As you plan your monthly spending, don’t just use one or the other. It’s important to use a budget and track spending together as a team. I know money is important but because of that mistake, we’re still working to pay off the debt we accrued from not budgeting. So a lack of budgeting and not tracking our spending had a huge impact on our financial situation. We assumed we were spending about $100 a month on eating out. In reality, we were spending about $900 a month. We assumed we were spending $600 a month or so on groceries. When we decided to go back and add up our previous annual spending, we were floored at what we found. Instead, I made an estimated budget each month and assumed we followed the numbers. The problem was that I wasn’t tracking our spending.
We couldn’t figure out why we were in the hole each month.Īfter all, we weren’t making large purchases.
In our particular case, it was a simple lack of budgeting and not tracking spending that got us into that debt. My family and I used to be saddled with over $60,000 in consumer debt. Remember that it’s important to tailor your budget to fit you/your family’s personal needs and lifestyle. The area you live in (cost of living varies from city to city) and what your financial goals are will have an impact too. Your budgeting percentages may vary from these suggestions due to the size of your family. Here are some guidelines that will help you to make your budget. Consider Using Cash For Monthly Spending.Why Following These Percentages Can Help.Childcare: Cut back on childcare costs by nanny sharing or doing a childcare swap with a friend who also has children.Apparel: Save money on clothing by buying secondhand or selling unused clothes on resale stores and websites such as Tradesy or eBay.Just be sure to tuck away some funds in case of a medical emergency. Healthcare: Shop around for affordable healthcare plans, such as a high-deductible health plan (HDHP), which will have a much lower premium.If you decide that purchasing a new car is necessary, aim for one with a monthly payment that fits into your budget (including the insurance, maintenance, and gas costs). Transportation: Vehicle purchases were up significantly in 20, according to the data, but if you still need a car, consider buying a used car instead of a new one, driving a more cost-effective car, or even forgoing a car altogether and relying on public transportation.That way, you’ll get to socialize and “eat out,” but you’ll do it on the cheap. And instead of those weekly happy hours with friends, try hosting a rotating potluck instead. You may also consider a membership to a bulk store such as Costco or Sam’s Club, which can save you money. Food: Limit eating out to once a week or month, and start cooking most of your meals at home.Consider cutting cable and relying solely on a streaming service like Netflix, Hulu, or Amazon Prime (or cutting out a streaming service or two if you have a lot of subscriptions).
Entertainment: Although many Americans spent less here in 20, it’s still usually one of the easiest areas to make changes.Education: Consider a more cost-effective college or university apply for scholarships and grants or even a no-loan college.
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