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Old 11-19-2013, 02:41 PM   #11
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Re: Budgeting Help

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Originally Posted by happysmileylady View Post
I suggest you figure out a monthly budget, just as if you got paid like a normal person. Include everything you can think of from rent and electric to groceries and gas in the car. Include a monthly clothing allowance, an allowance for maintaining your vehicles, an amount for "blow money," amounts set aside for paying things like car registration and other yearly fees, just like you would do if you were paid monthly or weekly or whatever. Totally all that up, multiply it by 12, and set that amount aside in an account.

THEN, add another $6000 to that. That extra $6000 amounts to $500 a month to cover unexpected surprises. That should be plenty to cover anything you might have forgot, or anything that comes up like school field trips, gas shoots up $0.50 in a day, someone leaves your freezer open overnight and everything in it defrosts, etc. Most people need more to live on than what their actual basic budget accounts for, because stuff like that does come up, so adding that padding in will account for that.

THEN, I would take another $1000 and put that in your emergency fund. Just because when your income only comes in once a year, I think it's important to have extra padding in the emergency fund as well.

THEN, after all that is taken care of, whatever you have left after that I would throw at debt.
This is exactly what I was thinking but she already typed it all out so no reason for me to.

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Old 11-19-2013, 04:15 PM   #12
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Re: Budgeting Help

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This is exactly what I was thinking but she already typed it all out so no reason for me to.
Yeah, on this thrifty forum, I could just follow Kim around saying Yeah that, because she always types out what I was thinking, but usually has more detail than I remember to ever type out
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Old 11-19-2013, 04:17 PM   #13
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Re: Budgeting Help

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We are doing Dave Ramsey and are on Step 2, so we have 1000$ put away, and only 6500$ left in debt. I just have no clue how best to approach budgeting, because what I'm doing now isn't working. I'm trying to budget for the whole year at once and I'm forgetting things, so I need to find the best way to break it into smaller chunks.

My DH runs a touring theatre company, they do Shakespeare Made Easy for kids (it's adapted into modern language). He pays himself once everything else is paid and the money for next years tour is put aside. He never knows how much he's made until the end of the year, so it would be way more complicated to try and pay himself normally. We're always a year ahead though, so if one year goes badly we have time to find other income before we starve.
Ok, that makes a bit more sense, but even so , is there not any sort of average that he could pay himself with monthly? it would seem to be so much easier for the book keeping.

It is great you are a year ahead though, I don't know how you would do it otherwise, I mean not many people can go a whole year without being paid Following DR is great, join us in the support thread.
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Old 11-19-2013, 04:30 PM   #14
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Re: Budgeting Help

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Yeah, on this thrifty forum, I could just follow Kim around saying Yeah that, because she always types out what I was thinking, but usually has more detail than I remember to ever type out
I will take that as a compliment.

But I will have to post a little disclaimer to say that I often give much better advice than I actually manage to follow myself. If I actually did most of the stuff I advise my family would be in much better shape financially. Sometimes I do a lot of really dumb things against my own better judgement.
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Old 11-19-2013, 04:51 PM   #15
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Quote:
Originally Posted by happysmileylady

I will take that as a compliment.

But I will have to post a little disclaimer to say that I often give much better advice than I actually manage to follow myself. If I actually did most of the stuff I advise my family would be in much better shape financially. Sometimes I do a lot of really dumb things against my own better judgement.
Yeah, join the club!
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Old 11-19-2013, 06:53 PM   #16
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Re: Budgeting Help

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Originally Posted by happysmileylady View Post
I will take that as a compliment.

But I will have to post a little disclaimer to say that I often give much better advice than I actually manage to follow myself. If I actually did most of the stuff I advise my family would be in much better shape financially. Sometimes I do a lot of really dumb things against my own better judgement.
Again, yeah that, and yes it was meant as a compliment
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Old 11-19-2013, 10:50 PM   #17
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Thanks guys! I do lurk on the DR thread...

Your plan sounds great, except this year we didn't make much so it's not possible to throw that much into "blow" money, but I get the idea.

He can only pay himself once he knows how much is left from the tour and has put aside money for the next, so he COULD pay himself every 2 weeks after that, but I'd rather the money be in our high interest account than the company account.

So:
We need 2200$/month to cover all expenses minus yearly things (insurance, liscence renewal, holidays and birthdays, etc...) which add up to about 5000$
So as a minimum we need 31,400$ This year DH made 35,000$ so we have 3600$ left over. I already put 1000$ for emergency, leaving me 2600$ which will be my "not quite emergency" fund.

I get 300$/month (baby bonus and tax credit) plus anything I sell or earn will go towards debt repayment. I still owe 4700$ on my student loan (3% interest) and 2500$ to my mom. My line of credit is paid off and my credit card is paid in full every month. I only use it for netflix, our CSA, online purchases and gas. I looked into a visa debit card but you are charged for every transaction (I'm in Canada, we don't have as many options from what I've seen). I'm not worried about having a CC, I'm pretty disciplined about it.

Does this sound legit?
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Old 11-20-2013, 04:59 AM   #18
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Re: Budgeting Help

Some things I have thought about. Do you own a house or rent?
I think your idea is good but I think you might be able to put more into debt.
What do you mean not quite emergency fund?
Everything should be accounted for unless a car breaks down(really they suggest that in the budget to), something on the house breaks(again most suggest a budget spot for that to), etc.
I would really budget for every possible thing. Say $50-$100 a month for car, if you own a house $100 for that, Clothes, gifts, Christmas, travel(If you want to do any and maybe a sinking fund if family isn't close just in case), etc.
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Old 11-20-2013, 07:49 PM   #19
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Not quite emergency fund is for things I may have forgotten to budget at the start of our fiscal year. If I forget about certain fees or dues, there is extra money there for when I make the month by month budget.
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Old 11-20-2013, 07:54 PM   #20
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We rent, so if something breaks down, our landlord covers it.

As far as debt repayment goes, I am scared to put too much on the debt in case we run out of money at some point, so I'd rather wait until next time hubby pays himself (in a year) and see what's left over from this year. I can deduct the interest I pay on my student loans off our taxes as well, so while it's not ideal, I'd feel safer waiting.

My next step is to become a cash family. I tied once, but failed. I used paper envelopes and we have lots of coins in our currency and it got real sloppy, really fast. I need a better system and fast, I'm starting on Monday!
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