How do you budget your money?

Dave Poehlman · 01-13-2005, 12:31 PM

The Mrs and I aren't the most diligent people when it comes to balancing the checkbook and the holidays have left us a little in the red this year. So, one of my resolutions this year is that I've vowed to try and keep better tabs on where our money is going.

I was considering setting up a separate checking account strictly for paying bills and necessary things. Since my bank allows me to go online and set up automatic transfers, I could have it shovel the necessary funds over there every 2 weeks or so. Then, with whatever is left in our original account could get divided into savings and/or "fun money".

I'm just curious what sort of systems/tricks/incentives people use and how well they work.

Philip_T · 01-13-2005, 12:54 PM

I really wish my wife and I were better at tracking our checking account. We both used to be fairly good at it, but when debit cards came out and we started using them more than the checkbook, we stopped updating our check register as much. Too many reciepts to keep good track of unless you stay on top of it almost daily (for us at least) and I never carry the checkbook around anymore to be able to update the register after every purchase. One thing that worked (well, kinda) was creating an Excel check register that would take care of the math and was a lot quicker than using a manual register. We would pay bills online, then, open up the spreadsheet, update it with those transactions, then enter all of our receipts and misc. checks. Worked great until the Mrs. tried to sort the data columns differently and the whole thing got destroyed. Now, we just keep an eye on our balance via online more often. I think we've just accepted that neither of us any good at keeping update and accurate records for our checking account. I'm sure that there more sophisticated money programs out there than a homemade spreadsheet you could get also. I would like to try and keep better track of our funds as well, but my new years resolution was to quit smoking and thats enough of a whopper to keep me from making any others right now. :b

Jeff Savage · 01-13-2005, 12:55 PM

I have two separate accounts. One for bills, house, and car payments the other is for whatever. My employer splits up the money between the two accounts for me. Very easy. Most of the bills are on auto debit so it really is a set and forget it type of deal. I make sure there is enough money put in to cover the average range of bills. Whatever extra is left at the end of the year I use for Christmas.

I also use an Excel spreadsheet for a check register. Really easy..

Laters,
Jeff

Rob Gardiner · 01-13-2005, 01:32 PM

I have a check register program on my palm pilot (Sony clie, actually). This makes it very easy to keep track of checks written, ATM withdrawals, card swipes, and online purchases, not all of which generate paper receipts.

Dave Poehlman · 01-13-2005, 01:54 PM

Quote:

We both used to be fairly good at it, but when debit cards came out and we started using them more than the checkbook, we stopped updating our check register as much.

That's been our downfall too... we'd never had an ATM card until they turned them into credit cards. It was easy to track... of course, we were poor back then.. so it didn't matter much.

But now, we're much more spontaneous and we'll go to dinner with friends or whatever and it's too easy to just whip out the card.

Honestly, I'd like to get his/her checking accounts and keep things separate. But, that has an "I don't trust you" kind of tone to it. However, we've got friends that prefer it that way.

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Tony Whalen · 01-13-2005, 01:55 PM

Budget? I don't understand this word?

SethH · 01-13-2005, 02:24 PM

I use Quicken 2005 as an aide with my budget. Most any financial planner will tell you that the key to a budget is extremely simple. Write it down and stick to it. If you sit down and actually write out where all of your money should go (with a little slack built-in for unexpected or luxury type stuff) and you and your wife work together and hold one another to the budget it's not too bad.

Additionally, you might check out Amazon or a local bookstore at some books on the subject. I won't mention my personal favorite because the author approaches family finances partially from a religious stand-point which isn't for this forum, but you may PM me if you would like the author's name.

Chris Hovanic · 01-13-2005, 03:34 PM

We use a super old version of quicken... (either 5 or 6.. the wif wont let me upgrade)

Its very simple to track the debit card action.

When I make a purchase with the debit card I always put the receipt in my wallet when i put the card back.

When I get home the receipt(s) go to my wifes desk and 3-4 times a week she enters them in quicken.

We bought one of those receipt spikes that you see at restaurants at the office supply store. Once she enters the receipt in quicken she spears it on the spike. The spike will hold about 6-8 months of receipts which is very handy when you need to return something.

Quicken does a great job of allowing you to track your money by setting up accounts/categories. Kinda disturbing when at the end of the year you run a report to see how much you spent on DVDs and CDs.

Good luck with your budget

Chuck Mullen · 01-13-2005, 04:07 PM

I know Micro$oft is a bad word around here, but I use Money. Very Easy.

We have a joint checking account for bills, and we both kept our individual accounts from before we got married. Works out pretty well.

Ric Edelmen (Sp?) said in one of his books that budgets don't work. Write down everything you spend for two months. Everything. Lunch, groceries, pack of gum, whatever. You will know after two months where you have to make changes. You may even be shocked at the results! Then again, what do I know, my cable bill is almost $150 a month!