How does this HAPPEN?

I am $2,400.00 over budget!



I charted last month's income vs. expenses and I spent $2,400 more than I brought in!!! HOW IS THAT POSSIBLE!?!?!

I tried to give myself a budget from here on out, but cutting a lot of stuff out, my bare necessity expenses still exceed my income by $1,000. How is this possible????

What can I do????

Re: How does this HAPPEN?

I would start charting my daily spending by writing down everything that DH and I spend money on and inputting in a spreadsheet. Then after 1 month, I would analyze what we we spent money on and where we can eliminate unnecessary spending. Maybe you and DH could bring lunch/coffee to work, only shop the supermarket flyers. When planning dinners base it on what veggies/meats etc are on sale that week. Also, if you contribute to a 401K at work, maybe lower it a bit for awhile until you get a raise. I wouldn't lower it to the point where you loose any employer contributions. Also, have you evaluated you withholdings. If you receive a large tax refund, it may be better for you to adjust your withholdings so that you get more money in your monthly take home pay rather than in a tax refund.

ETA - I noticed you have an infant. I am not sure which brand of diapers you use, but a lot of the girls on parenting swear by the CVS and other store brand diapers. That could help save a few pennies. If you are using formula and use the RTF maybe switch to powdered, it is a bit cheaper.

I hope this helps

Message edited 7/7/2007 9:03:50 AM.

Re: How does this HAPPEN?

Posted by BabyCote2006

I am $2,400.00 over budget!



I charted last month's income vs. expenses and I spent $2,400 more than I brought in!!! HOW IS THAT POSSIBLE!?!?!

I tried to give myself a budget from here on out, but cutting a lot of stuff out, my bare necessity expenses still exceed my income by $1,000. How is this possible????

What can I do????

Re: How does this HAPPEN?

Posted by mommy2Alex

Maybe you and DH could bring lunch/coffee to work, only shop the supermarket flyers. When planning dinners base it on what veggies/meats etc are on sale that week. Also, if you contribute to a 401K at work, maybe lower it a bit for awhile until you get a raise. Also, have you evaluated you withholdings. If you receive a large tax refund, it may be better for you to adjust your withholdings so that you get more money in your monthly take home pay rather than in a tax refund.

ETA - I noticed you have an infant. I am not sure which brand of diapers you use, but a lot of the girls on parenting swear by the CVS and other store brand diapers. That could help save a few pennies. If you are using formula and use the RTF maybe switch to powdered, it is a bit cheaper.

I hope this helps

Re: How does this HAPPEN?

What "necessities" can you reduce?

Electric - do laundry at night when rates are cheaper, hang things to dry or combine loads in the dryer. Switch to the low-energy bulbs if you can get them on sale (they are pricy but pay in the long run), don't use the air conditioner unless absolutely necessary, turn off lights when you leave the room.

Cable - drop ALL premium channels. Go to basic only if necessary. Consider dropping internet and use it at the library if the budget is that far off.

Cars - minimize extra driving - stay home, bundle errands, etc.

Entertainment - get DVD's from the library instead of renting movies or going out. Cut out alcohol if that's a big part of your budget. No Starbucks if that's currently in the budget. Don't renew magazine subscriptions.

Phone service - review your plans, consider dropping extras, reduce minutes, drop your land line and use cell only.

Credit Cards - freeze them in a block of ice so they are not readily available. Call to see if you can reduce interest payments.

Have a garage sale to raise some extra cash to pay down interest-generating bills. Really look at what is a necessity and what you can cut back on.

Good Luck!