I'm looking for suggestions on how to implement sticking to a set budget. Budgeting is simple in concept, but what methods actually work for keeping track of spending of a certain category, maintaining visibility of it, and restricting spending beyond a certain point?
I'm thinking of trying to set a budget for optional incidentals for things like dinner or drinks out, drinks at home, new clothing, house cleaner, new toys for the kids (although maybe that shouldn't be part of the same bucket), etc. but I don't see any plan to implement it to pitch to my wife that would go over well. If I just say, OK we need to spend no more than XXX on optional stuff each month, now track all optional purchases and sum them up and stop when you hit the limit, It's just not going to happen. I need to have some method in mind that is effortless but effective.
My best idea for now is to create a separate checking account, and automatically transfer funds to that account each month, then make all optional purchases either to a debit card for that account, or to a separate credit card that we set up to be paid by that account.
I still see the following problems with that plan though:
I guess my fantasy setup is two separate 'optional spending' accounts, one for each of us. It would be awesome if we could have set budgets so we know we don't go over a limit, but every now and again when we see we have the money in the account could enjoy guilt free treat-yo-self purchases. I loathe spending money now, and never want to treat myself, even more so because I feel like I need to make up for my wife's spending by trimming my own.
We've got two toddlers at home and have just about 0 extra time on our hands so I can't see successfully trying to add additional chores to our life right now, but income may be diminishing soon so I'm trying to prepare for how we'd trim down if needed.
As I type this I'm thinking, of course, if my wife isn't on board with the whole thing then it just isn't going to work, so what system can we use that is the easiest to get on board with?
I'm thinking of trying to set a budget for optional incidentals for things like dinner or drinks out, drinks at home, new clothing, house cleaner, new toys for the kids (although maybe that shouldn't be part of the same bucket), etc. but I don't see any plan to implement it to pitch to my wife that would go over well. If I just say, OK we need to spend no more than XXX on optional stuff each month, now track all optional purchases and sum them up and stop when you hit the limit, It's just not going to happen. I need to have some method in mind that is effortless but effective.
My best idea for now is to create a separate checking account, and automatically transfer funds to that account each month, then make all optional purchases either to a debit card for that account, or to a separate credit card that we set up to be paid by that account.
I still see the following problems with that plan though:
- That sounds like too much work to likely be really implemented, just the prospect of having to consciously choose which card to use for each payment seems likely to be ignored or forgotten. Maybe it would start out strong, but after many months be forgotten.
- It's easy for expenses to escape tracking by being purchased with the wrong card.
- if we go the debit card route then you could run into overdraft fees, or a problem where you are for example out and need to pay for drinks when the check comes but don't have enough money, so you need to use another card and either allow the expense to escape or somehow manually track and make up for it later.
- The credit card has no real constraint, we could rack up any balance despite how much is in the reserve account..
- Before deciding to make any purchase or not, I guess we'd have to log into our bank account app on our phones and check the current balance. This seems very likely to not be done before every purchase, but maybe would be checked once a week or so.
I guess my fantasy setup is two separate 'optional spending' accounts, one for each of us. It would be awesome if we could have set budgets so we know we don't go over a limit, but every now and again when we see we have the money in the account could enjoy guilt free treat-yo-self purchases. I loathe spending money now, and never want to treat myself, even more so because I feel like I need to make up for my wife's spending by trimming my own.
We've got two toddlers at home and have just about 0 extra time on our hands so I can't see successfully trying to add additional chores to our life right now, but income may be diminishing soon so I'm trying to prepare for how we'd trim down if needed.
As I type this I'm thinking, of course, if my wife isn't on board with the whole thing then it just isn't going to work, so what system can we use that is the easiest to get on board with?