Creating a monthly budget is such a fundamental part of getting ahead financially, but it’s not enough to only set it up once and think you’re good to go. Each month’s budget should look a little different based on what expenses are coming up that month. You and your spouse should be having budget meetings at least twice a month to see how you’re doing with sticking to your plan.
Setting Up Your Budget for a New Month
The easiest way to set up your budget for a new month is to start by basing it on the previous month. Most expenses, like rent or your cell phone bill, will stay consistent month to month. So you can start by plugging in those consistent numbers. Then talk to your spouse about what events and expenses are coming up that month that need to be added to the budget. Birthdays or holidays for example. Figure out what to allocate for those events. Then move on to your variable expenses such as groceries or gas. Look at how you did last month and see if any adjustments need to be made. Did you overspend on groceries? Maybe you need to budget a little more for that category. Or perhaps you need to budget a little less to make up for the event expenses you have that month. These are all things you should discuss during your budget meeting.
Mid Month Budget Check In
A budget will only work if you are able to track your spending to make sure you’re sticking to it. It’s a good idea to have another budget meeting with your spouse a couple of weeks into the month to see how you’re both doing. I recommend keeping all of your receipts, gathering them in one place, and tracking every single transaction during this meeting. You can track it in a ledger, on a spreadsheet, or in a budget app, whatever works best for you. I personally use the EveryDollar App or website. They have an EveryDollar Plus version which costs $129.99 per year. This allows you to connect your bank accounts so that you don’t have to enter every transaction manually. I personally don’t use this version, but if you have a difficult time remembering to track your expenses, it may be worth it to you. Tracking your spending and looking at how well you’re sticking to your budget will help keep you and your spouse motivated and on the same page. This way there will be no surprises when you reach the end of the month. If you’ve been spending too much on one category, you have the rest of the month to course correct.
A budget will only work if you are able to track your spending to make sure you’re sticking to it. Click To TweetEnd of Month Budget Check In
When you reach the end of the month you will want to have another meeting to track your spending for the last half of the month and to see how you did. This is a good time to start setting up your budget for the following month. Look for any areas where you spent too much or too little and adjust accordingly for the upcoming month. This is also a good time to balance your accounts and put any leftover funds to work. This means using them to pay off debt or transferring them to your savings account.
Benefits of Budgeting Meetings and Check Ins
- You have a plan for your money each month
- You and your spouse get on the same page
- Tracking your spending helps keep you on track
- Accountability
- It keeps you working toward your financial goals together, one meeting at a time
Even though regular budget meetings might not sound like the most exciting thing to do with your spouse, your finances will be all the better for it. And if going over your numbers with a glass of wine or a cookie in your hand makes it more enjoyable, then by all means make it a budget date or a budget dessert meeting. Whatever it takes to keep you motivated to do them on a regular basis. Happy budgeting!