Budget- Part 4

The final part of this four part series is going to talk about my final steps to organizing and keep track of our budget each month. This final piece is very simple but deserved it's own attention. After each bill due date is put on the monthly calendar, then the bill is received, paid and recorded in the weekly calendar. Then I patiently wait for the check or online payment to go through. I check my bank account every week (usually on Saturday) and record all of the things that have been purchased throughout the week on the appropriate day of the weekly calendar. If a bill payment has gone through I highlight them so that I know I don't need to account for that money any longer. If there are payments in the pending section I record them but I do not highlight them until they have actually been processed (so this will take place the following week). At this time I also make note of any income and note it as +100.00 for example on the day it was received. I also try to keep a running tally of where we are at compared to our initial budget and review this with my husband so he knows were we stand with areas such as gas, groceries, his blow money, and eating out.
On the last day of the month I get out my planning book and open my excel sheet to create my new budget.I record each expenditure in the appropriate category. Each category has it's own tab on my excel sheet to calculate the total expenditures separately. Also, throughout the month it is important to record cash spent in each category and to divide store trips if things were bought in different categories. At some stores I may be able to purchase groceries, things for my car and things for the baby and it is important to separate these out.
Once each expense is recorded in it's appropriate category I transfer those totals into my budget. I then see where I overspent and adjust as I prepare the budget for the next month. If it is an essential area where we over spent (such as gas) I will make changes. If it is a luxury area (like eating out) my husband and I will make a plan to cut down for the next month and adjust.
After I do the initial recording and budget my husband and I sit down and discuss the budget for next month. I show him the current months budget. We discuss any upcoming things that will change the budget, such as a trip, birthday, etc. and make changes as necessary.
The key to making our budget work is having a plan for problem areas and a commitment to stick to it. It is also important to keep track of cash purchases so that we stay accurate. That cash is noted as part of our income so it has to be accounted for. Finally, the biggest key to success is communication. It is not fair for me to think that my husband keeps track of all of our expenses in his head when I need to use tools to keep track of it for myself. This is why I make a point to update him on how much is remaining so he can make decisions throughout the week. Technically he could spend his whole $40 in the first week of the month, if he wanted to but he needs to know that he has no more money to spend.
As I have said before, this may not work for everyone but I hope that it has some good tips that can be implemented to help you and your family start a budget to become debt free. It is so amazing to know that we have paid off so much debt just by becoming organized and committed.