Well, I’m back from vacation.

Trips always do interesting things with my budget. I seem to be completely incapable of anticipating how much they’ll end up costing in the end.

Sometimes I over-budget and then feel great about spending less than I thought; often I spend more than I’d hoped.

Never am I right on.

Fortunately, budgeting isn’t about being perfect, it’s about being persistent.

Like lots of other things, budgeting gets better (and easier) the more you do it. But that doesn’t mean you’re immune from “Wacky Months.”

And when you have a Wacky Month, with trips or unexpected costs (or just flat out bad planning), you don’t need to stress too much because next month you’ll start a new budget and try again.

You’ll do better next month, and even better the month after that.Similar Posts:

• Your savings are important, but so is the rest of your money.
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My Awesome Nephew

A little early for a Christmas picture, isn’t it?

Well, that’s actually the point today.

Last week I wrote about Budgeting for Expected Costs, and my little sister (who, on a side note, is a thrift store ninja master) brought up that the holidays are a perfect example.

Most of us are planning on spending at least some money for the holidays. (Wordy debates of how right or wrong this is can be found all over the internet if you want to join one.)

Now is a great opportunity to start building funds in your budget for trips back home, gifts, parties, home-made-gift materials, ugly sweaters, Pink Nightmares – anything you and your family might do to celebrate in your own way.

You can make categories – as general as one big “Christmas” category, or as many specific categories as you might want – and fund them as money comes in, or move funds in them from less important categories for a while. The more funded they are, the less inclined you might be to go beyond your means this year – and the less guilty you’ll feel when you find the perfect gift.

How do you use your budget when the holidays start?Similar Posts:

• Simple ways to save money by using a budget

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 EndSimilar Posts:

• You are the boss of your budget, leave room for fun
• How To Turn Emergencies Into Inconveniences

Photo by: paalb

Yes, half of budgeting is tracking your spending. I know, it’s not very sexy, but at least it only takes about 2 minutes a week.

Knowing where you are spending your 95% is powerful information for finding leaks in your paychecks, adjusting future budgets, and evaluating what you value. But tracking the money you’ve spent is only half of your budget.

The other half is just as important: how much money do you have left, and what is it set aside for?

Is it where you want it?

This is the half that helps you makes sure your needs are being met, that you’re living within your means, and that you have enough to enjoy your life.

If you’re keeping things loose and flexible, you can easily do a lot with what’s left of your personal budget this month. Take a look at it really quick. Are you happy with what’s left in each category, or do you need more money for, say, food this month? If so, where will that money come from? Fun? Books?

Move some funds around if you think you should. It’s your budget.

Did you spend less on gas than you thought? Should you move some of that extra money towards short-term savings, or would you rather put some extra cash towards a fun weekend?

As long as you have enough left in your “needs” to make sure you’re good, the rest can go anywhere you think it should.Similar Posts:

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Mindi and Preston are good friends of ours who started a budget together shortly after getting married.

photo by: Darby Elizabeth Photography

They’ve done a great job staying with it and really taking advantage of manipulating the Skeleton Spreadsheet to make their budget their own.

I asked them a few quick questions recently about their family budget:

What surprised you most about budgeting?

How much we were able to cut back by simply setting up a budget and monitoring it. We didn’t have to work hard to make a difference.

How do you stay on the same page together with the budget?

We both have access to the budget anytime, anywhere, through Google Docs. We talk about it at least once a week,  sometimes more.

What has been the hardest part?

The hardest part was about 2 month into the budget when the novelty of it was gone and we wanted to go out to eat somewhere, and knew we shouldn’t.

What’s the best part of following a budget so far?

We feel more in control of our lives. We can actually see where our money is going and see money start going into savings.

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

Have a little money for fun and make sure it is available. You may never use it, but just knowing that it is there helps to ease up some tension. Also, follow your budget closely for the first couple of months, and when you think you are okay not following it as close as you were… that is when you really need to follow it.

—

Thanks again to Mindi and Preston. You can follow @prestoniscrazy on Twitter, and even catch him performing live if you’re in the Phoenix area.Similar Posts:

• How To Turn Emergencies Into Inconveniences

There’s an electronics store here in the Phoenix area that I dart in and out of once every couple of months. This store has a feature that always makes me laugh – a thousand mile long corridor they shuffle you through before you can check out.

The corridor is lined, of course, with impulse buy items. Candy as far as you can see, iPod covers, pen radios, $5 DVDs of old B-movies, batteries, toys; the sheer scope of last minute temptations along those never-ending walls is impressive, in its own way.

But I’m not going to preach to you the financial pitfalls of impulse buys (maybe later), or the evils of retail marketing for tempting you. Nor will I give you a long list of the psychological motivations behind our impulse buys.

Sometimes impulse buys are fun, useful, or just convenient.

There are honestly times where I could use new batteries, or I really am in the mood to try a “Peanut Butter Twix.”

On a larger scale, my wife and I once stumbled upon the perfect rug for our baby’s room while just browsing. Instead of spending more time and energy shopping around for a better one we decided to nab it. We still love that rug (in fact, it’s migrated into our living room).

Spontaneity can spice up your life, or fill it up with crap.

The trick is really simple: keep your impulse buys within your budget – whether it be creating a “Fun” category or “Misc” or even a flat out “Impulse Buys” category. Just make sure your needs are funded first, as well as other more specific wants that you value more.

Following a budget should not kill the simple pleasure of a good find, a quick treat, or a convenient purchase. Give yourself room for spontaneity and enjoy your budget. If you buy something random, use your “impulse buy” funds and don’t feel guilty about it. When those funds are used up don’t get anything “extra” until you have funded that category again. You’ll start to learn what’s worth nabbing and what isn’t.

Are impulse buys dangerous? Yes, they can be. Just use your head and remember your map.

(Photo by: The Consumerist)Similar Posts:

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