How We Designed Our Budget Step 3-Tracking Receipts

Perhaps it’s been a bit of work to get this far in the budgeting process but it will be worth it. In Step 1 we learned what a budget was and what information you needed to gather before moving on to Step 2. While Step 1 might have been a daunting task Step 2 in Designing the budget should have been a bit easier. You learned how to divide your Net earnings into a budget and spend less than you make. In Step 3 of designing the budget you will learn the importance of documentation.  Documenting everything you spend is crucial to succeed when budgeting. Tracking all your Receipts Keep track of what you spend. Why you ask? Read the following scenario; If you spend $5.00 on coffee in cash and fail to document it that’s $5.00 you have lost a trail to in the budget. You now have to figure out why you are short $5.00. I always make sure I ask for a receipt even at Tim Horton’s. Another loss leader in the budget is trying to hide spending from your spouse/partner ,simply “don’t do it”. What do we do with all these Receipts? Every time we receive a […]

January 2012 Monthly Budget

I know for me personally I like to see numbers when learning about how others budget. Since we are not financial gurus nor do we make substantial incomes I hope to attract others just like us and experts along the way. *For a detailed explanation on each category you can read “How we designed our Budget Step 2“. Keep in mind we may tweak it to fit current circumstances. I will do a monthly overview at the end of each month. Mortgage-$1389                                  Monthly Actual-$1632.15 Utilities-$450                                       Monthly Actual-$549.72 Smokes-$121                                        Monthly Actual-$68.00 Car/House Insurance-$189.46          Monthly Actual-$189.46 Transportation-$150.00                    Monthly Actual-$176.70 Misc/Renovation-$125.00                 Monthly Actual-$193.79 Dog-$2.00                                             Monthly Actual-$2.00 Dentist-$5.00 […]

How We Designed Our Budget Step 1-Gathering All The Information

You made it this far so you must be curious how we went about designing our budget. Don’t yawn, it truly can be a fun experience especially when you see your savings grow! So…. Let’s get at it! You know all those bills you have in a shoe box or in the “junk drawer” it’s time to fish out those paper critters and get organizing.  Some of the steps we took to get organized in preparing our first budget are: Gathering All The Information Locating all bills including credit cards! Anyone you owe money to including the mortgage/rent. Organizing bills into piles by date ie: Rogers, Union Gas, Hydro, Reliance or finding data from logging into the respective websites Make a list of dates and cost of each bill in an excel document Make a list of dates bills typically need to be paid by but this may vary. Make note of interest rates if you are not paying bills off in full. If you don’t know get on the blower and find out! Make note of the cost of each bill whether it was variable or fixed It was imperative to ensure we had all the information at our […]

Why the word Budget hurts our ears!

  To some people even mentioning the word budget can cause them to go into a bull horned frenzy. If I mention saving money is about “budgeting” not “bargain basement” they stare at me like I’m talking a foreign language.  Bargain basement meaning that just because you think you are saving by getting deals doesn’t mean you are doing it all right. I don’t delve into deep conversations with friends and colleagues about my personal situation but in idle chatter I am stunned to hear how so many are in financial ruins and desperate for a way out. Over the years I used to think saving was making sure an account was growing with interest in the bank. I always made sure I spent less than I made from a young age. Stashing my paper route money away was where it all began. I purchased my first condo at 21 and later sold it to buy a house at 23. I later sold that home and purchased a modest home with the Mrs. at 32 due to a move out of the city for work. Being the simple guy that I am I was never materialistic but I did love […]

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