Comments

  1. Kelly Bouma says:

    very good information – still trying to set up a budget so I think I will have to download some of your tools – having a hard time getting started

  2. Wendy LeDrew says:

    I am really looking forward to when you share your spreadsheet, I am just using something I wrote up myself for now.
    I would like to know more about the projected expenses as well. Just set up a seperate account, and transfer money each month?

    • Yes every month we move the money to the savings account until we have to pay that bill. Once the bill comes in we take the money fro that account. BUT you have to remember that we are dividing the cost over 12 months so you have to pay it in for 12 months even if you pay the bill. That’s where the overlap in money comes so there is money to pay for the other projected expenses and so on. The best part is knowing we have the money saved… ah.

  3. We plan this way too. ING doesn’t charge us service charges or fees for opening an account so we actually have a few “planned expenditure” accounts for specific items as well as one general account. Right now our specific accounts are aimed at new tires, replacing my computer, and some upcoming dental expenses. Our general account gets an amount each month calculated to cover things like property tax, auto maintenance, home repairs…

    • So many people forget to do this and when the bill comes they turn to their savings or other credit means. We don’t need to do this if we all plan properly with our budget. If you know the bill is coming you must save for it. I’m sure you agree it’s a great feeling knowing the money is saved but it’s not an emergency and not depleting that account. Cheers Mr.CBB

  4. Joanna Cheevers says:

    Some great and useful information. I’ve been trying to do the same thing as I have been following your budgeting series and seen you mention it before. For those just starting a budget I think it is a great thing to do. My only problem is that there are always expenses that come up that I have forgotten to include. Once I realize I have forgotten them, I adjust my budget to include them for the future so come next year I should be in good shape. As for the other comment you made, I myself have no debt but I still created and follow my budget so that I can stay debt free as I know the circumstances under which I live today will not be like that forever and I need to be prepared for when changes come. I am also looking forward to the CBB spreadsheet as like Wendy I am also currently using one I made up on my own. As always, thanks Mr. CBB

    • Funny you mention that as we always come across something same as you and add it into the budget. You can see as I post my budget updates monthly something new is added every month or adjusted up until last month I believe. That’s great that we recognize this and like you said by next year we should be all sorted. The best feeling is budgeting it all in even the small stuff so when the bill comes.. bam, just take it from the projected expenses account…Budget coming soon and for the few that have tested it, they love it but it’s been updated since they got it! Cheers Mr.CBB

  5. Christine Weadick says:

    We’re starting to work towards a budget, or at least the hubby is,I’ve been trying to keep things in some sort of order for a while. He had a shock the other day when he asked me to go through the checkbook and figure out what we spend on things like groceries. I sat down with book and paper and wrote down everything and added it up. A few of those enters stopped him short….. he forgot about things like the plate tag for the truck…..repairs and maintenance, accounts fees, investorline, and such…..The other thing I could suggest here would be to see how many of the projected costs could be switched to a monthly billing? We pay our taxes, truck insurance and house insurance monthly….. the option is there for the asking….would you consider that????

  6. Tara Knott says:

    I appreciate articles like this because it gives you an idea of how or where you can get started…makes it seem easier and like you will succeed :) thanks for this.

  7. I have never had a budget, but for the last couple of years while shopping, had to justify a purchase in my mind prior to purchasing. If it wasn’t really necessary, I don’t buy it (no matter what the good deal on it is). I find if you don’t really go out shopping, it is very hard to spend money on unnecessary items……make a list and stick to it! (oh and of course…..use coupons)

  8. I think what you’ve done makes perfect sense (to create projected expenses, rather than use emergency savings). It does help when things come up that you don’t pay for often like your license renewal or your passport (just came up with that one as Ken is getting his next week lol) We now have a projected expenses account thanks to you and it really makes a big difference. I also feel peace of mind knowing the money is there when I need it. I have several accounts with RBC so I just use chequing for day to day banking and savings for projected savings, TFSA for emergency savings. I also have a few ING accounts I hope to start up again soon to save for finishing my basement and another for the next baby. I don’t use projected savings as much as Mr CBB as I try to pay all my bills bi-weekly or monthly (I pay my property taxes monthly and get Nov and Dec off, I pay Hydro monthly on equal billing, Domestic Gas monthy on equal billing). I just find it easier for me to budget and keep track that way. It feels like such a big chunk the other way (I guess its kind of psychological too lol). Using Mr CBB’s budget, including a projected savings account has made a HUGE difference for us financially. I don’t think there’s enough praise I can give to it, or enough “thanks” to give Mr CBB for all he’s done for me and my family. When Mr CBB releases his spreadsheet I recommend EVERYONE use it! Use his tools, follow his budgeting series…because it works!!!! THANK YOU Mr CBB!!! :-)

    • All this and I only have to give you a pan of brownies hahaha… thanks darlin.. that was very sweet of you to say…. Disclaimer: no she is not a paid commenter lol..she is one of the biggest fans here at the blog, Facebook and now Twitter!!! Keep at it … you inspire me like everyone else… :-) Mr.CBB

  9. This is great; I made up a system for dealing with projected expenses this year too, because I couldn’t find much online about “cash flow budgeting” at the household level:
    http://wp.me/p25oSj-up
    I think we are like-minded!

  10. Anthony Mazzocchi (@kinhavenmusic) says:

    Great post! I am definitely liking back to this one; a very interesting and useful take on the budget..

  11. I learned the most from the Projected Expenses blog post. These were expenses that I had never thought about saving for all year round before this…..Here is what I commented previously on this post and it explains all of my feelings :-)……………………I think what you’ve done makes perfect sense (to create projected expenses, rather than use emergency savings). It does help when things come up that you don’t pay for often like your license renewal or your passport (just came up with that one as Ken is getting his next week lol) We now have a projected expenses account thanks to you and it really makes a big difference. I also feel peace of mind knowing the money is there when I need it. I have several accounts with RBC so I just use chequing for day to day banking and savings for projected savings, TFSA for emergency savings. I also have a few ING accounts I hope to start up again soon to save for finishing my basement and another for the next baby. I don’t use projected savings as much as Mr CBB as I try to pay all my bills bi-weekly or monthly (I pay my property taxes monthly and get Nov and Dec off, I pay Hydro monthly on equal billing, Domestic Gas monthy on equal billing). I just find it easier for me to budget and keep track that way. It feels like such a big chunk the other way (I guess its kind of psychological too lol). Using Mr CBB’s budget, including a projected savings account has made a HUGE difference for us financially. I don’t think there’s enough praise I can give to it, or enough “thanks” to give Mr CBB for all he’s done for me and my family. When Mr CBB releases his spreadsheet I recommend EVERYONE use it! Use his tools, follow his budgeting series…because it works!!!! THANK YOU Mr CBB!!!

    • I almost had to go make a tea to read all of this again lol…. thanks for sharing Jen and I’m happy to hear you understand them now. Too often people think they have extra money left in the budget and allocate for other things when in reality all these little projected expenses creep up and there is no money to cover them. It’s very important. Cheers Jen

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  10. [...] budget but if you know you will be paying for a babysitter each year you can start saving now as a projected expense for next [...]

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  12. [...] Savings Account-$88,096.85 This is the account we use for our projected expenses [...]

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  15. [...] you are a saver and live by the budget like we do you still need to leave room for entertainment especially if you are single but more [...]

  16. [...] Christmas- We pick names at Christmas so $50 per person x2 people and 5 nieces and nephews $30 each total $250/12=$25.00 a month goes into our “projected expenses” account. [...]

  17. [...] pigs, dogs and cats. For the most part costs are inevitable and should be included in the budget in projected expenses if something should happen. There’s nothing worse than having no money to pay for your [...]

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  19. [...] is a hybrid that still produces. For a long time we would just set aside $30.00 a month out of our budget for gardening supplies which helped us stick to our plans and accomplish our [...]

  20. [...] Savings Account-$3330.45 This is the account we use for our projected expenses [...]

  21. [...] Projected Expenses: These are expenses we know we will pay for throughout year and save monthly for = $1224.89 [...]

  22. [...] Projected Expenses: These are expenses we know we will pay for throughout year and save monthly for = $1224.89 [...]

  23. [...] until the end of December to see our monthly budget update. We realized that a good majority of our projected expenses (PE) all happen at the end of the year thus the large amount of money in our PE account. It all [...]

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  25. [...] Projected Expenses: These are expenses we know we will pay for throughout year and save monthly for = $1257.39 [...]

  26. [...] number by 12 and save that monthly in your budget as a projected expense ex: $200/12=$16.66 a [...]

  27. [...] generally save money all year in our projected expenses account through our family budget for special occasions and this one is no exception. As a couple we plan [...]

  28. [...] a little annoyed. This is the time where either the emergency savings fund or our home maintenance projected expenses will come in handy and why it’s important to budget for home repairs. Mrs. CBB and I did a [...]

  29. [...] How We Designed Our Budget Step 10- Projected Expenses [...]

  30. [...] the yard landscaped this year which will run us into the thousands of dollars. With over $11k in projected expenses we are happy that we don’t have to find a way to pay for these projects because the money is [...]

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  34. […] to budget like us, then you will have to save for your passport renewal fees every month in your projected expenses just as we do. Now we will have to make changes since the price of the Canadian passport is going […]

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  36. […] how this months net worth turned out except to say we are thankful that we have saved money in our projected expenses account by for any unexpected expenses. Believe it or not, but I do sit down with a coffee and use a […]

  37. […] yourselves to a night out on the town or a vacation all you need to do is save the money up in your projected expenses account and enjoy the times you spend together. If you spend more than anticipated, it’s not the end […]

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  40. […] How We Designed Our Budget Step 10- Projected Expenses […]

  41. […] you probably know we budget (shocker) and with-in our budget we have built-in projected expenses which means we save every month for a service or bill that we know we will have to pay for at some […]

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