Budgeting can be overwhelming. It oftentimes gets pushed to the side because people don't know where to start. That's at least how I felt for the past couple of years. It never seemed to be a big deal because I could keep my spending in check and I didn't have any major debt. However, I wasn't saving as much as I would like and I knew I was spending too much every now and then unnecessarily. Before my husband and I got married, I was potentially going to switch jobs which would actually mean a pay DECREASE and he was hoping to get into graduate school (which he did!) and potentially work a little less (although he's a rock star and his income won't take too much of a hit). Anyway, with all of the anxiety and stress over the wedding and merging our accounts and potentially having less money than I had been used to, we finally decided to sit down and figure out some numbers. Even shooting WAY low, we found that having a structured budget, we would be able to freely spend and have plenty to save each month. I ended up not getting the job (which, is definitely a blessing..I am so excited to be where I am now) and we have even more of a cushion with which to work. Without using our hard numbers (since everyone's budget will be different), here is our general outline. You can use this template and shift your numbers in each category as you need. Of course, we are extremely blessed to not have any debt such as car payments, student loans, medical bills, as of now. All this really helps us do is save more right now, though. You can definitely finagle the numbers to where you are tackling the debt and putting some savings away.
First, when we merged bank accounts we have one checking account, and three savings accounts. We have a general savings account, a "big purchases" savings account for when my husband's car eventually kicks it, and an "emergency" savings account.
Next, we thought of our essentials for category 1.
1.
Rent (Check)
Internet (Credit Card)
Phone (Credit Card)
Health Insurance (Credit Card)
Tithe (Cash)
Continuing our essentials in category 2.
2.
Food (Cash)
Gas (Credit Card)
Doctor Visits (Credit Card)
Prescriptions/Medications (Credit Card)
Cagetory 3 is less essential, but things we would like to keep around such as...
3.
Netflix (Credit Card)
Summit Gym Membership (Credit Card)
Spending Money (Cash)
Clothing Money (Cash)
Dates (Cash)
And finally category 4 consists of our savings accounts
4.
General savings
Big Purchases
Emergency
Essentials for planning and where we keep our cash!
We decided that the cash system works best for us, but for "bigger ticket" items, we still wanted to get the added benefits of using a credit card (rewards, earning credit, etc). We always pay off our credit card completely each month and keep track of purchases. However, having cash for every day items such as groceries, spending money, clothes, dates, and tithing we can make sure our spending stays in check and we don't over spend. We are just in the first month of following this budget, so our numbers will probably change; we may not need as much money for dates, but we may want a little extra spending money. We may need a little bit more in groceries but not as much for clothes. The point is, this is extremely beneficial and eliminates the stress of having to guess how much we will be spending and saving each month. We have already decided that we will just save less during December as we will set a "gift" budget for family members. Also, for our respective birthday months we will use our date money to go towards the birthday gift/date and anything extra can come out of our spending money. You can tweak whatever works for you, but so far we love this! Happy Budgeting!
*Disclaimer: since starting this budget we have been fairly flexible with grocery and date money. Whenever a fun date idea comes up we weigh pros and cons and usually take the extra time for ourselves. Of course, we try and be as thrifty as possible! In a month or so we are going to re-evaluate and most likely shift some numbers around. A budget doesn't have to be set in stone forever!