Parents, do you have a budget?

Question

I'm just curious. We have a budget, we stick to it pretty well. We keep track of what we spend and where it's going. We write it down or put it in a computer program. It's just a great tool that we take advantage of.

However, we've had so many friends and family members that don't use one and a lot of them seem to have financial difficulties. Most of our family and friends actually think that my husband makes MUCH more then he really does because we are so good at sticking to the budget. I've had friends have their internet shut off or the cable shut off.... friends who have to live paycheck to paycheck. When I talk to them about their finances(without being too into their business or being pushy) it just seems that a budget would do them a world of good. For example: We don't have enough money until the next paycheck to pay this bill." But, they go out to eat 2 times that week, bought cold sodas at the baseball game($4.00 worth), checked out some DVD's at Netflix($3.00 worth), got a hair dyed($80 worth) and bought some clothes on sell ($20) worth. If they hadn't done these things, they could have paid their bill.

I guess I'm wondering if other people don't realize how little things like this add up?



DISCLAIMER: I am in NO way saying I am smarter, richer, or better then you. I am just curious as to how other families do their finances. Thank you.

Answer 1

We have a budget and we have tons of spreadsheets set up in excel that tally's up everything. I pay certain bills and my husband pays certain bills. I buy all the groceries though and often times do go over budget there, but it never keeps us from paying bills at certain times. I have a budget spreadsheet set up that outlines what bills get paid each paycheck and those always get paid first before we buy groceries, gas etc. And I have a separate spreadsheet where I log everything that goes in and comes out of our account. I keep it on there rather than in my checkbook since I have set up to automatically add or subtract so I don't have to worry about making any mathematical mistakes.



I work for a utility and you'd be surprised how many people don't pay their electric bill and get their power cut off, yet their cell phone bill was paid...guess we know what their priorities are.

Answer 2

Do we have a budget. Yes! Do we stick to our budget? No! Now don't get me wrong we always pay all of the bills (and because of how the paychecks work some of the bills are 2 weeks late but they are always paid and never shut off). We do end up living from paycheck to paycheck because we spend a lot on going out to eat and buying things here and there. We end up going out a lot because none of us like eating the same things and I'm not an awesome cook so its our huge weakness and almost never have money saved up because of this. If something ever happened (job loss, tire blows etc) we could quite possibly be in major trouble but we have family who could temporary help us out if we ever needed it and we can cut back when needed (we just never do if we don't actually have to that month). Many people do think we make so much more money than we really do all because their stuff goes into savings while we spend ours. It does work for us though and were fine with the way it works. We know in a few years (when I'm done with school and working) it will all be better for us and we will be able to start managing it all better.

Answer 3

My hub and I budget similar to you and your husband. I do the banking and use Quicken. My hub's paycheck is direct deposited into our checking and then I pay the bills, put some in the savings, and leave some in the checking for expenses. My hub doesn't even know what his paychecks are (and, he's salary, so they're always the same, LoL). He spends money as he pleases, but makes sure he gives me the receipts so I can record them and know how much is going out and in. Some months, he spends more (like if him and some buddies go on a golf outing or two), but most of the time it's relatively the same. I'm a SAHM and expecting #2 in November, so I'm trying to stick more in the savings than usual (just in case, LoL). Also, we're moving soon, so I'm trying to save more just for that (you know all those additional expenses). I also plan on going back to school, so having extra saved will be beneficial then.



People think that we are absolutely loaded, but we're average and just budget well. Yes, we do fun things (golfing, traveling, going out to eat, etc.), but without budgeting and watching our spending, it wouldn't happen. If money gets tight, we stop the fun stuff and take a less expensive route. I drive a 2005 SUV and it's paid off, which is nice. It's fabulous not having a car payment. My hub's car is a lease, but it ends in January, so we'll likely buy something then to own (so we don't have payments and then have to turn it back in - it's just more "money smart"). We got his lease before I even became pregnant with our first child (my 21 month old son). I worked then and we had no need to budget when it was just the two of us. With our larger family though, budgeting is necessary and works.



Also, I have this thing about sticking money in the savings and NOT taking it out (unless absolutely necessary). Like, if we get some giant medical bill or some other large, unexpected expense, fine. But, by pretending the savings isn't there helps us. It lets the money grow and we don't waste it on frivolous things.

Answer 4

We do a budget and have since me and my husband have lived on our own together. Alot of people think we are richer than we are because we have 2 cars and one is a brand new one and we also have quite a bit saved up (to use on our future house, we bought land so we're saving for our house). Everyone I know doesn't budget and is in debt.

We never eat out, maybe once a month but alot of our friends eat out alot. We don't have credit cards and most of our friends have several, one of my friends even has 8-9! I am a SAHM for the most part (I work 2 days a week) and the money I make doesn't even go towards bills. We just manage our money, pay our bills on time, never pay late fees, and make sure every bill gets paid every month while budgeting enough to save money every pay day.

Answer 5

My husband and I have a budget that he works out on a simple spread sheet.

He draws up a new one every month and makes changes to it throughout the month to reflect what we have spent and what we have left.

He sets a certain ammount aside in the budget for each specific bill and when the bill comes in, we're ecstatic to see if it's less than what we budgeted for because that means More spending money! Yay! lol Every month we also set aside a certain ammount to put into savings which I personally think everyone should try to do.

It works very well for us. We also do not make A LOT of money but people think we make much morebecausee of the way we budget and spend the money we do have.

We do without a lot of luxuries, but we don't mind. We know we won't be in this situation forever.

Answer 6

I am a single working Mom and I do stay on a budget. It's just a way of life for me and it is great that no bill collectors are calling me. My car is a 1985 Nissan 300zx, not shabby but PAID FOR. I do rent but have nothing to lose there. My son, just moved out on his own and will go to the college dorms in Aug. He comes and shows me the 'new clothes' he just bought at the consignment shop, and he is getting his textbooks off the internet at a hugely reduced price ($10. instead of $800)...ALL things he's watched me do his whole life. If he spends his paycheck before payday, he has to sit at home til he has $$$ again. It may sound cold, but I am not mean. I am slowly buying all the things he will need for his dorm, a little at a time, just because I see him doing so well on his own. He is paying for college himself, as I think it will make his 3 degrees that much more important to him and maybe he will think twice before doing drugs or anything else that could destroy his dreams.

I feel for the people who are maxed out and have to live that, but you get back what you do!

Answer 7

I don't really put all the information into a computer program or write it down. What we do is that once my husband gets paid, we get the money and separate it for bills, separate some for the week, and the rest that's left over we put it into our bank savings.



We also keep good track of the money, but we always put most of it into savings. That doesn't mean we don't spend money and stuff we like. We like going out a lot to eat, buying things, but we still manage to pay bills on time and have enough to save.

Answer 8

We have never had financial problems really, because my husband is ten years older than me and works as a surgeon, we have been married for three years and he finished residency (it's seven years) in America and has been working at a surgeon for over two years in Ireland. The annual income of a surgeon in America is unreal, but in Ireland it is a little bit less crazy, still. we don't necessarily have 'money troubles'.



However, we ARE on a very budgeted income. We save about one third of our money, spend about half to two thirds on living expenses (mortgage, car payments, gas, etc) and the leftover on travel and pleasure (we use a similar online program to yours for budgeting purposes, and a certain amount of our money automatically comes out of our bank account each month and is put into saving). We are surprisingly very thrifty, and we often neglect to spend the leftover money all all. I mean, we are a one-car family, we live in a very pretty but also modest house, and we don't take wild vacations or go out to eat. It's a modest but happy lifestyle[=



However, I'm not some spoiled rich woman who married an older man and never had to lift a finger. Yes my husband is ten years older than me and has a GREAT career, but for the two plus years we dated and the years before that I struggled to get an education (finish highschool and start college), find an affordable apartment, buy groceries, survive without a car, all while raising a child on my own and paying day-care payments on a part-time salary (with no help from my parents). Budgeting was the ONLY way I could survive. I never went out to eat, traveled, or even bought new clothes for myself for many long years, even when Patrick and had been dating for two years and some months I refused to let him help me. It was VERY difficult, however I never landed myself in debt. I think that budgeting is the VERY best way to stay debt-free, I would know! =]

Answer 9

Yes, I have a strict budget. My bills are all set up to come out of my account automatically as well so there is no putting a bill off for a few days. With the first pay check of each month our housing bills come out, with the second vehicle bills. I put a certain percentage in savings, emergency and vacations funds each pay period as well. I leave a little bit set aside in the account for little splurges like starbucks or something and then spend the same amount each pay period on groceries.





Though my husband has know idea what our accounts even look like. Just the other day we were filling out some paper work and he asked me how much his check was each pay period, he didn't even know! I just deal with him by giving him a certain amount of cash to blow LOL. People think it is weird but it works well for us!

Answer 10

We aren't as careful or strict as we used to be, but we pretty much pay the bills first and if the money isn't there, we don't go out. We try to eat at home, take snacks with us to places, instead of paying the high prices. We shop at second-hand stores and dollar stores for many items. But I agree that some people just don't see how all the little things add up. I remember a friend getting her nails done (acrylics, manicure, and polish) and then asking her mom for money for groceries which just seemed odd. If you're broke, you shouldn't have the best looking nails from the most expensive salon. That's just my opinion.

Answer 11

I am not a mother, nor am I a parent, so my opinions reflect more along the lines of practicalities than a "been there done that" approach to your question. Still, I hope they are helpful. Others have given their opinions of being a teen parent, which I think are good for you to read about, but none of them intelligently answered your questions here. Lets see if I can give it a try. Common jobs: If you live in the USA, there are severe restrictions on jobs that you can be hired to perform. One of these is that most people won't be able to hire you if you aren't at least 16 years of age, and between 16 and 17 (until such time as you turn 18) there are severe restrictions on number of hours of work somebody could hire you to perform, and when you could actually perform that work. In most cases, if you lack a highschool diploma, your ability to advance economically is also severely hampered. You may not be able to earn enough money to support you and your child (and hopefully, you have your "other half" helping out there because if not, asking for help from Mom and Dad might put a real strain on your relationship with them. Remember, it was your choice to bring a child into this world, not theirs, and they may not be willing or able to support both you and your child). Grocery budget: This is a useful task to do in any event, but remember that you are no longer just buying for yourself. The needs of your child will, indeed, amount to a pretty penny over the course of time that the child goes from babyhood to adulthood. How do you plan to pay for this necessary task when your monetary intake from a job will be so severely hampered? Apartment prices: This will depend a lot on where you choose to live. Since you mentioned a particular location, I'd recommend you do your research in the local newspaper's real estate section to determine the cost of either owning a home (not likely considering your going to have severe budgetary restraints) or renting one. Rent is typically a very sizable portion of the budget you will need to create, and without either a job or a high school diploma, you're probably going to have a very difficult time paying this bill in your current budget, whatever that budget might be. Baby expenses: Your baby will go through diapers, and you won't have any idea how your baby will go through so many. Diapers are not exactly cheap to buy either. As for formula, research suggests that babies who are breastfed get an enormous amount of nutrients from breast milk which they do not get from formula alone. However, breast feeding takes time and some patience. You might want to consider how you will be able to provide that time and patience when you are spending most of your time working so you can afford your apartment and other necessary baby expenses. (Another advantage of breast milk is that it is free, which will be perhaps a key point in your budgeting scheme here.) Also, don't forget that your baby will need regular checkups with the doctor to ensure proper health, so you might want to factor in the cost of health insurance here too. Miscellaneous expenses: There will be more of these than you will know what to do with, and most of these will be rather unpredictable until they come up. One important one you will want to consider is whether or not you will want to give your baby the financial means to go to college or otherwise learn the ins-and-outs of personal financing. (As a teen mother, I imagine that going to college would be terribly inconvenient for you, so I would just tell you to forgo that idea.) Emotional qualifications for parenthood: I've been told that being a single mother is a strain emotionally on almost every mother who has undertaken the task, whether for the right reasons or the wrong ones. Many such single mothers often express regret at their being completely unaware of some of the challenges of single motherhood, and often describe that, if they had known beforehand, they would never have attempted it even though they also are proud to announce that they wouldn't give up their child for anything. Some, however, are forced to do so because of the emotional and financial strain, and many children go up for adoption because of that, but many more are never adopted. Whether you, personally, could emotionally handle being a parent, I have no way to know, but I suspect that if you think you are able to do so, you will probably wind iup with a few surprizes along the way. Financial qualifications for parenthood as a teenager: Most likely, you'll become a recipient of the welfare system because I doubt you'll get too much support from potential employers or from your friends and family. The fact that you are asking these questions is a good start, but I think you're going to be completely drowned by the financial responsibilities of parenting in your position, let alone the emotional responsibilities.

Answer 12

We sound like your friend's family... Basically our budget is "honey, we have $300 left in the bank" then we only buy store bought food and gas... Some of our bills don't get paid like this time we went to a wedding an had to buy new clothing because I under packed... it coulda paid our bill... :/



I need to crack down... but it's so hard.



And also, both our xbox360 system and ps3 broke and we went out and bought a new dvd player and $50 in movies. We're bad bad money spenders...



EDIT: another reason we're lagging so hard right now is that we just put 2500 down on me a new car.. it KILLED us.. but the payments are only $300 so it's do able. It's just the getting started that kills us mostly...

Answer 13

Thank you for the website! Im definitely going to give it a try. We seem to have a bit of difficulty some months, and not others. I buy things we don't need, and he spends way too much money going out with the guys. This may be the solution! ;)

Answer 14

yes we have a really strict budget, i am not working at this time i am a full time student my boyfriends is the only one working at this time. we have two kids 7yr old son and a 3 yr old daughter, my boyfriend gets paid every 2 weeks from one company and every friday from his part time. we both opened bank accounts one which is for our bills rent water elect ect,,, which are all set automatically with drawl from our bank... the second is for our daily use, we save all receipts everytime the cards are used to keep track of our balances, and we also input it into our computer at the end of the week. we are a young couple so at first it was hard to have to budget we would fall behind on our payments i was constantly calling for extensions on our payments till we started to do this now we are worry free

Answer 15

I have a budget, especially now as a newly single mom. It really helps to keep things in perspective and helps me to know how much is left over so that I know just in case.



I have a friend who her and her husband do not budget and they always say "were not going to spend money today" but they always do! I am not judging them but they complain that they never have money left over. I have suggested a budget to them but they tried and did not like it at all...so I know where you are coming from!

Answer 16

We have a budget. Actually we use it a lot more as a guideline. It just gives us a very realistic idea of where we are at. That way we know what we can spend and what we can't. Like for example my entire family has an allowance. It's our spending money. Once it's gone, it's gone. That way my husband doesn't over spend on lunches, coffee's and that sort of thing. He brings a lunch a now and has a coffee pot at work.



My co-workers used to think I was rich because I would go to subway often for lunch. I used to have to explain to them that I'm not rich, I just choose to spend my money on sandwich's instead of alcohol, cigarette's and drugs (which is what they spent their money on). Same goes for my friends and family. They seem to think we are made of money. They just don't understand that we are comfortable because we don't over extend ourselves.



I use this budget guide: http://www.gailvazoxlade.com/resources/guide_to_building_budget.html



and this budget calculator: http://www.gailvazoxlade.com/resources/interactive_budget_worksheet.html



and have an app. on my iPhone called: HomeBudget



It's amazing how much money you "think" you have and how much money you "actually" have.

Answer 17

With 1 year old triplets in the house and me not working at the moment(plus another child on the way!) we definitley have to tightly manage our finances. My husband is paid fairly well and we are fortunate that for right now he can support us without my working, but we do keep a tight budget. We limit a lot of what we spend and keep track of everything.



That program definitley seems like it'd be worth it to download- I'll look into it! :) Thanks for sharing!

Answer 18

My sister in law and brother are doing a budget. I start doing a budget last November and still doing this day. I am on budget with food and gas for the month. My sister in law helps me with my budget.



I am debt free. Right now I am debate with my mom because she is trying to get more money out of me, It a long story and my sister in law knows all about it.

Answer 19

We budget too.

We don't really need to but I keep reminding my partner if one of us lost our jobs we'll be glad we have budgeted. We do everything we can ourselves, instead of going to the hair dresses to dye my hair I do it myself and I've done his before myself. We have friends doing the same job as we do, same wage and some live worse than we do. One lives paycheck to paycheck, other has just lost her car and home and neither of them are supporting a child like we are but both live with partners..

Answer 20

Yep I have a small buget but iam really good at going by it, and saving what ever is left.

Answer 21

Yes, we have a simple budget: Spend less than we earn.

Answer 22

ooohhhhhhhhhhhhhh....goooosssssssssshhhhh...tell me about it!!!i try and i fail...thousands will be a lot less than the times i have failed.



we do have a budget and we always cross it out.which computer prog do u use??



and i like your post...and good going!!!

Answer 23

"But, they go out to eat 2 times that week, bought cold sodas at the baseball game($4.00 worth), checked out some DVDs at Netflix($3.00 worth), got a hair dye ($80 worth) and bought some clothes on sale ($20 worth). If they hadn't done these things, they could have paid their bill."



Yeah, and this is a common sort of musing for people who are a little removed from poverty. Why don't they just spend their money more wisely?



But. If they had not bought all those things? _They would still be poor_. As it is, they had a few pleasures. Excel spreadsheets, paying one's bills on time, those are not particularly useful if one is unable to meet basic financial obligations.