I have recently been posting on the topic of Budgeting and many asked if I would share how I budget…how I have all my debt payed off and save each month. My Husband & I are both money conscious people and I am a huge Suze Orman fan and tend to rely on what I have learned from her as a guide. To talk about Budget is real difficult because no 2 households are exactly the same when it comes to finances.
Because of all the differences in each household I cannot even begin to write one post that will help everyone’s budget issues. I am no financial expert, but I did take finance courses in College and still retain much of the finance common sense rules. I research and read a lot and I search for many answers to any one question so I may piece together what works best for my household. How I am to talk Budget will need to be broken into a few segments and each post will give 2 scenarios: One for those couples who put all money into one pot and scenario 2 for those that separate accounts, but both contribute to common bills. These are the 2 most common scenarios I see and I only sum up what I have researched and have known to work for me. Please do not take me as a financial expert….just some knowledge and common sense tips.
- The List! The list has all money that comes in and all money that goes out. The List has Columns and Rows. Each Row is each payee you owe to each month. The Columns are Paydays or money as it comes in at a given time each Month
- You included Paying Yourself in the Row of Payees, right? IF NOT SHAME ON YOU! You’ll learn!
- Be Realistic! Do you smoke? ..still?… really? OK, if you must continue that money hungry habit, then you LIST it! It is money that must go out in repetition throughout the month.
- Spend less than you make…that there is just some Common Sense!
- Stick with it…it is true that when you start saving it is an addiction that gives you a feeling you never want to be without again! It will become a habit and the day you need it and it is there for you is an awesome feeling!
- I would read all of the above, but each of you BOTH make a list. It will be identical in regards to Payees you both share and different in only your name/pay dates are at the top and some payees may differ if you solely pay into debt on your own.
- REMEMBER: Finances are not “We have separate accounts, but we share 50/50 in some bills together”. No way that is so unfair and will only cause stress to the both of you! Here is where some basic Suze Orman math comes in….