Wow, it's been longer than I thought since my last post.... Well, I'm a stay-at-home mom now, living OCONUS with the hubs, 3 kiddies, and my dad. I (thankfully) am able to still work some hours from home. Our budget has been the greatest frustration, even more than not being able to fluently speaking the local language. :) With higher costs of expenses and an unexpectedly bigger cut in pay, I'm more diligent than before in making necessary cuts.
We are big supporters of Dave Ramsey's financial plan we learned through Financial Peace University. Prior to our move, we were past baby step 1 of a $1,000 emergency fund and had completely paid off all debt (baby step #2), which consisted of 1 of our 2 real estate mortgages; all of our vehicles; all student loan debt, and all credit card debt. After the move, we're back at square 1 (but with only a $300 credit card balance to attack after step #1 is complete again).
On this journey, these are the essential budgeting tips I've come up with:
1) Keeping my Costco list to 8 items or less and only going monthly. [A $2 roll of paper towels or baby wipes every week feels better on the wallet than a massive pack that would take months to use. Same with the $5 pack of TP from Walmart.]
2) Checking the electric meter every couple weeks to make sure the usage is the same or less than our last bill. [Increase in usage means making changes to a/c use or electric hot water heater.]
3) Reducing trips to ANY store unless it's for something critical. 3a) If there's no emergency fund to cover something (like today's brake pads), a monthly budget line-item takes the hit. Groceries are the only thing with a little wiggle room, so that's usually what gets reduced. 3b) If we run out of something non-critical, it waits until the next weekend.
4) Grocery budget was switched from bi-weekly shopping trips to weekly to keep more fresh produce on hand and plan meals easier.
5) Not a new one, but a keeper: Not using the credit card (unless a random expense comes up that involves travel...because even paying this off will have to take a back seat to baby step #1 of saving towards an emergency fund). 5a) Paying debt is step #2, so we do not incur it willfully. Besides our mortgage, the only debt we have is that aforementioned credit card expense.
6) No pedicures since we've been here (and cool with it). Maybe a hair cut after Christmas shopping. :)
7) No restaurants unless we've budgeted it (like... I haven't been to the Starbucks since we moved here 3 months ago. I can buy 1 can of local coffee grounds that lasts a week for the same price of 1 Venti latte.)
8) Again, not new but important: Only essential clothing purchases...if it's budgeted.
I don't know how we end up managing the budget...and don't really want to know God's details. We roll with it and are BLESSED.
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