Tuesday, March 21, 2017

First Step to Meeting Financial Goals: Re-evaluate the Budget (Part 2)

In yesterday's post, I started evaluating our monthly budget to identify ways to tighten up on the spending and put more money each month to our goal of saving a $20,000 down payment.  Here are some additional ways we can save.

4. Extra Regular Income. My paycheck is the exact same every month but my husband is hourly so his pay is almost never the same.  When I prepare the budget, I go on his minimum pay amount if he was only to work exactly 40 hours a week.  His paychecks are almost always over that amount due to overtime.  So instead of using that money as an excuse to go out to eat, that money will now be put into the down payment fund right away.

5. Grocery Budget.  I was budgeting $500 per month for our family of four.  But we have tons of food on hand that we just aren't eating.  I've reduced our grocery budget to $460 per month.  My husband is great at grocery shopping on budget.  I tend to be the one that sees a good deal to stock up on and blows the budget.  That's sometimes a good thing but I tend to do this every time I go to the store.  And then half the time we don't use up the items I stocked up on in time and they get thrown out.

With these changes on top of what I had already been setting aside for a down payment, I think we should be able to save $500 per month.  This would give us over $10,000 by the end of 2018, or half of my goal.  

I have some ideas on ways to add additional funds to this but they require a little more thought before I'm ready to commit them to this particular goal.  I'll be back with more on this another day.

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