Sweet Frugal Life

Being Frugal Doesn't Make Life Any Less Sweet

Tips For Budgeting As A Couple

By: Sweet Frugal Life2 Comments

How to get your spouse to budget when they don’t want to.

Do you struggle budgeting as a couple?  I can so relate!  I have been there!

My husband and I are constantly working on getting on the same page with a budget.

It all started about 10 years ago when I read a book that changed my life, Dave Ramsey’s Total Money Makeover book and I knew it was time to start looking at our finances differently.  I decided right then and there that my husband and I would make a budget, and stick to it faithfully.

Later that night I happily told my husband the good news, “We are going to start budgeting and will be able to save so much money!” I announced.

I looked at his face, fully expecting to see the same enthusiasm that I felt……but instead of joy, I saw annoyance.

“Why do we need to budget?  We spend less than I make every month” he asked me.

I spent a few minutes explaining to him that a budget could help us save for our future, eliminate some unnecessary spending, and set us up for financial success, fully expecting him to be just as excited about it as I was.

But, he just didn’t have the same vision as I had.  Which, in hindsight is understandable.  I had accepted him to jump on board with my new found financial knowledge, simply because I was telling him that it was a good idea.  I wanted him to feel like I felt, without ever giving him the opportunity to form his own views.

Here’s the thing about relationships:  you can not force your spouse to have your same views.  That’s not how a marriage works.  A marriage is a partnership between two separate people.  Each of the partners will, should, and have their own opinions, thoughts, goals, and ideas.  I’m going to say it again, you can not force your spouse to be something they aren’t.

It took me a few months of talking (and disagreeing) to my husband about budgeting before I finally asked, “Can we just try it?  Let’s just try it for one month and see how it goes.  I think it could really help us!”

Fortunately, he agreed.  We sat together one evening and set up a budget.  There were frustrations, we have had plenty of mishaps, and we have had to start and restart time and time again.  But.  A decade later and we still budget.  In fact, my husband is the one that 99% of the time reminds me it’s time to discuss the budget.

So what changed?  I believe there were two main points that changed my husbands mind about the whole budget thing.

  1.  He saw that a budget did in fact make a difference.  My husband needed to decide for himself if he felt that a budget was worthwhile.  Once he saw how much more money we did actually save on a budget, he embraced the vision.
  2. It became a habit.  He really didn’t like the idea of having “one more thing” on his to do list.  But, after a few months it has become a habit and doesn’t feel like an extra chore, it’s just what we do.

Now, I understand that not all situations go like mine.  Some spouses are more willing and others are much less willing to budget together.  Here are a few tips to help you when your spouse just doesn’t want to budget.

How you can get your spouse to budget #budgetingcouples #budgetasacouple #frugalcouple #savingmoney #budgetinghelp

Tips For Budgeting As A Couple

1.  Communicate

Communication is so important in a marriage, and finances is no different.  Communicate with your spouse why you want to budget and your goals and concerns for your future.  Explain to him why this is important to you, and why it is important to you to do together.

In return, listen.  Listen to your spouses concerns.  Ask him why he doesn’t want to budget, ask him how you can help make it easier for them, and genuinely listen and care about his responses.

2.  Make it Fun

Try to make budgeting fun (yes!  budgeting can be fun…..ish!).  Instead of saying something like, “Let’s have a budget meeting.” (I mean, that prob sounds fairly boring to anyone, right!?), invite your spouse to something fun, plus a budget meeting!

You could go on a walk, have a picnic, or bring their favorite foods to enjoy while discussing the budget.  Make the budget meetings a little less boring and try to make it a fun experience for everyone involved.

2.  No blaming

When it comes to the budget you need to work as a team.  Avoid putting blame on your spouse.  Instead of, “You spent way to much this month!” say phrases like, “We spent to much this month.”  Yes!  Even if it truly might be your spouse overspending, work as a team and never ever blame.  The only thing blaming will bring is contention, and contention won’t make a budget.

3.  Be Willing to Compromise

Compromise is a must when budgeting as a couple.  Maybe you are super frugal and your spouse isn’t, this is totally normal!

Find a way to meet in the middle.  Perhaps your spouse wants to get a hair cut and color every month, but you feel that makes the budget to tight.  Ask if they would be willing to get a cut and color every 6-8 weeks instead.  Give your spouse freedom in their budget, while also making sure the budget is kept.

4.  Personal Spending Money

Include personal spending money for both you and your spouse.  This spending money gives both of you the freedom to spend how you want, when you want, with completely no guilt or judgement attached to it.

The amount received for personal spending will vary based on your income and expenses.  However, you and your spouse should both receive the exact same amount.

I love having this guilt free spending money!  

5.  Be the Example

Maybe your spouse just doesn’t get it, and that’s OK!  The whole idea of budgeting might be a little daunting or strange to them, which is exactly how my husband was.  Be an example of living by a successful budget so they can learn from you.

Excitedly show your partner how much money you saved by doing “xyz” that month.  Your positive attitude just might rub off and they will want to join in on your success.

6.  Celebrate the Wins

Positive reinforcement goes a long ways in marriage, and life in general.  When your spouse sticks to the budget, celebrate.  Buy them their favorite treat, genuinely praise them, and let them know how proud you are of them.

Everyone likes to feel appreciated and having mini celebrations can help budgeting feel much more bearable.

7.  Make a Plan Together

Together is the key word in this.  Sit down and discuss your goals for the future and present.  Plan how you can reach these goals and make a plan going forward.  Allow your spouse to give their opinions about the way the plan and budget will look.  It might not be exactly how you think it should be, but remember compromise matters.

When Nothing Works

If you have tried everything you can to get your spouse to budget and it’s just not working, you are not alone.  Financial disagreements are common among all couples.

Focus on the things that you can control within your budget.  Spend wisely.  Budget as best as you can by yourself and do what you can to keep the finances in order.  Alone is never fun, but it can be done.  Lean on support groups through facebook or family and friends to help give you the support you need.

Related Articles:

How to Start Budgeting for Beginners

10 Quick Ways to Save Money on Groceries

The Best Frugal Living Tips You Need to Know

Pin For Later:

how to budget as a couple - budgeting tips for couples

I hope this gave you some good tips about budgeting as a couple.

How To Budget With An Inconsistent Income

By: Sweet Frugal Lifecomment

How to budget when you have an irregular income.

Have you been trying to budget with an inconsistent income and keep falling short?  Do not worry!  You are not alone!  This is a very common problem that people with irregular incomes experience.  When incomes changes from month to month it can be very hard to know how to budget.  I mean, if you don’t know how much money you’ll be earning each month, how do you decide how much to spend?  I get it, and I am here to help!  There are a few tricks you can use to make budgeting with an irregular income not only easier, but possible.  Today I’m excited to share my tips to help you learn how to budget with an inconsistent income.

First Things First

Before we get ahead of ourselves, let’s first do a quick run through and how to make a budget.  When it comes to budgeting, I recommend making a zero based budget. 

Zero based budgeting is really just a fancy term that means that when making your budget your expenses will equal your income.  Every dollar you will be earning will have a job, a category it will be put in.  This doesn’t mean you will be spending every dollar, just that you will find a category for every dollar in your budget.

This form of budgeting has helped my husband and I find so much financial success and limit our impulse spending.  If it’s not in the budget, we can’t buy it!

If you are new to zero based budgeting, or budgeting in general, make sure to grab my free Budget Cheat Sheets below to help you get started!

How To Budget With An Inconsistent Income

There are a few different tricks you can do when learning how to budget with an inconsistent income.  I suggest trying a few of these methods out until you find what works best for you and your income.

1.  Make your budget based on your lowest expected income.

My first tip to budgeting with a variable income is to make your budget based off of your lowest expected income for that month.  It’s always better to have to much money, instead of not enough, right?  Right.

When you budget off of your lowest expected income you can be confident in knowing you have budgeted enough money for your monthly expenses.  And, if your income ends up being higher, well, than that’s just icing on the cake!

To find your lowest expected income you will first need to review your income statements from the previous year.  Compare each month until you find the lowest amount you earned last year.

Use that amount of money as your base income for your budget.  

If throughout the month you earn more money than you your lowest expected, you can use that money to:

2.  Budget off of the previous months income.

Instead of living off of the amount of money you will be earning this month, live off of your income from the previous month.

For Example:

Let’s say that you earn $5,000 in January, $3,200 in February, and $5,500 in March.

In February you will not budget or spend any of the $3,200 you will be earning.  Instead, you will be budgeting and spending the $5,000 you earned in January, and set aside your February earnings.  Then in March you will budget the $3,200 from February and save your March earnings until the next month.

Make sense?

Budgeting off of the previous months income can take some practice and self control, but it is a great way to ensure you have the money before you budget for the month.

If you find yourself constantly tempted to spend your monthly income, instead of the previous months, you might want to set up a separate bank account to store that money in until it’s time to use it.

3.  Create a Hill and Valley Fund.

A Hill and Valley Fund is one of the most effective ways to budget with an inconsistent income.

The Hill and Valley Fund is based off of the “Hills” and “Valleys” many people with irregular incomes experience.  Some months your income will be big, like a Hill; and other months it might be a lot smaller, like a Valley.

Creating a Hill and Valley Fund is a way for you to help even out these variable income months.  A Hill and Valley Fund is similar to a sinking fund.

*A sinking fund is a fund you save into regularly, but only use when needed.

The best way to grow this fund is to save some of your excess money during a “Hill” month into this fund, which isn’t always easy, but so important.   Then, on the months when your income is low, a “Valley” month, you can use some of the money you have saved.

You can track your Hill and Valley Fund, similar to a sinking fund, within your budgeting programs.  Or, set up a separate banking account to keep this savings in.  Whichever works best for you!

Stay Consistent

It can be stressful when trying to learn how to budget with an inconsistent income.  One of the most important things to remember is to not let that stress deter you from budgeting.  Keep working your budget, trying different methods, and using your Hill and Valley fund and you will see success.

Try these three steps when making your next budget, and remember to stay consistent.  Consistency is key to living within a budget, no matter how much money you earn.  You can do it!  I believe in you!

 

Related Articles:

Extreme Ways to Cut Your Budget

How to Get Your Spouse to Budget

The Best Frugal Living Tips You Need to Know

Pin For Future Reference:

budgeting tips for irregular budgets - how to make a budget with variable income

budget on irregular income - budget tips

I hope this article helps you know how to budget with an inconsistent income!

What Are Sinking Funds? Everything you need to know!

By: Sweet Frugal Life6 Comments

Wondering what is a sinking fund?  I’ve got the answer!

I get asked a lot, “What are sinking funds?”  And I love answering this question because sinking funds are my favorite part of budgeting.  They give me the freedom and control to make a plan and treat myself on something fun. 

For example, my husband and I really like to travel.  We don’t do it a lot, but it is a conversation we are always having.  The secret to being able to travel while on a tight budget?  Sinking funds!

Do you use sinking funds in your budget??  If you don’t use them yet, I strongly suggest beginning immediately!  They have enabled me to save up for the things we want, and the things we need; and they allow me to enjoy spending GUILT FREE.  Seriously, the best!

complete guide to sinking funds

What is a Sinking Fund?

A sinking fund is a smart way of saving money for planned future expenses.  You contribute a small percentage of your income into the sinking fund each month.  This gives you the ability to pay for the large expenses without having any stress; the money is ALREADY there!

For example, we use a sinking fund to save for our Christmas expenses each year.  We know that December will be an expensive month, so we save a little bit of money each month into our Christmas Sinking Fund, and when the time arrives, we can easily pay for everything.

What types of Sinking Funds should I have?

Sinking Funds will be different and unique to each person and situation.  Any known expense that you feel you should save up for, is a Sinking Fund.  A few examples of sinking funds are:

  • Christmas
  • Vacation
  • Home Repair
  • Taxes
  • Car Maintenance
  • Clothing

Is this my Emergency Fund?

No, no and no!  Your Emergency Fund is for emergencies ONLY!  An emergency is an UNPLANNED expense.

A sinking fund is for all of those other expenses that arise, the ones that you know are coming and know will be expensive.

Example:

I KNOW that Christmas will come EVERY year, so I save for it through my sinking fund.  I KNOW that we want to take our kids on a vacation in a couple of years, so I have a sinking fund to save for that large expense.

How much should I save?

The amount to save into your sinking funds will depend on your income and what you are saving for.  The best way to determine this number is to write down your goal amount, divide it by the number of months until you will need that money, and then you have the exact amount to save each month.

Example:

If we wanted to spend $1000 on Christmas and we started saving in January we would compute the equation:  $1000 divided by 11 = (about) $91.  So, now we know that we need to save $91 every month to have our Christmas fully funded by December.

 

Do I need to save a large sum each month, or make smaller contributions?

I encourage you to put money into your Sinking Fund with every budget that you make.  Budgets are made at different intervals, usually depending on preference and pay period.  I make my budget monthly, so I deposit into my sinking fund once each month.  If you budget weekly, deposit money into your funds weekly.

Piggy bank with one dollar bill

 

Where do I keep my Sinking Funds?

You will want your money saved in a place that will be readily available.  Do not put these funds into the stock market.  A regular savings account or money market account is best.  I know of a few people who prefer setting up multiple savings accounts for each individual Sinking Fund.  Check with your bank about opening up multiple accounts, my bank charges for each account, so it just wouldn’t be worth it to me.

We decided to keep the funds all together in one savings account.  This is where an excellent budgeting program comes to play.  I use YNAB for budgeting and it allows you to set up certain categories as Sinking Funds.  This makes it possible (and so easy) to be able to track how much each fund holds at all times.

If paper and pen is your thing, go with it!  You can easily track your sinking funds using my Free Sinking Fund Tracker.  Download it, along with 4 other free printables below.

 

 

How is a Sinking Fund different than a Savings Account?

It’s not really.  I use my bank savings account as a place to store my emergency fund and all of my sinking funds.  The biggest reason to use a sinking fund is to encourage you to save with intention and purpose.

Scenario 1:

Johnny saves $100 every month into his bank savings account.  He is proud of his regular savings and dreams of one day having enough for vacations, a new car, or any emergencies that may arise.

After one year Johnny has $1,200 saved.  He needed to make repairs in his basement bathroom and used the entire savings account to cover the costs for those repairs.

Scenario 2:

April saves $100 every month into her bank savings account.  She uses YNAB (or any other budgeting program) to save this money into separate sinking funds.  Monthly she puts $50 into her emergency fund, $25 into her new car fund, and $25 into her vacation fund.

After one year April has $1,200 saved.  $600 is in her emergency fund, $300 in her new car fund, and $300 in her vacation fund.

April now has possibilities.  She can use her emergency fund to begin repairs on her basement bathroom, or wait a few more months to help that grow a little more.

The Lesson

When you save money using sinking funds you are are giving yourself options and control over your savings.  You are making it possible to save for large expenses, without having to juggle all of the other costs that can get in the way.  Think of sinking funds as a budget for your savings account.

In Conclusion

If you aren’t using sinking funds in your budget, I highly suggest you start now.  It opens up a whole new world of saving possibilities!  Make sure to grab my free budget printables below to help you get started.

 

 

Pin This Article For Future Reference:

sinking funds 101

what is a sinking fund

 

Now that you know what is a sinking fund, start making a few today!

How to Make a Zero Based Budget

By: Sweet Frugal Lifecomment

How to set up a zero based budget, for beginners.

I have been getting so many questions lately about how to set up a successful budget.  I decided it was about time I talk about this important subject!  Today, I will be teaching you exactly what you need to do to set up and maintain a zero based budget.

What is a zero based budget?

A zero based budget is a form of budgeting where you budget all of your expenses to equal the same amount as your income.  The simple formula is:  Income – Expenses = 0.

Why do I need a zero based budget?

This form of budgeting forces you to think about every single dollar.  When you have to scrutinize exactly where, how and when to spend each of your hard earned dollars you will look at your spending differently.  A zero based budget will keep you on track with your money goals and encourage you to spend less, while saving more.

how to make a zero based budget

How to set up a successful budget:

Setting up a zero based budget is really easy once you learn the basic steps.

Step 1:  Write down your income.

Write down all the income you expect to receive over the next month.  Don’t forget to include any money you might receive from side hustles!

Need a budgeting worksheet?  Download one for free by clicking the link below!

Step 2:  Write down all monthly expenses.

This is the most time consuming part of making a zero based budget, but don’t let that scare you away!  You need to write down every expense you will be making over this next month.  And when I say everything…I really mean everything!  That $2 shake you get on your way home from work???  Yeah, include that in your expenses.

Fixed Expenses

First, write down all of your “fixed expenses.”  A fixed expense are the bills that cost the same amount every month.  The most common fixed expenses you should include in your budget are:

Variable Expenses

Next, you will write down all of the variable expenses you will have throughout the month.  Variable expenses are the items you spend money on regularly, but the amount changes month to month.  Here are a few of the most common variable expenses:

  • Groceries
  • Entertainment
  • Eating out
  • Fuel
  • Clothing
  • Hair care

Seasonal Expenses

Now, write down all seasonal expenses.  Seasonal expenses are those expenses you will have to pay sometime throughout the year, but usually not every month.  Don’t forget these seasonal expenses in your budget:

  • Home repairs
  • Christmas
  • Birthdays
  • Tuition
  • Dental/Medical work
  • Vacation
  • Property taxes
  • HOA fees

It’s so important to plan ahead for these expenses.  If you start saving for them now, you will already have the money set aside when the time comes.

The best way to plan for seasonal expenses in advance is through sinking funds.  A sinking fund is like a savings account within your budget.  You will add to these funds each month, and then when that home expense comes, or your HOA is due, you will already have the money saved for it.  You can learn all the nitty gritty about sinking funds here.

Master Your Money Super Bundle 2020 

Savings

Don’t forget to include setting aside money for saving.  I highly encourage you to always be saving a little bit here and there.  You might want to be saving for retirement, a rainy day, or college.  Don’t forget to include these in your monthly expenses.

Step 3:  Subtract Your Income from Expenses To Equal Zero

Once all of your income and expenses have been written down you will want to subtract the income from your expenses.  The goal is to get the number to equal zero.  This might take some trial and error, but you will find what works for you.

If your expenses are higher than your income, try to rework your budget and find areas to cut.  Here are 5 things we cut from our budget to save thousands each year.  Don’t think you have anything left to cut?  Check out these ways to cut your budget when you don’t have anything to cut.

If you find your expenses are lower than your income, this is great, but you will still need to keep working the budget.  Every dollar in your budget needs a job, don’t leave any of them sitting around with no where to go!  If this is the case for you, find a category within your budget for those extra dollars.  Add more money to a category, save the extra for a rainy day, or use it to pay more towards your debt.

Step 4:  Track Your Spending

Now that your budget is ready to go, it’s time to track your spending!  Throughout the month you will need to write down everything that you buy.  Yes, everything!

Tracking your spending is important because it helps you see if you are staying within your budget….or if you are overspending in certain categories.  I have also found that when I know I have to write down my spending….I think twice before spending!

Step 5:  Check In With Your Budget

You must be checking in with your budget regularly.  I recommend taking a quick glance at your budget at least once every day.  Get into the habit of checking your budget before making any purchase.  This helps you be sure that you have the money available.

Have a more thorough budget check in once or twice a week.  This thorough check in will be the time to look through your budget and make sure your spending is right on track.  Your weekly check in should take about 15-30 minutes.

Step 6:  Close Out the Budget

It is now time to close out the budget!  This should be done at the end of each month (or budgeting period.)

Closing out the budget simply means to make sure all spending is accounted for.  You will look through your spending tracker, fill out your budget to report how much you spent in each category, and make adjustments as needed.

This is an important step to learn more about your spending habits.  If you find yourself continually going over budget in groceries, you might decide you need more money in that category.  Perhaps you notice a lot of overspending on clothing each month, you can use this knowledge to make a plan to spend less.  Thrift shopping or using cash envelopes are both great ways to keep the clothing budget down!

At the end of each month you will rework each of the 5 budgeting steps.  This is the time to rewrite your budget and assess your needs and living situation.  Your budget will change from time to time, and that is necessary!

Be willing to work through these changes and put in the work to keep your budget properly maintained.

The goal is to have the amount spent equal the amount budgeted.  Through time and adjustments, you will find what works best for you!

how to make a budget - what is a zero based budget

Budgeting FAQ

How much should I put into each budget category?

I like to follow Dave Ramsey’s advice when it comes to budget categories.  You can find how much he recommends in each category here.  We don’t follow these suggestions completely, but they make a great guideline to help us budget.

What should I do if I go over budget?

It happens to all of us!  Don’t get discouraged if (and when!) you find yourself in this situation.  There are a few things you can do to fix your budget.

  1. Use money from another category.  If you have already overspent in groceries, but still have money left in your entertainment category, you can use that entertainment money to cover the cost of your extra grocery spending.  This will mean less entertainment for the month, but it might be necessary to keep your budget on track.
  2. Sell something.  Look for items in your house that you can sell right now to earn some money.  I highly believe everyone has a few things they could make money from.  This extra cash can be applied to the area you overspent in.
  3. Side hustle.  Try to find a way to earn extra money to cover your extra expenses.  Need a few ideas?  I have a great side hustle list here.

The most important thing is that you find a way to cover that overspending.  Do not pull out a credit card.  You can fix this!

What should I do if I go under budget?

The very first thing you should do if you go under budget is give yourself a big ‘ol pat on the back.  Be proud!  That’s great!

But.  We don’t want to leave that hard earned money just sitting around.  Give it a job!

Here are a few suggestions (in order of priorities) for your extra cash:

  1. Pay extra towards your debt.
  2. Build up your emergency fund.
  3. Put it in one of your sinking funds.  Perhaps a vacation or car you might be saving for.
  4. Reward yourself.  Treat yourself to something fun!  It’s ok to use that extra cash on you!

How can I make checking my budget a habit?

Habits are so hard to form!  If I’m being completely honest with you, it took us years (yes, years) to form a good budgeting habit.  I hope it doesn’t take as long for you!  Here are a few suggestions to make budgeting a habit:

  • Set an alarm on your phone.  This alarm will be your daily reminder to check your budget and stay on track.
  • Schedule it.  Write “budget” write into your daily planner/schedule.  Set aside a time each week that is your budget time, and no matter what stick to this schedule.  Sunday evenings are a quiet time in our house, so we use it to look over the budget.

 

It’s now time for you to make your zero based budget!

how to make first budget

Terms and Conditions

Disclaimer