How We Budget

About 8 years ago, we started using a budget. It was developed and morphed into something that I use all the time. I feel like having a list of our bills each month plus designated money for spending and saving helps keep us on track. I do a monthly budget but break everything down by week. Each week, we have our income and expenses for that week. We use Google Sheets and I have created formulas to track balances {nerd alert}. I actually enjoy doing a budget. I love when I need to look at and plan for another month. I love numbers and figuring things out (psst: if this isn't your thing, there is a link below for you to copy my template).

How I feel every month!

We first learned about budgeting from Dave Ramsey. You can find out more about his great program here. If you ever have the opportunity to go through his classes, I highly recommend it! Dan and I went through the program about 9 years ago. He has so many good points to have financial freedom. He really advocates for the envelope system which we did for awhile but it got very cumbersome. Instead, I created an interactive budget and at the end of each month there should be $0. Now, that doesn't mean we spend everything, instead every penny is allocated somewhere.

We try to use cash as much as possible. I am horrible about getting to the bank to take the cash out. But, when I do have the cash, I follow our budget MUCH better. There is just something about knowing how much cash you have and have left. When I use my card I don't think or watch how much I am spending as closely {Target red card gets me every time}. 

Do we always follow our budget? NOPE. But it is always a goal. It is also nice to see how much money we really should have at the end of every month before we break it down to $0. Let's be real. Things come up and there are things to buy that we need/want but having this helps keep us on the right path. It also helps us check ourselves.

Are Dan and I always on the same page with our budget? Nope. I have learned there has to be some give and take. I would say I am more conservative with money than Dan. We have both had to adjust with what each other expects financially.

Below is a sample of our budget with sample numbers. You can find an interactive template here! Do not edit anything that is shaded gray or the formulas will not work. You have to 'make a copy' to edit it yourself. I highlight throughout the month as transactions go through. I also duplicate the tab each month and so I can just refill in dates rather than start new {many things are the same each month}. I often put in the due dates of bills. All of my bills are auto pay but even if they aren't, a due date will help you pay the bill in the right week. I hope this helps you! Enjoy budgeting!