apartment therapy changing the world, one room at a time

Nothing like an unexpected $1000 auto repair bill to blow a budget, so include a pro-rated amount of reasonable expected repair costs spread out across the year.

How do I stay on a budget? I use a spreadsheet and map everything out at the beginning of the month. Then I update it every few days in accordance with my checking account. I don't use credit cards and hardly ever use my debit/bank card. Instead, I withdraw cash every couple of weeks and keep it organized in an accordion folder. The cash is spent on groceries, clothing, hospitality, eating out, entertainment, etc.

My husband and I have been paying with cash-only for 5 months and we'll never go back. It doesn't work for everyone, but for me, paying with cash helps me to see where everything goes and it's easier to budget when I see I only have a few dollars left in this or that category.

We spend 300 a month on groceries and 75 a month on things like toilet paper, tooth paste, soap, etc. (There's a separate budge for drinks/eats out) It seems like a lot but we usually end up using the full allotted amount. Does this seem reasonable?

1. Stay out of stores except when necessary, since I am prone to impulse shopping. This above all else has helped me curb my spending the most.
2. Make my own coffee at work, and bring my own treats or snacks so I'm not tempted to buy something sugary and expensive.
3. Use my debit card for shopping whenever possible--this helps me keep track to the penny of what I spend.
4. Go to the library, which sometimes is like shopping, but free.
5. Return my library items on time! Late fees for DVDs are $1 a day!
6. Bring a lunch (working on this).
7. Visit friends at home instead of going out.
8. Re-evaluate what I really need versus what I really want, and see if I can compromise somehow.

- buying groceries daily, rather than buying in bulk & not using them timely manner
- eating lunch in the same place where variety of products are being served and for every 10 purchase you get free lunch
- preparing own lunch for several times a week
- refinanced home mortgage loan (huge saving)
- buying brand new books in thrift stores for 50cents.
- reorganize closet and realized how much stuff I have and either started using them or whatever is not being used was given to friends who appreciates it more than the darkness of my closet
- repurposed & rearranged the furniture to have a new look around the apt rather than the impulsive shopping
- offered to have home cooked meals wt friends rather than spending in the restaurants
- Cut down unnecessary/impulsive spending
- Started to use PokeTalk for international calls (it was a big saving since all my family lives in Europe)
- joined free events (book discussions, art exhibitions, music concerts, tours, wine tasting ) there is so much to do around in NYC without spending money
- pay credit cards on time to avoid penalty & finance charges



I can go on like this...

we don't keep a budget. i've tried in earnest and find that once i know my monthly expenses, it's easy to keep in mind what we can spend and what we can't. we tend to cut back on the grocery bill and eating out, stuff for the house, amounts for gifts. ironically, we're not really pinching pennies these days; we save regularly and thanks to a bit of luck, good habits, and planning well, we're doing well right now.

do any of you people that live in NYC go dumpster diving for your food? I hear this is the new craze up there...people reduce their grocery bills and curb the waste of what local bakeries and grocery stores throw out. Seems pretty gross to me to dig anything much less food out of a dumpster...but hey, to each their own. seems to work for people trying to stay on a budget.

love mile kate's list and follow a lot of those tips myself, especially packing lunch and going to the library :)

i have a budget and auto-pay all regular bills, including my various savings accounts (vacation, emergency, other). that way, whatever's left is for me to do what i like!

some months are more flush than others depending on how much i charged that month--which i pay off in full each month.

i do charge a lot cos i want the miles. trips i've taken soley on miles in the last 3 yrs: thailand, greece, san francisco.

i carry very little debt (besides a mortgage & school loans) and try to pay as i go. i evolved to this system after being mired in debt for most of my 20s. i never want to feel that anxious about money again.

my big goal now is to build my emergency fund to 4-6 months of expenses... i'm at about 2 months and it should take me about 3 years of steady saving to reach my goal... that said, i never want to give up the fun in my life--like vacations and hanging with friends, so i'm a big believer in slow & steady wins the race!

having useful skills. i've lost 16 lbs and am in the process of shedding another 25, so taking out the sewing machine to repair, alter old clothes. i hope i can get to august before i have to buy a significant amount of new clothing. also, i have five more shirts i couldn't wear before thanksgiving so my wardrobe is expanding.
and i visited my local shoe shop. they repaired the heels on two pair of work shoes to almost new for $15 each. i can squeeze at least another year or two out of them.

We've cut out all the "little things" that add up in the end-- no TiVo service (we'll watch missed television on the internet for free), no Netflix, no subscription magazines (who needs 'em when you've got blogs to read?!), no Sunday newspaper, etc. I'll always cook one big meal on Sundays and stretch out the leftovers for lunch during the week. Not spending $6/day on lunch really helps!

I also completely addicted to mint.com-- it's free! And it helps me track exact what I spend.

This isn't the best method, but it works for me and my wife.
At the beginning of each year I schedule out all income and expenses by major category, by month, using credit card summary info from the previous year (I use Amex for almost everything, and they break it down) - groceries, eating out, public transportation, mortgage, etc. I use the monthly remaining balance (per my schedule) to set up an automatic transfer to my direct savings account. As long as my checking account balance stays relatively consistent from month to month, then I consider myself to be w/in budget.
Then I use that to roll-forward my savings account balance, and that's my savings goal for the year. My wife and I are both pretty frugal, so this has worked for us.

To control the "little" things I often do "impulse spending-free" weeks. Sometimes it's a no snack week or a no coffee (purchased) week.

Or a "wait til Friday" week where the impulse purchases (a book, magazine, art supplies) are delayed until Friday and then I re-evaluate and usually allow myself 1-2 things out of the 4-6 things I considered.

And I totally agree that organizing/cleaning one's home helps curb spending when everything is in its place and feels complete without more stuff.

Not having extra money helps. (sigh)

One thing I do for both health and budget is to buy frozen diet dinners (Lean Cuisine, Weight Watcher's Smart Ones, etc.) for my lunches at work. I can store them in the staff room freezer then nuke them and have a hot, portion controlled meal for under $3, and when I watch for sales, sometimes as little as $2. (I hate cold lunches, so this is a functional compromise for me.)

After that it is basically NOT buying things I don't need, staying away from temptation (Home Goods clearance shelves) and paying my bills upon arrival, if possible.

I am horrible about tracking my expenses - but I have found something that is completely flawless and has actually worked!

Mint.com - the inital setup is a bit painful to add all your account info (especially when you dont remember your passwords!) but once you're done, it's great. I got an email this morning letting me know that my balance was getting a bit low (preset amount) and I got another when I spent over a certain amount! You can set up your own budgets and tweak them - it's been really great so far!

Oh, and I've started to bring my lunch into work as a result - I'm in love with the Healthy Choice Fresh Mixers which usually run about $2.50 -$3 at Safeway/Target. Yum!

-Ruth

@JenPDX - I, too, save up my "impulse shopping" until the end of the week, or the next payday, or some other "later time." By then, you're right, I usually can forego many things I thought I had to have.

Also, it seems backwards, but getting a cat (or any pet I suppose), has really helped me reign in the spending. Although food, litter, toys, treats, grooming supplies, etc. all cost money, I can usually talk myself out of an after work shopping spree or staying for the third (and fourth and fifth and sixth) rounds, knowing the sqiushy face is waiting at home wondering where I am. More time at home means less money spent overall.

emilykc and cptnruthless,
THANK YOU! I just went over to mint.com and set up an account - it's amazing! and i never even knew it existed...

I know some may see it as bad practice but we like to reward ourselves when we spend less than we have budgeted. Obviously don't spend every dime you have left but an indulgence from time to time can be really rewarding and encouraging! Anything from a $.99 itunes song to an extra night out for a few drinks is exponentially more enjoyable when you KNOW it is justified and you dont have to feel guilty before/during/after that you cant afford it!

Use actual cash, not a debit card.

In my younger days, I used to get a week's allotment of cash all at once, divide it into seven piles, and use only that cash for non-fixed bills (like rent, etc.) Running out of cash before week's end meant foraging for Cream of Wheat in the back of the cabinet and walking three miles to work, so I was highly motivated.

I know lots of people don't like to carry cash, but it helps budget.

Not having much money to start with makes it easy, but I like to clip coupons and go to websites like couponbug.com and participate in buy one get one on common items like coffee and toothpaste. ** I pack my lunch, stick to water when eating out, buy beer/wine in stores and have people over, and stay on top of monthly expenses and bills. If your income is stable and you know what needs to be paid and when, you can plan ahead and avoid late fees and/or OD fees. ** Prioritizing is very important. Instead of buying that expensive tool that you won't use all the time, rent it (and so on). ** I try not to be wasteful. In the garden, I like to divide and root plants so I'm not always buying them. I also trade and share cuttings with friends and neighbors. Starting things from seed and mulching your leaves is also smart. ** Rewards for money spent are great. At the bank I participate in a program that contributes $1 to a savings account with interest each time I use my debit card. Also, I pay bills online to save on postage and checks (and late fees). ** And lastly, when I get a gift card I use it only on sale items or at outlet stores so I get more bang for the free buck!

I actually find using credit cards rather then cash much more helpful in minding my budget. If I have cash in hand I blow it, when I get a bill at the end of each month I am able to see exactly what I spent and what I can possibly cut the next month.

Costco helps too, I buy the things I can in bulk. Also taking lunches to work.

I agree with sticking to cash for day-to-day expenses. It really helps me keep track of my spending. If I run low on cash before it's time to run to the ATM, I get more creative about the food that's in my pantry, for instance.

Also, yes, rearranging furniture, accessories and art is a fun way to give yourself a new home without spending money! Keeping it fairly tidy also helps, because you have easy access to all your useful and/or beautiful stuff and are less likely to pine for something you don't own.

Great tips, everyone!

BSmeltz- that's actually what i was going to say. a friend of mine started doing that and its saved her a pretty penny- several actually.

I've tried the spreadsheet- just makes me sad all the money that i dont have...

I like JenPDX's comment about having a "no impulse shopping" or "wait til Friday" week--those are good ideas. My bank also offers a "Bank the Rest" program where it will round up any amount you spend using your debit card to the next dollar or five dollars (you get to choose) and deposits the balance into a savings account (e.g. spend $3.25 using a debit card and you'll bank 75 cents on the $1 program or $1.75 on the $5 program). I'm only banking the balance on the $1 program but I usually save an extra $10-$12 per month.

Keep me Cheap:
I recently signed up for Fresh Picks (CSA) and my neighbor and I split the 'double' box and a mini fruit box every 2 weeks and it has proved to be plenty of food, no $ spent on gas to the store, fresh and unprocessed, and keeps from ordering out.
I always make a list when I go to the store and NEVER shop hungry.
PB & J and grilled cheese in the toaster oven (separately, of course) are my new best friends. Add some tomato, spinach, or salsa to the GC to change it up and its tasteeee!
I put stuff on hold when I find something I like and take a few hours/the day to think about it. If its not worth going back to the store for and waiting in line again, its not worth having.
I search for just about everything on CL and set up an RSS feed to search for what I need before I go to a store and buy something new that I have been eyeing. Its greener and cheaper.
I use my debit card or cash for everything these days. My credit cards got out of control so I cut them up and Mint.com is awesome for tracking my debit card expenses and helping me keep on track. It also alerts you to bank fees, when you go over budget and unusual spending. Veeery handy.

I think I have tried every way to make a budget. So far it's been working, it's the unsteady income that is hard to predict!

We always cut down on unnecessary spending when we're trying to pinch pennys. No eating out, no going out (unless it's free), conserve gas, take our lunch to work, always try to use everything up so we don't throw out food.

I've set a goal of being debt free in 2.5 years. This will create a very tight budget for us, but it is doable and once everything is paid off, we can celebrate by getting married and going on vacation!

Learning how to cook has saved me a lot of money. Most of my budget used to be spent on food and drinks.. but now I enjoy cooking myself delicious meals and baking irresistable deserts:) I have saved a ton of money by bringing my own lunch, and never ever entering starbucks again.

1. Pack your lunch. It's amazing how fast that adds up.

2. Pay yourself first. Have a set amount automatically transferred into your savings account from each paycheck or on each payday. If it's already gone, you won't miss it. And if it's done automatically, you won't have to remember to do it yourself. Most banks can set up an automatic funds transfer schedule.

3. Treat your savings account like a locked safe. Once it's in there, it doesn't come back out again. Have a limited list of "OK" things to use your savings for (auto repair, home repair, vacation). If it's not on the list, you can't pay for it with savings.

I'm with BSMeltz - I now take cash out (about 1000.00 per month) and just live off that. It's easier than having to mentally calculate the grocery allowance/home goods/pet/transportation/entertainment budget, etc.

Then, in my bank accounts I have several accounts with the auto transfer to savings, auto to checking account 2 for bill pays, etc. Its one less thing to deal with and since I never see the money, I never miss it.

I also did something that has been completely 100% worth its weight in gold. I hired an accountant to set up a custom quick books budget spreadsheet for me, and he comes in quarterly to do my taxes. This works for me since my personal finances and business finances often blurr (I do 1099 consulting), but it has made everything so less stressful. It's also made me more aware of my spending and now I keep every receipt. The quarterly also lets me make reasonable adjustments to my budget. He's also been genius in helping me save money since he knows all the tax codes (who knew I could write off dog expenses as an alarm system?) and also, just having someone else looking over my finances keeps me on the straight and narrow since I'd feel guilty explaining that giant sushi bill or new shoes or something.

Other tips? I'm an expert window shopper. I often do a window shop run before I purchase clothing or other non-essential items. That way I get to sleep on it and then if I really still want it, I get it. Sometimes I'll wait up to 2 months for a purchase.

Finally, I also have been doing these two things since high school: 1) I have a mad money account. I save a certain amount for 3 things every year - plane tickets, sushi (every two months), and new shoes. This way I'm not deprived but I have them planned in - and waiting makes me appreciate them even more. and 2) I save a dollar every day in a jar. It's a little thing, but it adds up. Once I have a jar full of dollars, I go treat myself to something.

Finally, I ditched my credit cards except 2. 1 is for monthly reimbursable business expenses only, and the other is for an emergency or for reserving rental cars or hotel rooms, etc. Breaking the credit card habit was the best thing I ever did.

1. packing lunch is absolutely essential. I eat well (think fresh french bread, cheese, walnuts, and fruit) for no more than $10 a week, whereas my coworkers often spend at least $5 a day.
2. no store bought coffee. at least make it an occasional indulgence rather than a daily habit.
3. shop the 'exterior' of the supermarket. avoid going down the aisles where all of the expensive, processed foods are and focus on the basics, which tend to be on the edges. you'll save money and be healthier.
4. I find using credit cards useful because at the end of the month, I know exactly where I spent my money up. total it up into categories (groceries, clothing, entertainment, etc.)-- if you've overspent, you'll know where to be better. I also get great miles to go towards my next vacation.
5. if you're a shopaholic, (especially for bigger purchases like clothing or decor) you may benefit by using cash. take an alotted amount out each week and don't buy anything that uses more. this will encourage you to save up, and therefore think more about your purchases and whether or not you really need them. however, if you are the person who always spends cash if you have it (pack of gum, a magazine, a candy bar- then poof, it's gone), try to avoid carrying cash.
6. having a goal for saving, like a vacation, is good, but don't forget to save money to keep in an account for the future! so, if you want to take a $1,000 vacation, save $2,000 before you take any out.
7. don't shop out of boredom! find other things to do! go to museums, parks, walks, play sports, volunteer, etc.
8. stay organized so you know what you have! you'll be less likely buy another black dress if you open your cloest and see three. you might not need to go to the grocery store for another day or two if you have all the makings of a good soup.

There's a big difference between staying on a budget and cutting back.

After allotting bills, rent, etc. for my monthly budget, I take out in cash what my budget is for that week, and only spend up to that amount for incidentals. If I don't spend all of it (like hoarding lunch money) I either get to buy my frivolous girly things, or put it aside for more frivolous purchases.

Actually, my biggest money saver is working at home. No transportation costs, no professional wardrobe required (other than for meetings). I make my own coffee and lunch. I don't have to hire a babysitter when my kids are sick. It really saves a LOT of money.

Some people, depending on their situation and nationality, can even write off part of their apartment as office space and deduct costs for furniture, computer, etc.

I eat school lunch at the elementary where I teach. I refuse to use styrofoam, so eat off of a "real" plate...for $2.75 I get a hot lunch and a nice trip to the salad bar. I take the milk home to have on hand when the gallon runs out.

For me, I don't really budget (even though I graduated, I'm still living at home and kind of in that "I'm going to graduate school soon and not taking my job very seriously") and don't have any "real" bills to deal with (mortgage, car payment, student loans)

But i'm pretty thrifty with my money.

-During the work week, I eat out for ONE lunch a week (Fridays), which amounts to $9.00 with tip.
-I bring my lunch/snacks whatever from home, so I never have the urge to buy anything at work (grossly overpriced and not good)
-Weekends I mainly eat out once or twice, but no where supremely extravagant, usually just the cheap/good eats
-I save up for vacations mainly, and throw the rest of my money into my savings/investments. I literally leave zero in my chequing account.
-I use my CC for everything, because I find it easier to keep track of purchases and what's been going on. Cash goes too fast for me and sometimes it feels like denial when I use cash instead of my card, since i'll 'forget' about it.
-I only buy clothes during sale season or at sample sales in ny (I RARELY buy anything regular price)
-As much as I love shopping, I am not a impulse shopper, because I can see how little things can add up.
-I pay my CC bills on time because getting charged interest for that when I can avoid it doesn't make sense.

I guess for me I have that mentality where I'll basically only spend when..ie something is a good deal, or something I need, or for entertainment

I don't have a budget, but I save between 20-50% of my income each month (usually around 30%) by not shopping for entertainment, cooking my own meals, shopping for bargains for necessities, not being a clothes or shoe horse, and finding entertainment in my own place (DVDs, games, conversation). We have no debt, and no plans to create any. We pay for everything as soon as we buy it. We use a credit card for online buying, but pay off the balance the following month.

My income isn't even all that huge - around $60,000 for both my husband and I while living in Tokyo and paying $1100 a month for a shoebox to live in. I consider us lucky, mind you, because we don't need a car and that's a huge expense we can avoid, but we eschew certain things which other people feel are "necessary" (like a cell phone, new electronic toys, etc.). We replace things that stop working promptly, but we rarely replace fully functional items which are old or a bit out of fashion. We still have a 14-year-old CRT T.V. and a 16 year old washing machine, though we'd probably replace the T.V. for energy purposes if we watched it more than we do.

I think some people just don't make enough money, but others fill the emptiness in their lives with stuff. The latter are the ones who can do better with some adjustments.

-Making strict grocery lists of what we really need that week with a few extra things that we'll want.
-Using cash or my debit card all the time when shopping - I can't overspend since I know how much is there.
-Setting up almost all of my bills for automatic transactions so the bill company gets their money when they want it.
-Pay the rent the day it is due and not let myself turn it in during the grace period (we get a couple days past w.o a late fee).
-Allowing yourself only to eat out once or twice during a week - it's a big saver - and fix your own food the rest of the time.
-Having ZERO credit cards - I refuse to have one.
-Planning a vacation a year in advance and not trying to plan to go somewhere we can't afford...this year it's to Gatlinburg, TN to stay in a cabin for a long weekend.
-If you tell yourself you are only going to window shop, leave credit cards and debit cards at home and only carry a certain amount of cash so you can't end up buying more than one or two small things.

We give ourselves a weekly cash allowance, which my husband refers to as WAM (walking around money). It keeps us from using our debit cards on little things like a coffee here or a coffee there (which can REALLY add up!). Once the WAM is all used up we have to wait until the next week to start making those non essential little purchases again.

Works best with cash because you can tell yourself you'll only buy 3 deliciously frothy Urth Caffe lattes this week but if that little devil card, er, DEBIT card is in your pocket it's much easier to buy just ONE more (or two, you might as well round out the week, right?)

I love this thread! Some things to "amen" on or add:
1. Writing down everything I spend (so I can see where it went), and making sure there's a good amount of Zero Days (i.e. I didn't spend anything.).
2. Save up my errands for one day a week. Reduce the impulse buys.
3. I'm terrible at this - but generally planning ahead - things like packing lunches or snacks. Or making sure I have all the little things I need for the day.
4. Never eat out or do take out alone. Save that expense as a social occasion, going out with friends.
5. Agree with others - keep your house in order so you know what you *already* have.
6. Having a "wishlist" bookmark folder in my web browser. If I see something in a store I like, I'll go home, find it online, save the page, noting the size or color. I can then find it again if I think I really do need it now, or I can watch for when it goes on sale. I used to be terrible at late-night online impulse purchases, but saving bookmarks have helped a lot. I find the "need to have it buzz" wears off.

And this may not be popular, but:
7. Reduce ad consumption. I've ditched watching TV, it's made my life better in many ways, including not watching commercials. And it's extreme, but when I do buy magazines, I rip out the ads first. I'm often reading mags in airports, and it saves weight. You also see what a huge chunk of it *is* ads. I know, I know that's what the magazine business is - but I can chose to opt out of that.

Getting out of that advertising loop really helps me reframe what I need, vs. what I want.

Hope my .02 helps others.