I have quite a few "budget codes" or "accounts" in my budget. I guess this can be credited to my days working as a Fed - when adherence to a budget was a matter of public law!
This is my first real month using this process so I'm still trying to tighten up the accounts. For example, several unexpected birthday invitations busted the gift budget and my son is in American Literature, so the book budget got stretched too (he needed to take notes in them so the Library wouldn't cut it)...but for the most part, we've done quite well and I've been able to borrow from other accounts to cover the overages, rather than go to the bank for more dough.
One of codes I forgot to create was what we call HBA (Health and Beauty Aids). This is to buy things like soap, cosmetics, vitamins, etc. - so I'll have to figure that one out going in to February.
I'm also not 100% on where to put cleaning supplies, paper towels, mop heads, dusters and that kind of stuff - I'm thinking it belongs in "house upkeep" but I was originally earmarking that money toward projects...I think I just answered my own question - time to set aside a fund for specific home improvement projects!
The other two new categories are allowances for both kids. My son is older and has more responsibility; therefore his allowance is greater than my daughters.
I'm hoping to have my budget pretty well set by April. I think about three months of tracking should help cover some of the unexpected items and give us a solid foundation.
6 comments:
Sounds like you are plugging all the holes and that is what matters. We implemented allowances about 9 months ago and what an improvement it has made all around.
My kids are even now seperating their money on their own. My oldest son just told me last night that he has been putting $10.00 in his saving box and he spends his other $10.00.
He was with me at the store last night and he was contemplating how to spend his money on some special snack food for himself. It was neat to watch him go back and forth and weigh pros and cons of his choices. He finally decided on a few cans of soda. We don't buy soda so to my kids it is a treat.
If you are strict with not giving into them and you set the guidelines early on as to what they are responsible for versus what you as parents will help with then they will truly learn to make good decisions.
At first my husband wanted to "control" what they could spend their money on. I finally convinced him that letting the kids do some splurging now (then paying the price by not having enough to go to the movies with friends) would be an easier lesson to learn now than when they are an adult. He agreed. There were a few times early on that my kids blew their money on stupid things..like candy or trading cards, but it soon bit them in the butt and now they are much wiser about spending their money.
Keep plugging up the holes, soon the ship will be sailing quite well!
SOunds great. I usually include cleaning products etc in my grocery budget. Pretty much everything I buy in the supermarket comes out of the same budget. Great work with your tracking. Sounds like your budget will be water tight when you're finished! :)
I use the same method as FruGal... I stick my cleaning products in the grocery budget. The less line items I have, the easier it is for me to deal with. The less bath/body/cleaning supplies I need, the more groceries I get. The more of those I need, the less groceries I get.
I found my "home" budget easily gets eaten up by doing laundry and doing maybe one resupply of a cleaning item. I too intended/hoped to use it for... well, not projects, but home decor and such. No luck there.
I like separating it from grocery, because it really has nothing to do with food/eating other than it may be sold at the same store.
I've been using a formal budget about a year now, and there are rarely surprises. But I do have a $100 "misc" category that makes it all simple
I've found that budget is more a verb than a noun, I'm constantly having to adjust, revise and revisit mine. I don't track my spending that in depth, fixed expenses and bills get budgeted. Food, eating out, make up, clothes, everything else is just one lump sum. I don't spend a lot so it works for me, I tried tracking more in depth and it just annoyed me. Oh, I do keep separate money for house projects like maintenance or upgrades.
D&D, I've got to tell you the allowance has had an almost magical effect on my kids! Gentle reminders of the "chore chart" and allowance are all that I need to get them hopping! Incentive theory at its finest.
Frugal and Michael, I've already got my envelopes ready, so I think I'll strike a middle ground and put HBA with Groceries but house cleaning stuff goes with House Upkeep.
I do like StackingPennies idea of doing a misc. fund for that stuff you just don't expect.
And if I get it together enough to start consolidation budget codes I will, but I only get paid once a month, so for me, hitting the bank once at the beginning of the month and getting all of my set asides in place, at least at the start, means we'll have a much higher likelihood of sticking to it!
Wish us luck!
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