though things seem to work on paper I find myself 'stealing' from the food budgeted money to spend on other things, or vice versa.

I guess I'm just wondering if anyone else lives on a very tight budget and how you make it work? I'm 7 months pregnant and so I don't have a lot of opportunity to increase my income right now.

[Kricket]

I use
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to keep things organized. It gives me some visual reference for what I spend and where, and I like the email alerts- they send out email whenever my spending deviates significantly from the norm.

Everything else is just discipline. I don't think it's a big deal to move small amounts from one category to another, so long as you don't overspend. You seem to be going about this in a very responsible manner.

Some people have issues treating a credit card like real money; I hear that freezing the card in a block of ice and working only with cash helps there. This doesn't sound like it's an issue for you.

Consumerist.com has a lot of good articles on budgeting. Check out some of the stories about how people keep to their budgets.

[kita]

Originally Posted by Kricket To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.

I use To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts. to keep things organized. It gives me some visual reference for what I spend and where, and I like the email alerts- they send out email whenever my spending deviates significantly from the norm. Everything else is just discipline. I don't think it's a big deal to move small amounts from one category to another, so long as you don't overspend. You seem to be going about this in a very responsible manner. Some people have issues treating a credit card like real money; I hear that freezing the card in a block of ice and working only with cash helps there. This doesn't sound like it's an issue for you. Consumerist.com has a lot of good articles on budgeting. Check out some of the stories about how people keep to their budgets.

Thanks for the tips. I would love to use mint.com but it doesn't work with my small local bank.

Thankfully credit cards aren't an issue, I actually hate them and shredded mine once I established a small emergency fund.

[Warrior]

How long have you been working your budget? When people first start, it is very normal to have to make adjustments for the first 3 or 4 months. If you are "stealing" from one area just because your estimate wasn't accurate and you need the money somewhere else, you can adjust that in the next month. You should reach a point though, where this readjustment is pretty minimal.

Second, what are you putting the money into? If you are pulling from food (and you need it in food) to go to a movie, I'd tell you to cut out the movie. Make sure you have prioritized things correctly - food, shelter, and lights come before other things. You may have to make lifestyle cuts if that is an issue. Don't forget that you are going to have additional expenses in a couple months, so start planning for that as well.

Third, is there anyone else that shares in this with you? If anyone else is contributing to the income or taking $$$ out of the income for something, they need to be engaged in the whole process and be in agreement on what is happening.

That's where I would tell you to start. I'm not sure how much of that you are doing or exactly where your issue might be, so it's kind of hard to give more specific advice. Also keep in mind that budgets are not just for people with low income. Most "rich" people get that way by starting and maintaining a budget. A budget isn't something you get forced into when you're poor - it is the tool you use when you get tired of being poor and want to be different.

[themuzicman]

Microsoft excel (or the open office equivilent) is excellent for this task

Down the side, List your bills (Col A), and the average/expected cost (col b). Include a row for savings. Then across the top, put the dates when you expect a paycheck (Row a), and the expected amount (row b) FOR THE MONTH. Each should take two columns. The second column will be the actual amount.

Then in the first column of each expected paycheck, put in the amount of each bill that is to be paid from that check. You may pay an entire bill in one paycheck, or split it out.

THen, at the bottom, sum the expected payments (which you just filled out above), and look to see whether that is lower than the expected paycheck (make sure you exclude the expected amount of pay from the sum!) When the sums at the bottom are less than the expected check at the top, you have a month's budget.

I'll try to do an example:


----------------June 1----------June 15
----------------$1000----------$1000-----
Food--200------$100-----------$100
Car Ins-350-------------------- $350
Rent-700--------$700
Car Pymt-300-------------------$300
Utilities-200-----$200
Savings-------------------------$250
Total:-----------$1000----------$1000

Now you have a budget. Use this as your template for each month. If you get checks every week or every two weeks, you'll have an extra check every now and then. SO, add another column, and budget that money, too.

Then, as you get paychecks and as your bills come in (including new ones), insert them into the columns after the expected amounts, and adjust accordingly:

----------------June 1------------June 15
----------------$1000--$1000-----$1000--$1050-
Food--200------$100---$85-------$100---$105
Car Ins-350-----------------------$350---$350
Rent-700--------$700--$700
Car Pymt-300----------------------$300---$300
Utilities-200-----$200---$175
Savings-----------------$40--------$250---$295
Total:-----------$1000--$1000-----$1000--$1000

That's your end of the month view. And you can use this to adjust numbers to account for lower or unexpected costs.

[kita]

Originally Posted by Warrior To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.

How long have you been working your budget? When people first start, it is very normal to have to make adjustments for the first 3 or 4 months. If you are "stealing" from one area just because your estimate wasn't accurate and you need the money somewhere else, you can adjust that in the next month. You should reach a point though, where this readjustment is pretty minimal. Second, what are you putting the money into? If you are pulling from food (and you need it in food) to go to a movie, I'd tell you to cut out the movie. Make sure you have prioritized things correctly - food, shelter, and lights come before other things. You may have to make lifestyle cuts if that is an issue. Don't forget that you are going to have additional expenses in a couple months, so start planning for that as well. Third, is there anyone else that shares in this with you? If anyone else is contributing to the income or taking $$$ out of the income for something, they need to be engaged in the whole process and be in agreement on what is happening. That's where I would tell you to start. I'm not sure how much of that you are doing or exactly where your issue might be, so it's kind of hard to give more specific advice. Also keep in mind that budgets are not just for people with low income. Most "rich" people get that way by starting and maintaining a budget. A budget isn't something you get forced into when you're poor - it is the tool you use when you get tired of being poor and want to be different.

This is the third month I've budgeted everything out. I think my issue is not being disciplined enough, since everything works on paper but in practice gets screwed up.

I'm just budgeting my own income and expenses right now. I have a significant other who is able and willing to pick up the slack, but I've always been very financially independent and would much rather learn to live on my new tiny income than spend his money. I take a lot of heat from other couples with combined finances for that attitude, but I really can't change it.

[RBM]

If you are in the US, I've seen recommendations that 'emergency funds' should be a year's worth of expenses - or more.

Have you budgeted in for the coming birth ?

[kita]

	Originally Posted by RBM To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
	If you are in the US, I've seen recommendations that 'emergency funds' should be a year's worth of expenses - or more. Have you budgeted in for the coming birth ?

I've heard the same. I was slowly getting there but stopped putting into it when my employment situation changed.

I have a couple of baby categories in the budget and a little bit of separate savings I've been adding to for baby expenses.

[peppersasen]

I had a chart with three grids/columns labeled "primary", "secondary", "tertiary" and started listing everything from gas to films under each category. All of them are different for each person. For instance, if you employer lets you work from home, you can put gas under "secondary" and if you're a beginner filmmaker watching films can actually be put under "primary". But be honest, don't make necessary justifications. Also, the same thing can be listed under two categories, for instance: "eating out when craving salmon sashimi" should be under "tertiary" while "eating for networking" should go under "primary/secondary". Allocate certain amounts for each item.

From what I gather, you are in no position to spending on tertiary needs. So don't spend on those. The lists should be an agenda or piece of paper where you can refer to it and can serve as a reminder. Also, I know this is probably stupid, but I do it anyway: suppose you have [Imaginary Currency] 100.00 per month to spend, divide it by 31 (you're only supposed to spend 3.20 a day), if you exceed 22.40 by the seventh day, you're doing a bad job. This might not work, realistically (because some days you pay your phone bill, let's pretend it's like 10% of your budget, which is 10.00). But playing mind games with yourself and making yourself think you DON'T have money you have is waaaay more helpful than making yourself think you have money you don't (which is the mindset of credit cardholders--thank God you are not of them).

Also have a chart that lists the exact amount you have no all your bank accounts/CD accounts, cash, "emergency/untouchable money", etc. Keep track of your expenses and be hard on yourself. It's always the silly little things like Starbucks green tea/mango juice, stickers/stamps, the Danish pastries you buy because you think they make you look like Holly Golightly that add up and make up a lot of your expenses. If you have a car/carry big bag, carry crackers/cookies. And NEVER shop on an empty stomach (you'll stick to your budget much easier when you shop with a full stomach).

Hope that helped.
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---------- Post added 05-10-2011 at 05:49 PM ----------

Not sure if you've read this thread on living frugally, but it might be helpful:
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. Good luck.
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---------- Post added 05-10-2011 at 05:51 PM ----------

	Originally Posted by kita To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
	Thanks for the tips. I would love to use mint.com but it doesn't work with my small local bank.

I'm also outside US/Canada and can't wait till it works for me! *fingers crossed*

[Warrior]

	Originally Posted by kita To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
	This is the third month I've budgeted everything out. I think my issue is not being disciplined enough, since everything works on paper but in practice gets screwed up.

This is where you discover that personal finance is much more about the personal than it is about the finance!
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	I'm just budgeting my own income and expenses right now. I have a significant other who is able and willing to pick up the slack, but I've always been very financially independent and would much rather learn to live on my new tiny income than spend his money. I take a lot of heat from other couples with combined finances for that attitude, but I really can't change it.

If this is your husband, I highly recommend that you combine your finances. It's not just about money, but it helps build joint vision for your marriage. If it is your boyfriend, then I would recommend you keep your finances separate.

[Necrosis]

I also try to limit cash spending. If you take out cash its harder to track what you actually spent the cash on. With credit/debit cards its easier to track where the money itself went and you can see where you may have went wrong.

[Mike1975]

Originally Posted by kita To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.

I recently went from working two jobs to one very part time job, and for the first time in my life had to make a budget to make sure I can pay my bills. I'm been working things out on paper by writing out when my bills are due, when and how much I get paid, and whatever is left over is what I can spent on things like food or entertainment that week. Even though things seem to work on paper I find myself 'stealing' from the food budgeted money to spend on other things, or vice versa. I guess I'm just wondering if anyone else lives on a very tight budget and how you make it work? I'm 7 months pregnant and so I don't have a lot of opportunity to increase my income right now.

I would start with your past three months of actual expenses, see where the money is going and then adjust lifestyle up and down depending on your income. If you write everything out on paper you may not be able to adjust your life from current to proposed. It is better IMO to start with where you life is then where you need to go.

I have never been good at budgets so I live well below my means.

---------- Post added 05-10-2011 at 05:07 PM ----------

Originally Posted by kita To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.

This is the third month I've budgeted everything out. I think my issue is not being disciplined enough, since everything works on paper but in practice gets screwed up. I'm just budgeting my own income and expenses right now. I have a significant other who is able and willing to pick up the slack, but I've always been very financially independent and would much rather learn to live on my new tiny income than spend his money. I take a lot of heat from other couples with combined finances for that attitude, but I really can't change it.

Yeah that is where all budgets fail. However if you have a SO and you want to keep things separate, you might want to reconsider since you have a joint (baby) expense. Plus seeing as how you being preg. is limiting probably what you can do, then it doesn't hurt to have him bear some of the burden

[Starry]

Live on cash and meal plan so you don't have to worry about dipping into your account for food.

[Mike1975]

	Originally Posted by Starry To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
	Live on cash and meal plan so you don't have to worry about dipping into your account for food.

It would be an idea (never tried this) to set aside cash for your fixed costs, then your other budgeted items take the cash divide by the number of days in your pay period and give yourself that fraction of cash each day. It would avoid you running out of food. I still think though if you're living with a dude and he's the father he should be helping you out a bit.

[kita]

	Originally Posted by Mike1975 To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
	However if you have a SO and you want to keep things separate, you might want to reconsider since you have a joint (baby) expense. Plus seeing as how you being preg. is limiting probably what you can do, then it doesn't hurt to have him bear some of the burden

	Originally Posted by Mike1975 To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
	I still think though if you're living with a dude and he's the father he should be helping you out a bit.

I didn't mean to give the impression that he doesn't help. We do share expenses, but don't combine income.. so I'm not trying to budget for both of us. I'm trying to adjust my spending to my new income, instead of asking him to pay for things I used to pay for myself.

[cutenoob]

And is it possible that you are not making enough money now to not cover what you used to? When you do this budget are you in the red or very very gray almost red area?

PPs are right about cutting costs as much as possible and trying new techniques - only use cash for all bills, etc. That's hard for me since I rely on EFT for bill payment - I cannot justify stamps/envelopes when it's free for a bank withdraw.

As for the baby - I had a baby last year, on a super limited budget. I went to local thrift stores, charities and such -got what I needed. The needs are: bedding, diapers, diaper rash cream, bottle set or 3 (we kept like 20 bottles; did dish batches), jammies, formula, and a little bit of baby wash...and the infant car seat.

I bought a few things I thought I'd NEED...didn't use them. We went through clothes like crazy. Kept him in jammies/footed suits for the first 6 months.

Money is not easy, but I think it's easier than a baby
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Congrats on the new one! AND being responsible enough for the budgeting.

[Warrior]

	Originally Posted by cutenoob To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
	PPs are right about cutting costs as much as possible and trying new techniques - only use cash for all bills, etc. That's hard for me since I rely on EFT for bill payment - I cannot justify stamps/envelopes when it's free for a bank withdraw.

Not sure about the other posters, but electronic bill payment that sends payment directly from your checking account is "cash" to me.

EDIT ~ By the way, this does not include giving a person or company direct access to your account where they can withdraw funds on their own. That's not a good idea.

[WeAreAllKosh]

	Originally Posted by Warrior To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
	Not sure about the other posters, but electronic bill payment that sends payment directly from your checking account is "cash" to me. EDIT ~ By the way, this does not include giving a person or company direct access to your account where they can withdraw funds on their own. That's not a good idea.

Agreed. I pay almost all of my bills electronically, but I still control when the funds are transferred from my account.

Setting up auto-pay for your bills may be convenient, but I believe it can lead to complacency. When auto-pay is enabled, it becomes easy to stop looking at your bills and not notice overcharges or other hidden fees.

I'm another one who uses a simple Excel spreadsheet for budgeting. I've tried lots of personal finance programs over the years, but almost all of them make you budget on a monthly basis. I want to budget on a bi-weekly basis because that's how I get paid.

No budget method, however fancy or simple, will work without discipline and honesty. It doesn't matter if you can keep track of your money down to the penny if you continue to pull funds out of one bucket/envelope/category when it really needs to stay there.

I look at budgeting as a way of putting ALL my inflow and outflow amounts in front of me so I can't pretend that extra money will magically appear from somewhere else. There is no somewhere else when you create an honest budget and keep it updated.

[Haumea]

Food - obviously you don't want to skimp here as you're pregnant. But going out to eat can be pretty expensive (not to mention gasoline costs these days.)

Entertainment - spend $12 bucks a month on Netflix, then use the Watch Instantly feature as well as the DVDs by mail. Go to the library and load up on books, CDs and the free rental DVDs. Try and go to the discount stores for clothes.

Basically cut out everything you can get for free elsewhere. That's the starting point. For other things, if it's cheaper, DIY instead of buying it.

[peppersasen]

	Originally Posted by WeAreAllKosh To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
	When auto-pay is enabled, it becomes easy to stop looking at your bills and not notice overcharges or other hidden fees.

Speaking of hidden fees, you can spot hidden fees when you subscribe to an unlimited plan (for internet or cell phone). If you're a heavy user, it's always useful to have an unlimited plan with a fixed price. Saves you a lot of stress about how often/how much you use a service and prevents
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. But only if you're a hardcore user who absolutely needs that service (for work and such).

[SuperSmart101]

Bulletproof personal finance system(automated):
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Visual Aid:

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