Monday, 2 January 2012

Budgeting for 2012

I've spent an hour or two this evening working on our household budget for the year. I've been realistic in all departments and based this year's figures on what we spent on each thing last year. But I am hoping to make more savings in some areas this time, and be able to save some of the budget, so each figure should be a maximum for the year, and the aim would be to have some left over to transfer to savings.

I have set up a big spreadsheet so that I can keep track of the monthly spending in each area of the budget, and I have a new diary where I am recording every penny we spend this year. Today has been a day at home so I have been able to record a No Spend Day.

So, in accordance with tradition here, January is a Low-Spend month. I will be doing four back to back $21 challenges but changing the amount to £21 - this is the amount I am allowed to spend each week to supplement what we have in stock for the menu - it is usually spent on fresh fruit and veg, cheese and things like that. There will be no spending on frivolities and luxuries and it will really be a month of living on what we have got! Hopefully it will kick start the savings.

My aim is to save £5000 this year, as I fell short of this target in 2011 by quite a way.

We have made a start on the decluttering by packing up a load of old DVDs to send to musicmagpie and I donated 10 items of clothing I no longer want to a recycling bin yesterday! We have to start somewhere!!


Mrs. Mac said...

Happy New Year! I think you are on the right path by putting together such a well planned budget. We have a big goal of paying off our home in 10 months or less. Slow .. but consistent budgeting/debt reduction and spending (on paper) our month's income at the beginning of the month has helped GREATLY.

lizzie said...

Me too ! For once I am optimistic about saving; I feel all the things I have learned I will put into practice.
I recorded a no spend day already this year and when my baby grandson broke one of my lampshades I repaired it as best I could and it looks absolutely fine.
I have a new notebook that is a food diary and a day book and I am excited !

Mrs. Mac said...

Hi Morgan. I read your comment on my blog and thought you and your daughter might be interested to read this award winning finalist post about teens and preparedness written by my friend, Marie.

Good info for parents too!