The Family Budget
June 2008 has come to a close and the family budget has made it through one more month in the green! This is the second month that we have used the family budget. We spent $259.36 less than budgeted for the month of June compared to $142.37 less than budgeted for the prior month (May - 2008). That is an increase of 82% in savings between June and May (2008). There are several highlights from the current budget review and as always a few concerns for the coming months.
HIGHLIGHTS
- Gas - We did a very good job on our Gas budget for the month considering the never ending rise in oil prices. Our monthly budget is $200 for two vehicles. I was able to stretch out only one fill up during the month in my car, so we came in at $151.49 which was a 17% decrease in expenses compared to the month of May. I attribute this cost savings in part to some of the measures that we have taken to reduce our gas consumption.
- Energy Costs - I am continually amazed at how well we have been managing our energy costs, specifically our electricity usage. We have a 3,300 square foot house that I was terrified about paying the utility bills on back in February (2008) when we closed. My wife and I have made it a goal to manage our natural gas, electricity and water usage. The main highlight of the energy costs is the electric bill coming in at $40.41! Considering the extreme heat we saw in mid-June I am extremely please with the results.
CONCERNS
- Gas Prices - While we did reduce our gas consumption for the month along with our expenses, I am still concerned about gas prices in the next few months. We did increase our Gas Expense Fund up to $65.82 which should help to offset future increases. Unfortunately, I will need to fill up my car twice this month and won’t be able to stretch it out as I did in June.
- Groceries & Entertainment - Once again we outspent our budget in this category. I have been including gift purchases in this category, along with food and entertainment expenses so that is the reason for going over budget. We incurred some birthday gift and baptism gift expenses during June which accounted for the increase. The main focus for July will be to bring down our grocery expenses to meet the budget.
June 2008 - Budget Review
| Expense | Budgeted | Actual | Balance | Expense Fund |
| Principal & Interest | $1,290.58 | ($1,290.58) | — | — |
| Home Owner’s Insurance | $52.75 | ($52.75) | — | — |
| Tax Escrow | $263.89 | ($263.89) | — | — |
| HOA | $53.34 | ($53.34) | — | — |
| Car #1 | $258.10 | ($258.10) | — | — |
| Car #2 | $0.00 | $0.00 | — | — |
| Car Insurance | $86.68 | ($86.68) | — | — |
| Gas | $200.00 | ($151.49) | $48.51 | $65.82 |
| Car Maintenance | $40.00 | ($19.29) | $20.71 | $26.27 |
| Car - Registration, Plates, Taxes | $25.00 | ($116.00) | ($91.00) | ($66.00) |
| Cell Phones | $52.93 | ($52.93) | — | — |
| Phone, Cable, Internet | $95.37 | ($120.20) | ($24.83) | — |
| Electric Bill | $150.00 | ($40.41) | $109.59 | — |
| Gas Bill | $150.00 | ($23.42) | $126.58 | — |
| Water/Sewer | $60.00 | ($40.31) | $19.69 | — |
| 529 Plan - Child #1 | $50.00 | ($50.00) | — | — |
| 529 Plan - Child #2 | $50.00 | ($50.00) | — | — |
| Pre-School Tuition | $120.00 | — | $120.00 | $120.00 |
| Medical Expenses | $175.00 | ($136.64) | $38.36 | $45.36 |
| Groceries & Entertainment | $650.00 | ($748.27) | ($98.27) | — |
| Investments & Savings | $166.81 | ($166.81) | — | — |
| Newspaper | $10.00 | — | $10.00 | — |
| Prosper Loan | $30.41 | ($30.41) | — | — |
| Misc. | $0.00 | ($19.98) | ($19.98) | — |
| TOTAL | $4,030.86 | ($3,771.50) | $259.36 | $191.45 |
Final Thoughts
Overall it was an excellent month for the budget and I can already see the rewards of monitoring it closely. As stated earlier, we spent $259.36 less than what was budgeted. Of that savings, $191.45 was put into “Expense Funds” for those particular accounts to use for future expenses. The remaining $67.91 has been put into our ‘Investments & Savings’ category and will be used for a future stock purchase. In the future, anytime we are under budget, the funds will be added to this category.
How do you keep track of your weekly/monthly finances? Do you have a budget setup to track your cash flow?
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