Reflection: How did we reduce it? We removed all daycare ($800) and reduced our grocery budget by nearly $500. That required Leon to not eat out as much, cut back on soda, and for me to cook homemade meals and cut back any 'extra' spending on little items here and there (which I have a weakness for). We also reduced our gas consumption by nearly half ($200) since I wouldn't be driving to work every day.
Back to the question, is it working? Well, that depends on our commitment. Mentally, yeah. We're pretty excited about it because we have significantly improved our spending. But we haven't quite hit each number each month. The discussions we've been having lately is a re-commitment.
Using Dave Ramsey's approach, we have standardize (equal pay) as much of our expenditures as possible and have most of them on automatic withdrawal. The cash spending is where we haven't been staying on target. So that is where we are 're-committing'. I'm even going to get envelopes out and I've proposed that we lock up our debit cards. :|
I love this quote (paraphrased) from Dave: 'Tell your money where it is going instead of it telling you.' We'll keep you posted!
We started this budget from 7 goals to finacial Sucess and it was the best choice we made but even after doing it for two years we often find our selves having to recommit to what we are doing. Im so glad you were able to make it work although I do miss you at work :)
ReplyDeleteYou are so sweet, Sarah. I walked through work yesterday and it really pulled at my heart strings not to be interacting with everyone still, but I am very happy being home with the kids. I'm going to Google what you mentioned and see if I like it as well. Any learning process will be helpful.
ReplyDeleteI'm coming to lunch tomorrow (8/5) - maybe you can come out with me or I'll at least swing by and say hi.
~B