2024 Budget Review

Hey everyone! I totally get where you're coming from about wanting to fine-tune your budget and find those easy areas to cut back. My partner and I have been on a similar journey, especially as we plan for big life changes like starting a family. One of the biggest game-changers for us was really diving deep into our home expense categories. It's not just about knowing how much you spend, but where it's actually going. When you look at your budget, like the income (Take Home, Investment, Retirement, Other) and compare it to your outgoing costs, it can feel overwhelming. But breaking it down helps so much. Think about your expenses in a few buckets: Fixed vs. Variable: Your Mortgage or Student Loans are mostly fixed, while Grocery stores, Gas, Entertainment, and Shopping are often variable. Knowing the difference helps you identify which areas have more flexibility for cuts. Housing Costs: Beyond the Mortgage, don't forget Utilities (electricity, water, internet) and potential Home Improvement or maintenance. We recently reviewed our utility providers and found a cheaper internet plan, which saved us a bit each month! Transportation: Car Insurance and Gas are usually big ones. It’s worth shopping around for insurance quotes yearly. For gas, combining errands or looking into public transport/carpooling a few days a week can add up. Food & Fun: This is where many of us see our money disappear! Grocery stores can be tricky. My tip? Meal plan for the week, make a strict shopping list, and stick to it. We try to limit Restaurants and Dates to a set budget each month, making those outings feel more special. Entertainment can often be swapped for free activities like parks or game nights at home. Personal & Lifestyle: This bucket includes things like Shopping, Vacation, Pet expenses, and other Personal care items. Before I buy anything non-essential, I now ask myself, 'Do I really need this, or is there a cheaper alternative?' For pet costs, regular preventative care can save on big vet bills later. Health & Wellness: Healthcare costs can be unpredictable, but understanding your insurance and looking into generic prescriptions can help manage this category. Debt & Savings: You mentioned paying extra on your Mortgage and having Student Loans. That's fantastic! Continuing to chip away at high-interest debt is a smart move. And don't forget categories like Tithe and planning for Retirement or other Savings goals – these are crucial 'payments' to your future self! My biggest takeaway from categorizing my own expenses (like those from the table showing Tithe, Car Insurance, Healthcare, Major Purchase, etc.) is that it makes you more mindful. Once you see where every dollar goes, it's easier to make conscious decisions instead of just letting money slip away. For instance, after reviewing our spending, we realized our 'Major Purchase' fund was growing slowly, so we adjusted our 'Shopping' and 'Restaurants' budgets to boost it. It's all about finding a balance that works for you and your goals, like reaching 20% equity by refinance or saving for your future family. Every little bit you trim from a category, even if it feels small, contributes to your bigger financial picture. What are your go-to tips for cutting back in particular expense categories? I'd love to hear them!