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: Billy Rowlinson

It’s true what they say: out of site, out of mind.

You’ve already got a lot going on in your life and every little thing is clambering to reach the front of your brain. Sometimes, to keep your budget going, you need something to remind yourself and bring it back up front. Without a reminder, it’s wicked easy to let updating your budget slip all the way to the back of your brain.

I have always believed that the most powerful thing you can do with your budget is to actively keep it updated. It’s the one little step that makes your personal budget come alive and the numbers start meaning something to you. It keeps your goals fresh in your mind and it keeps you on track towards what you want – and it only takes 2 or 3 minutes a week.

So how can we keep our budget in site, and in mind?

• One easy way is to sign up for One Month of  Budgeting email reminders. They’re just short little once-a-week emails that remind you to update your budget and give a few extra tips for staying on course. You can sign up any time by using the simple form in the sidebar to the right.

• I’m also a fan of Post-it notes. If I put one on my monitor, it drives me crazy until I’ve done what I need to to take it down. Plus there’s an added satisfaction of crumpling it up and tossing it.

• Some people keep to-do lists religiously. Having something to check off helps them remember to keep everything current.

How do you remember to update your budget? Any other ideas?

Get your budget back on track

Growing up, my family would periodically road-trip to Oceanside, CA. I still remember how strange it was to run out into the water and play for only a few minutes, look back towards my towel , and realize how far along the coast I’d drifted.

Photo by: TheWanderingAngel

Because we’re human, our monthly budgets can tend to “drift” over a few weeks.

At the beginning of the month your budget may be a shining example of accuracy, but after a few weeks and a couple of typos and missed purchases, that same budget can start playing tricks on you.

There are online systems and personal budgeting software out there that can circumvent this issue by monitoring your bank account, and your spending, and attempting to budget for you. This can certainly keep your numbers precise. Personally, I prefer to take about 2 minutes a month and quickly calibrate my budget myself. It lets me continue to actively budget and keep my budget flexible and customized to my family’s needs.

I only calibrate my budget once a month.

As a macro-manager, I tend to only be interested in making sure I’m mostly synced up. Small differences or inaccuracies don’t bother me – or warrant my time researching. If my budget is “close” to what’s in the bank (which is usually the case), if it’s nothing that won’t be automatically fixed when I set up the next month’s budget, I’m good.

The best time for me to calibrate is right after I get my second paycheck for the month. It’s usually the point at which what I’ve budgeted for the month should match what’s in the bank; I haven’t budgeted any other income for the month that hasn’t now come in. This makes it a pretty simple exercise of looking at my budgeted total and comparing it to my bank account’s total.

Stay active with your budget and it will reward you.