Sample Budget Jenn's Way

Ok, I have shared some pretty major menu planning and grocery shopping plans with you. None of this can be done without talking money and budget. A huge part of the menu/grocery planning is shopping less. The less you shop, the more time you have and the less money you spend because studies show that every trip you make into a store is another opportunity to spend money on things you do not need. Come on, we have all done it. We run into the store for three things but leave with three bags full. I think budgeting for groceries is an important and related topic to meal planning so here it goes.

More than one person has told me that they would be unable to buy all the groceries that I do at one time. I do not have a load of extra cash sitting around. I am not rich (well as far as money goes anyway). It is mere organization that allows me to do the grocery shopping and planning that I do. I can not seem to attach a word document to this blog so I have scanned in the pages of a "Sample Budget." Don't worry, I'm not using my real numbers or any one's real numbers but it is set up as close to a real life scenario as possible so that it can be examined and questioned and hopefully understood. Being the nerd that I am I came up with this system by conducting some research at my local library (see budgeting books that I have listed on the side) and by consulting a wise friend.

The less money you have the more imperative it is to budget. For instance, if you have little incoming funds and you do not budget how do you pay for things like a $200 family pool pass for the summer? Or $150 for three kids playing soccer in the spring? What if your washing machine breaks unexpectedly? If you live paycheck to paycheck the only way to purchase these items is to reach for the credit card. I know because I used to do it.

Remember when we grew up and there were no credit cards? Many thrifty well planning mothers used the old fashioned "Envelope Budgeting System" which I still believe is the best way to approach a household budget. For instance, my friend Amy's mom and my wise mother-in-law used to put a specific amount of money in an Envelope labeled "Christmas" every pay starting in January and they never touched that money until they started their Christmas shopping (on a budget) in November. They knew that if they dipped into that envelope there would be no Christmas. They had other envelopes for many other things and tucked them away until the goal was met and the purchase was made or the bill was paid. What an awesome visual lesson Amy received from her mother. Amy still budgets and is my "go to" friend for my budgeting sound board. She can easily tell me how I don't "need" something that I just think I have to have. She is my confidant who knows my numbers and will tell me straight out when I can't afford something that I really really want but do not need. She really ought to start a budgeting business so if you are interested in her services I can hook you up with her.

Fortunately we now have computers and debit cards to ensure that our "envelopes" do not get lost. So I have simply taken the old fashioned Envelope Budgeting System and put it on paper. I allocate every penny for every paycheck before the paycheck comes in. I have an "Idealish" allocation but for each individual paycheck I copy and paste the "Idealish" table and put in what actually happens because "ideal rarely happens" (advice taken from book author Dave Ramsey). A bill may be lower or higher than expected or there could be several unexpected things happen that affects my ideal plan. But starting with an Ideal and sticking as close to it as possible is the goal. I keep check registers for all my "envelopes." Basically the check registers are what I would write on the outside of my envelope to keep track of how much was in there if I was actually using envelopes. I keep my budgeted account money separate from my "primary account" (the account I use for groceries, gas, necessities, tithing) so that my groceries or other gas expenditures which occur very frequently do not mess up my "budgeted plan." I move money back and forth online with my bank as much as I need to in order to keep everything . . . in order.

I think this budgeting system is pretty simple but I can imagine that it may be confusing to someone the first time you are looking at it. What my system allows me to do, which could be a problem if I was not disciplined, is to be in the negative on my envelopes if necessary. So this is how I purchase so many groceries at the beginning of the month: I buy everything that will not go bad for an entire month on the 1st of the month. We get paid twice a month so let's say I budget $350 per paycheck for groceries. If I spend $500 the first of the month I'm still on budget because I know that when I get paid on the 15th I am not going to spend the allocated $350 since I already bought my meat, canned goods, dairy, etc. to last the month. So when I only spend $200 from the paycheck of the 15th it evens out. I also try to keep a little grocery "surplus" going because I want to be in a position to take advantage of a great sale or deal by stocking up on a nonperishable. This may become more clear if you look at my Grocery Surplus Envelope on page 3.

PS I'm adding this comment weeks after posting this, I realized that I forgot to put a "Savings" envelope on this sample budget. But hopefully you get the idea. You can create whatever "envelopes" you want.