This ONE tiny change to my budget completely revolutionized my finances. I finally was able to stop going over budget once and for all!
This post may contain affiliate links.Read my full disclosure policy here.
This is super embarrassing for me to admit, especially for a girl who’s all about teaching you how to manage money better, but I can’t hide it any longer. You ready for my confession? Okay, here it goes…
My name is Kalyn, and I’ve been going over budget….by a lot.Mostly in the FOOD category, but also in the MISCELLANEOUS category too. You know, because there’s some expenses that just don’t fit anywhere else!
For reference, Joseph and Itry to stick to about a $70/week budget, which includes all food from the grocery store and eating out. But the problem wasn’t fromeating out.It was trying to eat healthier foods and spending more in the produce section that pushed us past the breaking point.
I suppose we could just increase our food budget, right? But after looking at all the other expenses we pay for, there’s no other place I could justifiably cut.
Hmmm……
Then an idea popped into my head.
For Fixed Expenses like our Mortgage, Insurance, and Hulu subscription, going overwasn’t ever a problem. It was thoseVariable Expenses like Food, Gas, Clothing, and other supplies, that wasa huge source of stress, and where the overage was most likely to happen.
So I stopped separating them, andcombined our Food, Gas, Home, Personal Care, and Miscellaneous categoriesinto one single column.
Here’s why—some weeks you spend more in food. Other weeks, you need a few items of clothing. And other times, the toiletry department needs replenishing.
My new system embraced the fluidity and flexibility these kinds of expenses demand.
However, my onlyfear was not knowing whereour money went until our Friday check-ins. It’smighty temping to spend whatever we wanted throughout the week, and I worried wewould be hit with a big surprise whenever I sat down to update our Expense Tracking Spreadsheet.
Enter: The Budget Notebook
The Budget Notebook is a small purse-sized planner created by Ashley Shelly, whomI’ve had the genuine pleasure of getting to know over the past few months. Seriously, she is super sweet! And of course, anything budgeting is right up my ally, so I wasthrilledwe had the chance to connect.
I’ve been experimenting withThe Budget Notebook over the past two months, and I have to say it gets my 100% stamp of approval. Especially since it was THEtool I used to implement my geniusstrategy outlined above.
This plannerincludes:
- Daily Spending Pages
- SavingsTracker
- Financial Goals
- Purchase Wish List
- Debt Repayment Plans
- And of course, lots of notes!
Let me show you exactly how I use it, and why it’s essential tomy budgeting success.
How I Use The Budget Notebook:
Because I already have a budgeting system in place, how I use this notebook might be a little different than how you use it. But that’s the great thing—it’s super flexible!
- On the All Bills List, I wrote down all the expenses I was combining, as well as approximately how much we budget for each. This is the amount we needto cover variableexpenses every two weeks.
Note:Even though things like Medical Expenses, Maintenance/Repairs, and Gifts are technically Variable Expenses too, I’m not spending money on them every week.That’s whythey are not included here.
2. Each Tracking Page is a breakdown of that two week period. Every time I spend money and itfits intoone of those five categories, I write down the amount spent{left hand column},and subtract it from the amount I have left to spend {right hand column}.
3. Whatever I have left at the end of the two week period is Savings, and tracked on the Savings Log. Thisinspires us to spend as little as possible so we can reach our financial goals even faster!
4. I also make little notes about things we need to buy, but don’t have to be bought during that specificpay period and can wait until the next. This really helps us prioritize our spending.
My main takeaway
It’s really easy toget caught up in the specifics of HOW to budget.
For me, I was trying tomicromanage every single expense, which in turn, destroyed theflexibility budgets can provide.And then because it felt toorestrictive, I had nodesireto use oneat all. It’s a vicious cycle that stifles ourfreedom to move things around.
When done right, budgeting is actually fun and wildly satisfying. And no, I’m not joking when I say that!Remember,YOUare in control of all those numbers. You just have to find the right system that works for your way of living.
By the way, I convinced Ashley Shelly togivemy readers 10% off in her shop. She never does this, {and her products are totally worth it the price listed}, so you are getting a very rare treat! Just use code CREATIVESAVINGS10during checkout.
How do you track variable expenses?
Disclosure: Some of the links in the post above are affiliate links. This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers.Read my full disclosure policy here.
