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To watch my YouTube video that goes along with this blog post click here: How to make a budget you can actually stick to.

Budgeting is something I am very passionate about. I like to save money and am constantly looking for ways to improve our budget. The current budget routine that we have been using is working great for us. It allows us to pay all of our bills, put a hefty amount away in savings, and still have “fun money” to have fun with. Although I write mine down by hand in a plain notebook, a lot of people like having fun planners. This one from Erin Condren is really pretty and looks very functional.

Ok so let’s get started with the breakdown of my budgeting system.

First you want to find out what your pay dates are and figure out how much money you will be making on that pay dates.

Next step is to find what bills correspond with your pay dates. Then subtract all of your bills for that pay date. And I mean ALL of your bills, this includes house payments, utilities, groceries, insurance, gas for you car, and even birthday present money if you have someone you need to buy a gift for. Plan all of those things into your budget.

After you have subtracted all of you bills from your income you will be left with what I like to call “leftover money.” This is money left from paying you bills. In my household we follow the 80/20 rule and divide that leftover money. 80% goes into our savings and 20% is what I like to call “fun money.”

Fun money is exactly what it sounds like. This is money that we have in our budget allotted to do extra fun activities with. Maybe it’s going on a shopping date, going out to a fancy restaurant, or even bowling, or to the movies. Literally fun money can be used for what ever you want to use it for.

This is the budget that we have been following for quite some time and has helped us so much to stay on track and meet our budgeting and savings goals.

If you are interested in finding out how we paid off a lot of debt and were able to afford our first home please let me know and I’d be happy to make a post on that.

*Some links may be affiliates.


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