Here in the FITPH household, we are taking a refresher course on Financial Peace. This week's focus is on cash flow planning, aka budgeting. In Financial Peace University, Dave advocates a zero based budget. I had to chuckle to myself as I reread that as our current budget goes below zero, if you know what I mean!
So, in an fit of curiosity, I decided to see how much we were in the negative each month. I re-examined our income, which has increased--Thank You Lord---due to a recent raise my husband received. I looked through our expenses and decided the only two places to cut back were groceries and gas. Everything else is a fixed expense, such as utilities and the mortgage.
In an effort to be thorough, I went through our food expenses for the whole year. (I have been keeping all the receipts for the month and then tallying them up into different categories. It is a super easy way to keep a detailed record of your expenditures!) At the beginning of the year, our food expenses hovered around $700/ month for a family of five. It was in the beginning that I first began to realize we were spending way too much on groceries. So my goal became $500/ month. I cut coupons, shopped the sales and by May managed to bring total food expenses down to $535.
However, the past couple of months have been really tight so I have not been able to buy a paper and take advantage of the coupons. I had been procrastinating on tallying up August's receipts because I was afraid of what I would find. Slowly I entered in the numbers. Cringing as it climbed past $100...sweating as it reached $200 and then I ran out of receipts! I checked to make sure there weren't any more lurking on my desk...nope...the total for August groceries was $269! I couldn't believe my eyes so I ran the numbers again, and then again. It was correct.
I plugged my grocery total into my new budget and found that if I cut back groceries to $200/month for our family, that our budget would be in the positive and not the negative! God is so faithful to bless what we give to Him!
So I am excited to try out my new zero based budget! I try to think of it as a challenge rather than an obligation.
So how low can you go? :)
FIVE IN THE POTTER'S HAND
7 comments:
That is so awesome!! Way to go!!
remind me and I have no prob sharing my coupons from the Sunday paper. Let me now what you like to cut and I'll be sure to pass them on.
I would love to be able to get my food budget down that low! Does that include cleaning supplies/toiletries?
SK & Family: That includes everything...diapers, wipes, toilet paper, etc.
I don't use typical cleaning supplies. I use vinegar, rubbing alcohol, and bleach. You can see my post: http://fiveinthepottershand.blogspot.com/2008/08/penny-pinching-pantry-products.html
Hope that helps!
Thank you! I looked at the first link and it's GREAT--I love using all-natural cleaners in my home!
I plan to update you on the electric bills. Gustav kinda' messed that up a bit. We had a pro-rated bill due to the hurricane. When meters aren't read...bills are pro-rated. I was literally happy with a $245 bill.
We hope to see a difference next month due to the hot water heaters being turned off (breakers flipped).
I'm am absolutely amazed how much you were able to cut down your grocery budget! That's just incredible, good for you. I too began coupon clipping this month as well as meal planning around the sales and deals. It's amazing what a difference that can make. We also have a tangible budget now (which is not as low as yours) but having it written down and us keeping track of receipts, I'm positive we are saving money that way too. Besides all those ways for saving money, it is so true that if you are faithful to God with your finances He always provides.
Kindra (aka "The Meal Planner")
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