A New Fiscal Year

I have an almost pathological need for security. I am not a big fan of change or uncertainty. I like a plan. I like knowing what I will be eating for breakfast tomorrow, and the next day, and the day after that. It might make me totally boring, but I’m good with that. At this stage in my life I am learning how to make my inborn personality traits work for me, instead of struggling against them.

This need for security completely colours my relationship with money. I like to save it. I like to stash it away in the bank and look at the balance. Of course I also enjoy spending it, but generally not nearly so much as I enjoy saving it. So while I haven’t ever been really wealthy, I have managed to avoid making any serious financial messes.

Back in 2006 Jon and I started keeping track of our spending. Sort of. I have this big spreadsheet and once a month we enter how much came in to and went out of our various accounts. It was a big help when Jon was self-employed, because it helped us to determine how much he should draw out of the company as a regular dividend for our personal use. It also helped us to stay on top of things and be aware of our overall financial picture.

Well and good, right? Sort of. Because while we haven’t been living beyond our means, we’ve certainly been living up to them. Like many people, as our income increases so do our expenses. It’s like magic! It’s hard to unlearn the habit – you get a bit of money that isn’t allocated to any purpose, and you suddenly remember that you’ve needed a new pair of boots and the kids could use some new art supplies, and what about a bread machine? Could buying a bread machine save us money in the long run? Knowing that we’re not overspending has given us license to think this way.

I’ve decided it’s time to shift my thinking. I want to simplify. I want to make sure that my spending is in accordance with my values. I want to set a good example for my kids by not buying into consumerism and the lure of the marketing message. I want to use the money I have to do things like pay down my mortgage or build up my savings, so that I have even greater security (as you may remember, I heart security).

So now that 2009 is here, I’m making up a budget. I’m looking at it like a financial experiment, a project that will allow me to spreadsheet and analyze and play with numbers to my heart’s content. First I’m analyzing our 2008 expenses. Through the magic of Microsoft Money I can see exactly how much we spent on groceries, or gas, or kid’s clothes last year. That’s the starting point. Then I can set some realistic targets for where I think we can cut, and what reasonable numbers would be.

I’m not completely sure how we’re going to keep our spending within target. For instance, if we say that we want to spend a certain amount each week on groceries, how do we keep to that? Do I bring a calculator to the store with me? Do I remove items at the checkout if I see that I’ve overdone it? Or will the awareness that I need to spend less, coupled with some changes in menu plans, be sufficient? I would love to hear any suggestions that have worked for you.

For now I have some ideas of my own that I will try. My plan is to update you all semi-regularly, letting you know what we try and how it works (or doesn’t). So, stay tuned. Some very exciting budgeting details will be coming your way. I can tell that you’re all as excited as I am.