Best tips for crafting a TIGHT budget

[bisous]

I haven't had the best luck with budgeting. Things never seem to go exactly how I plan them. Instead, my strategy right now is to watch things really closely and to try to scrimp and save where I can! Money seems to come through right when I need it but it doesn't seem to grow very fast.

I'd like to be more purposeful with our money. I know how much we make, I know our set bills, I know the major categories of variable costs (food, gas, electricity, etc.) but I always seem to be tripped up by relatively unexpected costs. Some examples of things that have set me back lately include major car repairs (which should probably come from my savings), unexpectedly high field trip costs for my kids, needing blackout curtains since our tree in the backyard fell over and nobody can sit in the dining room at dinner time because the sun is so intense, and DS1 need more clothing than unusual this year because of major growth spurts.

The car expense is major and I think I understand where the cash flow should come from, but how do you prepare for little amounts--clothes, field trip costs, birthday parties, extended family outings, etc? Do you guys ever say no to any of these categories? We're trying to be disciplined but darned if my DS isn't going to go to Medieval Times with the rest of his class! And I hate to say not to a family party that includes six people eating out (but it sorta ruins my budget). We could have used cardboard or bed sheets in our windows, I suppose but that feels really cheap, family dinner is important! etc. etc.

Sigh, if things weren't quite so tight it probably wouldn't be so complicated. We're working on that! But I do think we need to learn to live with the budget we have right now. We're planning and scheming on how to augment income (and in a few months we'll have totally paid off two of our three student loans!) but for now, how to do I account for the small things? TIA!

[niccig]

So not an expert with budgeting, but I think the idea is to have a set amount each month for car repairs and for entertainment expenses (field trip, eating out) as you know you'll have these expenses at some point, so they're not unexpected. You then you roll over what you don't use e.g. No car repair for 6 months so should have 6 months worth for when you do need it. And then if something comes up that is more eg field trip, you cut back in another area to cover the extra expense. Or you have a line item for extras to give you the cushion.

I've never succeeded in getting DH to budget, he will not track money at all. I've had better success at focusing on big items e.g. Made sure 401k, college funded, small emergency fund (I'd prefer more), then look at big budget areas and try to cut back there, and discuss money more so we're kinda on the same page.

Congrats on getting the student loans paid off. That and bringing in extra $$ should ease pressures a bit.


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[specialp]

^^Yes, you budget for clothing, entertainment, and Misc. These occur, but not at regular intervals so they aren't unexpected, but means on a tight/accounted for budget, there needs to be earmarked $ set aside for those. The reason a lot of budgets fail is because they are too tight and do not include clothing, misc. On a good workable budget, you have your "savings" - the money you try to never touch absent something major - and then you have cushion money that has built up for this other stuff that you absolutely plan to spend when the expense time comes.

[SnuggleBuggles]

My friends had great success with You Need a Budget and really holding themselves accountable for every little bit.


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[Pear]

Everything gets budgeted on a year basis, including car maintenance. Doing it by paycheck or by month will always fail. Once you have yearly figures you can divide them up to a smaller basis, but it never really works to start with small intervals.

[cilantromapuche]

I think you need to know where your money has gone in the past. Honestly, I have become a minimalist and I can go days without buying anything. I am trying to get rid of things and seeking out experiences. I have heard great things about YNAB. There are some very interesting forums on Mr. Money Mustache and some facebook groups. Those people are on a tight budget because they make a game of saving as much of their money as possible.

[bisous]

Thank you. I'll check out YNAB. I've seen that mentioned here before (maybe even to one of my posts?) but if it helps track these little extra costs that will be great.

I think I need to know exactly where the wiggle room lies. Then plan to have that as a lump sum that can grow bigger or smaller as the month requires...Does that sound like a good idea? Like these past two months have been extraordinarily expensive for more reasons than I've listed but we spent $1200 on things other than fixed costs and food, gas, and medical. That seems insane to me and I don't think we could keep that up on a regular basis, but I think if I knew how MUCH extra we had then I could just set that aside in a different account and let it grow on months that don't have a lot of expenses and use it when we need it. I think it would need to be a different pool than our "savings" pool for true savings.

One of the trickiest things about our finances is that DH is paid WEEKLY and all of our expenses are MONTHLY. I get paid QUARTERLY approx.

Thanks for all your help. I'm totally open to criticism and suggestions!

[vonfirmath]

I get paid weekly too. I budget based on 4 weeks of paycheck and when there is a 5th week, take out 200 for food & tithe and put the rest into savings.

Can you live on just what your DH is paid and use your income for debt/savings for the bigger repairs, etc?