Good morning. We all have set budgets and have done budgeting in some form over the years. I really hate the word!!! LOL - It sounds so intimidating. I know there are many methods that people have used. Maybe you guys can share some of the methods you have used.
I know many have used Dave Ramsey, the envelope method and many other methods.
At my house we kept it pretty darn simple. We made XX dollars. 10%+ was saved back first. Bills were paid and then we spent on whatever. We kept our bills to a level that was manageable. Most times we tried to keep expenses to a point that ONE of us could cover the basic bills, should the other be out of work. We both invested the max we could to pre-tax accounts like 401K (it virtually made no difference in our take home pay).
Luckily we didn't have any major medical expenses in our years together and we had decent insurance. I know that not everyone has that.
Our logic was to always spend less than we made. If nothing was left over - we didn't play!
As we got ourselves on a good track - then we started stocking up and preparing for emergencies. I was lucky to have a husband that was onboard with that and even encouraged me. I gardened a lot and preserved. We loved yard sales and thrift stores and thought nothing of utilizing them. I was encouraged when I "FOUND" couponing - back when you could double and triple. I had a period of time that I spent almost nothing on groceries.
We had fun - but it was simple fun that didn't cost a fortune. We camped, got with friends and family, and wondered Indiana.
We drove older vehicles for a big part of our lives together. Luckily my Glen was a mechanic, and he took care of everything. We didn't get our FIRST new (to either of us) car until the house was paid in full. We paid the Blazer off in 2 years. (we got it in 2001 and I still drive it).
We knew that Glen had a great probability of having physical/medical problems and may not be able to work until retirement age. We worked our butts off to be prepared for that! That was our goal.
I know we have been blessed. Not everyone has had the same job and health insurance opportunities we had.
Life can make a lot of detours and success can look like the chart above. NEVER give up or give in.
Always remember - slow and steady wins the race. You aren't out to beat anyone else in getting your life and budget together. Your life is your life. Do what is important and necessary for you.
Write your goals and plans down. Keep that somewhere you can see it. It gives you incentive. Work hard. Make a plan with your finances and TRY your darndest to keep on track.
What has been your method of budgeting? What worked for you?
There are lots of people reading here and many may benefit or get that one idea that works from seeing what someone else has done.
Let us help one another. Please share your tips and tricks.