Wednesday, May 14, 2014

FINANCIAL PEACE - BUDGET ORGANIZATION Cont'd

A while back I posted my Financial Peace - Budget Organization ideas.  It was a hit and everyone seemed to find it very helpful.  It is actually one of the most viewed posts on my blog!  In that post, I promised to share with you the other pages from my Budget Spreadsheet.  I am here today to honor that promise!

In our online bank account we have one checking account and three savings accounts.  You may want to check with your bank to see how many you may have and adapt from there.  The checking account was discussed in the first post.  The second account is the Primary Savings Account, the third is the Emergency Savings Account and the third is the Health Savings Account.  These are all discussed below.

As you know from my first post on this subject, the first page of the spreadsheet contains all of our monthly bills.  The second page is named Savings Account Balance.  What I have done on this page is split up every penny of our savings into "mini savings accounts".  The mini savings accounts are things that most of the time catch us off guard during the year.  I was tired of receiving a car tax notice in the mail and not having the extra $200+ to take care of it.  This way I know at the begin of the year that I have the funds to pay for whatever comes our way.  We try to put our entire tax refund into this account and save throughout the year as well.

The categories are as follows:
  • Home Maintenance:  This includes everything from spring flowers and a new patio rug to a new AC unit!  We try to put as much as possible into this mini account.  You never know what is going to happen during the year and being able to not CHARGE it is a great feeling!
  • Car Maintenance:  We have pretty reliable vehicles, so we don't usually have to worry about many repairs, so I figure up at the beginning of the year how much it will be for inspections, registration and oil changes and then add a little extra just in case.
  • Car Taxes:  Car taxes are usually about the same every year for us, so I am able to estimate how much to put in this mini account.  It is usually a large amount, but again it feels good knowing it is there when I need it.
  • Gifts:  Sometimes this mini account is either left blank or added to along the way.  I try to add a little here and there for things such as birthday gifts for friends, Christmas, Mother's Day, Father's Day, etc.
  • Dogs:  As you know I have two little fur babies!  This is another cost that sneaks up on us.  They have a wellness plan through Banfield, so we don't have to worry about vet visits, but the heart worm meds, flea meds and any other misc costs are taken out of this mini account!  You shouldn't have to stress or delay on getting heart worm meds because cash flow is low!
  • Vacation:  This is a biggy!  We try to put as much as possible into this account!!  I hate going into debt to go on any sort of vacation.  It is more fun to lay on a beach or visit with Mickey knowing that everything is already paid for!
  • Misc:  We have this section for any extra funds that are taken out of the savings account.  Sometimes debits from this account don't really have a label, but need to be accounted for.  This is where we put them.

When funds are added or debited from this account in the bank, I go right away to this spreadsheet and make note of it.  I put the date that the deposit/debit was done, what account it was done in and a note (on the right side of the Misc column) to remind me of what it was for.  Each column will calculate a total at the bottom where the CAT Totals row is.  Over on the far right of the CAT Totals (not shown) is a Total of the entire savings account.  This total should match (or be very close depending on interests) to what is shown in your bank Primary Savings Account.

The third page of the spreadsheet is called Emergency Fund.  This page correlates with the Emergency Savings Account in our online bank account.  Dave Ramsey, in his Seven Baby Steps says for you to have $1000.00 in your emergency savings account.  We try to have $1500.00 at all times.  This does not always stay that way, but it is the goal!  

I organized this page just like the Primary Savings Account.  I put the date of a deposit/debit, the amount and a note.  The Totals column calculates everything for me and should always look like what is in your Emergency Savings Account on your online banking.  This page is pretty self explanatory, but very important!  If ever there is a true emergency, you will be glad you have this money sitting here waiting on you.


The fourth page of the spreadsheet is named Debt Snowball.  This process is also explained in the Seven Baby Steps.  Although, it is a great idea, it is very hard to wrap your head around until you actually start doing it.  The idea is for you to pay off the smallest bill first (no matter the interest rates) and then move on to the next smallest and so on.  I have always been taught to get rid of the ones with the largest interest rate first so that you don't have to pay interest anymore.  Well, this does actually become daunting and starts to make you wonder if you will ever get out of debt.  If you pay off a small bill you get the feeling of success!  It is all a head game, but it works I promise.

What I do is I will pay on all the bills I have, but once I pay off the smallest bill, I will apply that money to the payment I was already paying on the next bill...here is a hypothetical example...

My Kohls bill is $50 and I already pay Capital One $150.00 per month.  Once Kohls is paid off, I apply the $50 I used to pay to Kohls to my $150.00 I am already paying to Capital One to make my new Capital One payment $200.00.  Once Capital One is paid off I will then have $200 to apply to another bill I am already paying a balance on...and so on!

This way you are never "missing" the money that you were already applying to bills.  It is just applied to other bills until they are all paid off!  Just like a snowball!!!  Make sense???


In this page I do just that.  I put the bill with the smallest balance on top.  I mark the dates the payments were made and the amount below the date.  In column B I put the remaining balance on the credit card/debt (which is subject to change due to interest).  In column K the spreadsheet calculates how much I have left on the card to pay after all of my payments.  In field K8 the spreadsheet calculates the totals of column K letting me know my TOTAL debt.  Once a bill is paid off, it is moved to below the black line in Row 9.  I don't delete it because I want to see my progress!  Again, it is all a mind game!  The more entries below the black line and the less above makes you see that you are on your way to a debt free life!!!  


The fifth and final page of my Budget Spreadsheet is called HSA for Health Spending Account.  This page is also self explanatory.  It is set up just like the Emergency Fund page as far as the calculations and entries.  All I did here was find our what our family insurance deductible was and set that as our goal savings.  As you can see, we are on our way, but not there yet.  I wanted to know that we could meet our health deductible without going into debt to do it in case something happened to any of us health wise.  Once we meet this deductible the medical bills are taken care of by our insurance.  Your insurance may be different, but this is a good start for a savings idea.

I hope that you have found this edition of Financial Peace - Budget Organization helpful!  Let me know if you have any tips/tricks on budgeting.  I am always looking for a way to better my plans!

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6 comments:

  1. Love the organization. This is great!

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    1. Thanks Tori! It took a ton of time, but it was worth every second!

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  2. I have REALLY got to get into this. Thanks for sharing girl. I may need some tips!

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    1. I'm here anytime!!! I am glad it has inspired you!

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  3. I am just now coming across this - and it's AWESOME! I do the "snowball effect" too because it really is a total mind game. Paying off my smaller bills feels so much more rewarding than continuously paying towards the higher interest bill that seems like it's never coming down. Thank you for sharing this!

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Thanks so much for stopping by and leaving me some love! I read and appreciate each and every one of your comments. They make my heart smile!! I will reply to them, it just may take me a bit. Please be patient and I promise to get back to you. I can't wait to chat!

 
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