Keeping It Simple - Streamlined Budgets & Spending

 

For many people, money goes out in so many directions that it makes it really difficult to keep track of their expenses.  The task becomes so daunting that they just don’t do it and that is where they get into trouble.  With all of the offers to make our lives ”easier” and “nicer” there are so many apps and subscription services, with fees, that it doesn’t take long to get in over one’s head.  Automating monthly payments allows people the “luxury” of not even looking at their bills prior to paying them so eventually they have no clue what their spending really looks like.  Add to that eating out and grabbing coffees, delivery services like Door Dash & Instacart, expensive cell phone bills, internet costs, insurance, mortgages, registration costs for pretty much everything from education to automobiles and so forth, it becomes really difficult.

 

When money is going out in every direction it is nearly impossible to turn off the tap.  I call these situations financial leaks.  For some people they are absolute gushers.  By streamlining my budgets and weeding out the extras that, quite simply, I do not need (and most people don’t) I am able to easily stay on top of and track my expenses.  My list is quite short:

 

Housing – this includes property taxes, homeowners insurance, upgrades and maintenance.

 

Electricity – includes my heating.

 

Sewer & Trash – the city of Boise bills me for both of these services at the same time and they are sent out every other month.

 

Water – this bill comes due every other month as well.

 

Internet – right now I have DSL through Century Link.  It is no secret I don’t love them, at all, because of their lousy customer service but it is my best option where I live.

 

Groceries & Non Food Items – I set a budget for food and another one for household items.

 

Automobile – includes fuel, repairs plus routine maintenance.

 

Fun & Leisure + Miscellaneous – this budget is flexible and allows me to have a little wiggle room for fun, of course, but also if I need something that I wasn’t planning for like a pair of pants or a little more fuel in the car.  It is also a category I can do without if for some reason I really need to tighten my belt one month.

 

This is all I track on a monthly basis and I do so meticulously.  I also look at my bank accounts as well as my credit card account (I only use one credit card account) on a regular basis to make sure all transactions are accurate and nothing fraudulent has occurred.  When all is said and done I know exactly to the penny how much money I have at any given time.  By tracking my expenses I am able to project what that will look like in the future and adjust my budgets accordingly.

 

I still pay my automobile insurance and cell phone bill annually because it saves me a lot of money to do it this way because anytime you pay monthly, quarterly or semi annually they add a service charge.  If you pay it annually they offer an additional discount.  I always double check with my insurance agent prior to renewal to make sure I’m getting the best rates and all of the discounts I’m entitled too without sacrificing my coverage.  I do the same with my cell phone service.  I pay the bill annually and look for discounts or special offers that save me money.  This year I was able to renew my cell phone service for fifteen months for less than $100 – no joke!

Car registration is also a bill that comes due annually and I anticipate it well ahead of when my plates expire so that I am ready for when it comes due.  By setting aside a little bit each month in my checking account I am easily able to meet that expense.  By driving older automobiles it helps me keep both the insurance bill as well as the registration costs relatively low.

 

Keeping to a budget is far less daunting when there are fewer expenses going out each month so streamlining and minimizing the outflow is the key to success.  It also helps me when costs go up as they often do, especially in our current economy.  Last summer I received the dreaded news that my property taxes for the coming year were going up.  A LOT.  At that same time I also found out my sewer and trash bill was also going to go up.  A LOT.  Despite the much higher property tax bill and the higher fees for sewer and trash services I was able to accommodate those changes to my budget because I know I am not leaking money out on unknown or too many other expenses.  I just made adjustments and tweaked other areas to make it all fit.

 

I do not automate anything.  I want to be on top of every bill and know exactly how much I am paying before I allow it to go out.  I also want to see right away if something doesn’t look right so I can follow up on it and find out what is going on.  Mistakes happen, not often thankfully, but they do happen.

 

With our current economic situation we cannot afford to be wasteful, at least I can’t.  I worked way too hard all these years to earn the money I have.  I don’t want to waste it needlessly.  If you find yourself struggling to make ends meet I urge you to find the leaks and plug them up.  We can happily live without apps, expensive delivery services, fee based streaming services and a lot of other nonsense.  By spending mindfully and being completely aware of our expenses none of that hard earned cash is going to be wasted.  I wish you happy budgeting and loads of savings!