The Great Budget Postmortem – July 2016 Edition

Alright ladies and gents…The time has come!  We are about to enter into the (cue announcer voice) GREAT BUDGET POSTMORTEM!!!!  July 2016 edition.

 Now you may recall that at the beginning of July the Hubbers and I set up the first budget we have had in years (so totally awesome, right?!?!?!).  But a budget is absolutely useless unless you use it.  That bears repeating.  A budget is absolutely useless unless you use it!!!

 Exactly HOW do I use a budget?  You may ask…Well, you use it by doing a few simple things…

  1. You create the dang thing (see how here)
  2. At of the month/week/whatever…You REVIEW how much you actually got paid AND how much you actually spent and COMPARE that to what you planned to get paid and what you planned to spend
  3. Make adjustments  (i.e. tweak the dang thing)

 Simple, no?

 So last month over some serious vino we covered step 1.  So now we are moving on to step 2, or what I like to call the POSTMORTEM.  

 Postmortem: a discussion or analysis of something (such as an event) after it has ended.

 But first a moment of acknowledgement…

 Step 2 can either be freakin amazing (read “WOOT!, I am under budget!), meh (read “about right”) or an absolute nightmare that requires more of the vino needed for Step 1 (read “holy s@#t! How on earth did I spend that much money?!?!?!).  

 If you find yourself in this last camp, don’t fret!!!  The budget cycle is a glorious loop of improvement that reaps amazing rewards!  This month is “holy s@#t!” but over time you will find yourself saying “WOOT!”.  Just give it a bit of time…and always more wine…and you will get there!

 Now back to it…

 And the results of the July 2016 budget is…..drum roll please….”meh”.

In numbers speak we were actually about $800 over budget.  While I realize for some that may be a “holy s@#t” (and justifiably so, I might add), it wasn’t that bad for us.  Here is why….

 Of that $800:

  • Approx $250 was in dr. visits for the kiddo (unplanned and necessary)
  • Another $350 was in unexpected insurance premiums (again, unplanned but necessary)

 That means that we actually only went over by about $200 (“WOOT!”) in our “normal” discretionary spending.  This is freakin exciting guys!!!  This was our first budget in a years and we did pretty dang good when it comes to sticking to it.  Given we haven’t flexed this muscle in so long I honestly would not have been surprised if we had overshot it by a much larger number than that.  GOOOOO us!

Overall, I am feeling great!  We weren’t too far off.  We have identified some great tweaks and edits to our plan for next month.  AND THE BEST PART…reviewing the budget to see if we were on track actually left me feeling in control.  WOOT! For making progress..  

Until next time…