The Family Budget
May 2008 has come to a close and the family budget has survived!!! This is the first “official” month that we have used the family budget that I previously posted. We spent $142.37 less than budgeted which I thought was a good start to the new budget. There were several highlights and a few concerns raised during the month in regards to the budget.
HIGHLIGHTS
- Energy Costs – I think we did an excellent job on our energy costs during the month of May. Between our Gas, Electric, and Water bills, we came out $224.14 ahead of our budget. Unfortunately, I think these costs will rise during the month of June as we will be turning the A/C on. Our original goal was to keep the A/C off until June 1st. I am happy to say that we met this goal and are now shooting for June 15th.
- Medical Expenses – Although we were only $7.00 ahead of budget in this category, I felt we did a good job considering the number of doctor’s appointments we had and our prescriptions during the month. I expect our expenses in this category to drop in the month of June.
CONCERNS
- Gas Prices – We spent $17.31 less than budgeted in gas for the vehicles for the month which was good. However, with no end in sight to the gas prices, the budgeted amount may need to be increased in the coming months. I am leaving the amount budgeted the same for June and then will adjust accordingly. I am also taking the $17.31 and putting it into an “Expense Fund” for future gas expenses.
- Groceries & Entertainment – Thankfully our energy costs were much lower than budgeted which helped to offset our higher than expected Grocery expenses. We will be focusing on this expense in the month of June to reduce our spending. I have actually already identified about $35.00 that I can cut immediately from the June expenses.
May 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 | ($182.69) | $17.31 | $17.31 |
| Car Maintenance | $40.00 | ($34.44) | $5.56 | $5.56 |
| Car – Registration, Plates, Taxes | $25.00 | $0.00 | $25.00 | $25.00 |
| Cell Phones | $52.93 | ($52.93) | — | — |
| Phone, Cable, Internet | $95.37 | ($170.01) | ($ 74.64) | — |
| Electric Bill | $150.00 | ($35.34) | $114.66 | — |
| Gas Bill | $150.00 | ($58.36) | $91.64 | — |
| Water/Sewer | $60.00 | ($42.16) | $17.84 | — |
| 529 Plan – Child #1 | $50.00 | ($50.00) | — | — |
| 529 Plan – Child #2 | $50.00 | ($50.00) | — | — |
| Pre-School Tuition | $120.00 | ($120.00) | — | — |
| Medical Expenses | $175.00 | ($168.00) | $7.00 | $7.00 |
| Groceries & Entertainment | $650.00 | ($704.36) | ($ 54.36) | — |
| Investments & Savings | $166.81 | ($166.81) | — | — |
| Newspaper | $10.00 | $0.00 | $10.00 | — |
| Prosper Loan | $30.41 | ($30.41) | — | — |
| Misc. | $0.00 | ($17.64) | ($17.64) | — |
| TOTAL | $4,030.86 | ($3,888.49) | $142.37 | $54.87 |
There are several Expense categories that I have setup a “Expense Fund” for to allow for future monthly expenses in those specific categories. For example, I am budgeting $25.00 per month in “Car – Registration, Plates, Taxes”. We don’t incur these expenses each month, so I will keep a running total of how much we have set aside for future expenses. I have also decided to create an “Expense Fund” for our Gas expenses for our vehicles. Hopefully this will help offset future gas price increases during the summer driving season.
Final Thoughts
Overall it was a good month for the budget. As stated earlier, we spent $142.37 less than what was budgeted. Of that savings, $54.87 was put into “Expense Funds” for those particular accounts to use for future expenses. The remaining $87.50 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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Wow! I love your budget. It is very detailed and clear. I like that. I have usually used something fairly similar on a legal-pad. Of course, up until now my goal was just to make budget, not also to save. I may be “stealing” your format and apply those savings. I think what really appeals to me was how you took the money you saved and directly applied it to the Expense Fund. That’s the part I have never done before, but I think it is time that I do!
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