Budget Survey:

[Soror]

For those that keep budgets I have some questions. These are not about specific amounts but on implementation.

 

On reading tips on frugality and examining our budget I have came to realize some things. First generally speaking I have a good grasps of the basics and there is little room to cut. I/we do however lack in diligence at times. We were not strict with the budget at the end of last year, that is not good. I don't want months of hard work to be undone. We had a tight summer and I should have purposely planned in a little fun.

 

Anyway- here are the main things I'm seeing that I/we need to address to make things easier, increase diligence, and step up our savings efforts. So, I want to know how you handle these things.

 

1)Sinking Funds:

 

What sinking funds do you keep

 

Where do you keep them- do you separate them?

 

Currently we are funding the health insurance(high ded and OOP), 6 month efund, and car fund. After this year I'm looking at what else to fund and thinking what needs to be added. We also need a car repair fund(older vehicles) and house repair fund I believe but I like to have some kind of separation at least on paper.

 

2) How do you handle variable budget categories?

 

- My grocery bill can vary widely due to buying meat and other items in bulk. I still haven't worked out all the kinks here. I buy chicken by the year and 1/2 or 1/4's of pork and beef. I can pick the date on the chicken but have only a certain amount of control on the other due to when it is ready from the farmer and the processor can do it. It also varies as I don't always have the same supplier. I've done it in cutting back in previous months and also had times when we've had extra for whatever reason. Another problem here is that I don't have figured exactly how much we will use on the pork and beef, the beef especially can vary widely in size so is hard to track. I think I need extra buffer in there to make up for these months.

 

3) How do you keep track- computer? Online? Handwritten?

 

I used to do an excel spreadsheet and quite liked it but it drove dh crazy. A few years back I switched to Mint but last year it didn't work well for me so I started doing some spreadsheets again. Now Mint is working again but after testing out other programs and reading I'm wondering if perhaps it might be worthwhile and helpful to have Mint sort it but also keep a binder with a ledger that is more specific. Tell me about your system.

 

4) Do you separate accounts in anyway? We are considering this as a way to make it easier, tell me how you have your accounts and withdrawals set up.

 

5) Do you have a system/protocol in place for 'windfall' amounts? If so what is it?

 

We haven't had one so far and I think it would be very helpful and useful as we often do have 'windfalls' as dh often can and does work overtime.

Edited January 17, 2012 by soror

[Seeker of Schole]

1)Sinking Funds:

 

What sinking funds do you keep?

For us, that's quite the list: a basic emergency fund, house maintenance, car repair, medical, birthday, Christmas, an activity fund for each child (some fees are monthly, some are every six months), clothing (we don't shop every month, so this builds until we make one big trip, usually 3 - 4 times a year), vacation, curriculum.

 

Where do you keep them- do you separate them?

I keep all of those funds in one savings account, I use an excel spreadsheet to track what is in each actual fund.

 

 

2) How do you handle variable budget categories?

For this spedific example each week gets a specific grocery budget and then there is a 'stockpile' fund for the month. So the weekly groceries come out of the weekly grocery fund, and anything else comes out of the stockpile fund. Any unused stockpile fund is either rolled over to the next month or put into one of the sinking funds.

 

- My grocery bill can vary widely due to buying meat and other items in bulk.

 

3) How do you keep track- computer? Online? Handwritten?

Microsoft Excel. I have multiple pages - one per month, one for savings / sinking, one for planning.

 

4) Do you separate accounts in anyway? We are considering this as a way to make it easier, tell me how you have your accounts and withdrawals set up.

Just a checking and a savings. If there was a problem staying on budget I would either use another checking for grocereis / spending or cash in envelopes.

 

5) Do you have a system/protocol in place for 'windfall' amounts? If so what is it?

The only system we have in place is to discuss it and make decisions. Each year has my husband's bonus going into a different fund, or multiple funds depending on our goals for the year / long term.

Hope that helps!

[speedmom4]

Hi,

 

I am a budget-lover!:001_smile: That probably sounds incredibly weird! I have found a system that works really well for me. I have been doing my budget the current way for about 2 1/2 years.

 

I use an accounting ledger that I bought at Walmart. It was very inexpensive. I created a monthly budget based on our income per month and our expenses per month. BUT, we get paid every other Friday. So, that means we get paid 26 times per year, not twice per month. I create a budget for each and every paycheck. In my monthly budget I write down the due dates for each bill that way when I do my paycheck budgets I know which bills should go where.

 

Basically it's an envelope system. I have categories for each bill, groceries, gas, insurance, piano lessons, etc.

 

Mine gets a little tricky when it comes to saving. I only have two accounts where I keep cash. But within those accounts I have virtual accounts. For example in my savings account I have money for a new car and emergency savings. They are all together in the account but on paper they are separate. I also have a short term savings account for things that I know I will spend that year like Christmas, curriculum, etc. That money is actually in my checking account but it is separate on paper.

 

My husband receives bonuses at work and we have designated that that money will go into our college savings. We have an investment account for college but we are also saving cash. My daughter is a junior so we will need that money very soon. I am looking at that account for not just tuition but for things she will need in the dorm, clothing, books, etc.

 

Also when I have extra money at the end of the pay period I put that money into college savings. Even if it's only a few dollars. But if I go over during the paycheck I make it up with the next paycheck. I record it like a bill on the next budget.

 

When I have bills that are too big to pay out of one paycheck I split it up into several payments over several budgets so that I will have the money when the bill is due. That is where planning is VERY important. At the beginning of the year I write out everything that is a one time bill and when it is due. For example, we have a termite inspection contract on the house. We pay that bill once a year so I split the bill in half and pay it from two paychecks.

 

I hope I haven't totally bored you!:tongue_smilie:

 

I really like budgeting and it has helped us accomplish goals that I never thought possible!

 

God Bless,

Elise in NC

[BarbecueMom]

Sinking funds: I average out the cost of our deductibles, healthcare OOP, car repair/maintenance (virtually nil right now, as both cars are under warranty w/ free oil changes until 2015), taxes, and yearly expenses (subdivision dues, DH's certification dues, plate renewal, etc.). I make a monthly deposit from our regular checking account into an "irregular expenses" account and pay those types of bills from that account.

 

Variable budgets: Cash only, and I try to budget enough grocery money to have "stock up funds" left over. Hasn't happened lately. :glare:

 

Keeping track: Google doc. I'm not a big fan of spreadsheets, because it takes me too long to set it up.

 

Separate accounts: Yes, see above. :001_smile:

 

Windfalls: Any of those go into the regular account right now. We are saving for a deck replacement this spring before continuing debt payoff (this thing is a huge safety hazard and my boys can't go in their own backyard because of it). Since most of the debt is in regular budget items (student loans and car payments), it makes sense to leave it there.

[melissel]

1)Sinking Funds:

 

What sinking funds do you keep

 

Where do you keep them- do you separate them?

 

Yes, I separate them. For the ones I may need to dip into regularly, I keep the cash in an envelope (school/curriculum), or I keep an immediately accessible (i.e., connected to our debit card) savings account (one account for life ins., car insurance and repairs, and water bill). For the others (Christmas, vacation, long-term savings) I have an ING savings account. ING is awesome because you can make as many sub-accounts as you want and name them whatever you want. That makes it easy to keep track. Plus, for us, it takes several days to transfer money to our regular bank, so it eliminates any impulse spending of that money.

 

Outside that, DH is in sales, and the way he's paid makes our budgeting weird. In your case, I'd make sinking funds for every long-term thing you realistically think you'll need (new car, roof/major home repair, etc.).

 

2) How do you handle variable budget categories?

 

I look at what our expected costs might be for the year and average it out monthly. The months you are under budget should carry you through the months you're over budget. If you don't think that will work, maybe make a separate envelope for the bulk things that come up?

 

3) How do you keep track- computer? Online? Handwritten?

 

I've used an Excel spreadsheet for years. DH doesn't like it either, but since I'm the one managing the money, he doesn't have much say. Occasionally we look at it together and I walk him through it. Otherwise, I just do whatever makes the most sense for me personally.

 

4) Do you separate accounts in anyway? We are considering this as a way to make it easier, tell me how you have your accounts and withdrawals set up.

 

Our main checking and easily accessible savings are with a local bank. The "annual use" and longer-term sinking funds are with ING for reasons mentioned above.

 

5) Do you have a system/protocol in place for 'windfall' amounts? If so what is it?

 

We don't have a system for windfall amounts. Usually we'll use a bit to splurge on something we wanted that was outside the budget and put the rest into that month's budget to use for bills/necessities. If you're having regular windfalls, you might talk with your DH about how best to use them. Personally, if he's getting them regularly and they're because he worked overtime, I'd use the majority of that money to fund sinking funds, because they tend to be neglected when the regular budget is tight.

[Annie G]

Elise- When you use your checking account to hold short term savings, how do you balance your checking account? I write bills in my checking account ledger twice a month and even that can be tricky when balancing the checkbook. For instance, all the utilities and such are on automatic draft. When we get the first paycheck of the month, I write all those in my checkbook and deduct them. However, some may not actually be taken from the account for three weeks. By that time, I'm on a different page in my checkbook and when I balance, I have to go back and make sure I account for that.

 

So how you do it long term would be something I'd like to learn. I can do it with a set amount- for instance, I 'hide' $500 or so, and deduct it in my ledger to I don't see it as available, though I know it's there. But having a changing amount would totally fry this old woman's brain.

[mytwomonkeys]

i budget with an app called moneywise. since we follow dave ramsey, i wanted an app that was very simple. i spend every dollar on "paper" first and i designate the amount to 1 of 3 categories (so i can view them separate when needed):

 

1) automatic withdraw

2) pay with cash

3) pay online

 

i keep our savings in the bank, otherwise i only deal with our checking account. i don't write checks or use debit though (when possible).

[Tap]

We handle things different from most people because I work, but don't put my money into the regular household budget. Instead, I use my money for variable expenses that we use the credit card for. Clothes, food, vacations, homeschool, classes, sports, etc. Anything that is not related to running the actual house, I pay for. I do not budget on paper, I just keep it in my head. LOL I have a $1,000 absolute emergency fund that I don't touch. I have a savings account that I keep $2-3,000 for homeschool and tuition in the fall, but otherwise I pretty much spend what I have each month. Dh has our main household savings in his budget, so that isn't a problem.

 

1)Sinking Funds:

 

What sinking funds do you keep

 

Where do you keep them- do you separate them?

 

We have used various systems over the years, but I don't think he does this anymore. Typical funds were home repairs and car repairs.

 

Now we pay several bills a year in advance. Our Vonage, cable, sewer, etc. Dh has those staggered throughout the year, so that each years renewal is paid on a different month. We put those on months that we don't have major holidays/birthdays. We also pay our house taxes this way. This operates similarly to a sinking fund, in that he knows he needs to save a certain amount each month, to replenish the savings, so that when one of these comes due, the money is already there. It is like having one large sinking fund, instead of smaller ones. I also pay bills in advance or have the money saved ahead of time of when big bills are due. ie I pay daycare 3mths in advance.

2) How do you handle variable budget categories?

 

We save to the high side and just let the money build in the account. Periodically, we just don't put money in for a while and let it dissipate. That doesn't happen often as it seems like everything is getting so expensive anymore.

 

3) How do you keep track- computer? Online? Handwritten?

 

Dh likes Quicken, I keep track of mine mentally.

4) Do you separate accounts in anyway? We are considering this as a way to make it easier, tell me how you have your accounts and withdrawals set up.

 

Dh has ING accounts in addition to the credit union.

 

I have 2 credit union accounts, and we also have the kids accounts. One of the credit union accounts is for ds's car. I keep a year or so worth of car payments in the account at all times, and it automatically comes out. That way, incase something happened to me, the payment would be taken care of for him.

 

The other account is my main checking account. I have 2 savings accounts.

5) Do you have a system/protocol in place for 'windfall' amounts? If so what is it?

 

Dh's bonus goes into our long term savings but sometimes we do spend them for something more immediate like a vacation. Raises are directly translated into percentage points on our retirement accounts.

[Soror]

Oh, thanks to all for your responses. I'm going through them now to see what I can glean to use here!!!