Rethinking Budgeting

One of the main issues that I have, and I think most people (anyone can correct me, I won't be offended) also have this issue, with budgets is that I create my budgets this way:

1. Income
2. Fixed Expenses
3. Variable Expenses
4. Debt Repayment
5. Savings 

Which means you decide how much you think you have to spend in the Variable Expenses categories before getting to Debt Repayment and Savings. Not to mention that "Planned Spending" isn't in that list at all. Of course, we are still supposed to plan for these "unexpected" expenses in our budgets, but realistically, how many people actually do this when creating a budget? I always think, 'what do I typically spend on X in a typical month?' and enter this line on my budget. This, of course, doesn't take into consideration that you may only spend $40/month typically on eating out, but, oh, February has Valentine's Day in it, planning on eating out that night? Not to mention large clothing items (coats, shoes, etc) that need to be replaced and birthdays.

So, my budget for 2011 was worked out this way:

1. Income
2. Fixed Expenses
3. Debt Repayment
4. Savings
5. Planned Spending
6. Variable Expenses

I decided ahead of time what my Debt Repayment and Savings goals where first before looking at what is left over for the "spending" categories. I've never budgeted this way before. Its always, 'let's see what's left over after the spending is done' Bad Budgeter, BAD!

Income $2232
Fixed Expenses $418
Debt Repayment $1000
Savings $500
Planned Spending $80
Variable Expenses $234

The budget I posted yesterday doesn't separate out the Variable Expenses vs Planned Spending because the Planned Spending is worked into the Variable Expenses. Like Gail's jars, whatever is left over in a Variable Expense category in any month is added to next month's Variable Expenses. But, since I'm not doing the jar method (I'm lazy, I'll admit it!) I'm using my 2nd chequing account (its technically a savings account but there's no charge for transferring in and out from my 1st chequing account online) for my Planned Spending account so that when I need the money to add to my Variable Expenses in any category, I can. I am REALLY hoping I can make this work. Like I said, I've never budgeted this way before. Also, I'm leaving myself with very little play money $234 a month works out to $58.50 per week, but I've been living on about $40 for the last month and a bit, so I think I can do it. More frugal fun to be had this winter!

TTYL, Morgaine

2011 Budget

Here's what my 2011 budget sits at right now. This is subject to change - maybe sooner rather than later, since I'm only temping right now and applying for permanent jobs, but none yet :(

Since I am currently being paid weekly, I will be tracking weekly and hopefully this will make it easier to budget. So far, I think so. But time will tell ...

Happy New Year!

After a way too long hiatus, I am back! I REALLY slacked off on my money management for the last quarter of 2010 mainly because I lost my job, used up all my savings, and I'm now working a temp job that could end at any time :( But at least I'm working and bringing in some money :)

So, with the New Year comes new resolutions to be more careful and conscientious with my money.

My Money Goals for 2011:

• Have at least $2000 in my Emergency Fund
• Have at least $5000 in the Wedding Fund *joint savings with fiancee
• Have at least $7000 in RRSPs
• Pay off Visa (for good, dammit!)
• Have MasterCard down to at least $8000
• Pay down Citi (no goal, because the interest is so high, but make regular monthly payments)
• Not go over my budget more than $100 in any month

2010 was a pretty good financial year for me despite losing my job in October and slacking off in the management department for the rest of that year. I will do an analysis in a later post. But looking at my numbers right now compared to Jan 1/10, I am up $6000 in Net Worth. That's pretty good, if I do say so myself :)

So, Happy New Year's to all and may 2011 be a year of happiness, fulfilment, and sound money management! :D TTYL, Morgaine.

Updated Sidebars

Hi,

Sorry again that its been so long since I posted. I'm just not finding myself all that motivated lately to track and post the numbers. I have been saving and paying down debt with the same intensity, so its not debt fatigue, its more budgeting fatigue. Although looking at my numbers I haven't been living outside of my means. I haven't touched the MasterCard in more than 2 months (other than paying it down!) and I've paid off the balance on the Visa before its due, so no interest is charged (only purchasing things that can only be purchased online - like tickets). I am still imputing my debit transactions into a tracking program, but I haven't imputed the numbers into excel or my "virtual jars". I'm just not motivated, I will admit it. Hopefully with September, my Gail Club will be in more full swing and will give me the push I need to keep doing what I should be doing to be in better control of my money. Until then, I will use the excuse that its summer and I'm going to be lazy!

TTFN, Morgaine.

Sorry!

So sorry I haven't blogged in forever, I've had a lot on my mind! I'm totally in wedding planning mode! Even though its at least 2 years away! Of course, the main thing for me is doing it on a budget! So, I will share with the blogosphere my journey to a budget-conscience wedding.

All ready I've had offers for a friend to take our photos (he's semi-professional, he did our friend's wedding 2 years ago and I saw the pics and they were terrific!) we haven't discussed financials yet, maybe at the engagement party. And another friend offered to do our wedding cake, again no financials, I just sent her a pic of what I'm looking for and we'll see.

We're looking at venues that will be $6000 or less for about 80 people. This weekend we're going to Fantasy Farm in Toronto, I think they may be out of the price range, but I'm willing to talk to the coordinator and get prices and what not. The great thing about doing this now (ie 2 years ahead) is that I won't feel pressured to make a decision. The fiancee said the other day: "I don't want you to fall in love with a place and want to book it right away, we don't have a deposit yet!" I find I really make the worst impulse purchases when I feel rushed so that's why I want to give myself plenty of time.

Also, I bought a book: "The DIY Bride" by Khris Cochran and its got lots of ideas for DIY projects for the wedding. I'm hoping to save some serious cash by doing the following myself (and/or with my Mom and wedding party): invitations, centerpieces, boutonnieres, favours, place settings, guestbook, jewelry, programs, thank you cards, and bouquets! Maybe more. Again time is on my side here :)

As for rest of my money, I will admit that I've fallen off the tracking wagon, however, I haven't gone overboard in my spending as of late (even on the trip, hooray!) except on a few wedding books and magazines. I hope to get caught up by the end of this weekend. Oh, and a tally of what I spent on the trip as well.

Ok, back to wedding planning! TTFN, Morgaine.

In Alberta and . . . Engaged!

This is the first time I've been able to post since getting here to Alberta. Right now we're in Banff and its seriously beautiful! Today I got a total surprise, my boyfriend proposed! I totally wasn't expecting it! So, the planning and saving will begin! I hope to post again soon, we've been doing a lot of driving and traveling. More details to follow. So excited!!! :D

Gail Picnic!

Going to see again my own personal heroine, Gail Vaz-Oxlade! If you don't read her blog and are interested in personal finance, you are missing out A LOT! Til Debt do us Part is one of my favourite shows on TV (also, Big Bang Theory, How I met your mother, and Big Brother) I've watched every episode at least twice (some maybe 4-5 times!)

Anyways, the followers of her blog get together (mostly through the help of Saver Queen) at High Park in Toronto and Gail shows up too! It was a great time last year and I'm totally looking forward to it!

Anyways, time to head out! :) TTFN, Morgaine.