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Tuesday, February 23, 2010

Basic Budgeting

In honor of the Ninja's post today I thought I'd give you an idea of how our budgeting breaks down:

Bills

Payee
Amount
Daycare
-$986.92
Mortgage
-$850.00
Groceries
-$600.00
Car 1
-$365.00
Car 2
-$350.00
Household
-$300.00
Gas
-$250.00
Student Loans
-$250.00
School Balance
-$200.00
Cell Phone
-$190.00
Electric
-$110.00
Maid
-$100.00
Car Insurance Car 1
-$100.00
Expensive Vacuum
-$90.00
Water
-$75.00
Lawsuit
-$75.00
Gym
-$65.00
Credit Card 2
-$50.00
Credit Card 3
-$50.00
Credit Card 4
-$50.00
Internet
-$45.00
Dance Lessons
-$40.00
PikePass (Toll)
-$40.00
Gas
-$39.00
School Breakfasts
-$35.00
Netflix
-$23.00
FreeCreditReport
-$15.00
Charity
-$10.00


Total
-$5,353.92


Jars

Priority Jars


Food
$600.00

Household / Personal Care
$300.00

Kaelyn's Breakfast
$35.00










Secondary Jars


Husband Personal
$100.00

Wife Personal
$100.00

Medical Debt
$50.00

Auto
$50.00

Grooming
$50.00

Total
$350.00







Indulgence Jars


Clothing
10%
$31.01
Travel
10%
$31.01
Garden
10%
$31.01
Real Estate License
10%
$31.01


Income

Source
Inflow
Wife
$1,980.00
Husband
$1,628.00
Child Support
$590.00


Worst
$4,198.00


Possible H's Bonus
$1,400.00
Daycare Reimbursement
$416.00


Bonuses
$1,816.00


Best
$6,014.00


Final

Total Remaining:

Worst Case
-$1,155.92
Best Case Minimum
$660.08
With Secondary Jars
$310.08
Indulgence Jars
$124.03
Into Savings
$186.05


These figures are obviously rough estimates. Each month some of them will vary slightly depending on how many weeks actually fall in the month. So, for example, if there are 5 full weeks we will pay more in daycare; there are 2 months where I will pay an additional $50 for maid service. Also, our toll fees don't get charged some months depending on how often we have to use the turnpike. Other bills, such as utilities may vary slightly although we're on an average billing plan that is working out very well.

As you can see, I have a "Worst Case" scenario that is, well, gloomy. H hasn't gone without a bonus in over 2 years but we knew that eventually that bubble would bust and this month is just that. We didn't prepare for this because even though we have previously had intentions of doing so, we've squandered away the money on insignificant things. Currently though, we do have some money in savings to cover it; the money was originally to go to the IRS but must-pay-to-survive bills will come first and I don't have a big problem with setting up a payment plan with the IRS, just so long as we're paying.

The daycare reimbursement is never a guarantee because sometimes they drag their heels or as we experienced in October, November and December, they screwed up our account.

Of the jars, the "Priority Jars" are already figured into the budget; the "Secondary Jars" are just that. If there is enough to give us each our personal money that comes first but if we're really strapped we will give those up as well. Everything else goes in order as listed until the money runs out.

The "Indulgence Jars" are savings jars. These are more long-term to use as available. After everything whatever is left goes to the savings account. Some would say that the savings account should come first but we have so little leftover, if any, I feel like other things have to come first.

February was our first month attempting this concept and we didn't put the cash in the jars, we just tried to manage it out of the account. What was the result? We're way over budget in some categories but I'll review all that next week when I have a final accounting for the month of February.

Do you have a budget? Is savings a priority or a secondary for you? Do you use a cash-based system?

2 comments:

  1. As far as the savings goes - we do the same thing. We don't pay ourselves first and rather what is left is what goes into savings. I feel like saving is a priority, but we sure don't treat it that way! I guess the most important thing is that we do put some money into savings each month.

    I really like your secondary jars. What a great way to manage money for those things that aren't quite really needs.

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  2. I am in a very similar situation. With just a couple of dollars at the end of the month after all of our bills are paid, there just isn't enough to start saving heavily. Hopefully, once our other debt is paid down, we can start making some serious commitments to our savings account!

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