Thursday, January 28, 2010

Planning the new budget

I am in the process of re-working the budget. For the past 5 years the budget has been necessities + paying the house off and that was just about it. I want to stay on a written, planned budget because 1. I know how easy it is to fritter a lot of money away on little things and 2. I like to be in control of my money. Experience has shown me that either I take control and make my money do what I want it to or money issues take over and run me. So there is some thinking to be done--what do I want to accomplish with the income that previously went to paying off the house??
1. Retirement savings--I called last week and resumed 15% going into my 403b.
2. New vehicle savings--I'd like to save $1000 per paycheck but I'm not sure that is doable; we'll see.
3. My WTHIPO list--Since this will vary from one month to the next, I'll need to find an amount that I can build up for more expensive items.
4. Travel--I'm not a good traveler but JMM and TSM like to travel so that will need to be in the budget.
5. Charitable / Church giving -- I am embarassed that I really have given very little in this category for the last several years. I wonder if I could just jump in with a tithe? or would it be better to choose a smaller amount??
6. Property taxes / Homeowners Insurance / Homeowners Assn.--I will have to have a savings account just for this--probably $450 per paycheck will cover it.

OK, now to put pen to paper to flesh out just how much goes to each new category. (Pen to paper?? more like keyboard to Excel spreadsheet...)

Thought for the Day:
By failing to prepare, you are preparing to fail. Benjamin Franklin

No comments: