I feel that perhaps I gave the wrong impression about the purpose of this blog. I started writing this blog because I wanted a place to jot down my ideas and things I have learned. I am fully expecting and hoping to look back at some of these initial entries, and see how much I have learned from experience and also from the advice of those around me. With that view in mind, if you are reading these posts, and have an idea or piece of advice to share, please do so! Your comments are encouraged. There is still a lot I do not know, and I would love to learn from you.
Ok, so now for the post. Usually, during the middle of the month, we find ourselves with some unexpected expenses that we had not thought of or planned for when we did our budgeting. For example, last month on April 20th, we had a garbage disposal go bad in the townhome that we rent out. It happened completely out of the blue when the renter texted and told us it wasn't spinning and was starting to smell bad. I got over there, and sure enough it needed replaced. So how did we come up with the $118 in the middle of the month to pay for it, when we are in the middle of our debt snowball? Sure we could take it out of our emergency fund, or heaven forbid put it on a credit card. But at this stage in the game, we are trying to save money anyway.
To solve this, my wife and I sat down and took a hard look at the budget. We decided together that we could cut 60 bucks out of our grocery budget, 20 out of shopping, and a bit here and there from other budgets. Since we have quite a bit in food storage, and other necessities, this really wasn't a big deal for us, and helped us to cash flow this minor expenditure. This is just a simple example. For other larger, more pressing emergencies, we would have needed to tap into the emergency fund. After all, that is why it is there. Another great way to handle these unexpected expenses is to build a bit of padding into your budget. You could have a 100 or 200 dollar "stuff happens" budget for those unexpected expenses. You should pick the strategy that works best for your situation.
Lastly, another thing that we have found to be helpful in keeping the budget on track throughout the month is to actually use it and be committed to it. If budgeting is something you want to do, then committing yourself is half the battle. Once you are committed, it makes decisions easy. You can quickly look at the budget before you go shopping and tell yourself how much you're going to spend, and then stick to it. Most budgeting software has a mobile app so you can quickly check on the go also.
Be creative. We have found that we can spend less on dining out and other activities, while still having a great time. Our kids are young enough where they can't tell the difference between the sticky shoe theater which costs a buck a head, versus the Larry H. Miller Cinema, which is more like 10 to 15 bucks a head. Similarly, we found that we are getting older and less able to digest endless mounds of carbs. So when eating out, we can just share a meal, and cut the cost (and health hazards) in half. Little things like this help you to still enjoy life, but not overspend.
As with all of this, you are the one in charge of your money. If you want to budget 200 bucks a month toward fun money for each the husband and the wife, and you can afford to do so, then do it! A budget may actually help a spouse remember to spend money on themselves at times too. It's no fun to always be running money so tight that you do not enjoy the fruit of your labors.