A Financial Overhaul

After working so diligently on the Family Binder, I needed a new project!  A large glitch in our bill paying/financial process was brought to my attention, and of course my over organized-crafty self jumped on the challenge of making it better!  Derik and I spent the last 10 days or so really giving our budget and bill system a complete revamp!  After a few stressful days of trying to find a starting point, I found a system that is working well so far for our family.  I have gotten ideas from all over the place, and from many people... and I am sure that I am far from finished on this project!

Starting Point
First of all what I did... was look at all of the standard income we receive every month.  Part of our problem was that when we moved we knew Derik would be getting bonuses each month, and we were basing a budget off of money that wasnt a sure thing.  That is no longer the case!  Knowing what we could count on each month I felt was a STRONG starting point!

Bills
After we found a jump off point, I wrote down a list of EVERY bill that we have each month.  A few of the bills are on quarterly pay cycles, but I find it easier to divide them by 3, and move money into our savings for that each month.  After all of the monthly bills were written down (along with amounts, & dates due) we divded the total in half.  Derik gets paid twice each month, and paying bills must be done twice as well.  Since our rent is almost 45% of our income (I know that is too much, and I dont need anyone telling me that it should be 25-30% thank you!!)  we choose to split it and pay half from each pay check.  If we didnt do this, than an entire paycheck would go to rent.  So, we pull half of the rent from the 2nd paycheck in a month and move it to savings.  When the 1st paycheck of the next month arrives, we write a rent check for the full amount, and transfer the money back to our checking account!  Easy enough.  So, our rent is split in 2, therefore we can pay other bills.  We decided which bills were to be paid from each check, making the bill budget every 2 weeks the same amount.  This also allows us to work on a grocery and gas budget!

I created a Bill Binder, mainly to give everything a centralized location!

Envelopes, mailing labels, and stamps are all kept in the binder as well... which makes mailing out bills that have to be paid by check all the easier.

At the front of the binder I put the bill pay/paycheck schedule, so it CANT be missed!

I gave each bill its own tab in alphabetical order.

The first tab is for statements that have been received, but still need to be paid...

We file them with the confirmations behind its tab, after payment has been sent.

I used a spreadsheet that I found HERE, to create a running tab and payment information for EACH bill.

Now, either of us can sit down and pay bills, and know what the other has paid!  We simply check off the calendar when a bill has been paid and mark the date and confirmation info down on the info sheet at the front of each bill tab!  We file the statement and any confirmations behind each tab as well, just so that everything is all together!  Why didnt we do this sooner?!?!

Groceries
I start each week by writing a meal plan.  I have tried to do it for a month, but I dont have the patience or that many meal ideas, so one week at a time is what I do!!  I use my handy dandy Eat Sheet that I found HERE to make my list!

 I write a grocery list, and go to the grocery store.  

This list is one I created based on my grocery store layout, and I laminated it, so I could use a Wet Erase pen and reuse it every week!

Generally speaking I try to buy things that will make more than one meal.  An example would be grilled cheese sandwiches.  A loaf of bread, and a pack of cheese will make several grilled cheese sandwiches, so I have lunch for a few days this week, and next!  So, I guess I am really making a meal plan 2 weeks at a time.  I only go to the grocery store once every other week.  I just make sure I get enough to make the meal multiple times.  Shopping from a grocery list makes a HUGE difference in what I buy, and how much the total is!  I also make a VERY big effort to only shop for groceries when I am on a grocery trip.  If I need toilet paper, paper towels, ziplocs, and aluminum foil... I make a seperate trip to Target to get the household goodies.  This keeps me from browsing what picture frames are on clearance, and the new Christmas display that they are setting up!!  ALWAYS STICK TO YOUR LIST!!!

Balancing the Checkbook
This was by far the weak spot for me and my husband.  Until we were married neither of us kept a check registry!  We made our money and we knew what we spent.  After the wedding, we still didnt keep a real registry.  I knew not to spend more than what I made, and Derik paid the bills!  I bought the things he wanted and needed, and he paid the bill stuff with his income.  Simple enough!  But, when I started staying home... we had no choice!  We had to keep a registry, so we could see what was being spent.  However, the problem with starting to do something after not doing it for 24 or 28 years is that it takes a little work!!  We never really found a system that worked for us!  We were both spending money and I didnt write down what he was spending.  He didnt write down what I was spending, and we never combined the books.  It was a MESS!!  This week... overhaul!  I was turned onto this awesome website this morning, which allows me to track EVERYTHING!  It is totally secure, and my husband can log in when he gets home... add his receipts, and it will do the work for us!  The best part is... if he is in California for a week, he can do this from there!  We dont have to worry about getting behind in anything.  Its really pretty genius.  The website is called PearBudget.  The first 30 days are free, and it is only about $30/year after that.  It is worth it for my budget and registry to be tracked and done for me!! 

Summary
In summary - this week was rough, and hard, and stressful!  But... worth it!  I am so glad that we now have a system that we both understand and we both can use.  I think this is not only beneficial for getting things set for our future, but for our marriage!  Another comforting part of doing this is knowing that if something happened to one of us tomorrow, the other wouldn't be lost as to what to do or how to pay the bills.  I have feared that for a long time... and now I have some peace of mind.
While this system may not be what your family needs, it has certainly made life easier in our house.  We will sit down once every 2 weeks and pay what needs to be paid, get on the same page, and look the budget over again.  If things get to a point of mass confusion again, then we will also implement the envelope system.  We both really hate carrying cash on our person though, so for now... we are sticking to our cards!