How do you maintain a personal budget?

Question

I am good at creating monthly budgets with my husband but neither of us are good at maintaining and/or following up with the budgets that we create. Please help...

Answer 1

http://en.wikipedia.org/wiki/Personal_budget

Also, check out this on-line budget service :)
http://www.budgetsimple.com/

Answer 2

First, you have to check back over the past year -- and track each check you wrote, each debit you made with the debit card, each charge you made, and CATEGORIZE and GROUP these financial transactions.

electric, phone, gas, water, trash service, anything that is a utility should be estimated for each month at the level of the actual expenses from the prior years. Then, when the bill is paid -- PUT THE NEW Paid amount into the estimate (so now your current month has an actual instead of estimate in it).

Do this for ALL categories of expenses -- Food, Rent/Mortgage, taxes, whatever. I will bet when you start tracking these groups of expenses you will see a pattern -- not only of the necessities -- but also the pattern of what the Excesses are (and things you do NOT need to purchase!).

Answer 3

You have to have a mutual understanding/agreement. Before either of you purchase ANYTHING over $50 in value, you need to discuss it first, then wait until the NEXT day if you agree to buy it.

Also, before you buy anything, ask yourself "is it nice? or is it necessary?" If it's only nice, then you don't really need it and if most likely a waste of money. If it's a necessity, then buy it only if it's an absolute necessity.

Most importantly, PAY YOURSELF FIRST! The best and easiest way to do this: if your employer offers a 401(k) plan, participate! Even if it is non-matching. You'll have the benefits of a tax shelter, plus have a nice chuck of money come retirement. You don't want to rely strictly on Social Security.

If you have credit cards, CUT THEM UP! If you max out a credit card and pay the minimum monthy charges, it will take you over THIRTY EIGHT YEARS to pay it off! That $2,000 living room set will ultimately cost you over $15,000! Was it REALLY on sale?

Answer 4

If you are like me, the problem is not the monthly bills, because the amounts due are fairly constant. Its the misc spending that kills the budget.

Try going to cash.

Put away the debit cards and the ATM cards and the credit cards.
Decide a dollar amount of spending money for each of you per week. One day a week, get your allowance in cash. Use that money for out of pocket expenses; lunch money, gas money, misc purchases. When you run out of cash STOP SPENDING. - don't reach for the debit or credit or ATM card.

It may take a few weeks to figure out the right amount of cash to allow each week, and what expenses should come out of that pocket money.

It worked for me.
Before I went to this system, I was blowing all my money $5 at a time on coffee, or lunch or magazines, or other stuff I didn't need.
Having a finite amount of cash each week helps me prioritize.

Answer 5

Just determine how much both of you make a month figure out how much you have to take out per bill like utilities, rent and food and creditors. Whatever you have left, put that in the bank and let it collect interest.

Answer 6

It takes planning and follow thru just like anything else. Just sitting down wishing and thinking does nothing. You could check out the following websites daveramsey.com or clarkhoward.com as they have very good information for folks like yourself...

Answer 7

Get your salaries direct-deposited, and have th bills automatically deducted each month.
Keep track of how much you can spend, & when it's gone, give your checkbook/credit cards to someone you trust until you have money again.
Curb those impulse buys!!!

Answer 8

Give up now before you end up in divorce court over this.

Answer 9

It takes a lot of discipline.