Beginning to Budget Seriously—Suggestions?

Seeking Advice Forum
1

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:

  1. How granular should my categories be?
  2. What’s the best way to partly automate this? I prefer some reminders instead of just keeping a spreadsheet.
  3. After tracking cash flow, how do I create a budget and determine how much to allocate to each category?

Thanks in advance for any responses!

2

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.

3

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.

4

To be frank, I don’t think I can sit down for an hour to do budgeting. How long do you usually spend on it in one session?

5

Start with categories that are important to you. Track your actual spending first, then allocate amounts for a budget based on that.

6

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.