Wednesday, January 16, 2013

#January Joy 16: Look at the budget, make a savings plan.


 Money, money, money. It's always hard to talk about it isn't it? I always half dread that moment of the month when we sit together and look at our finances and organize everything in the handy spreadsheets that the boy created for that purpose (I am more of a paper-lover kind of gal, who's always keeping tickets or else I forget where the money went).

We have quite a list of places we'd like to travel to, some of which are an ocean away. If we really want to make that happen we are going to have to save. Actually, saving is one of our general objectives, so our budget already contemplates setting some money apart every month.  So what is this going to mean? Well, it'll mean being very aware of where the money is going. I don't usually spend big quantities of money in one go. If I ever make a "big" purchase (like a fancy cocktail dress, a new coat, boots) it is often after thinking long and hard if I really need or want said item, after a thorough analysis. That's why it took us so long to get our beloved KitchenAid,  (1 year and a half after the wedding, even if we actually did not pay for it, since we used the last bit of our wedding gift certificates at a department store)*.  But news flash: little amounts add up. If I don't consciously think / organize / budget myself I can spend a lot in small things: a cup of coffee there, a notebook here, that pretty binder, baking supplies+ingredients, pocket books, train and bus tickets...

It is pretty straightforward though, you have an income and you have expenses. You should always make sure that you spend less than you have. In our case, to increase our saving rate we'll have to cut down some expenses, and since there are some things that can not be cut out (like insurance, or the mortgage) we have to cut from other places: our grocery spending, the "fun" (going out) + "extras" (birthday gifts, treats, etc.) budget. We also do not use credit cards except for the absolute necessary (online payments where it's the only payment option), and in that case we make sure we pay straight away, or maximum within 3 months. We are lucky enough that the education system in Europe is subsidized so we did not have to get study loans (and I was blessed  to get a Swiss scholarship). Other than for the house we are strongly against getting debt or stuff on credit (like a car). For instance, we'd only get a car if we could pay for it in its entirety. The boy just reminded me that we've also recently changed TV / internet and insurance companies, so this will mean a total of EUR 800 saved in the whole year. (I knew this but I completely forgot).

 Anyhow, as it is we are basically living on 1 salary (and we are incredibly lucky to be able to do so). Sure we don’t spend loads on money, we are quite good at the saving game, like I said, at least it is something that we both aspire to and when we make big purchases (like a DSLR camera this christmas) it is after a lot of thought and research…. For instance we actually got this camera and simultaneously decided not to have any other presents, it was THE present. It is also true that when I was working, that is, up until last September, my full salary went to savings or was used for stuff like tickets to Mexico. In my experience, when possible, this arrangement works quite well.

Budgeting is hard but I think living alone as a student helped me get good at it: there were certain things I wanted (like books!) for which I saved and certain others I didnt care for at the time (like my nutrition, so I lived on pasta + tomato sauce + oatmeal + milk) for which I didn’t spend a lot. But it is just a matter of organizing and compromising. It comes down to "we really want A, so let’s not do B for now."

Do you have any budgetting tricks under your sleeve? How do you deal with all of this? 

*I have to say it was the best decision ever, baking and being able to tackle complicated recipes and continously learn has been like therapy for me.

** I just found Mayi Carles' blog, Heartmade (thanks Marcela) and if you like organization tips, funny hilarious videos and some crazy inspiration go check her place out. 

*** image by the talented Mayi Carles, really go there !

23 comments:

  1. Ja,ja, ahorrar, debo deletrearlo a-h-o-r-r-a-r mmm no, no me suena la palabra. Al menos no desde hace dos años y es que vivir con una beca dos personas en Madrid es tarea casi imposible, así que ahorrar es imposible. Aunque, al principio las tarjetas estaban vetadas, no duró mucho, y es que hay veces que gastos imprevistos que desbalanzan por meses, aún así hemos podido hacer algunos viajes y bueno ahora a pensar en cómo organizar la vuelta a Mx y ahí sí, comenzar a planear ahorros.

    Por cierto que también soy freak de los presupuestos extremos en mi hojita de excel y todo.

    ReplyDelete
    Replies
    1. Los gastos imprevistos son los peores, y a veces, te rompen los esquemas por completo. Me acuerdo de aquellos tiempos en que las compus no existían, mi mamá se dedicaba a hacer toda la contabilidad en una especie de block verde clarito grandotote, tenía varias columnas, guardaba todos los tickets y llevaba el control de todos los gastos. Hasta la fecha no le gusta que los pagos se hagan automáticamente desde la cuenta, sino que va ella y paga al banco para llevar mejor control. De ahí aprendí que ella siempre guardaba una parte del presupuesto los "extras" como colchón para esos imprevistos.
      Pero claro, con una beca para 2, es complicado. No te preocupes, todo vale la pena, y además todas las experiencias, momentos, lugares, nadie te los quita. Para la vuelta a México te recomindo que cheques KLM ahorita (hasta el 28 de Enero) yo vi pasajes en 599 EUR, y pocas veces los he visto más baratos.
      Y sí, poco a poco el Excel me va convenciendo, pero por si acaso, igual guardo los tickets e incluso analizo por ejemplo en el ticket del super, en que gastamos más y así...

      Delete
  2. My budget's in need of a makeover as well and strangely I've even scheduled a post on it myself.

    One of the best money changes I made in the last few years was giving myself a cash spending allowance. That way, when I want to make a purchase for myself I either have the money, or I don't, and I know how much money I'll have left for the rest of my pay period once the money is spent. This has actually resulted in more "splurge" type purchases and less little things as I'm more likely to squirrel away my spending money for larger things that I've been lusting over for a long time (new boots, pieces of art, and right now some of that is going to vacation funds) and I think harder about the small purchases.

    ReplyDelete
    Replies
    1. The cash spending allowance system sounds great. It is also good to be able to get "surprises" to each other without the other one knowing, specially for birthdays and the such.
      And I totally get you, I am more than willing to save my "morning cofee" Cash to get some item that I am lusting for but I do not *strictly* need. I will be curious for your post.

      Delete
    2. Funnily enough one thing I still consistently spend money on from my fun stash is fancy coffee when Bunny and I are out running errands. I'm a little addicted (although it's only an expense a couple times a month, really) and I almost always treat him. It's silly, but it makes me happy.

      On the other hand the every day type coffees and lunches that I can make just as easily on my own have almost completely stopped. The thought of maybe being able to afford somewhere tropical this year is more than worth giving up the little extravagences for me.

      Delete
    3. Oh fancy coffee when being out in the city is a great treat. I mostly don't drink coffee (at home) anymore, but every now and then (maybe every month or two) I will get a fancy latte or cappuccino from a place where they have Italian cofee and really enjoy it. Those little moments of joy are well worth it.

      And yay for somewhere tropical :) It will be worth it !

      Delete
  3. Mijn meeste geld gaat op aan boodschappen, dus ik probeer daar op te bezuinigen door minder vaak naar de supermarkt te gaan en meer in één keer te kopen. Ik doe ook wel eens mee met geld-terug-acties voor duurdere artikelen als wasmiddel (hier meer info: http://dutchcouponing.blogspot.nl/)

    ReplyDelete
    Replies
    1. Dat is een goede tip. We gaan 1 keer per week boodschappen doen en we proberen om met alles dat we gekocht hebben te overleven. Bedankt voor de website ook.

      Delete
  4. We have always been pretty decent with saving money and paying off debt (student loans and car payments), but when I lost my job in the summer, we had to take a long, hard look at our budget and revise it. Living on one salary, we had to cut down "frivolous" spending. The first thing that got the axe was going out to restaurants. I hadn't even realized how much money we were spending on going out to eat! We didn't eliminate restaurants completely, but now we only go on special occasions (rather than when we don't feel like cooking). That really made the biggest difference for us. So, now that we are living on one salary, we are still able to save up for a house downpayment.

    ReplyDelete
    Replies
    1. Yeah, I totally get you. Eating out can get pricey, and we also mostly go on special occasions but we have "space" in the budget for getting pizza or greek food from the take away every now and then. It is great that you are able to save, I think it is a matter of wanting and of organizing accordingly.

      Delete
  5. We have been living on 1 salary since I got pregnant with Luka and Zoe, so saving is a must. There really is no room for frivolities and since last year, with the therapies and all, our budget got even tighter. Fortunatelly (?) both Musa grew up without money and went through many tight spots in our life. I never had money, so not having it now is just more of the same, I'm used to it and can cope. It's not easy, though, wondering if our children may lack something that they need, but I stay positive and keep telling myself that we will find a way, like we always do.
    That being said, being frugal means that we own our apartment without mortgage, so it pays off...

    ReplyDelete
    Replies
    1. You will for sure find a way and you are both great parents.
      I can totally understand that with kids saving is a must... we were already discussing about starting some kind of college fund for them already, thinking how. Congratulations on owning your apartment without mortgate, it is a HUGE deal.

      Delete
    2. That is one of our plans as well, we will probably start it when things get a bit better. Some friends of ours have started one for their daughter in Germany (they are Italian). I was planning to ask them for details and I can share with you, if you want.

      Delete
    3. Oh sure I would love to hear ! :) All insight is good, we were thinking of this saving plans that are constructed in such a way that if you do not move the money from there in quite a long time, you get pretty high interest rates.

      Delete
  6. Me encantan sus commentarios en tantos idiomas :)

    Es que....I literally hate talking about money. And funnily enough, we have a lot more of it than we used it and I still hate talking about it. In fact, I think I was better about it when we didn't have any. Then I could handle it. Now, being the first person in my family to officially enter the "upper Middle Class" (whatever the hell that is), I have a lot of guilt about it, mixed in with some anxiety that it will all be taken away. Wow, I'm a psychologist who needs to get some therapy, hey? :)

    ReplyDelete
    Replies
    1. Jajaja sí, es divertido, me gusta que la gente se exprese como se sienta mas cómoda.

      But money is hard, it is very tricky stuff. For a while I felt bad that I am basically being "kept" (I have worked for 2 out of the 3 years I have been here, since graduating, but the rest of the time I have been in unpaid internships, and now I am not "bringing any bacon" to the household, so I know about the guilt, but I am slowly coming to terms with it).

      Florence wrote it better in her post yesterday, as one of the perks of marriage:

      "It has been surprisingly easy to get used to shake off that feeling of spending somebody else’s money and the most rewarding thing has been that talking about money, previously something we took care of individually, has become a part of our relationship. It’s another element to the best feeling that marriage brings. That feeling that you’re in it together and we’re working towards our future together."

      And don't worry, I think we could all use some therapy :) It's normal... we're only human.

      Delete
    2. Justme, that is something I can totally relate to. I don't know how to "have money", which is why I find it terribly hard to spend anything in myself. And, as Amanda I also felt AWFUL all these years for not making any money on my own (taking care of the house and kids was not enough in my eyes). Then I realized thinking that way was an insult to my grandmother and started coming to terms with it. But I still have trouble spending.

      Delete
    3. Marcela, yep...completely. I buy something and then I find myself rationalizing it. Why I need it, why I deserve it...what a mess. I like how you said "coming to terms with it" and compared it to your grandmother's life. I think its about redefining what we have right now and who we are. But it's a journey, because my guess is most of us have very emotional memories linked to money (or lack thereof).

      Delete
  7. Saving is something me and my husband are focussing on at the moment, as we've got big travel and home plans (and I'm a student!), meaning we really need to focus on saving. Our two main efforts have been, firstly, to really make the most of being in our flat - we take it in turns to cook fun dishes from scratch, so we don't feel like we're missing out by eating in. And secondly, just to remind each other of what we're saving for. If I see a cute pair of shoes on sale, Liam will remind me that that is the price of a jerry can for fuel, or the price of a cushion in our future home. Suddenly I realise what I'd be missing out on if I splurge now, so I keep my purse in my pocket.

    ReplyDelete
    Replies
    1. Yeah totally, if you think of the long picture , splurging on treats or "frivolous" stuff is easier in a way.
      And yay for travel and home plans.
      Cooking fun dishes at home is great, I have found it is not that hard to reproduce X, Y, Z with a little bit of research and effort and it is so very rewarding.

      Delete
  8. Het is zo goed voor mij om dit te lezen. Ik studeer finance en kan echt wel met geld om gaan maar ik kies er eigenlijk voor om alle mode die ik leuk vind te kopen. En dat is een hoop! Er zitten wat veranderingen aan te komen in m'n thuis situatie (samen wonen?!) en dan is het wel fijn als ik wat achter de hand heb, of in ieder geval rekening houd met mn vriend. Een nieuw plan opstellen dus. Het word hoog tijd! Dankjewel dat je dit gedeeld hebt en er zo openhartig over bent, want praten over geld is stiekem toch een beetje taboe.

    xx

    liquoriceandpumps.blogspot.com

    ReplyDelete
    Replies
    1. Het is altijd moeilijk om over geld te praten, en ook moeilijk om niet alle de dingen kopen, maar we proberen.
      Samenwomen :) Spannend ! Gefeliciteerd!
      Bedankt voor je opmerking. En ja, budgets zijn een beetje taboe, ik denk nog meer in Nederland?

      Delete
    2. Geen idee hoe het in andere landen zit. Ik weet dat engelse (mijn ex vriendje is engels) er nog minder over praten. En ik weet eigenlijk niet zo goed waarom want soms helpt een wake up call of het uitwisselen van tips enorm goed.

      Delete

I love your comments, let's talk .

Related Posts Plugin for WordPress, Blogger...