Budget 2013

[heydude]

Are you doing a budget for next year?
Are you totaling up yearly purchases and earnings at the end of this year?

How will you create your new budget in 2013. Anything different from what you have done in the past? Do you have a theme?

Previous themes of mine have been "buy as little as possible this year to pay off debt" as well as "spend a little more this year in moderation since i did a good job last year of paying off debt"

to what?

What are you doing and what have you done and what are your ideas?

Speak!

[Spartana]

Buying (bought) a new house (shared with sis) so will have a new budget. Expect it to go down quite a bit because we are spliting expenses and the monthly costs will be ALOT less then what I paid to rent a house alone.

[SteveinMN]

We'll carry through the same budget we're using now, post-job. I will be spooling up my business so there may be some extra money, but it's safer to count on things the way they are now.

[try2bfrugal]

We have a planned budget for every year for the rest of our lives. I track the variable expenses pretty close and update it every day. Our theme is lets get our basic expenses low enough so we don't ever have to work anymore unless we want to and have enough left over for long term care if we ever need it.

[Wildflower]

Budget shot to hell in 2013 due to paying for the wedding of our youngest DD. Well worth it though, and we'll be back on target with our budget by summertime. Hopefully. :help:

[Zoebird]

I just did two budgets -- work and home.

Cool thing is that we have cut expenses down as low as we can in every way. We are experimenting with home-internet still -- we think we are going to keep it but at a modest amount which will cut the bill in half.

And, since more income is coming in, we are able to put more into savings for both the business and ourselves.

[lhamo]

I track expenses pretty closely so it's easy to do a budget -- just look at actual expenses for the year as we get closer to the end of september and then copy the columns over and make adjustments where I know things will change. We have a few unknowns coming up next year -- need to figure out schooling situation for DS, which is likely to cost more, plus a major family vacation planned for the summer. But other categories are pretty predictable/stable at this point.

It is always a bit of a shock to see how things add up. Our vacation category is incredibly high because it typically includes two transpacific trips plus a few trips to see DH's family. Housing related stuff is also high, but somewhat artificially so as over half our mortgage payment is now going to principal, so really should count as investmnet not expense. And we still spend more than we absolutely have to on food, entertainment, etc. But all in keeping with our values and we are saving around 50% of our income, so I think we are on the right track.

lhamo

[rosarugosa]

I need to give this some thought, but in the meantime, I want to say Congratulations on your new home Spartana!

[rodeosweetheart]

We got too loose with budget and need to reapply the intensity, as Dave Ramsey would say.

We aren't behind but aren[t far out ahead--need to revisit goals for next year and get serious on how to fund them.

Am thinking of putting more in 401k's at work, sort of a catch up thing, to avoid paying it out in taxes. In primary job went up to 20% and don't feel an impact. If we stay in current house, that coudl go up to 30%.

Just not a big fan of 401ks--feel like they may "change the rules" and I will never see the money--not very trustful here.

[Florence]

No, I haven't done the 2013 Budget yet. Thanks for the reminder, I need to get going with it!

[Rosemary]

That's on my January list. January in Minnesota is an excellent time to tackle indoor tasks such as this.

[shadowmoss]

I'm going on the YMOYL version and getting back into tracking. I have a very nice multiple page worksheet that I started probably 10 years ago, and if I do nothing other than change the categories to match my current outflow and put down Jan 1 balances on 401(k) and debt and such to get a snapshot of where I am, it is still a really good way to see if I'm getting ahead or behind. Tracking was too depressing for the past few years, but I'm on the upswing now so I'm going to pull out the spreadsheet and give it another go this year.

[dmc]

Ive been tracking for years. I usually adjust some at the end of the year to account for various increases. But this year we went way overboard. Bought some big ticket items and our overall expenses will likely increase 25% going forward. I guess the kids will have to get a little less when we are gone.

[SteveinMN]

Just not a big fan of 401ks--feel like they may "change the rules" and I will never see the money--not very trustful here.
rodeosweetheart, I'm ranging a little off-topic, but if you haven't already, you should investigate both Roth IRAs and keeping your retirement savings with different investment firms. The Roth is taxed as you put the money in, which may be advantageous if you think tax rates will go up by the time you need to withdraw the money. And there's nothing wrong with the diversification of holding a 401(k) with InvestmentFirm A and a Roth IRA with InvestmentFirm B. You could even segregate the investments themselves -- international in A, real estate in B, and so on.

[Spartana]

I need to give this some thought, but in the meantime, I want to say Congratulations on your new home Spartana!

Thanks!! Finished up all the inspections and paperwork so now it's just a matter of waiting for the escrow co. to do it's thing. Only thing left is for us to do a final inspection and pay the big bucks. Probably close escrow in a couple of weeks if not sooner. Very fast. When I sold my house last Jan. my escrow only took 3 weeks from the day I accepted the cash offer so hoping this will be the similair. I had pre-paid the vacation cabin in the mountains for a few months so will probably stay there most of the time even after the new house closes. Gotta get my ski fix in as well as enjoy the snow and cold while I can. It was a balmy 3 (three) degrees at night last week! Brrrr...

[Spartana]

rodeosweetheart, I'm ranging a little off-topic, but if you haven't already, you should investigate both Roth IRAs and keeping your retirement savings with different investment firms. The Roth is taxed as you put the money in, which may be advantageous if you think tax rates will go up by the time you need to withdraw the money. And there's nothing wrong with the diversification of holding a 401(k) with InvestmentFirm A and a Roth IRA with InvestmentFirm B. You could even segregate the investments themselves -- international in A, real estate in B, and so on.

You can also hold Roth and Traditional IRAs in bank CDs if you are risk aversion. They earn less interest but come with FDIC protection up to $250K (I think that's the amount).

[SteveinMN]

You can also hold Roth and Traditional IRAs in bank CDs if you are risk aversion.
Also true. One can also hold government bonds, state bonds, etc. Thanks, Spartana!

[Fawn]

My household budget will look a lot like the previous years, though some kid expenses will go down and others go up and DD transitions to college. I can't set up a definite budget until we get information on what financial aid will look like, but my grocery bill will likely look the same (or a little less with her away.)

Like many folks here, I have done the YMOYL tracking for years. I know where I blow money (wine and coffee out) and how close to bare bones the groceries are, and where I happily spend a luxurious amount of money (music lessons) that could be eliminated if all hell broke loose. So, I have my budget pretty much where I want it. No big adjustments needed.

[iris lily]

I don't do budgets. But I will readily admit that my spending is too high. A couple more years of this and then I will be cutting back, practicing for retirement.

[fidgiegirl]

Like Iris Lily, we don't really do a budget, although I do again have six months of pretty good tracking data to see if there are areas we want to focus on. We want to build up our EF and now that we have refi-ed our house, we have only one mortgage amount to look at (rental aside). So I think a car fund and EF are first order of business this year. I would also like to cut back on our groceries. Thanks for the reminder that I need to catch up on the tracking data! Will do that today!

I'd also like to do a bit of traveling this year. We didn't go anywhere in 2012 because of buying and fixing up the house, and that's not like us. We have quite a few miles and can get a companion airfare anywhere in the continental US for $99 if we pay a full fare (with our Delta Amex card) and have never done that. We'll see!

[Spartana]

I don't do budgets. But I will readily admit that my spending is too high. A couple more years of this and then I will be cutting back, practicing for retirement.

I don't really do budgets either. I decide on a fixed amount I will spend for the month and year and pretty much stick to that.I pretend that's all the money I have to live on...so live on that amount. I don't track anymore either because it doesn't matter since I have an allotted amount I spend and no more - don't really care too much what thing it goes to as long as I am staying within that allotted amount. Some months I have money left over, some months I don't. However, with the new shared digs and what should be lower expenses, I am curious what we will spend on household stuff like utilites, maintenance, etc... on a monthly basis. So I will track that stuff for awhile. We won't be sharing food costs or anything else, so it'll be easy to track.

[Spartana]

It helps me alot to have a no-buy...ever policy. meaning that unless I need it (and really need it not just "think" I do) I won't buy it. So with that policy fixed firmly in my mind, I am usually not affected by advertisers or even in-store products. 99.9% of the time I go into a store I don't buy anything - at least nothing I don't need. The urge just isn't there. I remind myself I have something more valuable then whatever do-hicky I can buy...freedom. Money can buy you freedom as long as you don't spend it on stuff they, the evil corporate advertizing Overlords, tell you that you need for a wonderful life!

[try2bfrugal]

I think it helps to go to garage sales and thrift shops at least occasionally so you can see where a lot of the stuff in stores ends up and how little the stuff often sells for.

[Laser_Cat]

I actually do keep a pretty tight budget. I use some software I bought (ynab) and I have to basically enter and track every single thing that I spend money on, which in my opinion is better than those sites and such that import the data, because putting everything in by hand enforces where I'm actually spending money on things.

I don't really do a yearly budget though I'm more of a month to month person but I will start putting money away for a vacation or the holidays each month so it's not a huge chunk out on my savings when the time comes to spend that cash. For me a budget totally works but I don't deny myself those morning coffees or occasional books to stay on target, I sorta work it into the plan when I'm allocating where my paychecks go, while still staying frugal. (if that's possible =P)

[citrine]

We don't do budgets either...we pay the bills, move money into our separate EF's, my quarterly taxes, and my roth IRA....hubby will be able to do that this year. We still have finances together but separate.

[nordette]

I like challenges that allow me to accomplish my budget goals so I thought I'd try out The Compact and the Food Stamp Budget for 2013. I started a little early so that come 1/1/13 - I would have ironed out some issues. The food stamp budget challenge will be a cheat because the goal is to average out to what the food stamp allocation is - not stick to it on a month to month basis. This gives some flexibility to buy in bulk for example and it is the luxury people on food stamps don't have.

As for the Compact (or the buy nothing but essentials), I've half heartedly done it in the past but I want to get into the discipline of making purchases with purpose and on plan.

[Kat]

This thread inspired me so much that I decided to post an update here. We were able to cut some of our expenses. I allocated a bit less for food, and we ditched our Netflix DVD plan. We also have extra money coming in each month due to insurance changes. With that extra money, we decided to set some aside for mission work and other charity (this is on top of the annual percentage we give to our church). The rest we will be saving. $100 per month will go into college funds for the kids, and $50 a month will go into our vacation fund (since DH wants to take the kids to Disney down the road, and it is crazy expensive). I also allocated a bit more for gifts and clothing since we never seem to have enough in those categories to cover our growing family.

So I pretty much just tweaked our existing expenses by cutting in some areas and adding in others. I feel good about the new categories we added and will continue to fund those as long as both of us are working. I also made a monthly budget based on DH's income only. That budget looks a little more bleak with just the very basics being covered. However, we will need to follow that budget while I am on maternity leave, so I thought it best to at least write it out and be prepared.

[Jpharper78]

Everything was looking a couple months ago. We just got a consolidation loan, gonna sell the house, pay off the loan and move back to Oregon (in the uk at the moment). My mother in laws 60 cost ALOT, had to go into my overdraft to pay for it. still once the house is sold and my family & I are back in Oregon, credit of any kind is not allowed near my house.

[Spartana]

JP Harper - first off welcome to the forums!! Curious why your mother in law, who's 60, costs alot. Do you support her? Maybe that's an area that you can reduce your expenses as it sounds like evrything else will be great financially once you sell your house and pay off your loan. Never using credit is good. I'm an all cash, all the time, save up for anything I want to buy kind of person and have never really been in debt because of that.

[cattledog]

This thread inspired me so much that I decided to post an update here. We were able to cut some of our expenses. I allocated a bit less for food, and we ditched our Netflix DVD plan. We also have extra money coming in each month due to insurance changes. With that extra money, we decided to set some aside for mission work and other charity (this is on top of the annual percentage we give to our church). The rest we will be saving. $100 per month will go into college funds for the kids, and $50 a month will go into our vacation fund (since DH wants to take the kids to Disney down the road, and it is crazy expensive). I also allocated a bit more for gifts and clothing since we never seem to have enough in those categories to cover our growing family.


I know for 2013 we'll have to cut food and/or discretionary. I just made my annual pledge to our church and I stretched it a little bit. The money is there, but I have to be a little more vigilant about reining in other expenses. I need to sit down and look at the numbers. I've already bought DD's clothes in the next size, so I think we are covered there. We don't have any vacations planned, but we may go on a short trip next summer. I would also like to increase the amount we put into our child's college fund.