Confession: I've never tracked expenses or had a family budget.
DW and I have always been pretty good savers, typically maxing out the before tax investment options as well as saving and investing a fair amount after taxes so I figured as long as the savings side of the equation is ok then I'm not going to worry about the spending part.
Besides in our house the division of resposibilities is that she pays the bills and I do the investments. I think that I have by far the better job and didn't want to risk altering the status quo.
Well partly because of this forum as of January 1, I started to track and to some extent categorize monthly spending.
First having once been an engineer I did a "$ Balance" and decided that spending is equal to gross income minus taxes minus net investments all of which I know and estimated expenses from that equation for a couple of previous year.
So anyway now that we are 8 months into 2006, I find that we are spending about $15k more per year that the estimate and I'm not sure why (Part of it maybe things like tax deferred medical spending accounts that I'm not properly accounting for. Have to look into that.)
I am also having a lot of converations along the lines of the following:
HOLY CRAP honey have you seen the Visa bill!?
Yes.
How come it's so much? Is it wrong?
Well the Tahoe trip is on it and DDs horse camp and DSs B-ball camp. You did know about them? Right?
Well, umm, yes, umm, I guess, umm . . . . . . .
(thinking)
So but this is an anamoly? These are one time things right?
Well, the anamolous, one time things that will be on next months bill are . . . .
Oh
DD just got her braces off. DS now has them. They aren't cheap! We recently had a conversation about even more braces!
Honey I talked to the orthodontist and my teeth are crooked and I think I'm going to get braces.
I thought that only kids got braces?
No, a lot of adults are getting them.
Um, ok . . . . . . .
(thinking)
How much is this going to cost?
$$$
(thinking, another negative hit to the expense estimate, thinking, thinking)
Honey your're 48 (negative points for that, didn't think enough), we've been married 26 years (dang, more negative points, the way it came out the implication is that her looks no longer matter) AND YOU LOOK GREAT (a few points for that but I'm still way negative) do you really need braces?
(With a hint of frost in her voice)
I scheduled an appointment and I think I'm going to get them.
(Realizing the battle is lost and it is best to retreat and fight another day)
OK
I have always thought that I had a pretty good "intuitive" feel for the expenses but since January I have been a bit surprised by our expenses and where the money is going. It makes it easy to understand how some get into money problems and why money causes so many marital problems. (We have been lucky in that for the most part we have had two fairly good incomes, have natural saving tendencies and have never had a major finanical set back from a layoff, illness, etc.)
My excuse for the long post is that I was wondering if many of you were surprised when you first starting looking at expenses and did you choose to do anything about the surprises and did you benefit from it? (Although maybe I just wanted to vent on my "blown budget.")
MB
DW and I have always been pretty good savers, typically maxing out the before tax investment options as well as saving and investing a fair amount after taxes so I figured as long as the savings side of the equation is ok then I'm not going to worry about the spending part.
Besides in our house the division of resposibilities is that she pays the bills and I do the investments. I think that I have by far the better job and didn't want to risk altering the status quo.
Well partly because of this forum as of January 1, I started to track and to some extent categorize monthly spending.
First having once been an engineer I did a "$ Balance" and decided that spending is equal to gross income minus taxes minus net investments all of which I know and estimated expenses from that equation for a couple of previous year.
So anyway now that we are 8 months into 2006, I find that we are spending about $15k more per year that the estimate and I'm not sure why (Part of it maybe things like tax deferred medical spending accounts that I'm not properly accounting for. Have to look into that.)
I am also having a lot of converations along the lines of the following:
HOLY CRAP honey have you seen the Visa bill!?
Yes.
How come it's so much? Is it wrong?
Well the Tahoe trip is on it and DDs horse camp and DSs B-ball camp. You did know about them? Right?
Well, umm, yes, umm, I guess, umm . . . . . . .
(thinking)
So but this is an anamoly? These are one time things right?
Well, the anamolous, one time things that will be on next months bill are . . . .
Oh
DD just got her braces off. DS now has them. They aren't cheap! We recently had a conversation about even more braces!
Honey I talked to the orthodontist and my teeth are crooked and I think I'm going to get braces.
I thought that only kids got braces?
No, a lot of adults are getting them.
Um, ok . . . . . . .
(thinking)
How much is this going to cost?
$$$
(thinking, another negative hit to the expense estimate, thinking, thinking)
Honey your're 48 (negative points for that, didn't think enough), we've been married 26 years (dang, more negative points, the way it came out the implication is that her looks no longer matter) AND YOU LOOK GREAT (a few points for that but I'm still way negative) do you really need braces?
(With a hint of frost in her voice)
I scheduled an appointment and I think I'm going to get them.
(Realizing the battle is lost and it is best to retreat and fight another day)
OK
I have always thought that I had a pretty good "intuitive" feel for the expenses but since January I have been a bit surprised by our expenses and where the money is going. It makes it easy to understand how some get into money problems and why money causes so many marital problems. (We have been lucky in that for the most part we have had two fairly good incomes, have natural saving tendencies and have never had a major finanical set back from a layoff, illness, etc.)
My excuse for the long post is that I was wondering if many of you were surprised when you first starting looking at expenses and did you choose to do anything about the surprises and did you benefit from it? (Although maybe I just wanted to vent on my "blown budget.")
MB