Budget Day :{

Today was budget review day at the Timmons house. We had not had one of these since moving to Amarillo. Typically when a major change like a move occurs we give ourselves a few months to let our expenses equalize. After doing a 3-month expense report on Sunday I felt that we were ready. I knew it was not going to be pretty; moving from a small town to 8 minutes from the mall never could be. Convenience and ease of shopping never trends toward a small and trim budget. So today was a true compromise of what are we going to give up, and what is unrealistic to trim back on.

Everyone has their fixed expenses on a monthly basis, those things that are there every month and are typically consistent. The bills: house payment, utilities, and in our household our monthly dining out and grocery allotment. These end up in the fixed column. Then there is our variable expenses. In the past several years I have been using Dave Ramsey's envelope system. This makes things much simpler for me: if the envelope is empty then you have to wait till next month for that categories next infusion.

Cody and I are both very reasonable when it comes to our budget. To tell you the truth we have had most of our categories set in stone since before JB was born. We did such a wonderful job on our budget post-JB and pre-Taylor that it is now an invited subject. We did so well in fact that we have been able to pay off loads of debt and save for a down payment on our house and retirement.

So what am I giving up in order to save, save, save? Our first cut back is clothing. We have decided to re-visit this category on a monthly basis. If there is a true need for someone in the family to get an article of clothing then that need will be addressed and met, but my days of a dress or shirt (typically for Taylor) each time I visit Target are over. Our family is very fortunate that both of the kids have older cousins meaning we get lots of hand-me-downs. Typically the kids only need something when they have grown out of PJ's or it is a special occasion. No more impulse, that is adorable, spending. The next agreed upon budget cut is household/ yard spending. It is summer so this one has been a big compromise. We are not going to completely cut this category, but we are going to give it a fixed amount of cash. When the cash is gone we have to wait until the next month for any more spending. Both of us agreed to significantly cut this category back from the 3-month review and discuss at the end of the month if an adjustment up or down needs to be made.

There are also categories that either Cody or I are just willing to give something up. For me I have decided to start dying my own hair at home again. This one has been pretty easy for me to give up. In Denver City, my dear sweet Holly was wonderful and also about half the price of an Amarillo salon. Since I have been used to spending much less on my personal hair care for the past 4 years I would much rather have that money to spend somewhere else. My next sacrifice was an easy one, 4 bottles of nail polish in exchange for a monthly pedicure. I will still be visiting the nail salon for special occasions, but in between I think I can paint my own toes. I have also discovered that Bath and Body Works has nifty little pedicure kits for a fraction of the cost of two professional pedicures a month. Don't think that I am the only one giving things up though. Cody spends less in a typical month anyway, so his cost cutting is more in areas of lawn and garden care and entertainment.

As Dave Ramsey says, we have to live on what we make. This is very important to both of us, and something we plan on teaching JB and Taylor. If we don't start now with teaching and spending habits we won't be as successful in the future.

Wish us luck, and have you looked at your budget lately?