Shopping Semi-healthy to stay Semi-wealthy and wise….

I haven’t posted on my grocery store savings in a while.  I’m not quite as nutty as some of those people you see on that TLC show, Extreme Couponers, but I must say I do my fair share of clipping, researching, and list making, to make sure I get the best bang for my buck. AS for the picture to the left, maybe I am a wee bit obsessed.  But I promise some out there are worse!

Yesterday was my first big savings in a while. I spent most of my summer focusing my savings within my garden. I was eating all the tomatoes, peppers, and cucumbers I could. I simply love knowing I’m saving money on fresh and healthy food, and it stinks that the one thing that is so hard to coupon for are items in the produce section. Nevertheless, there is still a way to save.  As I have mentioned in the past, I try to focus on savings when I shop, but not so much that I’m eating processed crap 24/7. There is a fine balance!

The items that are healthy and good for our bodies are typically found around the perimeter of the store.  If you want to shop as healthy as possible, stay away from the lanes! Next time you go to the store stay on the outside the WHOLE trip and only buy from there. I try to do this once a week to make sure I’m still buying things that are wholesome and nutritious. Think about it, in my store the main areas are Produce, Meat, Dairy, and Deli.  You will hardly find a coupon for zucchini, salmon, or a dozen eggs, but these types of food are good for us, and unprocessed for the most part. If it were easier for me I would go to a farmers market every week for these items, but I just can’t do it all!  SO how do I save?

1)  SALES!  I look for whats on sale. Many items in the produce department are seasonal and therefore will go on sale throughout different times of the year. Have you ever noticed how strawberries are sometimes $5 and then other times only $2? Instead of making a list for what I want, I grab what is marked down for the week.  This week I grabbed some bananas and cherry tomatoes. The first batch of tomatoes I bought in 4 months, <SIGH> bye bye gardening season.

2)Manager Mark Downs – My store marks items down as they near their expiration date. Some people might get a little freaked out by this, but if it’s not expired yet, it’s ok! I just know I either need to eat it ASAP, or throw it in the freezer. This week I snagged up a bag of salad (please note bright orange and yellow sticker on bag in picture below), more tomatoes, and some stuffed peppers made in the meat department.

3)Coupons. They do happen! Kroger will send me coupons every now and then. Inside I will find “Best Customer Coupons”! Once a month they will send me a FREE coupon for something in this “perimeter area” of the store amongst other coupons as well. Last month I got a coupon for a free dozen eggs!

So never fear! Savings is possible in a healthy way, it may just not be as great when you shop like this…

How do you say no to Toaster Strudels when they are only 5 cents a box?? Ahh, the childhood memories 🙂

The breakdown?

Total before coupons = $83

Total after coupons = $52

BONUS!

$10.75 received in Kroger Dollars for buying participating items!

I saved about  $40. That’s nearly 50% off! I’m always happy when I hit that 50% off mark 🙂 Now I’m going to have a toaster strudel for breakfast….and YES….  WITH the icing! Don’t judge me….. 😉 I’m off to reward myself!

Budget Review – Financial Freedom is Awesome!

It’s been a little hectic for me his summer, so I apologize for not blogging as often.  My summer hours are a little crazy at work and when I’m not working, I’m outside. Gardening, swimming, playing outdoor games, BBQ-ing, sunbathing, etc…..I do love my Vitamin D and fresh air. I have a feeling I will be much more of a winter blogger 🙂

Nevertheless, it is not only time for my “first-of-the-month” update, but we are also halfway through the year! Can you believe it?   I sat down this morning and had my Financial QT.  June was a pretty decent month for me.  I raked in the hours at work and got a pretty nice looking paycheck on July 1!  It was way on up there compared to most. However, I have mentioned before my money fluctuates with each paycheck.  Whenever I get a big one, I know a smaller one may be just around the corner. For instance,  my job closes for an entire week during the 4th of July Holiday.  Nice vacation right?! Well……………. I don’t get paid when I’m not working.  That means my next paycheck is going to have a whole week of hours missing.  So what do I do? Plan ahead!  Instead of getting all  “irresponsible” and going on a shopping spree with my recent “fat daddy – how you doing? – holla at ya”, July paycheck #1; I instead will use that extra moolah as a way to compensate for what I know will be a shortfall on my “I hope you enjoyed that week long vacation, but you didn’t earn a dime” July paycheck #2.

Ok so let’s get down to it.

JUNE MONEY REVIEW FOR YOU

In my last few posts I have given you a quick overview on only a few items in my budget, but I haven’t really let you see a true line by line copy of what I look at each month when I have my QT.   I thought I would show you a snapshot of where I stand on every single line item of my budget for expenses only. Perhaps this will make you feel more comfortable and confident about your budget, and maybe give you more ideas on how to edit or update it as well.  Keep in mind this does not show you how much I budget or actually spend. That’s none of your business 😉

What this DOES show you however, is how well I am staying on track for each of my expense line items in my budget.  My excel sheet is built to roll over each month keeping track of everything since January.  What you are looking at is how I stand YTD (year to date) The red numbers are where I am over budget and the black numbers, I am under! Go black!

Debt (loans, Credit card)	(517.03)	I have way overspent here, but that’s just b/c I want to be done with my debt!
Mortgage	0.00
car maintenance and tag	(21.16)	I am still catching up from major work done back in April and a recent oil change. I foresee no expenses in July so I’m ok.
car insurance	(9.40)	I am budgeting about 3 dollars short each month. I plan to shop around in August.
HOA Dues	0.00
Home Insurance	80.00	This is a good example of a time when someone might look at their overall account balance and think they have an extra $80 to spend. However, since I know every dollar has a “home” I know I can’t spend this money. It’s for my insurance bill that will be coming up in a few months.
Home Improvements/Maint	27.22	This is a good budget expense to have if you own your home.  Savings for when you need to re-caulk that tub, have a leaky faucet, or want to paint a room.  I only use this for when the cost is under $50.  If it’s a big expense like a new dishwasher, I have a savings account.
Home Supplies	3.51
Cable	(169.11)	This is from my first bill with my new internet provider. I blogged about it awhile back.  Since my bill will go down in the following months I will be back on track by September and then saving money!
Cell phone	(28.68)	I got a smart phone and went over my data plan.  Ooops!
Health and Personal Care	2.02
Health Insurance	27.00	I pay for my own insurance. Let’s not talk about Obama healthcare today…
Clothes	124.56	Sweet, I can go shopping…..I need new tennis shoes…..
Gas	5.50	So glad gas prices have gone down!
Groceries	37.12
Lunch Out	(23.99)	See how I saved money above on regular groceries but I over spent here.  It all evens out 🙂
Dinner Out	3.36
Cat	68.73	It’s time to buy new flea medication. Glad I saved up for it!
Other Entertainment	(17.87)	For me this is miscellaneous fun.  Movies, bowling, arcades, concerts, festivals, etc
Fees/Fines	(14.99)	I gotta stupid parking ticking. I didn’t feed the meter.  😦
Gifts	79.72	I might need to beef this up to get ready by Christmas.
Cash Withdrawels	40.00	Just a nice buffer to have when I need some cash.
Fitness	40.00	I don’t have a gym membership, but this is for when I want to enter a race or need my new equipment, new videos, etc.
Hair	34.00
spoil me	66.50	This is kinda my reward line item. A way to do just what it says each month. Everyone should and deserves to treat themselves from time to time. What’s your weakness?  I enjoy spa days, a fun piece of jewelry, getting my car washed, etc!
buffer in checking	945.14	I like to have a buffer in my account for emergencies and to keep me safe when I do have those months that I might go over in a few categories at once.

This is where I was with each category at the end of June.  Now starting in July, I get to take the numbers you see and add my new July budget on top of that as well.  i.e. I budget $20 a month in my “spoil me” category, so in July I will have $86.50 to spend.

Hopefully this helps everyone see why budgeting is important. It’s nice to know where your money is truly going each month, what it’s for, and if you are truly ready for almost anything.  While we would like to be certain of our expenses and I wish they were consistent, that is not the way it works.  Be prepared… spend wise, save wise, live happy.  Happy 4th of July week everyone! I’m off to the lake!

Don’t crash on a money diet. Make it a lifetsyle change.

On the 1st of the month I like to update everyone on how I am doing with my budget and whether or not I’m staying on track. 1) It’s nice to hold myself accountable by writing about it. 2) Hopefully I will inspire some others to pick up the healthy habit as well.

Overall, my past few months have been great. I have had a surplus in my clothing, spa, groceries, dining out, and many other budget categories several months in a row. Basically this means I haven’t been spending. I have been so focused on saving, saving, saving, and paying off my credit card debt, that I have almost been too strict on myself. I realized I was close to falling into the same trap many people trying to lose weight often fall into.

How many dieters do you know that restrict themselves from candy and chocolate and soda for months while trying to lose weight? Yet the minute they hit their goal weight, they go right back to their unhealthy eating pattern. For me, I don’t want to restrict myself during my money diet so much so that when I’m debt free I fall back into the same trap of overspending.

That’s why looking at this as a lifestyle change and NOT a diet is so important. I’m a firm believer in moderation. Whether its cutting back on sweets or spending, you have to be sensible. It’s a balancing act. I finally decided to let loose in May and actually spend some of the money I have allotted myself. I knew if I didn’t, eventually I would do something I would regret. I would throw down my credit card and go nuts. I would be right back where I started… a credit card debt nightmare.

As always, savings first. This month I managed to put $100 into my car savings account. I also put $100 into my emergency savings account. Finally, I put $300 down on my credit card debt. After all this “money fasting” I decided to spoil myself. It’s time to actually spend!

After savings, spending. After the mandatory bills, I decided to spend money on some “wishes and wants”. My chocolate 🙂 I went shopping and bought some clothes. I got a fresh haircut. I allowed myself to go to a few lunch and dinner outings as well. I even splurged and bought a few gifts for people.

When looking back at my finances I did manage to go slightly over in a few categories, but nothing more than $20. I think I deserved that new dress and delightful dinner with friends. Besides I’m right back on track for June and it was worth it!

Point being, make sure you don’t go too extreme if your trying to budget, climb out of debt, or save money. Allow yourself some pleasures now and again. After all, you work hard for your money and you cant take it with you when your gone.

Mid Month May Update

I had my mid-month money date last night and boy oh boy was I pleased!

For my new readers, my mid month review is pretty much the same as my 1st of the month, but not quite as detailed. I just like to check in and make sure I’m staying on track and give myself a quick heads up if I’m about to be in trouble anywhere.

Step 1 -Get your records. Bank statements, credit cards statements, etc.

Step 2 – Plug in all transactions into your budget. Don’t have a budget? Stop and make one please!

Whether you use excel, mint.com, or quicken, make sure you have allocated all your money transactions into the correct category of your budget.

 

Step 3 – How did you do?

Budget column (you predetermine) – Actual Column (you just finished plugging in the numbers) = Variance (how you are doing)

Wherever you see a negative in your variance column is where you need to make some adjustments.

Here is my groceries so you can see an example. I budget $225 a month. So far I have only spent $79.93.  That leaves me with $195.09.  Why?  Because last month I was under budget too!  This month I have $147.07 left and last month I was left with $50.02. I make sure to roll over any savings or losses each month so I can stay on track each month.  A savings of $50 last month plus my current savings of $147 this month means I still have $195.

Budget                                Actual                                              Variance

-225.00

-79.93

195.09

Step 4 – Make changes necessary to stay safe through the rest of the month.

Here are my categories where I went over budget or it looks like I might go over budget before the month is over.

• NONE – Woo hoo! Go me! So far I’m on track 🙂 It looks like no changes are necessary!

Step 5 – Life Changes = Budget Changes

1) I haven’t yet talked about the fact the I have a credit card debt I am trying to pay off.  This isn’t exactly a life change I foresee in the future, but one I have been working on for the past five years. I have been putting $300 a month towards the payments for over a year now to pay off my final card.  Whenever I look like I am saving money and “ahead of the game” I will use that savings to go towards this debt. This month I am looking so good I decided to throw $500 at the debt. My goal is to have this card paid off August 1st.  If I achieve this goal of August 1, it means it will have taken me 5 years to pay off $15,000 in debt 🙂  I know the number is nothing to be proud of, but being able to put it behind me makes me smile! So August 1st I’m hoping that my only debt is my mortgage!  Cheer for me would ya?

STEP 6 – REWARD TIME!

I always leave the best for last. I like to check out the categories where I actually did better than I planned.  These are the categories where I have positive numbers staring back at me. Now I get to decide what to do with this extra moolah within these categories! You treat yourself too!

• My reward – I already showed you my grocery savings. 🙂 For once I decided to say forget the couponing and the time I spend doing it.  I headed to Trader Joe’s to stock pile on the healthy stuff I for so long felt like I couldn’t afford, but really wanted.  The closer I get to my debt free goal the more I am able to eat healthier. I still love to coupon, but some things I love just never go on sale (which is why I started my garden) and I wish I could splurge on all the time.  Being debt free will help me 🙂

Wake up, Wake up, it’s the 1st of the Month!

Can you believe it?  May 1 already.  So I sat down this morning and had my normal money date.  April was a pretty decent month for me.  Despite the fact that I had to shell out $800 on car repairs, I didn’t bat an eye at the huge expense because I was prepared. Ok, maybe there was a slight gulp and sigh involved.  Nevertheless I love my little Civic and I haven’t had a car payment in 6 years, so I think the expense was a long time coming.

Ok so let’s get down to it.

APRIL MONEY REVIEW FOR YOU

EXPENSES

My expenses were pretty much on par in April.  I only went over in one category (Car Maintenance and Repair) which I plan to make up for in May no problem.  I know, one paragraph ago I said I was prepared, but considering I had an $800 expense and I’m only over $40 in this category, I think I’m doing ok!

My car is getting on in years so I set aside a little more each month to prepare myself for a big repair when it’s time.  It’s hard staring at all that moolah in my account sometimes, but I know it’s there so I’m prepared in a pinch. April was a pinch and I had a BIG repair I had to have done.  I had just enough money saved up to pay for this repair, but I still went over $40. But how am I going to make up for this $40 overage you ask?   I did a secret shop back in March where I had to spend $40.  I will be getting a $45 check in May to reimburse for this shop plus a $5 bonus for my time!  BOOM!  Applying that right to my Car Maintenance and Repair category. $40 out, $45 back in! I don’t want to give away too much of my shop here and ruin my cover, but let’s just say I ended up with free service on my car that was needed 🙂

INCOME –  I haven’t really discussed my income during my posts on my budget reviews yet, however it should not be overlooked.

Most people have a salary or a set income.  I however do not.  I can’t just budget a set amount each month under my income and then “walk away” only looking at my expenses each month. Because my income fluctuates from month to month just like my expenses, I have to look back at this part of my budget as well. Aside from my paycheck fluctuating, I have many other forms of income causing it to fluctuate as well. Even if you are a salaried employee and your paycheck is the same each month, don’t forget to factor in other items you could consider as income.

Here are some examples I have in addition to my paycheck

Interest – savings and Checking accounts

Dividends – well I don’t have this line item, but you might!

Side Jobs – Baby sitting, secret shopping, dog walking, yard sales, etc

Taxes – Refunds (yay!) If you are so lucky.

Gifts – You know those sweet little checks you may get from Grandma or Aunt Sue on those special occasions.

So why was I under income? I’m one of those hourly employees so I don’t have a set pay. While I thoroughly enjoyed my week-long SPRING BREAK vacation, I didn’t get paid for that week off.  I can’t budget a set amount in my little spreadsheet, so I have to adjust it from month to month. Spring Break tells me I need to budget myself at a lower-income in April, or make sure I do some side jobs to make up for that lost income…….Wait, that reminds me! I have paid vacation days I could have used….DOH! Guess I will make a note to myself to use those days when I have a week-long vacation over the 4th of July Holiday 🙂

So my income was down in April. I need to make sure I make up for that in May. I plan to without a problem though. I already mentioned I like to perform Secret Shops from time to time in another posts. I’ll be sure to take a crack at quite a few more in May.  I also like to do Focus Groups. I actually did one this morning. I’ll talk about those in another post.

My reward – I never did that bathing suit and dress shopping I said I was going to do mid-April.  It’s time….

So for those of you that are budgeting and trying to track all those little dollars and pennies each month, how is it going? Any new comers that are learning or veterans that have their own system? I enjoy comments and feedback.

Mid-month check in – QT time!

Like I have said in previous posts, I have two dates a month with my money.  The 1st and the 15th.  If you are new to my blog check out some of my budgeting posts as well as my March Review…How did you do?. Here it is the 17th, but I finally got to my Money Date.  Quality time at last! I did gave myself some leeway. I figured since Uncle Sam wasn’t forcing his hand until today with tax filings, I could make today my deadline today too.

Nevertheless, my mid month review is pretty much the same as my 1st of the month, but not quite as detailed. I just like to check in and make sure I’m staying on track and give myself a quick heads up if I’m about to be in trouble anywhere.

Step 1 -Get your records. Bank statements, credit cards statements, etc.

Step 2 – Plug in all transactions.

I still use my trusty Excel Spreadsheet. For every transaction noted in my statement, I input each into the appropriate category under the “actual” column.  i.e.  A deposit from work will most likely go into my income category “Pay check”.  A debit card expense at Quick Trip will go into my expense category “Gas”.

Step 3 – How did you do?

Budget column (you predetermine) – Actual Column (you just finished plugging in the numbers) = Variance (how you are doing)

Wherever you see a negative in your variance column is where you need to make some adjustments.

Step 4 – Make changes necessary to stay safe through the rest of the month.

Here are my categories where I went over budget or it looks like I might go over budget before the month is over.

• NONE – Woo hoo! Go me! So far I’m on track 🙂 It looks like no changes are necessary!

Step 5 – Life Changes = Budget Changes

In my last Budget Review Post, I noted in this step that I wanted to start saving for a car.  Since that post I have opened a new savings account. I have a new budget category labeled “Future Car Savings” and each month I deposit a budgeted amount into this account.  I have given myself 15 months. By this time, I hope to have met the following goals.

1) The money I deposit each month is about the same amount as what I am willing to pay as a car payment. If I can go 15 months without needing this monthly amount somewhere else in my expenses, then I know I can survive on this car payment amount.

2) By the end of 15 months, I should have a nice little amount to use as my down payment.

3) I have given myself a good amount of time to drool over cars, test drive cars, research cars, and even try to stay realistic and decide on practical cars. Perhaps after a full 15 months I will be able to find a car that is fun, makes me happy, and is a money wise decision!

STEP 6 – REWARD TIME!

I always leave the best for last. I like to check out the categories where I actually did better than I planned.  These are the categories where I have positive numbers staring back at me. Now I get to decide what to do with this extra moolah within these categories! You treat yourself too!

• My reward – I’m going shopping before the month is over. I haven’t spent a dime of my “clothing budget” this month AND I have left over money from last month too! Mama needs a new bathing suit and sundresses!

Dare to DIY

One of the things I am learning during my journey of spending less while living more, is the fulfillment I get from something as simple as D.I.Y.

That’s right, Do It Yourself!

If we think about the main reason we need money in this world, it seems to me it stems from the fact that  either cannot or will not make or do something for ourselves. Therefore we have to offer something (money) that will inspire someone else to help us.

Why do we buy bread?

Why do we pay rent or a mortgage?

Why do we fill our cars up with gas at the service station?

If we can’t find the time, don’t have the supplies, or simply don’t know how to do it, we will pay someone else to do it for us.

I had a thought?  What if there is a way I could save a little money while simultaneously trying to grow into a better person? What if I enhanced my living and dropped my expenses by every once in a while trying a little D.I.Y.? Hmmmmm….

Like with any new challenge I take on, I started small. Baby steps. I certainly am not trying to D.I.Y. open heart surgery or build myself a car, but there are so many little things in life I could do myself if I put the time, effort, and heart into it. Throughout this process I have discovered things I will never D.I.Y. again, but I have also discovered other things I didn’t know I enjoyed and quite possibly have a knack for! It’s fun to try out new things, learn where and how stuff is made, and actually get off my rear end and get moving!

I hope to share a list of things I have attempted to D.I.Y. and perhaps it will inspire you to give it a whirl as well. You will be surprised at what you can do, what you will learn, and the money you will save!

Starting Small!  My D.I.Y. tip for the day.

Homemade Febreze! 

This fits into an original Febreze bottle.

1/8 Cup of Your Favorite Fabric Softener
2 Tablespoons Baking Soda
Hot Tap Water – Fill the Bottle to the Top

Shake and enjoy!

Why spend $4 to $5 for the name brand when you can D.I.Y. for about .20 a bottle! Yep 20 CENTS! I can send you the math if you want me to, but I didn’t want to bore the readers.

I came across this on Pinterest.
It’s amazing the D.I.Y. stuff I get from there!

Thanks Fake it Frugal

Daily Deal Check List

So yesterday I posted about those glorious Daily Deal websites that are flooding the internet and our email in-boxes and even appearing on TV ads and billboards! They push their goods and services with phenomenal limited time deals one almost cannot refuse.  Or can we? Despite the fact that these deals are out there, I would highly suggest thinking through a few important factors before clicking that button and snagging up the deal. I know these deals seem to good to be true at times. I mean who wouldn’t want a singing Justin Bieber toothbrush (batteries not included) or a one night stay in the Caribbean for 90% off?  I mean its a steal of a deal right!?

Remember the the primary reason you are tempted to take these companies up on their offer is due to the fact that it’s being advertised as a deal. Most likely, you are not willing or wanting to pay full price either. Why? Because these are most likely wants, wishes, and desires for your lives, but not needs. If you have gone this long without these deals, you can probably go a little longer. However, if there are goods or services you desire out there and you wish to treat yourself, or perhaps it is a need you can’t afford at this moment, you should always follow these steps first.

Before opting for that deal and ESPECIALLY before spending any money, here are 6 key things to think about first.

1. Make a wish list.   Make it as long or as short as you want. Make it as detailed as you want. Pretend like your a kid writing out your birthday wish list. If you could put anything on it what would it be? I personally have an ongoing list hanging in my house. Anytime something strikes my interest, I add it to my list. Whether its something as simple as new bath mats for the bathroom, or a dream vacation, it goes on the list. Know up front what your wishes are. I suggest making sure you keep an eye out for deals on your wish list first.  If something seems so very tempting, but it’s not on your wish list, STOP. Don’t buy it. Add it to your wish list first. I promise another deal like it will come back around. You’ll be sad when you scoop up a random carpet cleaning for your house because it seemed like a good deal, but you didn’t need it. Meanwhile, the very next day, you see a new deal for a full house cleaning, which is really what you wanted but now you can’t afford it!
2. Budget for it. Once it’s on your list, you can budget it for it. Yes, the idea is to save money. You are banking on the fact you don’t have to pay full price, but you should still budget for it even if its at a lower amount.
3. Check your calendar. Many deals have restrictions and expiration dates. If you have done step 1 and step 2, now you need to make sure you can actually use the deal within the time frame allotted.  There is nothing worse than spending money on a deal, only to have it go bad. Would you buy a gallon of milk before going out of town for 2 weeks? Of course not. So don’t buy a deal you wont have to time to enjoy either.
4. Know who you are dealing with. Make sure you know a little about the company first. If it’s an unfamiliar company, I usually visit their website, check various other websites for customer reviews and ratings, and also see if they are listed with the Better Business Bureau.
5. Put on your patience hat. While some of these deals may expire, you may have your own deadline as well. Some of the companies that offer these deals are usually trying to create awareness and grow their customer base. If they are advertising a deal you want, it’s likely others will want it too.  If a lot of deals are issued, it means the company could be busier than normal and it may take some time to redeem your good or service. Be ready and willing to wait on yours. If you need something right away, it may be better to pay full price elsewhere.
6. Read the fine print! Everyone always advises this step with any purchase, but it seems like no one ever does. Why? Duh! It’s fine print and too hard to read and who understand all the legal mumbo jumbo anyway! Fine, I get it. It’s a risk you can take, but I won’t.  Sometimes these deals might have other special rules or warnings listed that can be a key element into really making the good or service worthwhile.  For instance, if you want to get laser hair removal or have your yard treated for mosquitoes, will just the one visit being offered in the deal actually do any good or will you have to make another appointment, but this time at full price?

I realize these steps can seem a bit time consuming and obviously you may not have to go through each step with a fine tooth comb before every purchase. I certainly don’t mean to make every penny you spend a cumbersome task. Every purchase is relative and you can decide how much care to take into each one.  I simply would like to make sure you actually save money when opting for these deals, which is the purpose to begin with, rather than making a crucial mistake causing you to lose money in the end.

Good luck deal finders!

March Review…How did you do?

So I had my QT today.  I feel a little dorky that I’m off work all week for Spring Break and the first thing I embarked on was my finances. I guess knocking out responsibilities early so I can enjoy the rest of the day/week is a good thing though….

So here is how I do it.

Step 1 -Get your records.

I pull my bank account statement for the month.  I don’t use credit cards. Those are for emergencies only in my world. If you use them, you will need to pull those too.

Step 2 – Plug in all transactions.

I still use my trusty Excel Spreadsheet. For every transaction noted in my statement, I input each into the appropriate catagory under the “actual” column.  i.e.  A deposit from work will most likely go into my income category “Pay check”.  A debit card expense at QuickTrip will go into my expense category “Gas”.

Step 3 – How did you do?

At the beginning of March I set my budget column by inputting what I planned to earn or spend. Now I have  finished the actual column by inputting what I actually earned or spent.  That’s the most tedious and time consuming step for me. The final variance column has now auto-filled for me telling me how I did. I take a quick glance and see which categories I did well and saved money and which categories I went over budget.

Step 4 – Make changes necessary for April

The first thing I look at is where I have negative numbers staring back at me.  I ask myself, “What happened?”. What is the reason I am over budget?  In April, do I need to change the amount in my ACTUAL column or my BUDGET column.

1) ACTUAL COLUMN – If I believe I have the ability to change the amount I earn or spend in any given category where I am over, then that means I believe I am budgeting appropriately.  However,  I am not earning or spending the appropriate amount. Whenever I believe my budget is correct, but my actions were off, I tell myself that I need to change my actual numbers next month to get back on track and I decide what I actions I must take to make this change happen.

Here are my categories where I went over budget and my plan for how to make a change.

• DINING OUT – I have the ability to to chose when I dine out. Because I over spent in March, I will have to chose to not dine out as much in April.
• CABLE AND INTERNET – I have the ability to chose my provider. I am choosing to switch providers, so that expense will go down next month.

2)BUDGET COLUMN – If I believe there isn’t much I can do to change my actual numbers in the month of April. If I cant earn more or spend less in a category within 30 days, then that means I need to rethink the amount I am budgeting for April. Sometimes, what we earn or spend, we cannot control within a month. It takes time to make these changes.

Here are my categories where I went over budget, but I cannot make changes to my “actuals”, so I must change my budget.

• GAS –  Gas prices have gone up in the past month and I didn’t budget for the increase. In April I will have to increase my gas budget to stay on track with the new prices.

*Remember, if you decide to increase an expense category, you must decrease another one so you still have your expenses = income. Or you can chose to increase your income 🙂

Step 5 – Life Changes = Budget Changes

The next thing I do is to think about things in my life that have occurred, may occur, or I wish will occur in my life. What new things have entered into my life that calls for me to rethink my budget short or long term. Here are some of my personal examples.

• CAR SAVINGS – I realize my goal of purchasing a new car is more and more a priority. I need to make sure I am saving enough to be able to make this happen.
• VACATION/TRAVEL – Congratulations to my cousins engagement! He has planned a wedding in St. Simons.  I need to make sure I am saving enough to make this trip.

STEP 6 – REWARD TIME!

I always leave the best for last. I like to check out the categories where I actually did better than I planned.  These are the categories where I have positive numbers staring back at me. Now I get to decide what to do with this extra moolah within these categories!  Do I need to move it to another category where I am over spending? Do I need to leave it alone and allow it to be extra cushion for the month of April? Do I need to spend it? I say ALWAYS treat yourself if you can. Whether its $1 candy bar, a new outfit, or a toy you have been saving up for. Small or big,  you deserve to reward yourself and it will keep you motivated to keep this habit going!

• My reward – I have a little category called “spoil me” where I save up for personal treats and rewards. If I do well overall, this is where I get to treat myself. Today, I’m treating myself with a pedicure. I just love those chairs that massage me while I lean back, read cheesy magazines, and have a little decoration added to my tiny little toes!