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We lived paycheck to paycheck and it was hard, but we also had no choice. When we had room and wanted to start saving we tried to keep the same budget as when we were living paycheck to paycheck, but it was restrictive and stressful.
We took on a “treat yo’ self” mentality since we had been so good for so long and it very quickly spiraled out of control. We even decided to start looking at houses because we knew we could afford more in our monthly budget and we really wanted a house with a yard.
We lost sight of our debt free goal and somehow ran up credit cards and had no savings.
So its back to the budget – but a happy medium that works for us.
My favorite and most useful budget technique has been a paper calendar budget. It is perfect if you are a very visual person – which we both are.
A calendar budget gives you a visual of exactly which weeks your bills will fall on as opposed to a list budget that just reminds you what bills you have each month.
It is especially helpful for paychecks that fluctuate (commission, varying hours, etc.) as it helps you to see if you need to keep some funds from one week for the next.
I use simple, printable calendars. You can print blank calendar pages here.
We also have a whiteboard calendar so I can quickly look and see that I haven’t forgot anything (mom brain is real). This is a simplified version of our calendar budget – with each bill written on its due date as well as appointments and events.
How I use calendars to budget:
1. Write every bill on its due date and the amount due next to it
For credit cards I write in the minimum due. I also mark if it is an automatic payment, I usually just put a little “A” next to it.
2. Write in any events and appointments that are coming up that will require money
I include any parties that may require gifts, medical copays, planned vacations, children’s events, car registrations or scheduled maintenance, etc.
3. List your expenses for each payday
D gets paid weekly on Fridays so each Friday on our calendar includes a total of all upcoming bills that will be paid with that weeks check – everything due from that day until the next Thursday – Bills: $XXX.XX. I also add any upcoming events for the upcoming week – I keep the total listed separate from the bills in case they fluctuate or plans change.
4. Use cash for food and gas
Food is our biggest pitfall for our budget. We grocery shop then “have nothing to eat” – which is why meal planning becomes so important. We like to eat healthy which can get expensive if you don’t make a clear and focused list – but it doesn’t have to be.
Sometimes we will use grocery pickup service when we may not have time to go to the grocery store. Those are the only instances where we will leave our food budget in the account, as they can’t be paid with cash.
A note about your grocery budget – I include household supplies in ours (cleaning supplies, TP, paper towels, diapers, etc.). If you account for these separately, take cash out for them too. If you use an “envelope system” you’ll have a separate envelope for these too (we don’t, but may try it). I will post some ways that we save money in this category.
Cash for gas may be inconvenient and its not a big problem area for us since we fill up when we need gas and thats it – but it helps to see what we have left every week in our bank account.
Which leads me to my next tip…
Link your savings account
Our checking and savings are linked and I can easily manage them both online. Each Friday I can take out our cash for gas and groceries and transfer most of what is left into our savings. If an emergency arises I can easily access it but it is no longer in my debit card account. I will leave some in the debit though just in case something comes up where we won’t use cash.
We budget based on his minimum check. If there is commission or if it is a 5 paycheck month those are considered extra savings. If we have no events or trips planned then that extra amount should go right into savings (you will notice I use should because we are not perfect but this is the goal!)
I will typically transfer a portion of the remaining balance into savings that Friday – since I can easily see the difference of my projected expenses – or I will wait until Thursday and transfer all that remains before payday.
Our budget is on a week by week basis for this calendar method so anything left one Thursday is either savings or extra toward a debt depending on your method and goal.
My method, which may or may not be best, is to transfer as much as I can into savings each month and use it to pay toward/payoff a larger bill. That is what works for me. Do what works for you!
The biggest tip I have is be very familiar with your bank account
If you are living on a tight budget check on it daily and know exactly where you stand. If you are using the cash method you should – in theory – only be using the cash you have on hand. But there are times where you may need to use your card. In which case you should always know exactly what is in your account.
I recommend using the free printable calendar pages here and filling them in using the tips above.