Back to the Budget

Not one of my favorite things to do...
Photo by Stuart Miles

Tonight we finally got our act together and worked out… not so much a budget, but a map of where our money should be going.  I figured out one of the reasons I utterly hate looking at our finances on paper:  It’s completely stupid.  There’s honestly no reason on earth why we should be struggling the way we do.  Even with my own meager earnings, we should be getting all this stuff paid with room to spare.  I just don’t understand why it never seems to work out that way…

Well, that’s not entirely true.  There’s crap like the car repairs.  Plus, we always seem to be starting from behind.  But at least we can play a little catch-up – we filed our taxes and should be getting a little refund by the end of the week.  Nothing amazing, but at least enough to keep swimming for a while longer.  I’m really looking forward to the flashcards project payout.  That’s going to give us some really good breathing room.

One of the other things we accomplished with this was that I was able to see how much I actually need to make per day to stay afloat.  Once again, what gives?  I can do this, easily.  I don’t know how it’s not happening, honestly.  But at least I can have that number in my head every day so when I sit down to work I know what my daily minimum is.  I’m not going to count the flashcards project toward that minimum.  That’s going to be gravy, as far as I’m concerned.

I’m not going to lay our entire budget out for inspection; we do need to keep some things private after all!  But I wanted to at least show you our categories.  We haven’t yet set up the categories for things beyond the basics.  Most of our expenses really are monthly.  I didn’t set up an entertainment category, although we do have a spending money category.  Once we have this running somewhat smoothly, we are going to look at options for one evening out a month and hopefully a regular date night.

The budget categories:

•  Rent
•  Groceries
•  Power
•  Gasoline
•  Water/Sewer
•  Internet
•  Emergency Savings Plan
•  Debt repayment
•  Cell phones
•  Bus fare
•  Taxes
•  Spending money
•  Netflix/Hulu

I should probably mention that I’m not counting things like insurance and such that come directly out of Gavin’s paycheck.  When we calculated our income, I only looked at the net that actually comes into the checking account.  The taxes category is for the taxes that I have to pay, since mine aren’t deducted automatically.

The next step in this process is going to be to track how much we are actually spending in each category to make sure the numbers are fairly accurate.  I think I overestimated in a few areas; groceries and gasoline come to mind.  I’d rather be over than under though.  

Facing Two New Year’s Challenges Head On

What does weight loss have to do with money management?
Photo by vorakorn kanopipat

Last night a lot of people made a lot of resolutions to change themselves in the coming year.  Many of those resolutions have likely been broken already.  In years past, I’ve made resolution after resolution, and it’s always the same ones over and over.  I seem to be stuck in a cycle.

This year, they aren’t resolutions.  For one thing, I didn’t make them last night, and I didn’t start them today.  They’ve been ongoing projects, with clear lines and clear plans of attack.  Two of them are, of course, the perennial favorites:  get my money situation in order and get rid of all this extra weight.  I know – fix finances and lose the weight.  Practically a new year cliché, isn’t it?

Well, maybe so, and with good reason.   For me, these two are intricately tied to each other.  I strongly suspect that by fixing one, I will fix the other.  There’s something in my head that just doesn’t quite work right when it comes to these two subjects.  Both appear to come from a fear of denying myself anything.

Why is this?  What is it that I’m trying to make up for?  Granted, I was never taught the best habits.  I find that I am jealous of those for whom these two things come so easily.  I envy those people who claim to love vegetables and exercise.  I’m flabbergasted by those for whom money management is practically second nature.  I feel angry that I’m not one of them, that I have to struggle.  I’m angry that I never learned these skills from my parents (sorry Mom and Dad, I know you read here and I’m not trying to throw you under the bus, but you have to agree that these skills weren’t exactly well-modeled).  I’m angry at myself that for some reason I continue to struggle. 

I’m not a stupid person.  I know perfectly well that eat less + exercise more = lose weight, and spend less + save more = good money management.  But putting those things in practice… it’s a constant struggle.  I can complain until I’m blue in the face about how hard it is to buy healthy food on a budget, and it’s true that it’s a challenge, but I also must make the choice to take that challenge on.  I’m educated, I have no excuse.  I know how to fix healthy meals – I just prefer the taste of salt and fat.

I can complain about how I can’t afford Weight Watchers or a personal trainer – but I do have access to many free programs that can help me and provide practically the same tools.  I can complain about not making enough money, or I can learn to properly manage what I already have.  And when I choose to waste money on meals out or junk food, that is a choice that impacts both areas and affects my progress on both fronts.

So.  I have a plan. I’m dealing with both.  I’m aware of the problem and I’m actively working on a solution.  My mantra for 2012?  No excuses.  No bitching about the problem unless I can find a solution for it.  There’s plenty of things in life that are completely out of my control.  Those things are the ones I should be complaining about. These are the things I can fix.  

The Breakdown

It adds up faster than you think.
Photo by Michelle Meiklejohn

Following the directions in the Planner, we’ve been tracking our spending since last Friday.  Here’s our report, warts and all. Take advantage -- be a little voyeuristic!  There’s some ugly stuff on here, so no judgments please.  We are aware of the problem, and that’s the point of this project.  Change isn’t overnight.

Friday:

• Gas   25.15
• Groceries (including Christmas/Birthday gifts)  167.30

Saturday

• Coffee with Dad  6.00
• Red Robin (Mom’s birthday lunch)  32.74
• Lunch at work (Gavin)  8.00

Sunday

• Gift for my brother   20.97
• Breakfast at work (Gavin)  4.93

Monday

• Hulu    8.75
• Gift for Gavin    13.93
• KFC   18.92
• McDonalds   10.05
• Breakfast at work (Gavin)  6.47

Tuesday

• Gas   21.00

Wednesday 

• Parking (for Elias’s appt.)  5.00
• NSF fee through bank   25.00
• Payment on Merrick account (credit card)  23.30

Thursday

• NSF bank fee 25.00
• Breakfast at work (Gavin)  2.10
• Sodas  5.25

Okay.  I can see some serious problems and money drains.  They’re pretty ugly in fact.  But that’s not what we are looking at today.  Our assignment was to evaluate how our spending reflects our priorities.

I can see my family priority reflected in my spending on gifts and the treats on Saturday.  I spent money I really couldn’t afford because I wanted to participate in my mom’s birthday.  Responsibility and health kind of flew out the window when I was feeling lazy on Monday and opted to get dinner at KFC.  Convenience really took over at that point.

Gavin’s priorities weren’t very well reflected in his spending this week either.  Taking care of the family with groceries and Christmas gifts was there, but he also spent a lot of money trying to streamline his mornings.  He will probably say that he is eating out in the morning to keep from waking Maddie up, and that’s his way of helping the family, but it’s clear that we are going to have to find a better solution.

And what about those bank fees?  Neither of us has a goal of keeping BECU in business, so we definitely need to get that under control.  

The next step is to figure out how we're going to save that $1000 emergency fund.  It looks pretty challenging at this point, but we're going to sit down tonight and hammer out a plan.  I plan to post the plan, along with constant updates on how we are growing that $1000.  I think it will be fun to see how it grows!