Finding Freedom Friday

This week on Finding Freedom Friday at Cents to Get Debt Free she's talking about budgeting :) Seems to be the topic of the week.

As usual she has some specific questions - some I answered yesterday but I'll answer some more today (I answered them backwards because that flowed better for me):

What are your tips for making a budget and sticking with it?

- my tips all come from using what other people have already done. I find no need at all to re-invent the wheel. Thus, I subscribe to the Grocery Game and have begun using the software program You Need A Budget. With 5 kids I don't have time to come up with any of these ideas on my own :) So, for me the best way to make a budget and stick with it is to use what has been already done.

Since you have been on a budget have you seen any positive changes? Negative?

- the biggest positive is that when I got my tax refund deposited into my account I didn't feel stressed or overwhelmed - I have this peace that the money will be spent how I plan for it to be spent rather then just flying out the window with no idea where it went!
- negative changes? We go out to eat less :) There are certainly days when I wish I could drop it all and just go "relax" - after all, the money's in the bank - it's not on a credit card, but then I think about the future - if I've given that money a task in my budget then it needs to stay in the bank till I'm supposed use it - I can either go out to eat 12 times this month and not at all until December or I can be patient and spread it out over the whole year. It's that whole being patient that I am NOT good at.

Do you feel more in control now?

- yes! For the most part. Like I said I now know where my tax return is going rather then wondering where it went and that is a wonderful feeling :) My brain is still adjusting to the whole idea of the budget so that is taking some time for me to be in control of my money and not the other way around but I'm getting there.

Have you been able to cut any categories or shave off in certain areas? Why have you been able to do this?

- I answered this the most yesterday - I have cut out our cell phone and transferred to a pay-as-you-go plan
- I have made a weekly grocery budget to keep from overspending on groceries and cut out eating out
- We have adjusted areas but not made them so restrictive that we can't breathe so that sticking to the budget has been more pleasant and as the months go on should become easier and more natural as we increase and decrease areas as necessary (I like flexibility which is why I haven't enjoyed budgets in the past!)
- Something I didn't add yesterday is that I'm going to cut out one meal a week - not that we won't eat but we will either eat leftovers or eat what is here - this should free up some weekly grocery money to not have to cover a full 6 meals (Sunday's are always crazy so we already eat whatever at home) - now we'll be down to 5 but generally at least one of my meals are quite large and provide plenty of food to eat again!

Still keeping your bottom line at zero have you been able to "find" any money?

- not really - I'm working to fit into my budget so right now, no I haven't "found" any money but I am finding creative ways to spend different areas without overspending :)

How have you been doing on your cash flow plan?

- pretty good - still working out the kinks which is why I keep blogging - helps to keep me on track!

What about you? How's your budgeting going? Leave a comment here or head over to Cents to Get Debt-Free and let her know :)

The No-Spend Experiment

Seeing as it is March I have completely missed the No Spend Experiment over at MomAdvice that took place in February. The idea was to spend the entire month not spending money on anything other then necessities like food and gas.

To be honest I don't think I could do it. I have even come across a blog of a family attempting to live on $1200 a year for food and extras. I don't believe they had any kids in diapers but either way I just don't think I could deprive myself quite that much without extreme necessity!

But it did get me to thinking how I could really save money. I mean in reality - a reality that doesn't include giving up everything I like and enjoy.

And in my thinking I've come up with a few things to help myself save money - maybe they'll help you too!

1. Cut out one big ticket item - we cut out our cell phone because it was something we could easily live without - for you it may be your cable or drycleaning. Just pick one and it will help your monthly budget - for us we saved $85 a month! That's a significant chunk. But to cut out every single "extra" just doesn't seem reasonable and would make it 1000 times more likely that you won't stick with your budget. Remember trying to diet and depriving yourself of just about every food? You're dying and you want to eat!! Budgeting is no different - when I cut out what is easy for me to live without I save money and feel no deprivation - it's a win-win. But for me to cut out my cable - well, that would be like never being allowed to eat pasta or drink coke again!!

2. Pick a no-spending day once a week or once a month or more if you can. Even plan to buy groceries at other times so that one day you spend nothing! Just making a conscious effort to spend absolutely nothing on a day will make you pay attention to your budget and it feels really good not to spend money!! I'm not sure I could build up to a month but maybe someday :)

3. BUDGET. I know this has been done to death. We all know it and we never do it. I'm terrible at it but this year I have made it a huge priority and let me tell you how every purchase I make I think about what budget category it goes in. It is constricting but ultimately I believe it will be freeing. Check out You Need a Budget for budgeting software but also a chance to sign up to receive e-mails for 10 days on budgeting - it's good stuff.

4. Use the Grocery Game or some other method of coupon matching to save money on your grocery budget. Speaking of which - MAKE a grocery budget - even good deals add up :)

5. Use coupons wherever you can. Restaurants, clothes, books - whatever you buy check to see if coupons are available before you make your purchases.

6. Use what you have to pay for what you need. Whether that's swapping or selling items at a yard sale or consignment sale. It's extra money you didn't already have and you get rid of the stuff!

7. Plan ahead! This is a big one for us. Now instead of getting caught off guard and having to run out to eat and spend money we plan ahead to what we'll need. Next Monday night is a PTF meeting at school - a night we would normally do drive-thru but instead I will plan on a simple and quick meal here at home and save ourselves $25 - a little bit of planning goes a very long way. That's pretty much what budgeting is just on a more practical level.

8. Focus on your money. Read blogs about saving money; let your friends know you're trying to save money (this can get you out of expensive and awkward situations that before you would've spent money on); read books about saving money. The more I focus on it, the more interested I get, the less I spend, the easier it is, the more on track I am.

These are just my thoughts - I'd love to hear yours! I'm not an expert and I don't claim to be - I'm just a mom trying to raise 5 kids in an ever-increasing down economy and I'd like to come out of it okay but I also don't want to live through it miserable :)