Household budget update
In April I hammered out a household budget in hopes putting everything on paper would help Hubby and me spend less. You can't plug the holes if you don't know where they are, a financial adviser told me.
To tame the spending beast I added up the numbers from our two credit cards, tossed in what we pay for utilities, Internet service, cell phones, rent, student loans, IRA contributions, cash withdrawals and compared it to our income and found....we came in $141 in the black. Hallelujah!
But we were not meeting our savings goals. Could we trim our spending so that we could contribute fully to our 401 (k) and IRA, save for a home down payment, and scuttle away something for a Hawaiian vacation?
I had no idea if we could do it and trying felt like stuffing a pillow in my face. A few weeks into the process the suffocating...
...hyper-spending awareness mellowed into an internal voice that begged me not to spend.
The voice was most successful when it came to buying gas (I now telecommute twice a week, carpool with Hubby once a week, and ride my bike once a week. This lowered our gas bill even though prices have risen dramatically in recent months).
The voice pipped up at the grocery store (I'm clipping coupons and watching for sales) and when it came to the hot tub (our utility bill dropped by more than half because we now only use it certain weekends). Our miscellaneous spending also dropped dramatically thanks to the beggar girl inside me.
But I was deaf to her pleas when it came to clothing (Hubby and I both bought a pair of $hoes this month), eating out (if only the Chinese food delivery guy was not so reliable), and travel (two trips back east really did us in).
Overall, I'm embarrassed to admit we spent more. I hope you don't think I am a fraud!
I think we probably tightened up the first month and got more lax as time went on. What this means is we need to review our spending more frequently. We can't go to every wedding we are invited to and we need to keep our eyes on the prize - home ownership and Hawaii.
Now if I just had the cash to buy that beggar girl a megaphone...
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About The Bargain Hunter
Daily News staff writer Julia Scott loves to find bargains on everything from groceries to Gucci. Her tips will help keep your hard earned cash where it belongs - in your pocket.
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I'm not cheap, I'm frugal. Before I buy anything I always ask myself, do I need it or do I just want it? If I don't need it, I don't buy it.
Don't beat yourself up too much! You started the race off well. You didn't make it to the finish line because that old nag "Summer" beckoned you! It is most difficult to save at this time of the year with more hours of daylight and the warmer weather calling you outside. Keep trying.
Save a buck in everyday life has help me tremendously. I bought my clothes at goodwill, shopped with coupons, stopped going to restaurant's,and limited my social affairs. It was a great sacrifice. It payed off, I was able to buy a condominium, new car, and now have a savings account. julia scott has valuable advise.
Thanks,
Manny
Manny,
I'm so glad to hear the Bargain Hunter has helped you save money and perhaps even helped you reach your financial goals! Congratulations on being a savvy spender. ~Julia