How to Comfortably Live On a Single Income

As many of you may know, my husband and I have been living on a single income (mine) for the past two years as he finishes school. We live in a part of the country that is getting more expensive by the year (Denver is one of the top five growing housing markets in the country), with wages not necessarily growing in proportion to cost of living. Living on a single income has not been easy, but it is so worth it as we have continued to stay out of debt and built our savings little by little. Our single income will soon turn into two incomes as Alex has finished school and is looking for a job, but we are going to continue to live off of a single income, saving the entire other income in preparation for some expenses that we know are coming soon. Below, I've shared my tips for living comfortably on one income. I'm super passionate about this subject and love to share how we've done things so please comment or email me with any questions or comments you may have. 

1. Create a budget, and stick to it! 

This is probably the most important thing you can do if you want to successfully live off of one income. Setting a good budget includes sitting down and looking at exactly how much you make, and how much your expenses are. If you don't know this right off the bat, take a month or two to write down your expenses (you can use a spreadsheet like we do!) so that you can get an idea of your expenses. 

Once you get an idea of where your money is going, sit down with your partner (if you're married), and create several categories and assign dollar amounts to each of these categories. Some of these categories may include rent, car payment, electricity, entertainment, gas and groceries. 

Set a realistic amount, yet don't over budget- your goal here is to either break even with the single income or even come out with some savings. 

2. Get used to a new standard of living. 

This is super easy to write and super hard to do. If you're used to ordering Starbucks three times a week and going out to eat five nights a week, it's going to be hard to change those habits. But to successfully live off of one income, you're going to need to cut some stuff out. 

I suggest you start small and work your way into things. Cut down your Starbucks treat down to once a week while you learn to create your favorites at home using copycat Pinterest recipes. Start making one more meal a week at home than you normally would. Once you see how much you can save each month by adjusting your standard of living, you'll be more motivated to continue. (Example: 3 Starbucks drinks a week at $5 per drink = $15 a week, $780 a year. 1 Starbuck drink a week = $5 a week, $260 a year. That's a $520 difference! That's almost two extra car payments, an extra payment on a student loan, or $500 towards family vacation!) 

The key is moderation- allow yourself to have a treat once in awhile so you don't binge. For example, if you're a shopper and are a fan of "retail therapy", give yourself a $50/month budget instead of saying that you can't ever go shopping again. Make sense? 

3. Become friends with coupons and Groupon. 

My husband and I love going on fun dates- our monthly recap posts are proof that we don't just sit at home and watch Netflix. However, my husband is the coupon king, and we often go to places at a discount. We're not crazy couponers at all (don't I wish), but we'll glance through coupons that come in our mail and we're huge fans of the app Groupon. We'll often get discounts on mini golf, drinks, and meals because we take a few extra minutes to look. It's almost a challenge- can we do everything on a coupon? And using coupons forces us to try new restaurants we wouldn't normally try- a win win! 

4. Give generously. 

You may be surprised that this is on my list of ways to successfully live on a single income, but I am a huge believer in the power of giving your first fruits. In the Bible it says that we are to give a tenth of our first fruits back to the Lord and this looks differently for different people. Some think that this means giving back a tenth to your local church, to others it means giving to local charities, to others it means giving to both. To read one of the best posts I've ever seen on tithing, go ahead and click over to "Why We Tithe" written by my friend Amanda . 

Whether or not you believe in the Bible or in tithing, I think you'll find this principle to hold true. In our giving, we take the focus off of ourselves, and focus on blessing others. If you can find the right heart of joy in your giving (instead of doing it out of obligation or drudgery), I believe that you will be blessed in return. This may not be monetary blessing- it may be blessings in your health, family, or other ways in your life. I, personally have found that in generous giving, the Lord always provides the money when we need it the most.

Don't skip this step, friends, it's the most important. 

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For more resources that I've written, check out my Money page. In it, you'll find posts on how to create a budget and how to save on specific things including entertainment and groceries. 

Those of you that have lived off of a single income, what other tips you have? What questions do you have about living on a single income? 

{Linking up with Grammie Time for Tuesday Talk!}

5 things you don't REALLY need at your wedding

Now let me start this post by saying... the following 5 things are things I personally felt like weren't necessary. They saved me stress and money, and I don't think my guests missed them at all!

If you choose to have these things- more power to ya! There's no judgement here- just things I felt that worked for us, that saved us worry and allowed us to spend money on things we really found important.

Like food.

We also had a fairly large wedding (approx. 170 guests), and we were buying things in large quantities, thus we tried to save where we could.

So, anyway lets get going on the 5 things you don't really need at your wedding

1. A seating chart 

Why stress yourself out trying to decide which great aunt twice removed has to sit next to crazy great uncle on your fiance's side? If there are less people at one table, and 20 people crammed around another one, who cares? Your guests are probably stoked that they can sit with people they know and actually like, and you're stoked because that's one less thing you have to worry about!

2. Tablecloths that match the shape of your table 

Let me explain this one. If you are renting a venue that provides the tables, they'll likely provide the tablecloths and you can skip to the next point. 

If you're like me and had to get tables and tablecloths separately, you have a couple of options. You could

 #1 Spend a fortune renting round table cloths. We're talking $8-12 per tablecloth (minimum) and   depending on how many tables you have, you can easily rack up a couple hundred dollar bill paying for something people are just going to spill their food on.

#2 Plastic table cloths- not a bad option (I had a friend do it and it worked great!), but I personally     wanted to leave the "cloth" in "tablecloth".

#3 Skip the table cloths and tell your photographer that their job description now includes not shooting the tables... or using magic editing powers to erase the (potentially) ugly table surface out. 

#4 Or you have option #4 which I personally thought was brilliant and saved us over $100! We         decided that we would rent square table cloths big enough to cover the round tables. We were able to rent these from a restaurant supply store (wayyyyy cheaper than wedding rental places) for about $4. 

Now I wasn't sure about this plan at first so I did what any normal person needing to make a decision would do... I googled it. And I found dozens of opinions saying that this option was incredibly tacky and to never do it. Well I decided to do it anyway, and it worked awesome! You couldn't even tell the difference with all the chairs put up against the table, and I have yet to have a guest bring up the issue of square table cloths on round tables at my wedding.

(Our dining room before it was decorated. I think the tablecloths totally worked!)

3. Real silverware and/or plates 

A lot of times your caterer will provide silverware/plates... if that's the case-great! Move along to point 4. 

If you have to figure out your own plate situation like we did, let me tell you paper plates and plastic silverware is the way to go! You can always splurge and get the nicer looking stuff, but people are going to care much more about what's ON the plate than the actual plate itself... wouldn't you agree?

(Note the plastic silverware and plates. We also brought a few empty mason jars and had my bridesmaids stick their bouquets in them for the table decorations). 

4. Super fancy, intricate, beautiful, and expensive invitations 

I LOVE some of the gorgeous invitations that we have gotten and that we saw when we were doing our own invite shopping. But for us, paying $1.50-$2.00 per invite plus postage for 200+ people just wasn't going to fly. My brother-in-law landed up designing the invitations himself and we print and cut them ourselves. Though I don't necessarily recommend a DIY approach to invites (especially if you're doing over 100), I DO recommend not spending a lot of money on them because... lez-be-honest... who doesn't just throw them in the trash after the wedding is over? 

5. Hundreds or thousands of dollars worth of flowers 

Now flowers are BEAUTIFUL and I LOVE them as much as the next girl, but this is one place that can really getcha when you're trying to plan a budget friendly wedding. 

I was fortunate enough to have an extremely talented cousin who made our arrangements with flowers we'd bought from Sam's Club. I highly recommend this route- buy your flowers wholesale and try to find someone to make your bouquets for you (paying them will still be less than a florist), or maybe teach yourself and your gals (hello YouTube tutorials) and throw a little bouquet making party the day before the wedding!

If you decide to go to the florist to avoid the hassle mentioned above- keep it simple! Do bouquets for the girls, boutonnieres for the guys and call it a day! Buying flowers that are in season or cheaper to begin with can really help you out too. 

Flowers can empty your wallet really quick if you do flower centerpieces. Instead of flowers, get creative and do non-flower options. For a fall wedding, scatter fall leaves. For a rustic wedding, place small logs with a candle on top. Try candles on top of a mirror with fake rose petals scattered around.

(Our centerpieces)

OR do what my brilliant friend did... get some interesting shaped bowls at a discount store and fill them up with chips. Add a bowl of salsa and a bottle of wine (depending on your budget) next to it and, voila! You have a centerpiece that your guests can eat... because if they're anything like me, that's all they want to do anyway. 

If your church/venue needs decorating, sometimes you can get lucky and time your wedding around a holiday (say Christmas or Easter), and the church may already have decorations (i.e. flowers) in place. 

If not, tulle bows on pews, arrangements of fake flowers, or easy DIY decorations like the cross and hearts made by my parents below would suffice.

Lights strung behind tulle or clear glasses/jars filled with ornaments or other decorative items could also be cheap options.

(Note the lights behind the tulle)

All of this is to say that a little brainstorming and creativity can save you literally HUNDREDS on your wedding. Some days I got caught up in wanting every little detail that I saw on Pinterest in my wedding. Not only did I not have the budget for it, it stressed me out! 

Just remind yourself of the priorities that you have set for your wedding (more on how we did this here) and let go of the rest.Trust me- you'll be happier, less stressed and you will still absolutely have the wedding of your dreams! 

Much love and happy wedding planning!

What other things do you think aren't really needed at weddings? Or can be skipped to be friendlier on the budget? 

On A Budget: Saving on Groceries

One of the biggest budget killers in any household is the category of groceries. We all have to eat, and who doesn't like to eat good food?? With some practice, Alex and I have learned to get a handle of this category. Below are the ways we keep our grocery bill down. Grocery prices can vary drastically depending on region, but using the basic principles I've described below, you'll be able to save a lot of money regardless of where you're located. 

1. Have a plan 

This is probably the most crucial step in saving money on groceries. Planning a weekly menu will help you be organized-you know what ingredients you need and already have, and you can use some of the same ingredients in multiple recipes. All of these things will save you major bucks. I started planning weekly menus and now I'm up to planning for the whole month (more on that in January!) Start small- plan one or two meals a week and then gradually increase from there. 

2. Shop less 

Having a plan means that you won't be going to the grocery store multiple times a week. The less time you spend in a grocery store means you'll spend less money because there's less of a chance of impulse purchases. We go to the grocery store once a week maximum and that's only if I forgot to pick up a critical ingredient that I can't substitute. 

By having a grocery list when I do go to the store and not going additional times beyond that, our grocery bill stays low. 

3. Shop sales

While making a menu plan for the week, I sit down with my grocery store's ads and try to plan at least a couple of my dishes around what's on sale. The sales I especially pay attention to are the sales on veggies and meat since these are the most expensive (and important!) parts of our grocery list. If something calls for an ingredient that's expensive and not on sale, I'll often substitute the ingredient (i.e. green peppers for red pepper) or, if possible, leave it out all together!

3. Be okay with repetition 

We have a really good dinner menu and I try a new recipe at least twice a month. However, breakfast and lunch stays pretty standard for us. Breakfast consists of cereal, toast, or fruit (maybe an egg if we have time), and lunch is almost always sandwiches or dinner leftovers. Alex and I are okay with the repetition and that keeps our costs low. We're not spending boku bucks on frozen entrees for lunch or different kinds of cereal, pancakes, fruit, frozen waffles etc. 

4. Get creative 

One end of the spectrum is being okay with repetition but the other end of the spectrum calls for some creativity when designing your meal plan. I know a lot of families that have a couple of meatless meals a week to help cut down on the meat cost. The hubby likes meat a lot so we only do meatless meals a couple nights a month. However, we save on meat by using cheaper meats that you wouldn't ordinarily think to use. For example, we use pepperoni in a couple dishes a month- it's cheap but still fulfills the protein need that Alex has. :) Turkey bacon or deli cuts of lunch meat find their way into mac n cheese or chef salad. I'll substitute ground turkey for ground beef in a lot of dishes because it's healthier and cheaper. 

Creatively substituting proteins or going meatless can significantly bring your grocery bill down. 

4. Buy less junk 

You will {almost} never find our house with soda, frozen snacks, candy, or other prepackaged items (think cookies, chex mix etc.) We do buy a couple bags of chips a month but only pull those out for the Broncos game. We try to have healthier snacks around like yogurt, nuts, and cheese sticks. Pre-packaged stuff is expensive and we'd rather just not have the temptation around. 

By skipping a lot of the prepackaged snacks we're healthier and we keep our grocery bill down. If you think you or your family will have trouble cutting out some of their guilty pleasures, start slowly. Don't buy soda for a couple weeks, then the next couple weeks don't buy soda or cookies- so on and so forth. Gradually breaking yourself in is the way to do it- soon you won't miss those items and when you do get them it is a true splurge! 

How do you save on groceries? 

On a Budget: Not Letting Money Control You

We've been in this series about budgeting and discussing different ways to save money. Saving money is a passion of mine- it's something I love doing, something I love learning about, and something I love helping others with. Just as I have had to learn how to save money, I have also had to learn how to not let money control me. Sometimes, I get so passionate about money that I forget that it's just money. 

If you find yourself constantly thinking about money, stressing over it, and maybe obsessing about saving it (or spending it), you may be letting money control you. Read on to find out the 3 main ways I've developed to not let money control me. 

Keep money in perspective. 

In today's world, money is power and money controls things. You need money to survive in the world but it doesn't have to control you. Perhaps the best way I keep money in perspective is by remembering that my money is not my money. 

The Lord has given me the money in all my bank accounts and funds to steward and watch over. I believe the Lord wants us to save, live within our means and not be a slave to the lender (see Proverbs 22:7). I think we are also called to tithe, to give generously, and to use the money he has entrusted with us to enjoy our family and enjoy the life He has given us. 

When I see my money as simply money I was given to manage, it's a ton easier to give, spend, and save freely without losing perspective. 

Allow yourself a measure of grace 

Sometimes, Alex and I get so intensely focused on saving money that we won't spend hardly any money on doing fun things (a large part of why we instituted our monthly date night challenge). 

I (we) have had to learn that it's okay to go over on our entertainment budget by $20, or it's okay if we spend a little more than we were anticipating at dinner out with friends. Alex and I have both stressed over money so much that it gave us physical symptoms- stomach pains, headaches, back aches- you name it. 

When we release our money stress to God and allow ourselves a measure of grace (AKA "wiggle room") in our budget, our physical symptoms go away and we feel the weight lift off of our shoulders. 

Now, if you are a chronic spender and/or trying to pull yourself out of debt having a mentality of "spending an extra $100 is no biggie" can be dangerous and very unhelpful. However, if you are genuinely trying to curb your spending habits and slip a little, don't forget to give yourself grace in that situation. It's never too late to get back on track. 

Remember what is important 

Tying into the above idea of keeping money in perspective, it's also vital that you keep in mind what (or who) is important. Remember that it is often the who and when (as opposed to the what) that is important in life. 

Money does not make memories- people make memories. Is an expensive vacation more important than the people who are on vacation with you?   

Time is so much more valuable than money. Some of my favorite things that Alex has done for me have been gifts of his time and not his money.

There is incredible value to being on a budget and being wise steward of the money God has given you. But people, experiences, and simply life are so much more valuable than money, and money should never take priority over loving people, experiencing memories, or enjoying the precious moments of your life.

Not letting myself be controlled by money is a still a fairly consistent struggle for me- one that I am getting better at and praying through. 

Have you ever found yourself controlled by money? What are ways that you don't let money control you? 

On a Budget: Save on household items

Something we all have to buy are things that I've labeled in my budget "household items/necessities". These things include (but are not limited to) toilet paper, toiletries (shampoo, razors etc.), and medicines (i.e. ibuprofen, tylenol). This category also includes any sort of cleaning supply that I don't consider food groceries (laundry detergent, dish soap, miscellaneous cleaning supplies, paper towels, foil etc.) 

This category is one in our budget that is extremely difficult to set the proper amount for. Many months we'll spend little to nothing on this category, and the next month we'll run out of everything at once and blow the amount I have budgeted. I am still working out the kinks to this category, but along the way have learned 3 major ways to save in this area of our budget without using coupons.

Disclaimer: I know all you couponers out there are getting this kind of stuff for dirt cheap. I've always been somewhat of a coupon skeptic so these are the ways I've learned to save on these items without couponing. (For the record, I am dabbling in some couponing and will later post my success or failure with the endeavor. In the meantime, use these tricks to save today on items you need now.) 

Buy in bulk

I often suggest buying in bulk cautiously because a lot of times I think bulk purchasing is often disguised as a good deal when it's really not. However, we have found that our local Costco often has good deals of bulk purchases of certain personal care items including toilet paper and deodorant. 

For the sake of an example, lets examine toilet paper. We pay around $17 for a 30 count toilet paper at Costco. To make the comparison, we will compare sheet per sheet of the toilet paper roll because that is a better indicator of how big the individual rolls are. The Costco brand toilet paper claims to have 425 sheets per roll of toilet paper making the cost per sheet around $0.001 per sheet. A similar "mid-grade" toilet paper will cost you $11.97 at Wal-Mart for 24 rolls. Each of the Wal-Mart rolls claims to have 208 sheets making the cost per sheet around $0.002 per sheet. 

Okay, so we are talking about fractions of pennies here but if you notice- the Wal-Mart toilet paper brand is twice as much as the Costco brand of toilet paper when comparing sheet per sheet. This goes to show that in this instance, buying this particular item in bulk is a great deal. 

If you live in the middle of the Alaskan tundra 500 miles away from the nearest Costco, or simply don't have a membership, do not purchase a membership for the sake of a few items.

Instead, try to stock up when your favorite toilet paper is on sale, Google search for some basic coupons that will save you a couple dollars, and be willing to try new products that could be a little bit cheaper than the brands you are currently purchasing.

Hit your local dollar store 

This is really the main way we save money in the area of household necessities. In my pharmacology class in nursing school we learned that there is very little difference in brand versus generic medicines. Most of the time, brand names are more expensive because they are paying to use the actual brand name. If you compare a brand name with a generic brand of the same medicine, 9 times out of 10, the drug or active ingredient is the exact same. 

I have found a couple exceptions to this rule, but they are few and far between. The fact that the drug or active ingredient is the same in most medicines, brand name or not, is why I frequent our dollar store for 95% of the medicines we use at home. I buy ibuprofen, acetaminophen (tylenol), and Excedrin all at the dollar store. We save a ton of money and the drugs work just as effectively than if we had bought brand names. 

I also frequent our dollar store for some household kitchen items that can be really pricey everywhere else. Things like plastic sandwich baggies and plastic wrap are all a steal at $1 each versus the usual $3-4 that you'll pay at a regular grocery store. 

Simplify cleaning routines 

I have learned to clean effectively without spending a ton of money on expensive cleaning products. Blue Dawn dish soap, baking soda, vinegar, and this cleaning product from our local dollar store are staples in my cleaning routine. Aside from those four items, I don't use much else to clean. I have found that the above products do a great job, are less toxic than most commercial products, and best of all are nice to my budget. 

If you find yourself spending boku bucks on expensive cleaning products that you love, maybe Google a DIY version of the same product. I will admit, some DIY products are just not the same as the real thing (I know from personal experience), but a lot of them do a great job. You won't know until you try it! 

This category can be a huge money sucker for most people, and one that I have personally struggled to save money in. By buying generic when you can, purchasing (wisely) in bulk, and simplifying what and how many products you use to begin with, you can cut the spending in this particular category. 

**I was not reimbursed for mentioning any particular store, brand, or product in this article. These are the items that have simply worked for me and kept my budget on track**

What other ideas do you have to save in the category of household necessities? Does anyone else struggle to cut this budget? 

On a Budget: Spend less on entertainment

The first and most important step to making the most of every dollar that you earn is creating a budget that will work for you and your family. One of the main categories in our budget (and most budgets) is the category of "Entertainment". For us, this money includes eating out, date nights, and any other entertainment type expenditures including our Netflix subscription.

This category is one of the budget areas that is hardest to control because we love date nights and we love going out to eat (like most other couples). We've learned some good strategies to help us have a lot of fun with a little money and stay on track with our budget! I would love to hear any additional ideas that your family implements in the comments section below! 

We don't have cable 

*gasp* I know. I never grew up with cable so this was an easy thing to cut out for me- my husband, not so much. We've compromised by getting Netflix and an antennae. The cost is a fraction of what we would pay for cable, and honestly, not having as much TV has forced us to be more creative with our time together. We get a couple shows we like and the Broncos games, and, really, what more do we need? 

We are hardcore Grouponers

For those of you who have never heard of Groupon (or other similar sites like Living Social), they are websites where you can purchase coupons for restaurants, services, and products. Usually it's something along the lines of you pay $12 but get $20 of food at the restaurant that the Groupon is good for. We do this all.the.time. It's awesome because one, we save money, and two, we're forced to try new restaurants that we wouldn't normally try. I've used Groupon for places to eat with girlfriends, different salon type services (think manicures!), and I would say 80% of the time my husband and I are out, it's because we have a Groupon. They save us major bucks- we love them! 

We go out for dessert instead of dinner 

You can have a ton of fun doing at-home dates, but sometimes you've just gotta get out and go somewhere! When we get the itch to go out, a lot of times it will be for dessert not dinner. One of our favorite things to do during the summer is go to McDonalds (we're high class, people), split a frappucino and take it with us on a drive or walk. This is, of course,after we've eaten dinner at home. Dessert is soooo much more affordable, but is still a great way to get out of the house. If you have a lot of kids, this can be a really affordable way to go out for a treat without the $60 restaurant bill. 

We sign up for promotional emails

Most of you are saying- huh? Why would I intentionally sign up for junk email? Well let me tell you why- because you can get a lot of free stuff! Alex and I set up an email that we use solely for the purpose of signing up for promotional emails. We sign up on lists of our favorite restaurants, stores, and entertainment places. For example, we haven't paid for a Red Box movie rental in months because we get codes for free movie rentals in our email all the time. The free meal coupons we get in our birthday months are totally killer, and the coupons we are sent can make a not-so-affordable date completely reasonable. 

We take those surveys! 

I don't know if you've ever noticed, but often there are surveys that are on the bottom of different stores' receipts. A lot of times if you take these surveys, you'll get a coupon code for something free or discounted the next time you come into the store. We take these surveys all the time. We don't usually spend time on a survey if it's just for an entry into some sort of sweepstakes, but if it offers us something for free, we'll totally do it! We've gotten free breakfast at Chik-Fil-A, free cookies at Subway, and a free entree at Panda Express doing this (just to name a few!) Time is definitely money here, though, and if it's a 30 minute long survey, then it may not be worth it. 

We shop around

This is really one of the overarching themes of how we make it (comfortably) on a single income. My husband is the coupon master, and has found us great deals on internet, TV streaming products, and restaurant deals. If you're willing to have a little bit of patience and a lot of self restraint, doing a little research before you buy or go out can save a lot of money. I've saved us money by shopping around for tickets to basketball games (one time we got free dinner for being one of the first 500 in the door!), and we often try to coincide our dates with different promotional events. 

We are 100% the couple who pulls out the coupon almost every where we go, but as a result we have a lot of fun on a small budget. 

What are other ways you save money on entertainment? 

On a Budget: Creating a budget

In this post, we'll examine the basics for creating a budget for your household. First and foremost, if you are married, you and your spouse should be on the same page about creating a budget. If your spouse isn't, there are some great articles that have already been written on this topic (like here and here). 

Fortunately, Alex and I started with a similar desire to create a budget for our household when we got married. Below are the very first steps we took in creating our budget. 

First off, you need to have a budget meeting. This is where you and your spouse pull out credit card statements, bank statements, and paycheck stubs to help you make a plan for your budget. In your meeting, you'll want to do the following things. 

1. Examine your income and expenses

This is the time to pull out the paycheck stubs, write down your income, and then tally all your expenses. Are you running in the red every month, saving a bit each month, or running pretty even? This is also a good time to look at your receipts and credit card statements to get a good idea of how much you are spending on basic things including groceries, gas, rent/mortgage, utilities, and entertainment each month. 

If you're having a hard time determining where exactly your money is being spent, some couples may choose to save their receipts and monitor their spending habits for 2-4 weeks. Getting a basic knowledge of how much you are currently spending is vital in creating your budget. 

2. Create budget categories 

Once you have a grasp of where your money is going, it's time to sit down and determine what categories will be needed in your budget. This will look different for different families depending on your stage of life, but some of our categories include: allowance money, groceries, gas, entertainment, tithe, medical, car maintenance, gifts, rent, utilities, and miscellaneous. Later in this series, I will be going more into depth of each of our categories and how we determine how much to budget in each category, and how we manage the category. 

3. Create a zero-based budget based on your pre-determined categories

Creating a zero-based budget simply means that every dollar has a name, and you know where every single dollar is going whether it be towards bills or towards savings. Once you have your budget categories determined, you want to sit down with your income and assign a dollar value to each of those categories. You must assign every single dollar of your income to something- it may be a bill, it may be an investment, it may be a savings account, or it may be a payment. Regardless of where you assign your money, at the end of your budget you want the income you have and the expenditures/investments/savings you have done to equal zero.

For example in our case... We start with our monthly income and we go through and assign amounts to our budgeted categories including- rent, utilities, internet, entertainment, gas, groceries, insurance, and tithe. If there is money leftover after we've assigned amounts to all our budgeted categories, we'll discuss how to assign this leftover money. Most months it will go straight to savings, other months we'll put a little extra into our pre-set categories (often into the "gifts" category).

Basically, at the end of the month our income minus our expenses/savings = zero dollars. This step can be confusing but is the most important step in creating a budget. Feel free to email me or comment with questions.

How to make a zero-based budget is an article that can help further clarify this process.  

4. Agree to have a monthly budget meeting

Budgets are dynamic- you can't make a single budget and expect that the same budget that applied for December and Christmas shopping will apply for June when you don't have a single birthday. Alex and I have a monthly budget meeting to discuss expenses for the upcoming month. While most of our categories stay consistent, the amount budgeted for each may vary month to month depending on what we have going on. Our income also fluctuates month to month depending on the type of shifts I get at work, so some months we may have a little more to work with, some months we might have a little less. We are regularly tweaking our budget, and remembering that as finances change, so will our budget. 

Now that you have a basic zero-based budget, we're going to talk about the basic categories in our budget just to give you some ideas, and then we'll continue on to the top three areas you can save some money. In the meantime, get out there and get budgeting. 

What questions do you have? What other tips can you offer to someone just starting to create a budget?