Question

Newbie here started looking into TBM Friday Yesterday I went through bank statements for December and January. (Will do February on Monday). Totaled and tried to make categories for these expenses. I feel unorganized. I did *utilities> water, electricity, garbage, gas, *auto > notes and insurance *house note >escrow *medical> copays and monthly prescriptions *fast food > eating out *gas stations > not always gas purchase *walmart> could be gas or groceries or household items *amazon> mainly large quantities of paper goods, coffee, cleaning supplies, laundry detergent *home improvements> Lowe’s, hardware store, Marshall’s *pet> foods *daughters> church camp fee, gym, cafeteria *entertainment> internet, Hulu, Netflix *Credit cards> 1&2 *Miscellaneous > anything that didn’t make sense in above categories. *i get cash tips > have never tracked where they are spent. (Will change this) Here is where I’m stumped: now that I have the horrible numbers from doing the expense tracking for months I don’t know where to start the budget. Obviously the bills are a must but how do you go from a free flying budget to a set budget without being short of funds for new budget? Especially since I don’t know exactly what type of items were purchased in my categories. Also when couples do the cash envelope system do you both have a full set and just split the amount? Do you only carry what you are going to need that day? Hope I’m making sense and I appreciate any advice!  

Answer 1

I would simplify and put all your food/grocery categories under one category. Next take the totals from each category and average them for the 3 months you’ve tracked, this is your average spend. Miko says your budget should be what you actually spend and not what you wish you spent. If you feel like these numbers are to high however, you can set goals to lower them for example if your groceries work out $1200 p/m but you would be more comfortable with $1000 then each month aim to drop $50 but be realistic in your approach, don’t set yourself up to fail.  

Comments

@gospel I can so relate to this. We just went back through January and February. I thought my coffee addiction would be the biggest waste of money we had. Nope! My husband was spending like triple that at gas stations.  

Answer 2

I have a his and hers envelope system. Hubbie prefers to use a card so his fuel and extras go into his account. I get the household $ out in cash and manage it that way. You really need to do what works for you both.  

Answer 3

The website is a great source of articles, information & resources. many free. Sign up for the weekly email too! Definitely do the free email course. You’ll find that a lot of this is trial & error at first as far as categories, etc. You’ll tweak & re-tweak every paycheck. Keep at it though! Set your goals & watch the progress. This method of budgeting really works.  

Comments

@gospel yes! Do the email course-it’s step by step & then dive in. I’ve been doing this since last fall and slowly but surely have been able to save money, add sinking funds, etc. Unexpected stuff still happens but it’s not utter chaos when it does. My stress level has decreased & it’s so nice to see our debt going down and savings going up.  

Answer 4

I was in this situation. I way overshot on my allowed amounts. Give yourself some grace and let the system show you how it can save you $$. My budget is a work in progress. I came to 800$ for groceries down from 1500$. I was surprised but I actually kept within the 800. So i left that one. I allotted too much for Fun, misc, medical and household so I am letting them roll over for 3 months then I'll readjust based on those months spending. Everyone's budget needs are different but TBM allows us to work it and still save our way with having a life. Baby steps make for habit changes. If it's all overwhelming just chose 1 or 2 things to apply and go from there. Watch all the videos, take the email class and start with the free printables in the library. You got this!  

Comments

@poore that’s how i am at right now too! I definitely allot myself too much for fun, miscellaneous, eating out, and groceries, but I’m waiting for a 3 month average to see

Answer 5

I would say continue watching the TBM you tube videos and she has some that help you start your budget. I watched a lot of videos and read a lot of blogs before I started. I started in January and I have slowly been adjusting my budget as I go. It going to be a work in progress for a few months. But you can do it.  

Answer 6

I started by converting my bills payments to autopay and pay a set amount fortnightly for each, they either come out fortnightly or monthly, either way it doesn’t matter as there’s enough to cover in the account. This didn’t happen immediately though, it took some time to get this up and running. I really like it, for the most part it’s set and forget except for a couple of bills for which I’ve set up a one off bills sinking fund. Once these were sorted I could clearly see what I had left to allocate each fortnight. Be kind to yourself it’s hard to change a lifetime of habits.