photo credit: Johnny VulkanI have completed the calculations of our September (2008) monthly budget. I compile the results of our expenses (fixed and variable) to ensure that we stay on our monthly budgeted amount. In order to achieve sound personal money management, I believe you need to keep track of your household budget. Whether it is weekly, monthly, quarterly, etc., keeping track of your expenses keeps your personal finances on track. It also helps to identify areas for improvement. By tracking my family’s monthly expenses, I have been able to identify our areas of strength and weakness.
Considering the global economic crisis, I felt that we did an excellent job staying on budget in September. We came out $71.75 under budget in September, which isn’t that significant compared to past months. However, we also incurred a miscellaneous one-time expense of $210, which brought us down significantly. The additional money left over from the past month will be added to our expense fund, which is now up to $913.87. This money is saved up so that when we go over budget, it can be used as a reserve. In the meantime, it is earning some interest in one of our savings accounts.
September saw several highlights which I believe can be carried forward for the rest of 2008. The more money that we can save by coming in under budget allows us to free up more cash. This extra cash can then be used in an emergency if needed.
HIGHLIGHTS
- Groceries & Entertainment - While we came in $50 over budget in groceries, we finally have stopped the bleeding in this category. Previous months showed us having a steady increase in this category due to several factors. I am predicting that in October, we will come very close to meeting or even slightly exceeding our budgeted amount.
- Utilities - It has become somewhat repetitive having our utilities included in this category, but we continue to come in under budget on our utilities. I am very excited that we shut off the A/C for good in September, so our energy bill should drop dramatically in October. We now will focus on keeping the gas bill low by implementing some energy saving tips to heat our home.
CONCERNS
- Miscellaneous Expense - The only concern we had during September was a miscellaneous (hopefully) one-time expense of $210. This was unexpected, but we were able to accommodate through other areas.
September 2008 - Budget Review
| Expense | Budgeted | Actual | Balance |
| 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 | ($194.15) | $5.85 |
| Car Maintenance | $40.00 | — | $40.00 |
| Car - Registration, Plates, Taxes | $25.00 | ($59.55) | ($34.55) |
| Cell Phones | $52.93 | ($52.93) | — |
| Phone, Cable, Internet | $95.37 | ($95.37) | — |
| Electric Bill | $150.00 | ($81.62) | $68.38 |
| Gas Bill | $150.00 | ($22.40) | $127.60 |
| Water/Sewer | $60.00 | ($53.56) | $6.44 |
| 529 Plan - Child #1 | $50.00 | ($50.00) | — |
| 529 Plan - Child #2 | $50.00 | ($50.00) | — |
| Pre-School Tuition | $120.00 | ($135.00) | ($15.00) |
| Medical Expenses | $175.00 | ($41.97) | $133.03 |
| Groceries & Entertainment | $650.00 | ($700.00) | ($50.00) |
| Investments & Savings | $166.81 | ($166.81) | — |
| Newspaper | $10.00 | ($10.00) | — |
| Prosper Loan | $30.41 | ($30.41) | — |
| Misc. | — | ($210.00) | ($210.00) |
| TOTAL | $4,030.86 | ($3,959.11) | $71.75 |
Final Thoughts
I think September was an excellent month for our budget. I am looking forward to October and the rest of 2008 to save more money. This extra money will come in very handy over the course of the next year. It may be used in an emergency because of the deteriorating economy or eventually used to purchase some stock in high quality companies that have been beaten down.
How do you keep track of your weekly/monthly finances? Do you have a budget setup to track your cash flow?
{ 3 comments… read them below or add one }
The Passive Dad 10.08.08 at 2:11 pm
Ugh! Can we exchange mortgage payments
I’m assuming you don’t live in California and if you do, I’m even more depressed 
Great job on your budget. Keep it up.
Dawn 10.08.08 at 6:34 pm
Looks like you were doing well this month! Way to go!
passivefamilyincome 10.08.08 at 10:05 pm
Scott - We live in NC and had recently moved from MI. The taxes and cost of living are so much cheaper down here in the south than up north. My aunt and uncle live near San Fran and they say it is so expensive out there.
Dawn - Thanks! I was very happy with our results last month.