Here is the format for all future Family Budget Meetings:
1. Review the previous month
This is the time for reflection on your spending over the past month. I have found this is the time where we have learned the most about our spending habits. During this time, you should look at:
How much you spent in each category:
- Is it what was intended?
- Are you surprised by the amount spent?
- Can you do things differently in the future to save more?
Why you spent the amount you did per category:
- Did you blow your food budget at the end of the month because you ran out of food and were lazy?
- Did you go overboard on birthday gifts? (ie. are you a gift person and sticking to a gift budget is challenging?)
- Did you decide to get highlights in your hair when you weren’t planning to that blew your cosmetics category out of the water?
I found so many patterns in our spending in the first few months of tracking this and reflecting on what we spent and when we spent it. You may be surprised at what you find!
2. Improve your spending
Brainstorm on how you can do better next month or adjust your budget to become more realistic for your needs. For example, I initially tried to budget $50/month for toiletries and cosmetics. In the first month, this worked, but then the next month I spent $100 because I had skimped on spending the previous month. I learned I just needed to budget $75/month because that was more realistic for what we needed.
If you are struggling with where to find money, here are 15 Effortless Ways to Easily Start Saving Money that I have done myself.
If you haven’t taken the Money Spending Assessment yet, it could be a game changer for you: Check it out at the end of this post!
3. Talk about your goals for the next month and year.
This is always an exciting part of the meeting (I am a complete nerd so I enjoy dreaming about the possibilities the future may hold for us). This is really an open time to talk about money goals for the month, next six months, next year, etc. You should also be talking about your life goals. Where do you see your life going in the next year, 3 years, 10 years and so on? Dream together! This is super exciting and fun to think about.
This is the conversation that continues to fuel your desire to get out of debt, stay on budget and reach your goals to live the life you dream about. Do not skip this part because it will be your motivation! My husband and I get so pumped after talking about our goals and dreams. We are on fire to pay off debt and gain financial independence. Nothing is off-limits during this talk, dream big!
4. Assess your progress.
I strongly recommend having some kind of visual aid to allow you to see your progress. I have these debt countdown charts I use for each of our debts. As we pay things down, I get to color the thermometer more and more until it is completely paid off. Then it gets a giant “X” from me (which is so gratifying).
If you are paying off debt, I don’t care what you use, but make sure you have some kind of visual representation of your debt. You can also use a visual aid to track overall savings (ex. Saving for a car, house, retirement, etc.). Whatever your goals are, make sure you are tracking them. You both can enjoy watching the progress you are making and it will motivate you to stay on track.
5. Set up next month.
Go through each category again. Do NOT assume the next month will be the same as the previous. Definitely, use the previous month as a point of reference to make adjustments as needed, but do not copy it dollar for dollar (unless that is truly what your budget needs to be). I am three years in and our budget varies every single month pending on what our expenses are.
Once you have determined what each category will be, you both need to agree to abide by the budget you have just created. If you are disagreeing on how much should be allocated in each category, do not forget to compromise and meet in the middle. Each person needs to have a little give and they will eventually have their time of a little take too. Budgeting is a lifestyle change, it is not a one-time event you are trying to “win.” If you need to sacrifice in certain areas to keep your spouse on board initially, then I say do it. You are in this for the long game. Be supportive from day one so you can stay on the same team.
