Thursday, August 20, 2009

My budget lay out

I have thoroughly gone over our budget. It is something I do regularly, to tweak it, see where our money leaks are etc...

To create our budget all I did was list all our expense in an excel column, then in the next column I listed how much everything is each fortnight. I chose fortnightly because that is when we get paid.

I gathered previous bills for electricity and water etc... then worked out how much they cost in the previous year and divided by 26. It did take a little while to work it all out, but once it was done I was surprised at all the areas we could save in.

My list of expenses looks like this

Tithing
Mortgage
Rent
Groceries
Petrol
Car maintenance
Insurance
Rego
House maintenance
Insurance
Medical
Electricity
Water
Land Rates
Mobile phones
Internet
Presents
Sanity
Savings
Clothing
Dates

Now, for me, the only things I can't currently save on are my tithing, mortgage, land rates, car rego and rent. Everything else can be reduced.

My budget is not complex like others I know. It is basic and easy. And since I am not very computer savvy, it works for me.

To start with, when doing your own budget, a lot of people track their expenses first to see how much different things cost them. To do this effectively you need to do it over 3 months and write down EVERYTHING! It will really shock you how much money gets wasted.

Tracking your spending is a good idea, even just to review your budget if you already have one.

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