Budget Recap February/March 2021
I am taking a little blogging break to devote a little more time to other things the next couple of week (I will still have my style posts on Mondays) but wanted to share one of my biggest money lessons I learned this past month. It is not a new lesson but hopefully this time, I will heed my own advice. Some of you may know, since I mentioned it a couple of times that I was doing a no spend month in March. That usually means I am trying to reset my budget because I overspent in an area. I also have mentioned before that I track my spending, budget what I can spend in each category and color code my spending in my ledger. However, I tend to overlook what is spent on the credit card.
Credit Card: When do I use it?
I usually only use the credit card when purchasing on Amazon, Target (if not in store) and for online purchases. My husband uses it for miscealleneous purchases from haircuts to small trips to Ingles the grocery store. Neither of us use it for large purchases unless it is planned and budgeted for. So what happened for a $1200 bill to occur (I usually budget $500 for the credit card)?
- too many Amazon purchases
- $300 in misc, doctor bills
- a car maintenance bill
- not keeping track of spending!
How to keep track of my credit card spending?
I have a few ideas to improve in this area so that I will not be in the same predicament again. I do not want to be surprised with a larger bill at the end of the month/credit card period.
- keep track of spending with a credit card ledger/balance
- check my credit card balance a couple times a week especially after Amazon purchases
- make a payment after said Amazon purchases
- be watchful when I am close to my credit card budget limit
I need to do these things especially that both my husband and I use the card even if not very often.
How did I reset my budget?
- I have not bought any clothes or made extra unecessary purchases in March (we did use some of our stimulus check to get some new patio furniture and a sofa for the kids media room).
- I watched my food budget
- We did not eat out this month
I think the key to successful budgeting is knowing that there will be mistakes and to learn from those mistakes and make the changes necessary to improve. Have a budget in mind for each category of spending and make sure these amounts are realistic. I know that we will charge things to the credit card so I try to budget an amount that would cover these charges in a typical month.
What is the biggest lesson you have learned in budgeting?
A bientôt!
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31 Comments
Joanne
I have found that credit card purchases can be difficult to keep track of too but do try to call once a week or so to keep track of my balances that way. I know what I “like” to spend on them montly and make sure that we never ever have to carry a balance over. I’ve actually been pretty bad at keeping an eye on our budget this past year as I knew we had been spending so much less money with no vacaitons, no real day trips other than hiking, and hardly any eating out/take out meals but all of a sudden I feel like we are hemorrhaging money with all three boys needing a comlete spring wardrobe (and none of them being of similar body shape that hand-me down ever work!), buying a new clothes dryer, and planning next years schooling which means buying curriculum materials. I try not to stress too much as I know once summer hits we’ll be spending a lot of time at home in the lake and the money will start to flow in the other direction but I still like to be aware of where the money is going.
mimifce
That is why this bill was hard to swallow: we pay it off each month!
Nancy
I can save pretty god. Also spend pretty good, lol. But I hardly use my credit card. Have a great week! Enjoy!
mimifce
Same here!
Pamela Gray
I got caught out last month too. Besides Amazon purchases, my Poshmark purchases sneak up on me. Those $30 purchases add up quickly.??♀️
mimifce
Yes, it’s the little purchases that really add up!
Lizzie
This is a great post! I need to set a budget for myself! Thank you for sharing!
Lizzie
http://www.lizzieinlace.com
mimifce
You are welcome!
Jennifer
I definintely have trouble keeping track of credit card purchases. A lot of the time I’m shocked looking at the bill, wondering how it’s so high. And I’ll look at all the purchases and they aren’t that much but they add up!
Jennifer
Curated By Jennifer
mimifce
Exactly!
Mica
It’s good you were able to move your budget around so you could pay off the credit card! I put almost everything on my credit card – it’s the only card I have that’s got paywave on it so I prefer using it so I don’t need to put my card in the card reader, haha! But it also gives me a ton of points whenever I use it. I like to cash them all in near Christmas time, when I’ve been paying for a lot of Christmas presents on it, so I can have a bigger budget for Christmas presents as I know I’ll be paying off the bill with the points 🙂 Works so well for me! Definitely as you said though you need to track your spending and make sure you can pay it all off!
Hope you are having a good weekend 🙂
mimifce
I do enjoy the points! I typically use them for some “free” shopping!
jodie filogomo
It’s not just mistakes but sometimes life happens. Those auto repairs don’t schedule when you have the extra money for them, LOL!! Even though you add some extra into the yearly budget, you just can’t always predict!!!
XOXO
Jodie
http://www.jtouchofstyle.com
mimifce
I have started a car maintenance cash envelopes to help with unexpected car expenses.
Laura Bambrick
I think it is so wise to have a budget! We actually use our credit card for almost everything, but it is always paid off at the end of the month and then we have the ability to use cash back for extras throughout the year. I think the best thing we’ve done is to have a ‘buffer’ in checking so we added extra money in our checking that we don’t include in budgeting so if a check is late in cashing or things are withdrawn on the same day then we don’t ever overdraft. And automatic savings deposits help a lot too!
mimifce
Yes! I usually have a buffer built in my checking even though I messed up in January. I do a small weekly saving deposits for my vacay account too but not for regular savings right now. With change of jobs, I have had to adapt the budget.
Michelle
I think the best thing (and I’m speaking from my past life as a financial advisor) is to keep track of where the money is going – which is exactly what you are doing. And then get back on track as soon as you can. Also what you are doing. I remember telling a cousin of mine when she asked for help with management that she needed to keep track of her money just like she did her kids. I got an eyeroll in response. Needless to say money management never became her stron suit.
Michelle
https://mybijoulifeonline.com
mimifce
Lol! I have gotten really good in the past year at keeping track of my spending and pointing out the trends so I know where to make improvements and cuts. If you don’t know where your money goes, then you won’t be able to make any changes!
Ellie
Great topic! I don’t like using my credit card and only use it on bigger expenses so I can earn the cash back. But I go into the account and pay that off right away (as soon as the charge is posted) so I don’t get a suprise bill in the mail. (Been there, done that and hate it!! LOL)
I have a Target debit card instead of credit card, so I still get that 5% off without having it charged to a credit card as it takes that right out of my debit card.
But yes, surprise car repairs and doctors bills can be so frustrating! I’ve had to take money out of the savings account for those bills on occasion! I love your way of cutting back in other spendings to pay those off!
Ellie
Ellibelle’s Corner
mimifce
Very nice! Paying it off as soon as the charge is posted is impressive and it makes sense. I sometimes do that but not usually.
Suzy
That’s the thing about credit card purchases, isn’t it? It can be a little more difficult to track what you’ve spent. I’m terrible though, I tend to just let my husband do all that! However, I never spend a lot of money on the card. And if we are planning on spending a little more than usual, we’re always very careful about it!
Hugs
Suzy xx
mimifce
I think as long as there is good communication, it keeps you from getting into trouble with it. I usually try to think of it as a debit card since we do pay it off every month.
Bojana Krienke
You have inspired me. I need to have a reset! I’ve been spending money more frequently lately, just noticede that I am more often saying “sure, why not” but it’s adding up and I think I need to track for a month. Thanks for kicking my butt and reminding me that it’s time for a reset.
What do you find gets you the most?
bosbodaciousblog.blogspot.ca
mimifce
Amazon with its instant gratification is usually my downfall! And I always enjoy getting new clothes. But I have been pleasantly surprised how I have not missed the clothes shopping this month: wearing my stuff and finding new combos is always fun! Glad I was able to inspire you! Want to get back to more budgeting posts!
yolissa hair
What you said is so meaningful.
bundle with closure
Kathrine Eldridge
Thanks for sharing how you budget and what you did to fix yours! I’ve been staying away from amazon lately. 🙂
https://www.kathrineeldridge.com
mimifce
I just picked up some tees and a little sweatshirt for vacay so I am going to have to be careful in April but I am keeping an eye on that credit card!
Jill
I go through periods where I spend a lot and then nothing at all. I have the Target debit card so it comes right out of our checking account and I have our debit card saved to Amazon. But both of these can really get out of control if you don’t keep an eye on it! We put aside extra savings to pay for unexpected medical bills and expenses.
Jill – Doused in Pink
mimifce
That the right way to do it!
Liz Klebba
To help us budget, we live mostly cash… Except for all those online purchases. Especially this past year! But as our cash purchases were much lower it all sorted out. We toss all our receipts in one spot and each week I add them to a tally (by category) to keep tabs on our spending. It’s not fun, but I’d rather manage our money than be managed by it!
mimifce
I completedly agree! I really helps to add every thing categorized to see where most of the money goes and where changes need to be made.