I had been dreading doing this budget because I was worried about the increase in some bills and insurance along with a higher mortgage payment. I was however pleasantly surprised last night when I did a budget with rough numbers. We can EASILY cover everything! I was so excited I couldn’t sleep haha. This is my official descent into Personal Finance 🙂 Below is the budget I roughed in. I budget on a bi-weekly basis because our mortgage is paid that way and I like to keep everything together. It’s a bit strange I know but it works for me 🙂
Car Payment $50.00
Cable/Internet $45.50 *
Cell Phone $65.00
Home Insurance $62.50 **
Line of Credit $225.00
Parents Loan $100.00
TFSA $75.00 ***
Savings for car insurance $80.00 ****
Dining Out $0.00
Home Repair/Goods $0.00
TOTAL BILLS + BUDGET $2,388.75
* We are discussing whether or not we need cable and so if we go without this item will change to $18.50
** This will likely not change but this is a higher quote than what we changed to but includes earthquake insurance and given where we live it’s probably a good idea!
*** I suppose you could call this our “savings” account we don’t currently have a plan for this money but once we learn a bit more about investments etc. we’ll be able to make a decision about where this goes.
**** One of my goals this year is to save up for our entire car insurance payment prior to that wonderful (not) day and I believe we will contribute our tax return to this fund (which will hopefully cover about half) so I’m pretty dedicated to this line item.
As you can see this is a fairly extreme budget with not a lot of room for entertainment and fun. But as our debt gets smaller our budget will include some money in the fun sections. I also hope to earn some side income working as a marketing consultant which I’m currently doing now and I see this as discretionary funds, not necessarily spent on clothes or frivolous things but discretionary in that maybe I’ll make an extra debt payment or perhaps something towards car insurance or maybe an occasional dinner out. I like the thought that I’ll be getting “bonus money” every few weeks it keeps things fresh.
So you tell me? Extreme budget or balanced budget?