On money (iPhone FTW!)

It's been a ridiculously long time since I posted anything about budgeting.  I know I promised to bring back the Naked Ledger, but to be honest, without anyone paying me to write it?  It's just work for me and not something I enjoy enough to do just for fun (like this blog is).  I know this is going to come as a shock to you all, but I?  HATE BUDGETING.  That said, I've finally found something that seems to be working and I wanted to share it with you.

Let me preface this by saying that I have been trying to keep our discretionary budget under $2,000 a month.  The budget is like so:
Entertainment - $50
Booze - $100
Other - $50
Clothes - $200
Gas/Auto - $350
Dining Out - $150
Kids - $50
Household - $300
Groceries - $700
TOTAL $1,950

If you used to read the Naked Ledger, then you know this budget is roughly $200 more than it used to be.  That's because 1) we bought a house and my household category is more now and 2) I finally decided to stop being in denial about the fact that whether I budget for it or not, we're going to drink at least $100 of wine/beer/vodka/scotch every month.  And there's nothing wrong with THAT.

$2,000 may seem like a lot, but honestly, I've stayed under budget exactly ZERO times in the past year.  In fact, for the month of July, our visa bill was over $3000, almost $600 of which was DINING OUT.  I don't know what we were thinking, but obviously that was a terrible month, a month which horrified me and stunned me into starting a dedicated FOR REALS budget.

On my iPhone.

Don't laugh!  The iPhone is MAGIC.  I have it with me all the time.  I'm constantly checking it for e-mail and twitter updates and as it turns out, it's the ideal tool for recording my spending.  I bought this fabulous little app called "Spend" (for $.99 cents!) and it's the ideal blend of easy-to-use and thorough.  At the beginning of the month, I simply enter in my budget amounts and every time I spend money, I enter it into the categories before I throw away my receipt. (There is a Spend Lite app that's free, but it doesn't allow MONTHLY budgets, only weekly ones, which doesn't work for me at all).

As it turns out, we're still on budget this month!  I'm shocked that it's working, but it is and for the first time in a long time I feel like I found something I will actually keep using.  Now that we've got the discretionary stuff under control and well thought-out, it's time to turn to our bigger item spending (IKEA bookcases, birthday presents, Halloween zombie decorations, etc, have to come from somewhere!). 

DISCLOSURE TIME:  I don't want to hear how spoiled we are that in this economy we can afford to spend the way we do.  I KNOW we are spoiled.  We do well, there's no doubt about it, but I'm not going to apologize for it.  It took us a LONG TIME to get here and my husband works DAMN HARD and he is rewarded for it.  I'm sharing this not to be criticized, but because I think other people will relate to it.  People shy away from talking about money, but the financial planner in me wants to blow that door wide open.  We can all learn from eachother.

Comments

[Rhi]

I downloaded Spend Lite, but I think I can afford 99 cents for the full version :)

[Sharlene]

I just wrote a post about my love for my Palm Treo, I've been budgeting (or not!) and keeping my account records on my Treo for years. I just said that I didn't have any iphone envy (or much) because of my love of the palm applications that I've used for years and now you tell me that they are available for the iphone, that was cruel!!!

[Kendall's Mom]

"Booze, $100.00." Funny. No wonder I like hanging out with you.

[HeatherK]

Another reason to want the iphone! That sounds like an awesome way to track spending. What's life if you're not doing what you love. The only thing I'm jealous of is you having occasion to imbibe $100 worth of liquor!

[1hot&tiredmamat]

Regarding DISCLOSURE TIME -- AMEN sister! I hate being made to feel guilty that we have money to spend in this economy. We planned ahead and my husband also works his tail off and has for years. He built a company from the ground up and HE deserves to reap the rewards.

BTW -- I loved the Naked Ledger. It's how I got to this blog!

[CK]

You are absolutely, 100% right that you shouldn't apologize for spending money that you worked hard to get. Just don't assume that those of us who don't have it, aren't working hard.

I don't think you are, but when a commenter made the same kind of statement... I kind of got my back up. It's possible to plan ahead, work really damn hard, and still be strapped every month these days. Sadly, I know of which I speak.

Yeah. Sorry. Done now. Back to my lurker hole.

[Kristy]

If you have it...spend it. Nothing bad will ever happen....right??

Having said that..my monthly total expenditures (mortgage, utilities, food, etc.etc.etc.) are less than what you list here. In addition my monthly savings is more than you list here.

Just because you have it doesn't mean you should frivously spend it. But it is a personal choice and you have a right to make your own choices.

I believe your husband is a lawyer...and I've never met one that worked damn hard so that's impressive.

[1hot&tiredmamat]

I didn't mean for CK to get her back up (really -- I'm saying this nicely). I don't EVER assume that others are not working hard or that they aren't as deserving. I certainly have experienced the hard times myself. When my husband and I married 15 years ago we had nothing -- actually less than nothing because we were in debt. And we don't spend frivolously. We budget every dime we spend. We have money going each month to savings and the charity of our choice. We own our home and have no unsecured debt and only have one car payment. This has not come easily and I definitely don't take it for granted.

That said, there are times when people around me, who don't know me that well, are very rude about how we live. We are not ostentatious, but we do go out to dinner often and spend a quite a bit of money on entertainment and activities for our children. I don't like feeling like I have to defend myself -- or really my husband since he's the major bread winner in our family. It is what it is and I'm very grateful for our lifestyle. It would never occur to me to be rude to others about their lifestyles. I don't look down on anyone who doesn't have the same money or good fortune that we have had. In fact, I wish everyone the same success because it can really free your mind and emotions when you don't constantly worry about cash flow. I want that peace of mind for everyone.

I did not mean to be so long winded. I came back to say this: Spend works on my iTouch and I'm VERY excited about it!

[alison]

Good for you. I love budgeting and saving. I think it's important, and like someone else said, not having to worry about finances each month is really nice. I'll have to check out those budgeting programs because I just use pencil and paper and that's no fun!

[Brandy]

Don't you just ADORE iPhone!! That program sounds really cool - I am going to have to get that one. I like that you are an open book about spending. I am the same way. I hate it when people get all bent out of shape when talking about money, so I'm with ya on blowing the door open on that subject! :)

[Amy H]

Good for you that you have that much money to spend each month! I don't begrudge you that at all. We are no where near that, but we do enjoy a pretty great lifestyle compared to others in the country. We bought a very small house that makes our payments less than 25% of our take-home pay so we have much more left over at the end of the month than we would have had we bought bigger. That makes us much more comfortable in this economy.

That's wonderful that you have so much. You both clearly earned it. :-)

[kheatherg]

I could care less how much others spend. Sometimes I think, why in gods name are they spending money on such-n-such, but that usually applies to family members with their hand out the other half of the time. LOL

You could spend a million on your liquor bill every month and all i would think is....Damn, she parties. LOL

That being said, I'm frugal but i'm still always broke. We are lower on the totem pole (income level) than ya'll are, but we're happy. Although when i received the 475.00 cell phone bill my girls ran up (minutes overage) i was not happy. That screwed any budget i even thought i had. This month anyway.

I wish i had more savings, but frankly, AGAIN those girls......LOL...... they are both in orthodontics so ........ I just keep thinking we'll have more once the kids move past their teenage (expensive) years.

Regardless, when my husband gets to feeling crappy because money's tight or i go into the "worry/cry in the shower" mode, i just keep repeating.....

The rainbow is better than a pot of gold, the rainbow is better than the pot of gold.

And i'm still republican. LOL

[Amy]

If you have it...spend it. Nothing bad will ever happen....right??

Having said that..my monthly total expenditures (mortgage, utilities, food, etc.etc.etc.) are less than what you list here. In addition my monthly savings is more than you list here.

Just because you have it doesn't mean you should frivously spend it. But it is a personal choice and you have a right to make your own choices.

I believe your husband is a lawyer...and I've never met one that worked damn hard so that's impressive.

Posted by: Kristy | September 23, 2008 at 01:19 PM

Ok Snark much,

I am getting this type of flak because I have the nerve to go on vacation when the economy is bad. I set up a vaction account and an IRA as soon as I started working I have contributed to them from every paycheck since I left college. I am using less than half of what is in our vacation fund to pay for our vaction partly. But I still get oh isnt that expensive can you afford it .

Ugh

[g-mom]

OOOO a budget. I love it! You and daughter. I have never-ever done a budget. Alcohol budget...I don't want to know exactly but ball park...about $200 in beer. LOL I don't have kiddies at home and we very rarely eat dinner during the week so I just "allow" for things and shorten other things.
BTW, would you e-mail me where you got/found your egg cooker. I looked at Bed bath beyond and they didn't have a Krups they had Cuisenart and it just felt and looked cheap but not the price tag...$52. Thank you!

[Amber]

Yep, looks like people are sensitive about money. I must say I understand. We have a nice, affordable mortgage (phew!), but there is no grocery money this paycheck. Zero. I'm refusing to internalize it so I don't get depressed. I've had enough of depression for a while.

So have a great time! Enjoy your hard-earned lifestyle. I wish we were sitting as pretty as you and maybe someday we will be. I feel lucky to have what I do. Perhaps other readers are upset because they are doing themselves the disservice of comparing their spending abilities to yours. I'll just go on comparing myself to third world countries and be happy I'm so darned rich!

[Monica]

I have to admit I'm amazed at the amount you use for groceries and eating out. I live in WA as well and I know fruits/veggies and the rest of groceries are getting expensive, but I on average spend $400 a month to feed my husband and two kids (same age as yours).
we rarely eat out cause I'm vegetarian (so dinning out options are not too good) and I love to cook so most of the time we stay at home (we make our own pizza and other things like that which we normally would order take out).
we do entertain often as well, at least we have friends over for dinner at least once a week.
and we still spend so much less.
not a criticism, just wondering where you shop?
I know you use coupons and all that, so that is why the amount amazes me.

[CK]

I just wanted to drop back in, because since leaving my comment yesterday I've continued to think it was out of line. It's just that every time I hear someone say, "We deserve it because we work hard and made good decisions" I hear the unspoken "...and you don't and didn't." Which is completely unfair of me because I don't think anyone means that (well...99% of the time).

I suspect my nerves are a bit raw because after years of working really hard and cutting every corner we can cut, we are still struggling every month. And it just seems so damn unfair. But that is not your problem or anyone else's problem but mine.

So, I apologize.

Also, I had to laugh at the comments about your grocery bill because I remember the same issue at The Naked Ledger. I admit that the cost-cutter in me would LOVE to get my hands on your list because I could save you so much! But...not my business. I'm sure you just eat more meat than we do or something.

See? This is why I never comment. I can't shut up!

[justAcliche]

WOW. I can't believe people say you spend so much on groceries. I actually came here to comment that I WISH our grocery bill was only $700/month. Ours is closer to $1000. I do have to say that it's been going up since the 2 older ones hit puberty. 4 boys=lots of food. I do try to buy less pre-packaged food but they still eat us out of house and home some weeks.

[Kate]

That budget thing on the iPhone is the best reason I've heard yet to get an iPhone. I haven't been the least bit tempted until I read that yesterday. Now I can't stop thinking about how helpful that would be. Maybe when it's time to get new phones in April...

[Emma]

Hi there. I stumbled upon your blog a month or so ago and love it. I have been reading every bit you have written about your daughter's sleeping as we have a similar problem with our youngest daughter.

Anyhow just wanted to say that we live in the UK and with the way our food prices are - we couldnt feed one person on your food budget! Seriously for 2 adults and 3 kids I spend on average the equivalant of $300-$400 A WEEK and we are sure as heck not eating steak on that, cant remember the last time we ate anything fancy. So I think your budget sounds great.

[Bonnie]

I hate that some people are so judgmental about others lifestyles. These are generally the same people who preach that we should be non-judgmental of others.

[BigSpender]

Hey Mandajuice,

I'll post (portions) of my budget and people will get off your back and onto mine and you will owe me a bottle of booze.

This is monthly,cast includes 2 WOH professional parents, 2 small children, 1 nanny, 2 smelly cats, 1 effing expensive lifestyle in a major metropolitan area.
Rent: $2600
1/2 day Pre-K for 4 year old: $1100
Nanny : $3000
Groceries: $1200
Target: $200
Utilities: $300
Eating out: $600
Supporting dysfunctional parents: $1500
Cleaning lady: $600
Dry cleaning: $50
Total Debt: 0
Gas: 0 ( we walk to work, nanny has a car, we don't)
Cable TV: 0 (we don't even have a TV, well we do, but it's been sitting in our storage closet for 7 years)
Total Savings: V. good, would have been better if not for dysfunctional parents. See above.
Clothes: on average, $100. Only for work, even then on discount.

I don't compromise on childcare, quality food (Whole Foods, organic), schooling, anything that buys me time (dry cleaning, cleaning lady). I could not care less about electronics, cars, expensive clothes, jewelry or posh vacations. Sitting on the toilet for 20 minutes with a magazine, undisturbed, is vacation. If I need to go to some out of the way boonies, I borrow the nanny's car, and fill it up with gas to pay her back.

I am not going to add it up because even I may have a heart attack.