I’m 41, turning 42 soon, married, and looking to start budgeting seriously. My wife and I have no serious debt aside from our mortgage, but we plan to do IVF in early 2025 and likely have kids in the next 1-2 years. I realize it’s time to tighten our budget.
I plan to start by tracking our spending for 2-3 months to identify which categories need work. Here are my questions:
How granular should my categories be?
What’s the best way to partly automate this? I prefer some reminders instead of just keeping a spreadsheet.
After tracking cash flow, how do I create a budget and determine how much to allocate to each category?
I prefer a manual approach. You’ll gain a deeper understanding of your budget by manipulating the numbers yourself. Also, keep your receipts; it helps with remembering what you spent.
I track my spending with a spreadsheet. It takes me just a few minutes each day. Start simple with your expenses, income, and savings, and add categories as needed.
I use Quicken for automation. Categorize your spending into basics like housing, utilities, and transportation. Just get started—you’ll wish you did it sooner.