Expenses are less than income

amother

Magenta

Wed, Jun 06 2018, 11:30 pm

I have been married 10 years and have just really started to sit down to work out a budget. Through the years we sort of spent whatever, dipped into savings, had parents contributions, etc. At this point we are both earning around the same amount. I just wrote down our set expenses/income. It left us with an additional 900 dollars a month. Let's ignore the fact that right now we are only spending tuition on one child so the left over money sounds fine but we still have crazy credit card bills so clearly we are spending WAY too much for wants vs needs. I have always been responsible for the finances and we sort of had different accounts but we are looking to change that. So my question is how to make a fair budget for "extras" such as Amazon purchases, take out, clothes, house repairs. We haven't been saving aside from my 401k match but we do have savings (90,000 not great but not awful.) Does the average family after calculating all set bills have any extra at the end of the month? How do you account for the random charges I.e. dental bill etc.

amother

Seashell

Wed, Jun 06 2018, 11:44 pm

If you are left with $900 a month after expenses that is how you pay for extras each month.

90,000 in savings... wow
You sound like a relatively young couple with only one child in school so far so if you already have that much in savings you are way ahead of most people

Some grandparents have much less savings than you do with almost nothing extra each month ...just covering expenses

Why do you think you need more than what you are earning?

If you are spending too much on your credit card, cut back! Think before you buy something if it’s something you really need or just want

ebm46

Thu, Jun 07 2018, 12:04 am

I've really had to cut back on spending so much over the last two years. At a certain point it just gets out of control and is too late to fix. Thankfully, with the support of my Dh, I have gotten a much better handle on it and am starting to enjoy budgeting!

amother

Magenta

Thu, Jun 07 2018, 12:40 am

I am sorry I was not clear. 90,000 grand is obviously a LOT of money but this was not saved by us this was an inheritance. It is obviously something that is a huge relief to me but I don't feel like it was "earned" savings it just bh worked out for us this way. We would have nothing in savings if this person did not pass. Although that is a ton in savings most people I believe should have more or at least building a nest, specifically if they are saving for retirement. We also have around that much in student debt so it really isn't extra.

amother

Magenta

Thu, Jun 07 2018, 2:35 am

amother wrote:

Do u own a house or do u still need money for a down payment?

We own a home. Our debt is student loans which is on an income based repayment plan, we also are financing 2 cars.

amother

Amethyst

Thu, Jun 07 2018, 2:46 am

I've often heard that when trying to cut back the first thing is groceries.
Make menus before you go shopping and try to limit shopping to just once a week. Think of cheaper alternatives - for ex 1 lb of ground chicken breast is often cheaper than 1 lb of chicken breast, and it can stretch a longer way. Homemade cakes vs storebought, nondisposable pans, etc. But there is no one size fits all solution to this. You have to assess what you can handle.

Also, use as much cash as possible. Credit cards make money seem unreal.

amother

Wine

Thu, Jun 07 2018, 8:15 am

There's a lot of blogs and YouTube videos that give good budgeting advice. They say it better than me.

The first thing to do is figure out how much you spend by category. Look at your statements for the past couple of months and see each month how much you spend on clothing, groceries, transportation, etc. Everything. Keep track of your spending.

You say you have $900 left over. But then you say you have crazy credit card bills. Which is it? Do you have money left over after spending or not?

A budget is sitting down and figuring how to divide up your income. Some categories (need to customize for yourself)
Maasar
Housing
Groceries
Transportation
Home repairs
Upcoming (birthdays, yom tov, etc)
Debt
Savings
Etc

You divide up all your money.

Some expenses are flexible. Groceries and clothing, for example. But first you figure out how much you can spend on them, then figure out how to keep under that number.

amother

Mustard

Thu, Jun 07 2018, 8:39 am

Sometimes I ask myself, do I want this now, or can it wait a month? If the answer is wait a month, often I lost interest altogether. Saves me from impulse buys.

luckymom1

Thu, Jun 07 2018, 9:45 am

For me I found two spending accounts to be helpful. Have one for the known spending ie mortgage, utilities, food, day care and use the second for everything else. Each paycheck, transfer some from one account to the other. It really helps me keep an eye on exactly what's going on.
Also, there's an app/website called mint which is extremely helpful in budgeting and figuring out exactly how much you're spending.
Good luck!