Financial Shape in 2008-  April Monthly Check-Up

**edited to add the above title and picture--to join with Money Saving Mom's Financial Shape in 2008 --  join in!!

I have had 2-3 people IRL ask me some questions about our NEW BUDGET JOURNEY-  To True Financial Freedom.   As it is going to be a long journey for us....we are on it and I am so thrilled we haven't fallen off the wagon, YET.    I am so thrilled my husband is 110% on board....that is why it is working...becuase if you KNOW me you know I start something at 100mph but quickly get tired and move on...not Mr. Steady....he is in for the LONG HAUL!!

So...  I am going to post a link to our beginning steps...which ARE VERY important if you want to know HOW we got HERE...WHERE DID THESE #'s and forms come from???    If you are really interested in this entry and do not read or understand the first one--- you'll be lost before you finish this one, trust me!  So you go ahead and check that out and I'll get out our BILL BASKET:

So.... we are on week 6, and I must admit the first 3 or so weeks took us AWHILE to get things going because I LOVE forms...I love checks and balances....so I run the forms and dh runs the calculator and the FINAL decisions.  Of course once you have COMPLETED and "Correct" Monthly Income and Expenses sheet there aren't a WHOLE lot of decisions that need made... except our first 2 weeks we had a to put a BIT more in auto to be sure there was enought for the payment... (so clothing and a few other categories didn't get the right amount) but once you have 4 weeks in you SHOULD have enough to NO LONGER borrow from one to pay another.  We do keep a bill calendar to see what's coming....

DO NOT use this to make your Monthly Income and Expenses sheet though... follow the steps in part 1 for accurate #'s.

So in our NEW BUDGET folder I have our Monthly Income and Expenses sheet on the front sheet to keep an eye on what we budgeted.  (the spent category is only added for ME at the end of the month)

Next, I have a MONTHLY budget sheet... not sure if this is on crown's site...but it was in the book we received at the seminar.

This is the first sheet we fill out...(I do the sheet...dh fills out the check book register).  So first we put in the deposit of his pay check on the correct date (see dates on the left column) dh then enters that amount also in the check register (ck book).  Then you'll see some $ amounts at the top of each entry (Auto, Food, etc).  these are the WEEKLY amounts we need to put in each cateogry....coming from our Monthly Income and Expenses sheet divided by 4 (4 weeks).  So I fill in all these amounts and as I mentioned above we had to watch our bill calendar to be sure we had the right amount in each category for the first 2-3 weeks...but now it's just the flat amount.  (none of these #'s are in the ck book...just this form).  Then we make sure that what we put in each category equals the TOTAL deposited. 

Are you still with me?  It sounds complicated but after 6 weeks it REALLY isn't. 

So next... we take these numbers and put them in the individual account pages....

 I inserted a copy of our Housing page....so you can see first at the top we also have the weekly amount here...and you will see 2 numbers...The one in Red was our March amount but after seeing the #'s for a month we moved our cell phone expense and internet expense to this category so this number is different for April. 

Moving on you can see the amount we deposited into this category each week.... you can also see we had a running balance (in the positve...new for us) and then when a bill (electric, phone) came due the money was already in there... and at the end of the month...we still have a balance to pay April's bills... it REALLY works!!

 Above is a picture of our Savings page..this looks similar to our tithing page...we keep depositing the correct amount each week and at the END of the month we decided THEN we would move the $ to savings and pay our tithe....  it works this way and is less checks to be written.

 So...once we make each deposit (on the ledger)...we then go back and see WHAT is DUE this week and then make a withdrawl entry... (see housing sheet with the electric etc).  Then dh writes the check and takes the $ out of the check book register.  

Then we go thru and make withdrawals on the accounts that we empty out with CASH and keep a running total.  EXAMPLE:  Each week we take out in CASH form:

Grocery-  $125

Entertainment $40 (dinning out)

Gas $75

Misc (animal food $ 18  and allowance $10 each)  $28

If we have a Dr. Copay or a hs expense we also take that money out... in CASH.

Then Jason  writes a check for the total  $268 or whatever... after I make the withdrawls on the Account page.  When we go to the bank (after bills on the way to the grocery store usually...) we then cash the check (we don't mac because of the odd dollar amt)...and I have a coupon organizer that each section is labeled for...(Groc, Gas) and the correct amt is put in each section. 

So because of the above we should NEVER be touching the check book or MAC cards...so at the end...we add up the balance of each individual account pages....and THAT GRAND TOTAL should be our be ATLEAST our check book balance. 

And that is OUR process--- does that make ANY SENSE???

So how did March go?  Well we did have to alter a few numbers.... we need to add more to housing...(internet, cell phone) decrease grocery so we could increase medical and such... but the total Monthly Income and Expenses sheet  must still come out...so bye bye $125 grocery-- it was nice...the MOST I've EVER had to spend...but it was now cut a bit...   The upside-- We've never had so much in savings--- and that felt GOOD!!!   

** those of you who can see the Homeschooling Dollar amount are probably    because it is SUPER low...(right now) and with some upcoming Conventions we are VERY blessed that hubby can work some OT to help us out in situations like this....but we DO NOT COUNT any OT in our budget.    Once we get some debts paid (we only have 2 and they are bigger ones.... we will have more money to move around)...dh joked (i hope) that if he works 6-7 days a week for 32 weeks we would be DEBT FREE!!  hmmm sounds tempting...but not really... my family and our FAMILY time is MUCH more important right now....

At the end of each month we will take the time to see how things are going.

I feel there was something else I wanted to share....but can't think of it now...

so here.... after that we ALL could use some CHOCOLATE CHIP MUFFINS!! 

 PS:  If you are still here you must be "serious" about budgeting....

Crystal at Money Saving Moms 1x a month has a FINANCIAL SHAPE 2008 with her and MANY other's steps to getting in Financial shape..   Definitly worth a read!!