Saturday, 5 February 2011

Realistic Budgets

By: Notes From The Frugal Trenches


















Every now and then I think I can trim more off my budget and I try to convince myself that I don't really need to have as many items budgeted for in my monthly plan. Little conversations will run through my head, the more determined side convincing myself I don't really need to keep adding to my health fund because I so rarely get sick. That same voice would seem so sensible when it suggests I don't need a clothing jar because I don't need new clothes. And yet again the voice rears it's ugly head when it tells me mad money is just a frivolous spend. Only what the weaker voice didn't state loudly enough is that mad money is great fall back money, new clothes may be needed if your winter boots break in half and medication may need to be bought if you suffer from eczema.

Living the frugal life can be a worthy pursuit, but if you aren't careful it can make life more complicated instead of helping you simplify. Sometimes in my effort to have as simple a budget as possible I have actually made my life more difficult. Overspending because you haven't spent enough, pulling money from the wrong place, dipping into other funds and feeling overwhelmed are in direct contrast to the simplicity the frugal life can bring. And when you aren't realistic about your needs & aren't actively and practically planning for the worst - you can be in a situation which is a bit like cutting off your nose to spite your face.

I use a jar system to allocate my money and the truth is, whether I like it or not, whether I add in $1 or $50 a week I need to budget each week & month for all of my costs. Even if I wish I could eliminate more in every season of my life I need money jars which represent the truth. And right now my *truth* is I need jars for:

Grocery Shopping
Bills
Health
Pet Costs
Emergencies
Giving
Clothing

And while health and clothing usually don't entail monthly spends, knowing there's some money rattling around in a jar to help deal with inconveniences like itchy skin & boots which split in half {and are much needed items since we have yet another 2 months of snow storms ahead of us} helps me live a simple, green & frugal life!

How do you keep your budget organized and on track? How do you make cut backs that are realistic? What are your budget necessities?