Hi all, I am new to this sub and came across it while trying to research budgeting. My fiancé and I are in need of help. It is embarrassing to say, but we are both in our late 20s and have never budgeted. We’ve just paid our bills, watched our accounts to make sure they aren’t negative, and that’s about it. The stress of not knowing where our money is going is really weighing on us and we have made it a goal to learn and start to budget. Unfortunately, neither of us has any idea where to start, hence how I ended up here.
I know to take how much we make, subtract our monthly bills, and see what is left, but then after that I am just at a loss. The “set” bills are easy to track, like our house payment, vehicle payments, internet, etc. It’s the one-off things that are making it hard. We just kind of spend what we spend, and that’s it. We have enough to pay our bills and then seem to spend the surplus randomly, and we want to try and manage that.
Another problem is that we both have separate bank accounts. Our thought originally was to have one joint account and keep our separate personal ones, but this has become more of a headache than helpful. We are not opposed to just pooling everything together, and that feels like it might be our best bet.
We both make a decent amount and should be saving more than we are, and it’s super frustrating. Looking for a simple way to get started and get some peace. Thank you for any input.
Sounds like you are doing everything right. It’s up to you if you want to break down your variable money each month. As long as your fixed expenses and goals are funded first, there’s nothing wrong with your method. Maybe make an order of priority: Fixed expenses, investments, savings, then the rest.
Start by reviewing your last 3 months of spending and categorize every transaction. This will give you a clearer picture of your spending habits. Creating a joint account for shared bills might simplify your process. Once that’s working, implement a budget using a method that suits you, and track all transactions for 3 months to stay within your budget. If you don’t have an emergency fund, prioritize that next.
You first need a good budget template. I recommend using Google Sheets since it’s easy to share and collaborate. Combining your accounts may not be necessary, as it can lead to issues. Focus on having a plan for every dollar each month, tracking bills, savings, and personal expenses.
If you DM me, I can help you create a budget based on your needs, and I’ll walk you through the process so you can adjust it as your income and needs change.
I recommend Ramit Sethi’s conscious spending plan. Create a budget with net income, fixed costs, and amounts for saving and discretionary spending. Aim to fund an emergency fund of 3-6 months of expenses, and regularly track progress toward your goals.