Budgets

How do you all plan household budgets?
monthly? weekly?
does anyone use the envelope method?

I am trying to set up a new budget and would love any ideas.

[SuzySunshine]

Miranda,

I'm very anal and do it by paycheck! I don't use the envelope method but I keep such close track of it, it could be my personal envelope system. And that's without kids!

[DCJenn]

I use Quicken. I took a copy of our various statements, entered everything that was a 'real' debt (mortgage, car payments, insurance payments, credit card payments, gas & electric, land line phone service, home equity loan, homeowners association.) Then I figured out based on previous expenditures the slightly more fluffy debt- like groceries (yes, we do have to eat, but I don't have to shop at Whole Foods, either!) and items like clothing, NetFlix, cable, cell phones, long distance and internet service. Afgter all that is entered, I entered things like gifts (in the appropriate months), clothing expenditures, uniforms for Rick (yes he has to have them, but he has some already! If he gets promoted though, that'll mean all the fatigues will have to have new patches sewn on, plus the rank will have to be changed out on the others), and dining out. I limit us to eating out once a week- which is a huge change from when I was working- then we'd go out at least three times a week.

That's how I do it. I also pay off the credit cards after I use them. Some still have a balanace so I add a bit to whatever I've spent, on top of my regular payments.

Jenn

[Sheherezade]

I work our budget in a similar manner to Jenn using Quicken and online banking. The day to day expenses seem to be where we get out of control. We are constantly threatening to do an envelope system for that. Now, we are on a cash-only basis for things like groceries, eating out, impulse buys (ice cream cones!). I read somewhere that using cash usually results in spending one third less money. It does change my perspective when the money out is cash and not a debit card. We may go envelope for weekly expenses next month. Let me know if you try it!

[SueC]

I'm thinking of giong to a modified envelope system--basically envelope in theory without the actual envelopes. I'm not sure I trust myself with a wad of cash. We've never had a good handle on our budget and find outselves blowing our budget on unnecessary expenses like eating out or trips to Costco (that place is dangerous!). We are now down to eating out about once a week as well, and the kids and I almost always pack a sack lunch, snacks and beverages when we go to the pool or other outings so I don't waste money on that sort of thing.

[Vishenka69]

I've set up our budget on a monthly basis and done it through the Excel spreadsheet. I started with a monthly income and then itemized all the expenses, then subtracted entertainment, shopping, going out, birthdays/weddings/etc., and came up with a target amount we should be saving each months. Then I set up ING online savings account and created an automatic deposit from our checking in the amount that I targeted in the budget. I check out credit cards and checking account at least weekly to make sure that we can pay our cards off each month. If I see that we're reaching the limit by midmonth, I scale down on eating out and other things.

We could be saving more but life of a resident is hard enough and we want to travel as much as possible before kids.