Tuesday, February 23, 2016

My attempt at Saving Money; The Written Budget

You have to have a budget!!
A written down, black and white budget.
It took me until last year to actually come to this conclusion!
It makes you accountable.
I think that's the biggest thing!
And also, it is what showed me that I was spending way more than my monthly income!
When I finally woke up to that fact, I sent for Dave Ramsey's book, "Total Money Makeover" to help!

I had been listening to his program on the radio and online for a few months and knew I had to get rid of my credit card debt first.
Credit cards!!!
No wonder I didn't realize what I was spending.
Using credit cards doesn't seem like you're really spending your cash!
As far as my monthly income goes;
I'm not counting my savings and what is in the stock market.  My monthly income is just that.
Social security, my pension, my husband's partial pension (which was quite a bit larger when he was alive of course,) plus another benefit from my husband's police and fire group.  The biggest amount comes from interest on a note I'm holding from selling our FL house.
I had to decide what categories that I should have listed on my budget.

Here are my categories for Expenses:
Emergency Fund
Housing, which includes:  heat, electricity, phones, cable/satellite, lawncare/winter plowing,
                 house cleaning, plumber, garden, handyman
Transportation:  (all things car)
Food:  groceries and restaurant
Lifestyle:  personal, misc., pets, vet, horse board
Insurance and taxes

Yes, Housing is the big category and adds up to be the most money,
but groceries is the second and I think that's the one I can do much better at.

Here are some things to consider:
#1.  I'm 73 and can't do as much as I used to do so I have to have some help.
So that is the reason for house cleaning once a month, handyman, lawn care and snowplowing.
#2.  It is a lot more expensive to live in the country.

So let me know what you think about my budget.
And tomorrow we'll start on ways I'm working to cut my expenses.


1 comment:

  1. Living on a fixed income is a challenge, Shirley. And yes, it requires discipline and learning...:)JP


Related Posts with Thumbnails