CONTEST TIME!

I still have not taken the time to update our budget.  I even thought of it last night  while Dave was playing at the park with Alex and Genoa was asleep in her baby swing, but I chose to read a magazine instead.  That is the extent of my total suckitude - I won't even work on the budget when I both remember to do it AND have the free time.

Clearly I. NEED. HELP.

So here goes - give me your best budgeting idea.  What helps you stay on track?  What makes it easier?  ANYTHING TO HELP ME!  Leave me a comment and I'll have Dave (my objective, lawyerly husband) pick his favorite one and that person will receive a $50 gift card to the club mom vendor of their choice. (The list of vendors is LONG - Gap, Old Navy, Macy's, movie theaters, restaurants, spas, Home Depot, toy stores and even MERRY MAIDS!)

I'll keep the contest running through the end of next week, so tell a friend.  I need all the help I can get!

Comments

[Lena R.]

I am on a very very tight budget so it is major for me not to get sidetracked by overspending. I get receive a lump sum payment for rent from my college when each semester begins so it is very temtping to dip into that money when I see things that I want and say "I'll put it back later." No more of that. I put it all into a savings account that I do not link to my debit card. When I need the money, I have to go to the bank to get it. Many I have plenty of time to think about it on the drive over. Usually I tuen around and now the price of gas is so high that if I was gonna save a money on a purchase I blow it on the gas I use. When I get paid at work I pay all my bills online or I purchase a money order. What I have left is all I have to spend until the next pay day. You begin to think twice about things you want when you only have $30 left and you have another week until payday. I got mightly low on funds a few times but I've finally got it right.

[Mir]

Go cash-only for a month (major bills like mortgage and energy are excluded).

Withdraw your budgeted amounts for gas, groceries, etc., and put them in marked envelopes. You are not allowed to buy groceries with anything other than the cash in the grocery envelope. Etc.

I find this tiresome in general practice, but a month of it may get you back on track.

[Mir]

Thought of another (can I enter more than once? I'm a whore for gift cards, Amanda):

Place a moratorium on eating out for one month. VERBOTEN. That alone (based on what I've seen here) will help tremendously. THEN...

... every time you want to order pizza, or hubby wants to buy lunch but doesn't, take the amount of money you WOULD'VE spent and put it in a jar. (Keep it in a central location, like your kitchen.) Whatever's in the jar at the end of the month (assuming you don't need to steal from it to pay your other bills!) is your eating-out budget for the following month.

[Kari]

Our trick is online banking's automatic withdrawals. If when a bill is due it is automatically withdrawn from the account, then we know we must keep that money in the account. We also have auto-withdrawals to transfer money into our savings account and to go to our IRAs. It is the old "if you don't see the money, you don't spend it" trick.

We have paper checks for school tuition, and we use a debit card for grocery shopping, but before we shop we check the balance (and try to remember what is going to automatically go bye-bye shortly and before the next pay check.)

In a way, I try not to know "Oh, I have three days until this thing is debited" because the fear of "something might suddenly be subtracted from the account!" makes me think I have less money than I do. So I spend less. (Ignorance is blissfully richer)

Also:

My husband's salary is fixed, so the fixed bills come out of his. My earnings vary dramatically, so the more flexible categories like grocery and kid shopping come out of my account (although I have a couple auto-withdrawals in there, too.)

So, I don't go crazy at Whole Foods if I haven't made much the previous week. Besides, I assume I have a minimum to spend, so if I make more than usual it sits there in anticipation of those months (Birthday parties! Christmas!) where "flexible" spending is increased.

[Amanda]

I put the majority of my paycheck into savings. How? I figure how much we'll need for daycare & groceries. That amount is direct deposited into checking. The balance goes into a savings account, and stays there. Then we use DH's check for other bills. So the money in checking is what we live off from week to week.

If there's ever an emergency or we just want to take a nice vacation, voila! We actually have money! I find if I don't "see" the money (as in the checkbook) then I don't spend it.

[HeatherK]

Buy yourself gift cards for your budgeted amount (or under if you're trying to cut back) at your trouble spots and commit to only using those for the entire month. So Target cards, a TJ's card and so on.

[*pixie*]

For me the best tool I have is an Excel sheet with every bill we pay during the month on it, the date (or near date) it's due and the minimum amount due. I have a spot to write down when we pay it and at the quickest glance I know what's paid, what needs to be paid, how much, and when. Each month I print out a copy and write the name of the month on top. We never miss a bill and can always plan ahead to what needs to be paid.

[mama without instructions]

I have always found it difficult to come up with a budget unless I really know what we are spending, otherwise it feels arbitrary and like wishful thinking. I try to track everything we spend for at least a month but it works better if we keep really close track for a few months (I couldn’t do it w/out Quicken). Then I can look at the ups and downs by category and come up with a reasonable budget goal by category, including savings. I think the key is reasonable and not extreme (unless necessary of course). Sticking to the budget is obviously harder and requires frequent monitoring and comparing actual spending to the plan. I try not to get too stuck on small fluctuations (I am lucky not to have to worry too much these days) and look at the month as a whole. On the other hand, if you can get really compulsive about entering all purchases and being keenly aware of it all for a short period of time, that can be really helpful and make the whole budget management more of an engaging project. However, I personally haven’t had the energy for that since well before I had a child.

If we are doing well and have a little to spare I transfer it quickly to a savings account so I don’t even thing about spending it. I also try to plan all purchases (bedsides the obvious bills, groceries, etc.) ahead of time and really think about the item for at least a few weeks before spending. Often I decide to skip it. Being willing/able to know where the money is going really is key, I believe.

[Mir]

Here's another (just tell me to shut up):

Pinpoint your non-essential trouble area. Meaning, you don't take this money from your grocery or electric budgets, but from eating out or buying cute baby clothes or whatever seems to be the hardest to control.

Found it? Good. Now. This month? You only get to spend money in that area which you earn from selling stuff you already have. (Most of us have all manner of crap in our houses that we could stand to get rid of.) Do the eBay thing, or hold a yard sale, or put stuff on Craigs List, or find a local consignment shop. Whatever you earn from clearing out is then "allowable" money to spend in that area.

(I have a milder version of this: I am only allowed to shop at Salvation Army when I bring a bag of clothes to donate. This is less about money and more about clutter, but same general principle.)

[Elizabeth]

I don't have a good budget tip that hasn't been already suggested. This month we are trying the envelope thing. But if I could vote, I like HeatherK's suggestion. If I know I have a Target giftcard with $30 on it, I won't feel guilty about shopping there. My grocery store also sells giftcards-I could put my two weeks' grocery money on it, and then I don't have to worry about taking too much out of checking. Thanks, Heather!

[KTP]

This is going to sound corny, but it works. I adopted a Hurricane Katrina survivor family, and I collect donations of money and goods for them. So when I started going a little too crazy on the "impulse foods" - Frappucino's, Wetzel's Pretzel's at the mall, frozen yogurt, etc. - I started reminding myself that our HK family can't affort those luxuries, and I would be able to resist.

Basically, my tip is "think of those less fortunate and you won't waste all your money on useless crap." But having real people in mind has made a big difference. I've saved at least $25 per month, which I guess I should just send to them.

[Kate]

Here are a few of my favorite money saving/budget helping tips:

1) Have a spare change jar and empty it into your savings account each month. At the end of every day, empty out your wallet and pockets and put the change in your jar.

2) Never spend a windfall. Take your income-tax refund, money gifts, bonuses, rebates, overpayment refunds and any other unexpected money and put it into your savings or investments. Make this money earn money for you.

3) Use direct deposit and automatic withdrawals to move money out of your checking account into savings or investments on a regular basis, such as every paycheck. You will learn to live on less when you think you have less to spend. I contribute to my Roth IRA and my son's 529 College Savings Plan this way.

4) Avoid unnecessary fees. ATM fees, service charges, and late fees all add up to quite a bit over the course of a year. These fees are rarely worth the reason they were charged. A little planning/budgeting can usually circumvent these fees.

5) Throw away your mail order catalogs. Don't even look at them. Looking leads to wanting and wanting to buying. Most catalog purchases go on your credit cards and that is the last place where you want to rack up debt.

6) Use coupons, apply for free samples, stock up on sales (if you have some extra money to do so), shop discount stores, day-old bakeries/items. Buy store-brand over name-brand items.

7) Shop less frequently. Each time you go to the store, you increase your chances of purchasing an impulse item. Try to limit your shopping to once a week and prepare a list beforehand. Stick to your list. You'll be amazed at how much you'll save!

8) Whenever possible, shop secondhand. Many barely used childrens items (and sometimes adult clothing too!) can be found at secondhand shops for a great price!

9) For those who work outside the home: Brown bag it! Eating out is expensive! And you can make healthier choices when you pack your own lunch!

10) Organize, organize, organize! That way you'll never spend money to purchase an item you already have and just couldn't find! (Works great for buying children's clothing too - buy ahead at garage sales, include hand-me-downs from friends and family, and sort into storage containers labeled by size - when your child grows into the next size, you'll be ready!)

Ok, those are my top 10 suggestions!

[Elizabeth]

Place your credit card in a glass of water.
Place the glass of water (and card) in the freezer).
Freeze the card (it won't hurt it).
Now, when you think you "need" to buy something with the card, you have to think about that decision while you wait for the card to thaw out.
If you don't really "need" the item, you won't spend the time to go home from the store and thaw out the card.

Cheers.

[Shannon]

Every 3-4 months buy only the perishable basics at the grocery store milk, bread, etc. Use up whatever you have stockpiled in the freezer, fridge, and pantry for meals. Not only does this save you a big chunk of grocery money it also A) reduces the clutter and possible wasted food in your pantry and freezer and B) encourages you to try to be more adventurous in your meal prep. I have actually come up with a few family favorites this way. We usually spend 150/wk at the grocery store but I can do this 2 weeks in a row and it saves us $250 that month. Multiply that by 3 or 4 times a year!

[J.]

I don't really have a tip, as we seem to have thrown budgeting to the winds in my household lately, what with moving house, starting a new job that required buying a car for my new commute, buying gas for the car, etc. But something that worked today for me (while walking to a fast food joint for lunch for the third day in a row) was realizing that staying within your budget is really like trying to lose weight, in that you can always find an excuse for not following the sensible rules. How many times have I said "Oh, we overspent this month, but that was because I didn't have time to cook from scratch rather than order pizza" or "I didn't have time to exercise because of P.'s wedding festivities this weekend" or "I didn't [insert sensible budgeting or weight loss strategy here] because [insert lame excuse here]. I'll get back on track once things calm down"? Life is always going to be crazy, with unexpected illnesses, celebrations with friends and family, serious deadlines at work, issues with the kids, etc.--these things are the rule, not the exception. I guess my strategy will be to remember this next time I'm tempted to stray from my budget because I'm too busy/tired/distracted/etc.

[Crissy]

One of the best tips I've heard (and use) is to not get store credit cards. They hand them out to anyone with a pulse and they can actually hurt your credit score (from what I understand).

[Keri]

Don't feel guilty reading a magazine while Genoa was napping. In order for me to function on a day-to-day basis, I give myself some "ME" time, just an half-hour every day, doing whatever I want while my son is napping or with my hubby.

You can also set up a time to work on the budget by assigning yourself a day and time to focus on it. I don't know how often you need to do this: every day or once a week but however much time you think you need, make sure to make it consistent by keeping it the same day and time. It may take a while before it becomes a consistent routine for you.

Good luck! =)

[mindy]

ok.. i'm the worst when it comes to saving money, so here's what i've been doing for years:
every month i subtract 5-10 dollars for "bank fees", now, my bank only charges me 1$, but after a few years i now have a "cushion" of over $200.00
i know it's not much.. but it's been really nice when we were in a jam. and best of all i don't even miss the $5-10.. if you can, do more each month.. just think what you'd have in a few years.

[KateE]

Every Monday morning I sit down with an Excel spreadsheet and do two things: 1) transfer money for consistent expenses (mortgage, phone bill, etc.) & savings from my main checking account into another account that goes towards paying off bills and temporarily holding savings and 2) pay off all charges on my credit card for the previous week.

Then whatever money is left in my checking account is what I have to spend for the week on fluctuating things like groceries and clothing (having not a lot of money for groceries can do wonders for inspiring meal planning). If I were trying to really be strict I would probably take that amount out in cash, as others have suggested, but I like to get points on my Amazon card.

Although I do go over budget some weeks, I pay for it directly the next week. I think like any other life change, there is no real easy way to get yourself to do this and you just have to not stop trying.

[Rootietoot]

I cut my grocery bill (for a family of 6, with 4 boys) almost in half by making a monthly menu and a grocery list from that. I buy big groceries once a month, including meat, then buy dairy and fresh vegetables weekly. I keep a list of meals everyone likes, and plan one 'expensive' meal (grilled steak, chicken breasts, seafood) a week, 2 or 3 meatless meals, and the rest with cheap cuts and chicken legs. By limiting shopping to once a month, and operating strictly from a list, I can cut down on impulse buying. It takes some initial organization, but once the primary lists are made, it goes together pretty quick.

[Audrey]

Buy -- and sell -- at consignment shops. Especially for kids clothing, toys, baby swings, etc. I get rid of a lot of my nicer clothes that I hold onto "because they're too good for Good Will" and make a few bucks in the process. Even if I only make $30.00 off of the wardrobe I bought two years ago and doesn't fit, I've decluttered my house and made $30 more than I started with! (And then you can go guilt-free shopping -- a lot of consignment shops will give you more in store credit than they will in cash.)

[Beth]

As a single mom of a teenage boy it's tough to save, that has to wait for a few years for me. what i do try to do is watch the cash flow. i rarely take cash from ATMs. if i have it i spend it. If i do need cash i only take what i need, and i usually tack it on as 'cash back' when i buy my groceries. This way, i am only getting the amount i need (unlike at an ATM where you have to take multiples of $20) and i don't pay the service fee for the withdraw.

it's the baby steps! oh and speaking of..your kids are beautiful!

[Ceece]

Cut down on the unec. trips to stores like Target, especially if you're going just to look. Pay for it all in cash, it makes it so much harder to fork over the actual cash then just running the card through.

Adam gives my my "allowance" every week and if I choose to use it to eat out at lunch for spend it on Target goods, then it's my choice and my cash, but that also means when it's gone, it's gone.

SInce Dave doesn't seem like much of a shopper have him be the one to get your cash out and hold on to your debit cards etc.

GOod luck!

[the womom]

I love new sticking-to-a-budget ideas!

The only ones I don't see already listed are:

-switch to a bi-weekly mortgage payment plan. You can save like, thousands on interest

--don't buy things when you shop. I like to shop, but I always put everything back once I hold it for a while and walk around the store. My impulse is gone and I think of how much money I just saved.

--have an agreement that NO money is spent without mutual spousal agreement. You want a latte? Sorry, charlie barlie. I skipped last week. You can skip today.

--have a plan for lunches. When I was working I came home each day and ate leftovers. The dh has a loaf of bread and jars of PB&J at work. That's what he eats. And that's it. Unless he gets taken out (weekly) or I agree to it. Now we're home, the kids and I have a lunch meal plan. There's a lot of Top Ramen, and I've decided to look over the MSG because they EAT it and LOVE it. And it's a dime.

--crockpot. The cheapest meat tastes gourmet after it's been simmering all day long.

I followed jenny's link to your site.
xoxo

[dcfullest]

Actually eat all the food in your fridge/pantry instead of going to the store for more food b/c you are bored with it. I have gotten in the habit of going once a week, even though I could make several meals with things I already have on hand.