February 20, 2011 4 Comments
So I worked this weekend with BF to create new zero-based budgets for both of us. Now it is time to share!
Here is my new budget which will go into effect starting February 28th:
To give a quick summary. The left side is what I will spend on each thing per month. The “Amount Spent” column is how much I’m budgeting for each particular thing. The column to the right of that “Amount Remaining” is how much money I have left after that expense. I have them saved in order of semi-priority. Savings accounts first, then bills and debts, then finally variable expenses. In the middle section is what I will pay towards to each thing from my first paycheck. The far right section is what I will spend on each thing from my second paycheck. You can see I pay my most bills with the exception of my rent and student loan bill from the first paycheck. All other expenses (savings and variable) are split equally between the two paychecks.
Based on my assessment of how I spend money in Kansas, I’ve adjusted my variable expenses to represent this. I am budgeting $80 for gas, $360 for food, $160 total for all pet related expenses (food, litter, daycare), $20 for clothes, $70 for miscellaneous and $30 for entertainment. I plan on using envelopes starting February 28th, so each paycheck I’ll remove $360 in cash from my checking account and allocate this to their particular envelopes and use only cash. I’ll be piloting the envelope budgeting system for the entire month of March to see if it is a practical way for me to run my budget.
For my debts I have my credit card (minimum is $400), a 0% interest mattress loan (I’m paying enough to have it paid off before the 0% interest date arrives, but not the maximum I could since I’m not earning interest on it but my credit card IS earning interest), and my student loan debt (2.5% interest, only paying minimum). So I’m paying $527 over the minimum on my credit card.
After my February 28th paycheck I’ll be putting the $50 each paycheck for my emergency fund on to my debt, this is why paycheck #1 shows me putting $50 in my Emergency Fund but paycheck #2 shows no money. That $50 that would go normally go to my E-fund will be redirected to debt since my E-fund will be full funded.
I’ll need to do some moderate money movement with my direct deposits to do this, but since March is a trial run I’ll just manually move the money around and if this budget seems to work for me then I’ll change my direct deposit forms to reflect these changes.
I also got BF to do a budget. It is similar to mine except his only debt is a car payment and he doesn’t have pet expenses and all his utilities are included in his rent. He also already has a fully funded E-fund, but doesn’t have any yearly savings – but is planning on starting doing this with his next paycheck. Since he doesn’t make as much as me he can’t save as vigorously for vacations and things of this nature, but I’m glad he’s starting. His car loan is for 3 years, so once that is paid off (he’s paying $100 extra each month) he’ll be in a really good place financially.
We should both be debt free around the same time – which seems like a pretty perfect place to begin a new life together. (Hint, hint, nudge, nudge)