Every Thought I Had While Making My First Real Budget Of 2019 Super Late Into The Year
If you ask me about my biggest regret of 2019, I’ll tell you — I regret not budgeting up until November.
As I’ve recently discovered, flying by the seat of your pants doesn’t get you very far. I ended the month of October in the red, and I had to borrow from family, which was a real wake-up call. November was not looking good — I was due to pay off that loan, pay for a trip, and stash away as much as I could, hoping to save for a downpayment.
The problem was that I didn’t have a clear overview of my money, and no idea what that downpayment amount would be. So I sat down with pen and paper and made my November budget. My thoughts:
1. “Why am I not doing this regularly? It only takes 10 minutes.”
I need an alarm to go off on the 30th of every month, and I’ve set one on my phone. Because that’s the hardest part — remembering to make the budget. The process itself was simple: I wrote down all my regular expenses, such as utilities, gas, public transport. (Disclaimer: I don’t have student loans or rent to pay, but if I did, I’d put them here.) Then the two more flexible categories — drugstore and groceries. Yes, I do have a drugstore category, and no, it’s not an excuse to spend on makeup — I have a baby, and my local drugstore has pretty good deals on diapers, formula, and purees. I also include my personal care staples, like toothpaste, moisturizer, makeup remover.
My husband and I take turns shopping for groceries and drugstore items on weekends, and those expenses vary depending on how many times I go to the store that month. If we’ve stocked up on diapers and have a full freezer, then I have some wiggle room in those two categories. As for the rest, I made a line for dry cleaning, haircut, my baby’s winter boots, a friend’s upcoming birthday, and everything else happening specifically in November.
2. “Now I have to keep track of my spending for the month (groan).”
I wasn’t sure how to do this, but again, the simplest way was pen and paper. I carry a small notepad in my purse, and I legitimately have an itch to write everything down as soon as I spend. I don’t use apps because I’ve grown weary of them, and I get a strange sense of pleasure from keeping my exact numbers to myself (I mostly use cash).
3. “My budget shouldn’t feel too tight.”
My obsession with saving for a downpayment has gotten to a point where it is anxiety-inducing. However, I am resisting a bare-bones budget — it would make me miserable, and it wouldn’t be sustainable. Haircuts and dry cleaning? Yes, every so often, but I am not cutting them out completely because I need to look and feel professional. I’ll sometimes get a coffee or a snack at work, despite bringing my lunch from home, and I need my budget to allow it. Not everything is doomed if I have a latte.
4. “But I should be saving as much as possible. Am I saving enough?”
Conventional wisdom says you should save 20% of your income, but I admit that I am intrigued by people who claim to save 40% or more. 50%? I do like a nice round number, and I feel that I should be moving faster with that downpayment. November expenses didn’t allow me to save as much as I wanted, but in December, I won’t be taking any trips or paying back loans. Also, I’ll have a chance to work some overtime, and that will go towards my emergency fund and then into savings.
5. “What if something comes up, which line items can I reshuffle?”
I’ve discovered that my wiggle room is limited. If I cut back too much on groceries and drugstore spending, I can’t stock up on deals, and I face the added stress of possibly running low on essentials. I am saying this because unexpected expenses are bound to come up. Among other things, I had an appliance break and had to replace it ASAP. But instead of scrambling or financing it, I decided to dip into my emergency fund because that’s what an emergency fund is for.
6. “Should I turn last month’s unexpected expense into this month’s line item?”
In October, I shelled out $80 on over-the-counter medication. First for a UTI, and if you’ve ever had one, you know that it’s a nightmare and you don’t look for online coupons — you just want to treat it immediately. After that, I got a cold. Then I started having indigestion problems. Putting in a “pharmacy“ line item in November’s budget has so far been a good call.
7. “Wait, no money left for clothes (or makeup, or magazines)?”
None! I have not budgeted for any of these and I’ve steered clear from temptation. Ignoring Black Friday. I could totally use another blazer, but I’ve been making do with some cute cardigans instead. I am also almost out of bronzer, and it’s no big deal. But magazines! God, I miss them! I’ve been a magazine addict all my life, and going without is the worst.
8. “Oh, shoot, Christmas!”
Not only will I be making a December budget, but I’ll also make a Christmas budget. I want to focus on food and traditions more than the presents, and my favorite festive activities were always cooking and decorating. This year, I want to get a live tree that I can replant later, as well as some durable, child-friendly decor (I have a very curious toddler).
How I feel about budgeting long-term…
I’ve heard that it takes about three months to get a budget right, but I think I’ll do okay, as long as I stay consistent and realistic about what works. I like knowing where my hard-earned money is going, and by having a budget, I show it more respect. For 2020, the year of the down payment, I am considering making a yearly budget. Wish me luck, and I’ll be sure to let you know how that goes.
Annika Fordell is a writer, mom, and lawyer living in Europe.
Image via Unsplash
Like this story? Follow The Financial Diet on Facebook, Instagram, and Twitter for daily tips and inspiration, and sign up for our email newsletter here.
