Photo by: Darby Elizabeth Photography

Stacy and Erik have recently finished their first full month of budgeting and were helpful enough to share some of their thoughts with us:

How has budgeting helped you so far?

I love that budgeting keeps us accountable for where we spend our money. I am a compulsive buyer by nature, so knowing that I have a limit and that I have to enter that number into the budget has really helped.

What’s the toughest part of budgeting?

The toughest part is when you overspend in one portion and you have to adjust the budget and take money from something else.

Are you making better buying decisions because of your budget?

Yes! It helps to reign in my compulsive buying nature as I step back and say, “Do I really need this?” or “What is more important to me? A candy bar now or Halloween candy later?”

Any tips for “sticking with it?”

Just do it! It takes time, but not that much, and it is so worth the time for that peace of mind. I have my GoogleDoc open on my computer all the time. Every time before I go to the store for groceries I check to see how much we’ve budgeted so I am sure that I can stay within the limit.

What advice would you give a first time budget-er?

It’s hard to give advice when we are still in the learning stages and I still consider myself a first time budget-er. But I would say be really vigilant especially that first month.

It took us 3 months to make it through ONE full month of keeping it updated. That first month is the hardest I think. If you are like me, you only have a vague idea on how much you actually spend on groceries, gas, etc. So keeping track that first month you may be suprised at what you find.

It was much easier to “cut” back and re-adjust things when we knew how much we were actually spending. It’s hard to be frugal if you don’t know what you spend. It’s become a game for us. Can we spend less on our grocery bill this month than we did last month? We’ve come up with different activities to do for dates so we can cut back on the cost of eating out every week. It’s been fun.

Photo by: picsbycam

Once upon a time…

A woman and her husband discovered their favorite band (ever!) was in town. It was a chart-topping-mainstream-band so they charged quite a bit for their concerts.

The couple spent a long time thinking hard about the cost of the concert, debating the pros and cons, and worrying about what it would mean for their bills this month if they went. In the end they went and paid a decent chunk of money and felt guilty (and a little tired), but still had some fun.

In the same town…

Another woman and her husband wanted to go see the same band, but they followed a budget.

They looked at their budget and in less than a minute decided they could afford to go. Their “Fun” category didn’t quite have enough to cover the entire evening (they hadn’t planned on the band being in town), so they moved some funds from something they valued less than the concert (a small but growing “new couch” fund). So they went and paid a decent chunk of money, and had a great time, created a memory together – and didn’t feel guilty or worried at all.

And they rocked happily ever after.

The End

4 Budgeting Tips For Newlyweds (of all ages)

Some of my favorite people to share how to budget with are newlyweds. There’s this wonderful new beginning for them, and they’re usually anxious to start organizing their lives together.

For newlyweds (or any couple really), it’s always helpful to be on the “same page” about things. Your budget can be a very convenient and useful “same page” when it comes to your 95%.

Photo by: orinrobertjohn

As you build a budget together as newlyweds, you have an opportunity to get on the same page about a lot of things right away. Doing this will help you completely avoid many common money issues and misunderstandings down the road.

Here are 4 ideas for getting on the same page with your budget:

Use GoogleDocs

Nothing keeps you both on the same page easier than having your budget accessible online. Make sure both of you have access to view and interact with your budget, and that you’re both referring to it often. My wife and I have used GoogleDocs for 2 years now, and we love being able to look at our budget at the same time and even chat while we view it.

If you’re not familiar with GoogleDocs, you can get pretty savvy here.

Be Honest

Or, more accurately, be open and clear. Let your spouse know what your needs and wants are. If something is important to you (maybe it’s shoes, or collecting old books, or traveling), communicate that and agree on how to realistically work it into the budget – together.

This way, both of your needs are being met, expectations are clear, and you can completely avoid any “I can’t believe how much you’re spending on ____ !” situations.

Set Goals Together

Remember that your budget should help you get somewhere. Discuss what kinds of goals you want to be working for and how much of your paychecks will be needed to achieve those goals. Debt elimination and savings are easy to attach numbers to, but don’t forget “fun” goals, or lifestyle goals you both want to achieve.

Reevaluate Regularly

Your budget should help you start a conversation. As you review your budget with your spouse, you can look for areas you want to cut back, or areas you might want to add funds to. Instead of speculations and exaggerations, you’ll have actual numbers to go with your conversations.

The sooner you get on the “same page” the better, but of course it’s never too late.