How do you keep track of household expenses?

[DebB]

Computer program, on paper?

We used to use Quicken years ago. I don't really have anything now. I do need something so I can keep a lot better track of where our money goes. You know those Walmart trips that include food and clothing, household etc....I need a way to break down those expenses into categories so we can get a better hold on our $$$. Honestly we should have a good chunk to go to savings each month but it never makes it there...somewhere we are spending it and I need to know where :unsure:

So, if you have a system that works well for you, please do share..

Thanks a bunch
Debbie;)

[Alice]

My system works for me but it might not be as thorough as you'd like.

I have a sheet I made on word that lists all our income and expenses. For fixed expenses like mortgage, utilities, etc I have a separate line for each one. Then I have categories for Car/Food/Other. I tracked our expenses for about a year. Then I figured out how much our average monthly income was, what our average monthly expenses were and how much we wanted to save and came up with a budget for food/car/other. I also made sure I counted all the expenses that come up during the year but aren't monthly like car insurance. I don't break down "other" into more categories, although you could. I find for me if I keep it relatively simple I'm more likely to stick with it.

Each month I print out a sheet and write down everything we spend. On the back of one of the pieces of paper I simply have columns for food/car/other with the amount budgeted at the top. Each time we spend something I write it down in the section and also subtract the amount from the amount budgeted. So if we spend $100 at the grocery store I would write 8/9 Giant...$100 in the Food section and then in the food column just subtract $100 from the amount budgeted.

This way we are tracking what we spend and each month I can make adjustments. At the end of the year I plan on going back and reassessing where we spend and what could be adjusted. But I'm also keeping track each month of how we are doing by the budget. If we're spending too much I know we need to cut back in that category or take money from another category.

At the end of each month I also figure out total amount in vs. out. If it's more in than out I put it in savings right away. If it's more out than in (this happens becuase our income varies month to month so sometimes what I budgeted was inaccurate) I then make sure the next month that I budget less for expenses to make up the difference. I keep a running total for how we are doing for the year as well as the monthly totals.

Trying to describe this sounds really complicated but it's actually pretty easy. The other thing I do is make sure I update it daily. I check our credit card statement, checking account and checkbook daily to make sure everything is in accord. Doing it every day means that at any one time it only takes 10 minutes or less.

[Jeni]

I put our savings away when we get paid that way there is no spending it. ;)

Have you tried budgeting it before you spend instead of trying to keep track of it after it is spent? The day before payday, I budget every penny. I tell the money where it is going to be spent. If a budget category goes over it's allotted amount, like say an unexpectedly high water or electric bill, I have to borrow from other categories to make it even out so we might not eat out that payday or I might have to cut treats from the grocery list or new clothes or other optionals might have to wait until next payday. I only take money from savings to make up the difference in an extreme emergency situation. If a category consistently goes over the allotted amount, it's time to take a look at either reducing the costs in that category or increasing the allotment by taking away from other categories and permenently adding it to the category that is always short.

We treat putting money into savings like any other bill, you can't get money back from the electric company after you pay them and so it is with savings as well. ;)

I do it on paper because I find that I'm better at keeping up with it on paper. Just a personal preference I guess. ;) I did make my budget sheet on the computer though and just print more as needed.

[Sherry]

We use a modified envelope method. Instead of envelopes with cash, we have columns in an Excel spreadsheet. These include groceries and household (food, hygiene, cleaning supplies, postage stamps, etc.), utilities, mortgage, medical, insurance, car (gas and maintenance), house (improvements, repairs, and major purchases), gifts, entertainment, savings, school, allowances, and miscellaneous. Each month a set amount is allocated to each of these categories. As bills are paid, the money is subtracted from the appropriate category. The allocated amounts are based on prior spending and are adjusted as needed.

We also have a credit card column. When items are purchased on credit card, the money is subtracted from the appropriate column and added to the credit card column. Then when the cc bill arrives, the money is subtracted from the cc column.

[Wendy KY]

I use a wipe-off board...makes it eaiser to rob Peter to pay Paul :lol::lol::roflol:

[Robin(CA)]

I do it before we get paid -- like Jeni.

The first 2 line items in our budget are tithe and savings -- the savings is automatically drafted to a separate account immediately when we get paid.

For things like groceries I have a fixed budget of $400 per pay period. We pull out cash and when it's gone, it's gone. (I don't separate out paper products, cleaning supplies, pet food, etc from food.) That also includes our eating out money. If we've spent it all at the grocery store, we don't eat out. :lol:

I have also budgeted $300/ month for our "sinking fund." Those are for expenses that we know will occur at any given time, just not at regular intervals like gifts, clothing, christmas, kids sports fees, school supplies, etc.
Trips to Target would come out of that money. Some months that account has lots more than 300 (because we haven't had any of those expenses for a while) other months it ends up at $20. If we're low and an expense comes up we have to wait until we get paid again.

For keeping track I use You Need a Budget (ynab.com -- I've used it for over 2 years) , but I don't need to be as detailed as I used to be with a bunch of subcategories because I know our system inside and out and if the money isn't there, I don't buy it. :lol:
It isn't as helpful for me to see after the fact how much I spent on X, Y, and Z. I'd rather control the money before I spend it.

ETA: LOL! I use a wipe-off board...makes it eaiser to rob Peter to pay Paul :lol::lol::roflol:

YNAB works a lot like the Excel system Sherry described above, but it's easier to use.