# Do You Make A Formal Budget (Or Have You Ever)?



## OneEyedDiva (Jan 9, 2017)

Many seem to find the word “budget” distasteful and they shy away from making one. Actually, I don’t call it a budget, I call it a Financial Empowerment Plan (FEP).  I have been keeping a FEP since I was about 23 years old. Of course, back then, it involved putting pencil to paper.  It allowed me to see what I could spend...when and how best to “rob from Peter to pay Paul” (I was “poor girl” back then, with a toddler).  I plotted out 6 months of spending/saving so I knew when I could buy an article of clothing or a couple of records.  In short, it was my reality check whenever I thought about buying something. It also allowed me to witness progress with my savings plan, which started out at only $12 a month. When I got a piddling raise, I'd save more. When I got my tax returns, I’d bank ⅓, use ⅓ toward bills and the last ⅓ I’d spend, usually on my son. I learned at an early age something that has stayed with me for life.... to pay myself first.  And I've been "preaching" it ever since. Now I use the Family Budget Planner (FBP) buy Vertex (linked below) and download it into my  Gmail Drive.  It is a very comprehensive spreadsheet that can be customized to fit your needs although most income and spending categories and sub-categories are already listed.  

I know some people use Quicken or other programs. This is my 7th year using the free FBP and although it doesn’t automatically transfer figures like Quicken, it keeps both monthly and annual tallies for each individual category. It has come in handy when filing taxes and figuring out what obligatory Zakat (charity) is due. Most of all, I can see instantly exactly how much I’m spending and saving on a month to month basis and I’m able to compare spending patterns over the years. No pun intended, keeping a FEP using the FBP makes me accountable.

Keeping track of my expenditures also helps me to project (using current figures and estimated inflation rates) what expenses will be in 5 years and beyond, how much I’ll be able to continue to save and when I’ll need to tap into my retirement nest egg. In case you haven’t already guessed, I love playing with numbers and planning for the rest of my retirement. If I’m nervous or bored, working on my FEP actually helps to relax me. I know, some might find that to be a bit weird. 


Do you have a formal budget (ahem...I mean FEP)? https://www.vertex42.com/ExcelTemplates/family-budget-planner.html


----------



## rkunsaw (Jan 9, 2017)

No, I've never had a formal budget (FEP), although there were many times in my life I should have.  I'm fortunate now my income is more than we spend and we can afford everything we need.


----------



## dog lover (Jan 9, 2017)

Having had to deal with budgets constantly while working, I gladly left it all behind when I retired. I have an amount to spend on general life expenses, including my pets etc. , and a sum for discretional spending. I have enough of a feel for it to stay in my parameters without pushing numbers. So, no budget keeping, and it's all good for me.


----------



## Carla (Jan 9, 2017)

No, not in the sense that you do. Somehow, it just all works out. If and when I need something, I buy it. The wants are different, depending on the amount I may wait until I build up my bank account. I set aside X amount of dollars for groceries, gas, etc. and usually have some left for other incidentals like things needed in the drug store. I buy some items ahead if there is a good sale I always look for bargains but only on things I use often.


----------



## Capt Lightning (Jan 9, 2017)

No, never did.  I tried to keep a good 'buffer' to smooth out the demands from month to month.
I do keep a spreadsheet showing my savings and investments, so I know pretty well how much I have.


----------



## Aunt Bea (Jan 9, 2017)

No formal budget here.

I developed the habit, many years ago, of writing down everything I spend in a notebook.  I tally up the figures once each month and total the months at the end of the year.  I look at those figures at the end of the year and try to make a rough projection of what my expenses will be in the coming year.  I also look at the way the expenses fall each month during the previous year, some months are very high and some months are very low.  As the year goes by I try to stay within my budget, tightening my belt at times, letting go at others.  Over the years this back of the envelope calculation has worked for me.  In addition to my little budget plan I do keep some cash reserves to help me over any unforeseen rough patches and smooth out my normal expenses from month to month.


----------



## NancyNGA (Jan 9, 2017)

While I was still working I mostly just spent the bare minimum.  No need to write it down.  Now I'm easing up some.  There will be no budget though


----------



## Myquest55 (Jan 9, 2017)

Aunt Bea, I am like you.  I have kept a composition book with monthly expenses and due dates, for YEARS!  It helps me plan ahead and for me to see the real numbers. It also keeps me on track since I do not write in the amount owed until I get the bill and I check them off as I pay them.  I allow myself cash every pay period and try to make it last as long as I can.  When we could deduct sales tax, I used to keep a notebook with shopping list and tape in the receipts so we could claim the actual amount - which, with 3 children, was always more than the standard deduction.

About 5 years ago I started a spreadsheet to keep track of savings and investments so my husband could visualize our situation.  (He had convinced himself we would never have enough to retire.)  It has also been helpful to take to the financial guys and one year we handed them the sheet and asked them if we would be able to retire earlier than planned.  They came up with a blueprint for us which we have regularly updated.  DH (now at age 60) has Parkinsons and looks like we will HAVE to retire within the next 12 months.  

I never fully comprehended the idea of a "budget" but this system works for me.  The financial guys once asked me if I would stick to a "budget" but I told them "no," and they were surprised.  This system has worked well for me and I can keep track of what is coming in and going out.  I have managed to save up so it must be working.


----------



## Kitties (Jan 11, 2017)

Never. But if I didn't have it, I didn't spend it. I've stayed out of debt.


----------



## Wilberforce (Jan 11, 2017)

Yes I have well sort of. It was when I was first married and  the best reason was  is to see just how much I spent . I kept a record of expenditure then reviewed it to see if and where I had made mistakes  and where I had done well. I then tweaked it to get the best I could for the money I had, I only did it for a couple of years while I was learning the job so to speak then the knowledge I had learned carried me through.

Periodically I would put myself on a short time budget if I needed to save for something big so I could pay cash for it easily.


----------

