Budget Planning Update

Lol, I love Grumpy Cat! The memes this cat has inspired are some of my favorites.

For some reason, it seems the word “budget” has a bad connotation. I can understand why – it usually means restrictions, cutting back, or completely giving things up. So let’s clear it up!

I’m doing an update on my budgeting plans that started several month back. I’ve learned quite a bit about money management, my own personal spending habits, and will power. Budgeting doesn’t mean restricting – it means creating a roadmap for financial success. A true successful budget doesn’t start by eliminating things. Here’s what I did…

  1. Write down total monthly income.
  2. Write down categories like Home, Auto, Utilities, Food, Savings, and yes, even Fun money.
  3. In each category, write the items that category includes. Example:
    1. Food:
      1. Grocery
      2. Restaurant money
      3. Kiddo’s lunch money
  4. Assign values to EVERYTHING: haircuts, weekly spending money, even that expensive coffee splurge – you have to account for ALL of it.

After that, I had a clear view of where my money was going and where it needed to go. I was able to shift things around so that I had a plan that made sense for my family.

Every month since the budgeting started, something has come up – car repairs, Christmas presents, etc. The Savings category has been there to cover all of it. The idea behind Savings, for me at least, was to save money, but it has mostly been a contingency fund. This has been a huge lifesaver since all these extra things have come up along the way.

So how has it been going? Well, I don’t have a savings stashed but I have been able to address random things that have come up with no trouble while not affecting the other parts of my budget. Budgeting allows me to compartmentalize my money so one thing doesn’t affect another.

So wipe out those negative thoughts about budgeting and ask yourself if compartmentalizing your money would make life easier. If so… try making a budget with categories and see if you can get your money moving where you really want it.

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