Budget Archives - Page 6 of 11 - The Happy Homeowner

2012: Year of the Ballooned Spending?

Posted on January 3, 2013 by Jen

Every year, I total up the amount I’ve spent during each month on miscellaneous expenses. For my budgeting purposes, “miscellaneous” includes anything that isn’t an auto-debited bill or debt payments. Essentially, that means things like gas, groceries, clothes and medical co-pays are lumped right in with concert tickets, meals out and vino (because life is definitely better with a bit of vino ) I also include a separate breakdown for all travel-related expenses.

Here’s how I fared for 2012, followed by a side-by-side view of 2011 vs. 2012 for the same categories:

2012 Miscellaneous Spending

A few notes:

The miscellaneous of the miscellaneous (not confusing at all, eh?) includes concert tickets, haircuts, furniture (I like to buy secondhand pieces and refinish them), marathon/race fees, random household expenses like cleaning supplies and paper products, birthday gifts, transit fees (tolls, taxis, subway passes) and a few other irregular expenses.

To keep myself on track, I enter each expense I incur on a separate line item, noting the purchase, date and total amount spent. Moving forward, I'd like to pare down this category so it's easier to have dedicated categories for all tracking purposes.

Blog/online expenses included the self-hosting and domain transfer for this blog as well as hosting and domain name purchases for my other budding online ventures. Condo expenses included all of my random DIY projects as well as installing crown molding in two rooms (by myself...woot, woot!).

The 'overages' category here is perhaps the worst, most embarrassing part of my budget this year--it's the total amount I went over from my $500/month miscellaneous spending budget. Ugh. Clearly this needs to change in 2013 as this is not a sustainable way to budget--these overages were recognized in the same month's budget, but they could have easily been avoided had I been better about spending. Onward and upward!

2012 Travel Spending

2012 Travel Expenses

A few more notes:

As I detailed in my 2012 Hits and Misses post yesterday, I didn't end up going to Tanzania due to my marathon injury so all of that money was refunded to me and put back into savings. Acadia is my annual Labor Day camping trip, RTB is from running the Reach the Beach relay in the fall, Essex was a long weekend trip to the Essex culinary resort in Vermont and Sunday River was our holiday trip we just returned for (yay for friends having a family cabin so we stayed for free).

2011 vs. 2012

Now comes the ~~ugly~~ fun part--two years side by side!

2011-2012 Miscellaneous Spending

Thankfully, I did manage to reduce my miscellaneous of the miscellaneous spending and my meals out spending which were my two spending-related goals for 2012. But, I clearly have my work cut out for me in 2013! First up will be addressing the overage issue, then I'll tackle the meals out and gas expenses.

A few immediate changes for 2013 will include no pet-related expenses as my kitties are moving to a new home (difficult decision but look for a very exciting announcement that's related to their departure!), ideally no more car maintenance expenses as BMW covers all oil changes, brake pads, etc. for the first 50K miles, I will hopefully not lose my iPhone and therefore have no cell phones to buy and I'll have no blog-related expenses unless I decide to do another redesign because my hosting is paid through 2017.

Check back soon for a complete listing of my 2013 goals...

Do you track your miscellaneous spending? How did you fare in 2012?

I’ve Officially Entered the Dark Side of Budgeting….

Posted on June 12, 2012 by Jen

I’m taking a break from budgeting.

Yes, you read that correctly. No, this does not mean I will be heading out on any mindless shopping sprees.

For the past four weeks, I’ve been caught in a vortex of incessant number crunching. Perhaps it’s my way to exuding control over situations that are clearly out of my control (ahem…job searching…), or perhaps it’s because I don’t feel confident that something great is going to come along anytime soon. Hell, it could even be a mix of the two plus other factors I haven’t quite figured out..

Regardless, I’ve been crunching numbers daily in an effort to ease my no-longer-subconscious anxiety over this transitional period. And quite simply, I’m driving myself crazy.

I’ve realized that I’ve entered a stage of budget-related stress that I’ve never felt before. For the life of me, I can’t seem to figure out how I went from happily setting my monthly budget and monitoring my spending to obsessing over every penny spent multiple times throughout the day. As someone who has worked tirelessly to instill a sense of balance into my efforts, I know that I’ve officially entered the Dark Side of budgeting.

What is the Dark Side of budgeting?

For me, it’s clear that I’ve entered the Dark Side of budgeting because I’m obsessed with every.single.cent. Every decision I make–despite a seeming lack of connection to money on the surface–has everything to do with my budget. Worst of all, my sleep has been horrendous because I’m having nightmares about paying bills, draining savings, and my Excel sheet (even though I have ample savings and have yet to touch it!). The Dark Side of budgeting is a realm where you’re not really focused on your budget–you’re obsessed with it to the point of feeling paralyzed.

Some signs you’ve entered the Dark Side of budgeting

You’re turning down opportunities to spend time with friends because you fear they’ll require spending money (I even turned down a walk around a local pond; I was certain I’d get roped into lunch, etc. and wouldn’t go)
You’re calculating your next grocery purchase as you prepare your lunch (Don’t use two tomatoes–save the other one for dinner!)
Most horrendously, you’re looking over your budget sheet at least 2 times/day even though the numbers clearly haven’t changed….
When you even think of the word budget, you physically feel stressed

How to re-emerge from the Dark Side of budgeting

Take a break
Close the bank account web browser tabs, shut down the computer, hide the checkbook
Make your break long enough so you’re able to clearly identify what’s really bothering you
Create a plan to overcome whatever anxiety is leading you to feel so stressed out
Follow the plan, but keep your spending in check–this is not a time to go into “head in the sand” mode!
Get out of the house, exercise, spend time with friends, etc. The key is to give your mind a complete break from the budget mindset
Re-assess and make necessary tweaks until you’re able to return to your normal budgeting habits

The actions above are exactly what I’ll be doing. While circumstances may very well change this week (I’m waiting on the official offer package for the 10 interview job!), I still need to give myself this opportunity to decompress from all things related to numbers–aside from potential salary negotiations…wahoo!

While this certainly won’t be an easy feat to force myself to take this break, I know it’s necessary, I’ll benefit in many ways from doing so, and I’ll return to the budget scene rejuvenated and ready to tackle the next set of obstacles I’m faced with (or goals I’ll set).

Have you ever found yourself on the Dark Side of budgeting?
What did you do to snap out of it?

Photo credit: topgold

How to Manage a Bare-Bones Budget

Posted on June 4, 2012 by Jen

While I’m figuring out the next steps in my professional endeavors, I could potentially be dealing with a significant reduction in salary. Whether or not it’s going to be a short-term or long-term reduction is still up in the air and contingent upon finally hearing back from these positions I’ve been interviewing for.

Until I’m certain of what my next steps are (ie. an offer letter that’s signed, sealed,and delivered!), I’ll be adhering to a bare-bones budget plan.

What is a bare-bones budget?

A bare-bones budget is exactly as it sounds: Adhering to a budget that’s based on the absolute minimum amount of spending for which your situation allows. It’s a no-frills, no-extras-allowed plan that’s as strict as it is necessary when you’re faced with a substantial reduction in income.

What does a bare-bones budget include?

Your bare-bones budget should only include necessities such as food, housing, healthcare, insurance, and debt payments. For me, this includes the following:

Mortgage payment
Condo fee
Groceries (basics only!)
Utilities
Insurance (car & homeowner’s is now fully paid for the year)
Student loan payments
Retirement savings (a non-negotiable for me)
A small amount of long-term savings (can be used as a buffer for unexpected expenses if this salary reduction continues for longer than anticipated)

What a bare-bones budget does NOT include:

All frivolous expenditures are officially out the door! For me, this means no more:

Dining out
Movies, concerts, events that require a ticket purchase
Shopping for anything other than groceries
Vacations (although Kilimanjaro is still on as it’s fully pre-paid already!)
Hobby-related expenditures
“Extra” personal care such as cosmetics, manicures, etc. (although I’ve never had a manicure, pedicure, massage, etc. so this doesn’t really apply to my situation)

How to maintain motivation during this phase:

Sticking to a bare-bones budget isn’t going to be very fun. But, it’s necessary and it will be a great exercise in personal strength, tenacity, and willpower. Also, there’s not many better ways to hone your ability to delay gratification!

For those moments where I’m particularly feeling the need to splurge, I’ll be doing the following to ensure my motivation remains high to get through this phase with my e-fund still in tact:

Reminding myself that this is a temporary phase. I’m very close to securing a new full-time job, so I know this will be a temporary phase. Unfortunately, these hiring processes are taking much longer than I had originally anticipated, but I will continue to remind myself that I’ll be settled in a new job sooner than later…
Seeking out creative options. Reducing expenses to the bare-bones minimum doesn’t mean that fun and socializing goes out the door. In fact, it’s almost more motivating to me because now I have to come up with creative options for spending time with my friends. I’ll be relying on the plethora of free summer activities available in the city as well as surrounding my social time around activities such as running, biking, and hiking–which are free and healthy!
Remaining positive. I’ve weathered a great deal of storms in my life, and I know I can get through this phase just fine. I’ll keep a smile on my face and a spring in my step knowing that I’m headed towards nothing but greener pastures. Even if the road to those pastures is a bit uglier than I had hoped, it’s absolutely still one worth navigating…

What do you think of the bare-bones budget idea? Have you ever adhered to one? Do you have any other tips/suggestions?

Photo credit: pathfinderlinden

Signs That You Have a Spending Problem

Posted on April 24, 2012 by Jen

It’s no secret that I used to be absolutely horrible with my money. I’ve mentioned before how I’ve done a financial 180, and I’ve highlighted some of the ridiculous excuses about money that I used to make. What I haven’t discussed is how I finally learned that I had a spending problem.

For whatever reason, carrying around tens of thousands of dollars in credit card debt didn’t seem to phase me for quite some time. Like a Sherpa schleps packs up the mountain, I crawled my way through my early 20s with multiple credit balances and a complete lack of financial knowledge tethered to my back. Effectively, I ignored all of the following signs of a serious spending problem. That is, until I finally gave myself a kick in the pants and got my financial act together for good…

You Might Have a Spending Problem (as I Once Did) if:

You’re spending more than you bring in

This is one of the easiest ways to gauge your financial health and decision making habits. If you’re spending more than you’re bringing in, you’re creating a monthly deficit that must be paid. Often, that deficit is paid via savings or credit. If you suck your e-fund dry on non-emergencies, what will you do when the real stuff strikes?!

You opt into paperless statements to avoid seeing how thick your credit card statements are

Helping the environment is one thing. But opting in to paperless in order to avoid having to deal with your 10 page credit card statement is just another way of shirking financial responsibility. Consider this: Your statement wouldn’t be so large if you weren’t spending so much!

You ignore your mail (or shred it without opening)

I was certainly guilty of both of these. I stuck my head in the sand by not dealing with my mail, and I chose to stay oblivious to my actual debt totals for a very long time. The thing is, the joke was on me because I ended up paying thousands of dollars in interest on mindless purchases.

You have a closet full of clothing, shoes, and accessories that still have tags

Do a quick scan of your closet(s)….Do you see multiple tags sticking out? Unless those items were free, there’s no reason to see so many brand-new, never been worn items (but if you scored a closet full of free clothes, please email me your secret!!).

Your significant other, friends, or family members roll their eyes when you tell them about your latest purchases

Non-verbal cues are powerful messages. Even if it’s not an eye roll, a raise of the eyebrows or a smirk can say indicate the same disdain for an over-spending tendency. Worse yet is if you’re hiding your purchases for fear of being judged and/or starting yet another argument about how you spend your money.

You convince yourself that you’re “saving money”

This was another one of my weaknesses. I could easily justify buying something if it was on sale, regardless of my actual need for the item. Another version of this behavior is buying things in bulk. If you’re not going to use all of the items or honestly have no need for them, why are you spending your money?? For me, overcoming this nasty habit was as simple as asking myself that very question each time I went to purchase something.

You have no idea how much you’ve spent

If you’re spending mindlessly or emotionally, chances are you have no clue how much you’re actually spending. My receipts often went right into the bag with the items, only to be tossed out immediately after I emptied the bag at home. Knowing how much you spend is paramount to gaining control of your finances.

You’re surprised by your receipt totals

If you finally bring yourself to see how much you’ve spent and are shocked by the total or can’t remember an item that’s on the receipt, it’s a sign that you might be spending too much.

You’re on a first-name basis with local shops, retailers, or the FedEx man

Having “the usual” might be OK for a morning coffee or weekend brunch order, but the other instances listed all sound the alarm bells for me now.

You let your emotions rule your money

If you find yourself shopping away anger, guilt, sadness, etc, take a moment to take stock of your emotional tank. If it’s running on empty, step out of the mall and instead talk to a friend, go for a walk, or play with your pet. I let my emotions dictate my spending for years until I finally understood that it really wasn’t the items I shopped for that I wanted–it was relief from the negative emotions and stress I was feeling.

You have spending hangovers

Have you ever gone on a shopping binge and then literally felt sick to your stomach after realizing how much you spent or that you couldn’t actually afford what you purchased? I certainly have!

You “forget” to pay your bills

If you’re not automating at least the minimum payment each month, what is the real reason you’re not paying your bills? Perhaps you’re stretched to the limit. In that case, you definitely shouldn’t be spending anymore. If you still have money coming in to pay your bills, perhaps you’re paralyzed by your debt (I was for a while after I finally tallied it up). In that situation, reach out to someone who you trust for help, educate yourself about all things personal finance, and accept that you have some work to do. Doing so will give you control of your finances and your future.

Do any of these apply to your situation? How do you keep your spending under control?

The Happy Homeowner

Living a Healthy, Balanced Life One Cent at a Time…

Category Archives: Budget