My husband and I recently got amazing jobs after not working for months and now our income is something we have only ever dreamed of earning. We’ve scraped by these past months and now with this extra money we want to spend, spend, spend.
How can we save money and not feel like we are still broke all the time? I guess I am not sure how to budget spending money since I’m not even sure what percentage should go where after our main bills are taken out. We are newbies at saving and really need help. -Samantha
Congratulations on your new jobs and higher income! How exciting!
Here’s some advice I would have for you:
1. Sit Down Together and Set Goals
Before you even think of setting up a budget, I encourage you to sit down as a couple and talk about your goals. Where do you want to be financially in a year from now? What about five years from now?
Do you have debt that needs to be paid off? If so, this should be one of your top priorities when you set goals. Do you have an emergency fund of 3-6 months’ worth of expenses in place? If not, this should be your second goal.
In addition, talk about what things you need to save to pay cash for: Is your car on its last leg? Are you setting aside money for retirement? Is there something fun you’d like to do as a couple in the not-too-distant future (go on a trip, purchase something, etc.)?
Discuss all of these things and make a prioritized goal list denoting your top three goals to work toward right now. These goals will give you purpose for implementing money-saving tactics and they will also give you momentum to make wise choices financially.
2. Break Your Goals Down Into Bite-sized Pieces
After you’ve determined your goals, you need to take those big goals and break them down into manageable pieces. I recommend that you set yearly goals and then break those down into monthly goals. Then, take those monthly goals and break those down into weekly goals.
For instance, if you want to save $2500 this year, you’ll need to save a little over $208 per month. That means, you’ll need to save $52 per week — or around $10.50 each weekday.
When you break your goals down into these small pieces, they become much less daunting and much more manageable. Plus, you have a very concrete number to work toward instead of a huge, seemingly overwhelming goal.
3. Create a Written Budget
Once you have your goals in place, it’s time to set up your budget. If you’ve never had a budget before, my book, The Money Saving Mom®’s Budget, outlines how to set up a grocery budget, then a barebones budget, and then a full-fledged budget. I included spreadsheets and step-by-step help to walk you through how to do it. This process is especially beneficial for people who are brand-new to budgeting and completely stressed out over how to pull it off successfully.
If you’re ready to jump in with two feet, Dave Ramsey offers a free online budgeting tool that walks you through setting up your budget and includes suggested percentages to include for each category. Remember to budget for your financial goals before budgeting for fun stuff and extras. Short-term sacrifices will always pay off in the long run!
4. Plan for Strategic Splurging
Once you’ve set up your budget and covered all your necessary bases and your financial goals, now comes the fun part: budgeting for strategic splurging! A lot of people have this idea that a budget is a straight jacket that removes all of the excitement and spontaneity from your life and instead relegates you to a miserable existence.
I heartily disagree. A budget actually gives you freedom!
When you make your money work for you, you have more to work with. In turn, this means you can budget for fun and splurging — and you can enjoy it more because you know that going out to dinner or that occasional coffee at Starbucks is something you planned for, not something that’s going to wreck your finances or keep you from being able to pay your electric bill.
Life is meant to be savored — and a budget can be a tool to help you enjoy life a lot more, without the guilt!
What advice do the rest of you have for Samantha and her husband? I’d love to hear!
Hi I really want for me and my husband.sort our finances out and get on a budget.and pay off any of our outstanding bills and debts.
Stop using the word “budget” with its connotations of deprivation. Start building a “spending plan”. “I am going to spend xxx dollars on my recurring bills.” ” I am going to spend xx dollars this month to become debt free.” “I am going to spend (pay myself) xx dollars this month so I never have to as afraid as I was when we were both out of work.” Words shape how we think and feel about money, think about yours in positive terms.
You write that you both now have great jobs. Do your budget and see if you can live on 1-1/2 incomes instead of the full 2 incomes. Put the other 1/2 away in an interest-bearing account, someplace where you can get at it easily if need be.
Be more mindful of where the discretionary money goes. This is the money you still have after paying all the bills and putting a little bit away for a rainy day. There’s a storm comin’ soon enough, and you will need cash to deal with it.
My favorite (free!) budgeting website is http://www.mint.com.
It helps you plan goals, watch trends, budget in personalized categories and more!
Love it!
Thanks Money Saving Mom for all your help..
I can really relate to this. I’ve got a new job that I’ve never made so much money before in my life. For the first year, it was glasses, dental care, wardrobe, car repairs, moving to a place that seemed closer to work, etc. But there was also some spending in there on costume jewelry and cosmetics too. After a year, I’ve settled down and can tell you my perspective. Follow the savings goals that are obvious: emergency fund. But slowly take care of those neglected items. If I had a cavity or a cheap suit on, it was noticeable and would affect my work. Buy a few things for that “fun” feeling. It goes away. I have a few purchases of things I’ve always wanted that gave me the feeling or didn’t work out, etc. After that rush, I’m back to living frugally and saving for purchases, paying down student loans and a generally frugal life. I’ve looked around and seen what I *could* buy and decided I didn’t need it. Only now can I say that after the year of spend and repair. After a few rounds of buying books? Back to the library. After a few rounds of restaurant dining? I’m back to cooking. I have so many blessings I am very lucky and I still just don’t need an LCDTV! I’m saving a lot more and pretending to live on my 2005 income. It’s fantastic to see my emergency fund balloon to one years worth of living expenses. Lastly, the real treat I recommend you do during your first year? Good food. You scrimped on junk when times were lean, but now its time to honor your hard-working body. As you know when times were lean, if you don’t have your health, you have nothing.
Stay patient and resource what you’ve accomplished often. When we started our debt free plan 3 years ago we wrote our goal of paying things off on a 3×5 card. We still have that 3×5 card and love looking at where were and where we are now. Especially in the middle of trying to get to our goal we found motivation and success in what we had accomplished so far.
I agree with what most everyone said, but would like to add that if you can afford it to go ahead and tackle much neglected home improvement stuff such as fixing a driveway, more energy efficient windows or appliances, etc. This will save you more money in the long run. Also, maybe a small upgrade to a wardrobe, esp. if you have new jobs. You don’t have to go overboard. Maybe a new pair of shoes that are reasonably price. A new pair of glasses. This will help you seem more professional and maybe lead to a raise down the road. I would not go hog wild and spend it on getting the latest and greatest technology and gadgets though. I would wait until your income is more secure and you know these new jobs are long-term.
What is your advice when things have gotten so far behind. You have been on less than bare bones for 31 years and no clothing, no splurges etc.
Needs are now more than the average.
Dental care has been put off.
Health care has been put off.
Clothing for all of us has been way put off
in fact last winter we had no coats but we got lucky it was a warm winter we stayed in on cold days for the most part and trippled up on sweaters for the few trips we had to go out.
We could not play in the snow we did not have the gloves, hats or coats to tolerate being out.
Food we have even been skipping meals
So what advice to you have for folks who are in this jam than the
we finally are expecting $50K this year and housing which we have not had for years in our area runs at the cheapest at 21K per year not certain we can do this but our current arrangement will not work any longer either. (been staying with friends and it has been beyond stretched for way too long now!)
Hi Sarah,
I’m sorry to hear that it has been so difficult for you and your family. If I were in your shoes, I would start with dental and health care. I went nearly 4 years without a dental checkup, and when I finally went in, I had a lot of problems that I could have prevented with some checkups. When I have had a hard time paying my health care costs, I have spent some time calling around. Some doctors may be able to offer you a reduced rate if you do not have insurance. It can be hard to ask for help in that way, but you’d be surprised how many people have no choice but to ask. One very compassionate doctor removed a suspicious mole from the bottom of my foot for only the lab and supply costs. Planned Parenthood has a sliding scale for fees, and I have also used them in the past to get health care that I otherwise could not afford. If you have a prescription, every other month or so you can transfer it to a different pharmacy chain, and they usually offer cash or store gift cards. Also, ask your health care providers for any samples of products/medications you need.
Other folks here have mentioned AngelFood Ministries, and we have used them in our house as well. They are a wonderful program that I whole-heartedly support. (For what its worth, they are a Christian program, but you do not have to be Christian to use them. This may not be a factor for you, but I am not Christian so it was a factor for me.) This time of year Farmers Markets and produce stands are on the upswing. If you shop the market near closing time, many vendors may be willing to offer discounts so they don’t have to pack up as much. In our area, sometimes the Farmers need extra help staffing the market, culling produce, etc, and will offer their delicious goods in exchange for an hour or two of help. We have a year-round produce shop in our community that has a table of steeply discounted produce discards. These are often still in very good condition. I buy field tomatoes from them at 0.19 a pound (usually with only 1 small soft spot), and make tomato sauce. If you do not have space or time for a garden, bean sprouts make great salads and are easy to grow in a windowsill. (Mason jar, soak beans/lentils overnight, drain, keep moist, eat). Sometimes farmers need farm-sitters if they need to go out of town. If you have a little bit of flexibility in your schedule, it’s a fun experience and they will pay you in cash or in-kind with food. Or, even people going out of town. Avid gardeners would be happy to have someone water for them in the dead heat of summer, just to keep everything alive.
The clothing is a concern. I know that right now is a good time to get deals and discounts on winter clothing. I just picked up a brand new sweater at JCPenney for $3- cheaper than Goodwill, which I also frequent. You will know what best to tackle for your family. If I were in your shoes, I would probably address the food and health care issues before stockpiling for next winter.
I hope that 2012 will continue to improve for you! Best wishes and beset of luck to you.
To add to what Sara said about medical and dental care, it would pay to do some searching for free medical clinics in your area. In the city in which I live there is a free clinic that operates one night per week out of a regular physician’s office. They start taking names the morning that they stay open evening hours for the free clinic, and it is first come, first serve. You put your name on the waiting list and come back that evening for your appointment. I don’t anything about the area you live in and how close you are to a major city, but it could be worth it for you to do some research to see if there are any free clinics. Also, if you live near a large university with a dental school by any chance, check into possible free cleanings given by the dental students. The university I work at has a dental school, and once or twice a year (can’t remember), they offer free cleaning clinics for anyone interested, not just students but for members of the community as well. Hope that helps. I wish I lived near you. I have 2 kids with a LOT of clothing that no longer fits them and many winter items (coats, gloves, hats, etc) that will get sold in our yard sale in June and donated if it doesn’t sell……..these are things I would love to be able to share with a family like yours instead.
It is very easy to want to go on a spending spree when you get a financial windfall. What I have learned to do is carry a notebook with me and anytime I see something I “want” that is not in my budget already, I write down what it is and the cost. Then I wait a couple days and see what on my list is something I truly want and if I have enough I will treat myself to that item. It helps me to curb my overspending.
I like the “strategic splurging” idea — but I think a splurge can be accomplished for a little $, depending on your attitude. For example, one of my favorite splurges is to hit the book sale at our local library, where I can fill a bag of books for $1. I feel like I’ve hit the jackpot with all my new treasures to read, and I spent only $1. So, set aside some $ to splurge (and sometimes a $4 coffee from Starbucks the most satisfying splurge!) but keep a handle on your frugal practices and you’ll get much more satisfaction out of your splurges.
Just a positive attitude does wonders! When we are in “savings mode,”, we’ll make a list of fun things we can do as a couple and a family that don’t cost anything and then another list of things that are $10 or less. Next, we’ll put some on the schedule. Gives us something fun to look forward to and another great reminder to enjoy life!
I haven’t read all the other posts, but my recommendation is to find someplace near you that offers Dave Ramsey’s Financial Peace University class – it’s great for people who are broke (and still well worth the $80-$150 for materials and lifetime membership for a couple) AND for people who just need financial direction or suggestions. Even my parents (who are pretty wise with money and stewardship on their own) say they wished they had it 20 years earlier!
And it is NOT a boring lecture-style class – Dave is a pretty entertaining guy – he presents the information in a such a way as to make it enjoyable and engaging for the “free spirits” as well as the “nerds.” He presents it from a Christian perspective/flavor, with an emphasis on giving, but not really preachy or anything that would make a non-Christian uncomfortable (in my opinion). And you can take what you like from the class, tweak it how you need it, and forget whatever doesn’t apply to you.
Congratuations on your happy new state, and congratuations on wanting to handle it responsibly.
In terms of savings, there are four goals worth pursuing:
1) Emergency fund of 3-6 months’ expenses. This will help you avoid costly (ie, high interest) debt the next time “something” happens.” I recommend you do this first, while paying the minimum on your debts. It’s worth keeping to a bare-bones budget to get this step done: think of it as an investment in the future, in the form of avoiding expensive (high-interest) debt next time something happens.
2) After your emergency fund is built up, revert to saving however much your budget says you should save. Next most important savings is to take advantage of “free savings” such as company-matched 401(k) contributions. It’s free money – take it!
3) Meanwhile, pay off existing debt. The standard question is whether to pay off small debts first or high-interest debts first. David Ramsey is popular in this readership, he recommends small debts. I prefer to pay off high-interest debts first because it saves me more money.
4) Once you’ve paid off your high-interest debt, build up a “life happens” fund. This is for things that you know are going to happen but you don’t know when, such as replacing car tires or an unexpected visit to the doctor or the heat going out during the depth of the winter. Some people create separate funds for car, house, etc., rather than one general fund; both work.
Finally – I heartily support the above ideas about creating a splurge category in your budget. This will let you spend on whatever you want, and let you indulge in your indulgences, without killing your budget and setting you up for grief in the future. It can also be a real argument-preventer in families that have trouble agreeing on how to spend on luxuries.
How wonderful for you, Samantha! Congratulations!
I want to encourage you to put aside money in an emergency fund IMMEDIATELY for your family to cover expenses for a year. Remember what the leaner times were like, and put it aside while you can. Also, I would suggest a cash envelope system that you put aside each Sunday for the week, so that you and your husband agree together on what you spend. Hope this helps, and cheers to better times ahead for your family.
God Bless.
I love your blog! I have shared your blog with my classmates (I’m a college student) and some family, and they are all in awe of your blog. Your tips on saving money, your couponing guides, and your story are all very inspiring. Keep up the good work and I’ll make sure to keep following your blog. You’ve saved lots of people money, we all thanks you!
I’d like to mention that my hubby and I were at a point where my hubby felt like we had a good amount of extra money and my hubby was actually encouraging me to spend more money. I did not do this. I was perfectly happy with the way we had been living previously… I’m used to being frugal in every way. Well, a couple of years down the road the money dried up for his business (he works with investors and when the economy went south, so did his investments) and we found ourselves living for almost 2 years on only our savings. Thank goodness I had never changed our way of living and we were able to survive it without losing our house (we have 4 kids we are raising, too). It was very tight for those 2 years (he did have to borrow once from his retirement fund) and we are just starting to feel more breathing room now. You never know what your future is going to hold so always be saving for that rainy day (or years, in our case).
When God gives us blessings such as a great job and income, I think it’s easy to live for the “now” and squander it, but I think it’s very important to save and plan for unexpected hard times. My daughter just studied the story of Joseph this week in Sunday school and I think it’s a great lesson to apply to our finances. God blessed Egypt with 7 years of great harvest only to prepare for the 7 years of famine. Use the great “harvest” now to prepare for your future. I agree with Crystal that you should make it a priority to have your emergency fund fully funded and pay off all your debts.
The key thing I’m thinking is to embrace the celebration of your new jobs/income, but keep it as a celebration mindset, not a lifestyle change. Also making new goals gives you something else to “celebrate” down the line. For example, if it’s important to you to save x amount of money for a vacation, when you meet that goal you get to reward yourself for all your hard work. A change in the way you think can really take the burden out of budgeting.
The one thing that we do, to allow both DH and I to ‘spend’ without guilt, or having to explain, is that we have a line item in our budget.. where we both get an ‘allowance’ each paycheck. We can do what ever we want with it. Save, spend, ‘eat it’, ‘drink it’… what ever!!!! (Shoes? Hotel? Trainer? Books? Babysitter for some mom time?… what ever .. no questions asked!) But.. you cannot go over!!!!! Only what you have in YOUR ‘fun account’. It’s allowed us to feel like we have freedom to enjoy our income, and at the same time stick to the budget that we have set up.
We do that too! It has been such an amazing tool in our budget and marriage.
We have a “discretionary spending” part in our budget too. My husband couldn’t care less what our budget is, since he wouldn’t pay attention anyway – but he also doesn’t spend much, so having a part of the budget that’s “his” keeps me from freaking out when he buys two new computer games in two weeks. It also makes me feel much better about splurging on something just for myself without having to worry about whether my dollar would be better applied to something for the family as a whole – the family is budgeted for. So am I 🙂
When you use coupons, keep track of how much you saved by writing down the amounts of coupons used. Add it up and put that amount of money in your savings account. Say you use $10 in coupons put that much in bank. Also, get a jar, coin sorter, or one of those banks that adds up the coins as you put them in there as well as coin wrappers. Put loose change in one of these items. When you et enough for the wrappers, put them in the bank. This is also good for emergency money. We’ve used it for everything from lunch money to even pay towards mortgage.
i agree with not thinking in terms of percentages – that will just cause you to bloat most categories because that is what you think you are supposed to spend and the next thing you know, you have grown into your new income, and not in a good way – you know how to live at the bottom of the barrel – stay there until you have enough savings that you won’t ever be forced to go back there – whenever we get a large windfall, we set aside 1% for fun money – and we try to stretch that little bit – this year’s tax return 1% bought a groupon for a summer’s worth of ballet classes for my little girl – much better for us than one dinner at a mid-level restaurant – if you are really feeling flush and want a great return on your investment, anonymously give to someone in your previous position!
We were making a lot more money last year before I started staying home with our little one. We were just going through money without any real rhyme or reason. We did save some money for a down payment on our home, but we didn’t really look at anything outside of that. I wish we had done a better job of saving and keeping track of our spending then. Don’t go crazy all at once. Listen to other posters and save where you can. Don’t be afraid to have a little fun. A small splurge to replace a crappy couch or upgrade an appliance may be in the cards. Or maybe you want to go on a little weekend getaway to celebrate and reconnect. But once you get that splurge out of your system, start saving what you can. You never know when life will change, you’ll need extra cash for a repair/replace, or the jobs may change as well. Congrats on the new jobs!
Why feel “broke” just because you’re not spending money hand over fist like most of the US? If you’ve been able to live on little, why feel like you need to suddenly ramp up the spending? I very much enjoy the game of living on as little as we can most of the time so that we can save, give, and occasionally splurge on things like vacations. There’s lots of great advice above on budgeting. Turn off the TV, tune out commercials of all kinds, and enjoy a simple life with your family!
For one thing, “enjoying a simple life” involves a LOT of sacrifices. Some are personal, like spending more time cooking instead of eating out. Some are social, like not being able to spend as much time with friends who don’t live the simple life because those friends want to do activities which cost money. Some sacrifices are easy to make if it’s just you, but much harder when you know you’re depriving your children and/or spouse of something you know they really miss or want.
More importantly, feeling broke is just depressing. It’s a vicious cycle – you hate feeling broke, so the next time you have extra money you spend it on wants instead of needs, so the money disappears that much quicker. Often if you can spend just enough so you don’t *feel* broke, you can save the rest and still feel like you’re not pinching pennies. It’s also much easier to compromise with a spouse whose definition of “the simple life” doesn’t match yours when you are willing to splurge a bit on occasion.
I totally agree Wendy!
I hate feeling broke. I live frugally because I enjoy it, but also because I do like to splurge and shop and spend. By pinching pennies here, I have a bit more to spend there.
When times are tough and I don’t get those “splurges” (which are planned and accounted for), I end up feeling deprived and resentful of the frugal lifestyle.
I was not brought up in a frugal family and it is not something that comes to me naturally. Perhaps if I was more naturally frugal I wouldn’t feel so deprived when times are tough? I guess I’ll never know though, LOL.
So while I definitely get the game mentality and strive to live on less myself, it’s MUCH easier to do so when times are good and I’ve got money in the bank and that sense of security that comes from knowing that you are not broke, you are just making the choice to live on less.
I wish blog comments had “like” buttons.
I so agree with everyone who has commented. There still has to be fun or you’ll go crazy.
But also there needs to be a cushion for the “what if’s”, like losing a job , having someone crash into your house, an unexpected child, a death, etc etc. None of these are fun things to think about but they are a part of life.
Live like you have been and add gradually to the “fun” categories and also increase the needed areas.
Due to my husband’s job as a firefighter, our pay checks can vary as much as $800 a pay day. As soon as we get paid we take care of all our budget bills, pay into our different savings accounts and take out our budgeted cash for groceries and household spending. We each also get a set amount of money a pay check for “personal splurges”.
We sit down together and discuss what to do with any surplus we have. We almost always use it for an needed expense (such as having work done on one of our cars) or put it towards a savings goal. However, many times we will set aside a small percent of that surplus to treat ourselves to a nice dinner or something fun for the house or the two of us.
By keep aside a little of our extra salary for a treat every now and then, we can put the bulk of it towards savings or necessary expenditures without feeling like we are “broke all the time” : )
*keeping*
Congrats! It’s a good feeling isn’t it? My husband just got a new job that makes 50% more than his old job. I was a sahm anyway so I felt like I was in heaven when the checks started rolling in. What we did was this: We kept our old budget. We worked out what we needed to pay. Then we took what was left and asked ourselves what we really needed beyond that. I added a bit more to our grocery and clothing budgets and we joined a community garden…for the fun and fresh produce. It came out to 100 more per month. Then he went to his company and the remainder, we direct deposit into our savings (bulk of it to our checking account, rest to savings). So, I never see it and it really seems that he maybe got a 5% raise on his old salary (still good in my book). The savings has been piling on for two months now right under our noses!
Kepp in mind when your income goes way up pther things like taxes go way up to, make sure you are having enough deducted so you don’t end up with a not so nice suprise next April. Keep good track of any work related expenses that are also deductable.
Excellent advice. Thank you for your input!
Great Advice, we just got a increase in our income,
First paycheck- the difference went completely to charity
Second paycheck- went to a fund for replacing an appliance that’s on it’s last leg
After the first two paychecks……
We decided to double our splurge funds ( from 40 to 80 a month)- we are using this for date nights, gifts for each other and others, etc. It helps having a set amount to spend on all the little extra’s that come up.
We increased retirement savings
We increased our charitable giving
We are using the rest for debt repayment. We are hoping to be debt free including our home by the time we are 35.
Don’t think of your budget in percentages! If your car loan cost $300/month before your new job, it still costs $300/month afterward. If your groceries were $X a week beforehand, stick with $X per week for a while.
Instead of expecting your budget to expand across the board, look at what you’re already spending and see how big a chunk those numbers take out of your new income. Then look at what things in your life you just can’t stand scrimping on anymore – really really need a more functional lawnmower? Ready to pay someone to spray for bugs around your house? Realize you really need more insurance than you currently have? Figure out what *has* to be done, and give yourself permission to spend a reasonable portion of your first few months’ extra money on that.
Once you’ve figured out those one-time expenses, see how much extra you have per month for “new stuff” and budget that money. A good chunk of it (most of it, in fact) should go toward saving – saving for retirement, saving for next year’s vacation, saving toward the price of a car so you won’t need a loan the next time, etc. Figure out how much you want to be giving to charity and set that much per month aside, too.
Only after you do ALL of that budgeting should you look at increasing your “just because” costs. You already KNOW you can grocery shop for $X per week – so don’t spend more than $X unless you really get the extra value out of it! Once you get past your initial “I’m sick of scrimping” spending spree (which, again, should only be things you absolutely cannot go one more day without!), your everyday expenses should still be pretty similar to what you were spending before. You’ll be amazed at how much money you have if you keep your expectations the same as they’ve always been. Earning double your previous salary does not make your current house half as big.
Forgot to add – the best thing about saving is the sense of peace it can give you. Once you build up that extra cushion in your savings account, you will never again have to worry about bouncing a check or having that sudden car repair wipe out your chance visit your parents at Christmas. You can check your bank balance once a month instead of once a day and not have to worry about the money not being there. You’ll be content with knowing you have “about $5,000 in the account” instead of always knowing “I have six dollars and forty-two cents.” So in terms of things that can make you happy right away, a healthy savings account really is right up there!
very well said – it is hard to explain to people who have large paycheck increases that the money will need to go to other things and that that paycheck may not be as large as you thought. You did a great job of explaining that there may be more “have to” buy items either because you have been making due for so long or NOT saving because there was no money to save with. Thank you for sharing!
I know the feeling of having more money than you’re used to! I’m about to pay off my car in 3-4 months and I’ll have an extra $800 a month (I’ve been triple paying my car to pay it off as fast as possible!). I’ve already been working on designating how I’m going to save it when it becomes available…it’s easier for me since I’m still single, but I agree with what everyone else said so far – discuss priorities and include some splurge money!
I’ve switched over to the cash system, and I save all my change and turn it into starbucks gift cards at coinstar. This helps to make me feel like I’m not so strict with my money all the time while at the same time still paying cash and staying within budget!
I’ve been cashing mine in for amazon giftcards for christmas’ irv really adds up 🙂
*it* crazy touchscreen!
that’s a great idea! I donate money to Samaritan’s Purse (or similar charity) for most people for Christmas, but that is definitely a great way to save for other gifts – maybe I should do that to help cover wedding/baby shower gifts!
Thank you for donating to Samaritan’s Purse. My son had the opportunity to work on some of their projects in Bolivia with his school, Waynesburg University, during spring break. It was a fantastic experience for him and they have asked him to consider becoming a leader for another trip to Bolivia on their behalf.
I think its natural to want to spend more when you have more to just freely spend. It becomes almost a secure thing in your mind to see the $$ in the bank account…. but unfortunately jobs are not always secure, neither is life and neither will your cash. I think with this mindset that life is always full of the unexpected it can make you feel less likely to want to spend spend spend. Having a budget really does give you the freedom of knowing what you can have for blow-money and you can enjoy blowing it because you know you aren’t robbing from another expense.
This is a great answer for Samantha and I agree with budgeting in the fun stuff. It is true that so many people feel a budget is restrictive and it means they can’t just go off on a whim and do something exciting. That’s not true.
You need to assess your lifestyle and what will make you happy. What do you want for you and the family in 5 years, 10 years; What are your goals/
When you put a budget into play cover all aspects of your life. Once you have all your bills/projected expenses and investments and savings covered etc then factor in a splurging category,entertainment, play time. Call it whatever you want but budget the expense in.
No one says you have to save $1000 a month in savings, set what is realistic for your family and enjoy your life. Don’t try to keep up with the Jones. No one has to feel broke on a budget. Remember, It’s not about how much you spend it’s how you save it.
Great Post and Answer Crystal.
Good Luck Samantha!
Cheers
Mr.CBB
I would suggest tracking your spending for a month. It may give you a better idea as to where you “waste” the most money (starbucks lattes, or last minute meals out for example) and where you could use more (gas, office lunches, etc). Hang in there and be ready for a few budget failures before you get the right balance 🙂
Very important point! Thanks for sharing! It takes at least a few months to really get the hang of budgeting so keep tweaking until you get it — and then keep tweaking as circumstances and life changes.
I have been in this situation, and let me tell you one thing: Never forgot how low you felt when you didn’t have an income, and remember that feeling. You likely will never want to feel that again, and you need to do everything in your power to avoid it. That includes going on a spending spree.
You know your situation, as does everyone in your life. You’re not expected to get jobs and then be fine.
Your hole was slowly dug, and so it will slowly be filled in. Little by little, bit by bit is the way to go.
Don’t put yourself in the exact same spot you were just in. That’s my advice.
And PS–to save money, make yourself believe that your income is actually 30% lower than it really is. You will save more than you ever thought was possible.
Live way below your means.
Great advice!
I completely agree with Erin. This is my primary motivator for saving. I don’t want to be poor again! I always remember how life was when we didn’t have money. We save agressively for our emergency savings and retirement. Budgeting provides us the freedom to splurge when the primary saving goals are met. Congrats on the new jobs!
I completely agree. I would set aside a little bit of money each month for treats, but you will be so thankful that you saved while your income is up. My husband and I decided that if we ever came into some extra money through a raise, inheritance, etc. that we would wait six months before spending any of it. We did that when he got a significant raise. We celebrated with dinner out and saved it all for the next six months. After that point we were so excited with the progress we had made towards our financial goals, that we no longer had the desire to splurge!