Hanno and I spent two hours on our budget yesterday. We checked old bills and we had our little (solar) calculator running hot. We put 2 and 2 together, checked our answers, then checked again. We are spending LESS than we used to. Call off the hounds, our financial throats haven't been cut, we are doing fine. I'm sorry to alarm everyone.
Let me explain.
Our petrol costs have risen, our food and grocery costs have risen, but almost everything else hasn't, in fact, many of our costs have fallen because we're wiser and more frugal than we used to be.
Our new budget is listed below. The way we organise our money is that we have a certain number of costs that we keep in the back. They are in the first section below. Our other costs are paid in cash, so that money is withdrawn every month and put into my trusty zip lock bags. Each section has its own bag, for instance, we have a bag containing $125 marked 'Aldi', a bag containing $125 marked 'IGA', a bag containing $30 marked 'Chemist' etc. During the month, money is taken from these bags when we do our shopping.
GENERAL EXPENSES - STAYS IN BANK
Let me explain.
Our petrol costs have risen, our food and grocery costs have risen, but almost everything else hasn't, in fact, many of our costs have fallen because we're wiser and more frugal than we used to be.
Our new budget is listed below. The way we organise our money is that we have a certain number of costs that we keep in the back. They are in the first section below. Our other costs are paid in cash, so that money is withdrawn every month and put into my trusty zip lock bags. Each section has its own bag, for instance, we have a bag containing $125 marked 'Aldi', a bag containing $125 marked 'IGA', a bag containing $30 marked 'Chemist' etc. During the month, money is taken from these bags when we do our shopping.
GENERAL EXPENSES - STAYS IN BANK
(Per month)
Each bill is paid by direct debit when it comes in or kept in the bank until we need it
House and water rates 95.00
Insurance - house, car, health 225.00
Phone - Landline & Mobile 40.00Each bill is paid by direct debit when it comes in or kept in the bank until we need it
House and water rates 95.00
Insurance - house, car, health 225.00
Internet 40.00
Electricity 53.00
Gas 15.00
Rego, tyres and maintenance 84.00
Vitamins 80.00
Clothes and shoes 20.00
Optical 25.00
TOTAL 677.00
CASH WITHDRAWAL FOR ALL BELOW
Money withdrawn from bank and put in ziplocks
GROCERIES
Aldi 125.00
IGA and markets 125.00
Chook and Dogs Foods 50.00
Bulk food/ flour 40.00
TOTAL 340.00
TRANSPORT
Petrol 150.00
TOTAL 150.00
HEALTH
Dental 20.00
Medical 25.00
Chemist 30.00
TOTAL 75.00
GENERAL
Garden Supplies 30.00
Pocket Money - HH & RH 80.00
Postage 15.00
TOTAL 125.00
TOTAL MONTHLY SPENDING $1367.00 or $342 a week or $49 a day
In our old budget we were paying more for various services so that is were our current savings are. Here is the old budget, this is the first part of the budget that we keep in the bank:
House and water Rates 156.00
Insurance - house, health, car 295.00
Phone - Landline & Mobile 95.00
Internet 40.00
Electricity 67.00
Gas 25.00
Rego, Tyres and maintenance 87.00
TOTAL = $765.00
As you can see, we've added $125 to that section and we're still $88 under our previous budget. We are also saving $100 a month on this budget.
We've decided to keep our food budget the same and try to stay within in for the time being. We'll review it again in six months time.
There is a lot to be said for small steps each day. They really do add up. All those small savings in electricity when we turn off lights and appliances at the wall - that's where some of these savings have been made. More savings were made by baking a few things at the same time, by cutting back on water, and being mindful of our phone usage - using emails more and the phone less. All small, almost insignificant savings, but when added up, have made the difference for us between make and break.
So yes, our fuel and food prices have risen but we can cover those rises with savings from other areas. I have to tell you, it was a surprise to both of us how much we'd cut back. The proof for us was in all those bills we looked at from the past year - they were all less than the previous years, even though the costs of utilities is rising as well. We are not living a lesser life because of those cut backs. We don't feel deprived. Quite the contrary, we feel enriched, satisfied and confident, knowing we can change for the better and stay within the meagre boundaries we imposed on ourselves.
I will go ahead with the Etsy shop and the extra writing and see if we can make a bit of money for our holiday and maybe some to be put aside for a new computer that we'll probably need in the next year or two.
To answer a couple of questions raised earlier:
There is a lot to be said for small steps each day. They really do add up. All those small savings in electricity when we turn off lights and appliances at the wall - that's where some of these savings have been made. More savings were made by baking a few things at the same time, by cutting back on water, and being mindful of our phone usage - using emails more and the phone less. All small, almost insignificant savings, but when added up, have made the difference for us between make and break.
So yes, our fuel and food prices have risen but we can cover those rises with savings from other areas. I have to tell you, it was a surprise to both of us how much we'd cut back. The proof for us was in all those bills we looked at from the past year - they were all less than the previous years, even though the costs of utilities is rising as well. We are not living a lesser life because of those cut backs. We don't feel deprived. Quite the contrary, we feel enriched, satisfied and confident, knowing we can change for the better and stay within the meagre boundaries we imposed on ourselves.
I will go ahead with the Etsy shop and the extra writing and see if we can make a bit of money for our holiday and maybe some to be put aside for a new computer that we'll probably need in the next year or two.
To answer a couple of questions raised earlier:
- The trip to where I work is up a steep mountain road, a motorised bike would not be an option.
- I belong to no church but I like the idea of tithing. As someone else suggested, I give to my community with the work I do at the Centre.
- RachaelC, the hen and chicks are from Brazil. They were a gift.
Again I want to thank everyone for the thoughtful comments on our situation. We really have built a great little community here.
