Because we haven't been tracking our expenses lately, it's hard to tell what a realistic number is to budget. For instance, I would think that about $500 would be a good amount for us to use each month for groceries. After doing some homework though, I found that we spent almost $1500 at the grocery store in December alone. Add to that $425 that we spent eating out and we're at nearly $2000 in food for the month! While $2000 in food is an ungodly amount for a family of four...even with 3 different sets of guests during the month, it's a real number and shows what we spent. $500 wouldn't have been realistic to budget for food last month.
I'm realizing that one reason I get frustrated with my budget is that I tend to budget what I think is a reasonable amount. When we are unable to meet these numbers, I get frustrated and my husband wants to know why we're over budget. But...the budget wasn't necessarily realistic.
So, over the next couple of months, I'm not going to be budgeting per se, but tracking our spending. Beginning April 1st we'll have our budget in place with a new system of paying bills. More about that later.
But, just for fun...I'm joining Sharon in her February No-Spending Month. The rules will be posted on January 31st. I'm participating, but won't be doing it at 100% like others. We have a vacation planned for the 3rd week of February. So, while there will be spending going on with that, my goal is to have a "no spend" month for items that were not already in the budget.
2 comments:
Glad you'll be joining me! I used to spend that much on food, until I switched to cash. Consciousness in spending allowed my food bill to be almost cut in half and I was able to distribute the extra money into other needs. Tracking where your money goes should definitely give you a good indicator of what you need to budget.
Tracking your spending is the single most powerful tool in your money management toolbox. I use Excel and have finessed it over the past year. But I definitely have a very accurate picture of where my money is going no matter how embarassing it is. I've joined Sharon as well and have added you to my set of links i'll be putting on the blog of the No-Spenders. Good luck!
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