Comments on: What is a Spending Plan http://www.suburbandollar.com/2009/07/14/what-is-a-spending-plan/#utm_source=rss&utm_medium=rss&utm_campaign=what-is-a-spending-plan Where finance and reality meet Sat, 04 Feb 2012 21:54:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: threadbndrhttp://www.suburbandollar.com/2009/07/14/what-is-a-spending-plan/#comment-1337 threadbndr Fri, 24 Jul 2009 19:14:09 +0000 http://www.suburbandollar.com/2009/07/14/what-is-a-spending-plan/#comment-1337 I actually track both $ and %. It's entirely possible to build a budget based on past spending where you would be 'on budget' with 50% of your take home pay being spent on food and 0.5% being saved. Not good. My budget uses 'sweep' accounts and 'balance forwards' to allow excess from one category or time period to offset or carry forward. If I find myself needing to move more money into a category frequently, it's time to rework the % /budgeted $. I actually track both $ and %. It’s entirely possible to build a budget based on past spending where you would be ‘on budget’ with 50% of your take home pay being spent on food and 0.5% being saved. Not good.

My budget uses ‘sweep’ accounts and ‘balance forwards’ to allow excess from one category or time period to offset or carry forward. If I find myself needing to move more money into a category frequently, it’s time to rework the % /budgeted $.

]]> By: CreditLendingBloghttp://www.suburbandollar.com/2009/07/14/what-is-a-spending-plan/#comment-1286 CreditLendingBlog Fri, 17 Jul 2009 21:22:12 +0000 http://www.suburbandollar.com/2009/07/14/what-is-a-spending-plan/#comment-1286 Good stuff. This is very helpful for people struggling with debt. Would be great to have a chart or a pyramid for the expense section. Good stuff. This is very helpful for people struggling with debt. Would be great to have a chart or a pyramid for the expense section.

]]> By: JT @ Redeeming Richeshttp://www.suburbandollar.com/2009/07/14/what-is-a-spending-plan/#comment-1234 JT @ Redeeming Riches Tue, 14 Jul 2009 15:11:51 +0000 http://www.suburbandollar.com/2009/07/14/what-is-a-spending-plan/#comment-1234 I think it's just easier to use dollar amounts as opposed to percentages when structuring this. You make a good point about fluctuating income. I am self employed and trying to create a budget is nearly impossible, so what I've done is basically pay our family the same amount no matter if my income was higher or lower than that amount. I have a good sized cash reserve to help offset those months where income is low. This way we still have an idea of what to count on for our budgets. This seems to help. I think it’s just easier to use dollar amounts as opposed to percentages when structuring this. You make a good point about fluctuating income.

I am self employed and trying to create a budget is nearly impossible, so what I’ve done is basically pay our family the same amount no matter if my income was higher or lower than that amount. I have a good sized cash reserve to help offset those months where income is low. This way we still have an idea of what to count on for our budgets. This seems to help.

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