Six Month Review Template – Budget review and adjustments

This is the third part of my “Six Month Review” template. I track spending both for our “family” account (groceries, home, utilities, etc.) and my personal account (auto, clothes, food/snacks, hobbies, etc.). Halfway through the year, I take the opportunity to look at what I expected to spend on, both in our family account and my personal account – and compare it to actual spending. From there I make adjustments either to the budget, or to my spending over the next six months, so I can try and bring it into alignment.

Family Budget

Typically what I do is compare my spending to the money that I budgeted at the beginning of the year. I usually use the previous year’s actual spending, with some adjustments, to create the budget. Some of the numbers I can predict in advance (insurance, charity, Roth IRA, etc.) but some vary somewhat, month-to-month.

 

Revenue Budgeted 2018 YTD Actual 2018 YTD Variance
Salary $24,850.32 $25,955.67 $1,105.35
Other $0.21 $0.20 ($0.01)
Total Revenues $24,850.53 $25,955.87 $1,105.34
Expense
Home
Property Taxes ($3,043.81) ($3,043.81) $0.00
PSE&G ($1,041.52) ($1,191.00) ($149.49)
Verizon ($1,722.10) ($1,765.21) ($43.11)
Water Bill ($163.80) ($183.85) ($20.05)
Life Insurance ($241.73) ($263.70) ($21.98)
Home/Auto Insurance ($1,375.97) ($1,302.70) $73.27
Groceries ($2,259.34) ($2,641.38) ($382.04)
Medical ($1,193.24) ($1,010.93) $182.31
Roth IRAs ($6,500.00) ($6,499.98) $0.02
Charity ($2,400.00) ($2,400.00) $0.00
Dining Out ($600.00) ($707.48) ($107.48)
Home Repair ($600.00) ($882.74) ($282.74)
Other ($600.00) ($233.01) $366.99
Total Expense ($21,741.49) ($22,125.79) ($384.30)
1.8%

 

I track each month separately for these categories, and the sheet has year-to-date budget & actual columns which sum up all the months together. That is where I got the data above.

As you can see, I ended up with about $1100 more in revenue, but spent about $384 more than budgeted (groceries, home repair and utilities seem to be the prime offenders). I always have difficulty at the start of the year estimating my revenues/pay. I get a pay raise in there, but the tax codes change and I ended up not getting it exactly right. Still, the family budget seems to be going well, and we are in the black. Since the variances in the categories are not dramatic, I won’t adjust the budget for the remainder of the year.

Personal Budget

I take $1,100 a month from my paycheck and put it into a separate account. This is used to pay my personal expenses (car fuel & repairs, lunch & snacks, hobbies, etc.). I’ve found that I work better when my personal funds are not intermixed with the funds we need to pay for things as a family. I also don’t feel guilty if I chose to spend some of this money on fun things for myself.

Revenue Budget 2018 YTD Actual 2018 YTD Variance
Salary from NFI  $      6,600.00  $      6,600.00
Travel Reimburesement  $         409.30  $                  –
Other  $                  –  $             3.36
Total Revenues  $      7,009.30  $      6,603.36
Expense
Auto
Auto Fuel ($720.00) ($833.62) ($113.62)
Auto Repair ($600.00) ($338.38) $261.62
Auto Registration ($30.00) $0.00 $30.00
Auto Tolls ($300.00) ($181.75) $118.25
Food/Snacks ($2,400.00) ($2,921.39) ($521.39)
Books ($150.00) ($179.64) ($29.64)
Clothes ($300.00) ($282.57) $17.43
LA Fitness ($194.76) ($194.76) $0.00
Postal/office supplies ($150.00) ($20.83) $129.17
Hobby ($1,200.00) ($1,208.08) ($8.08)
Outlooks for Hair ($120.00) ($129.00) ($9.00)
Other ($840.00) ($678.49) $161.51
Total Expense ($7,004.76) ($6,968.51) $36.25
Operating Revenue ($365.15)

So, while I was OK with the family budget, I’ve overspend by about 5% with my personal budget. This is primarily due to:

  1. Being about $400 short in revenue, because I haven’t been traveling much for work and getting reimbursed for mileage, tolls, etc.
  2. Way overspending on food/snacks for the last three months.

After reviewing this, I decided to work on cutting back the snacks & food I was eating, buying it cheaper at the grocery store and bringing it in to work. We’ll see how I do for the last six months. Who knows, it might help me lose some more weight!

 

So how did your spending go for the first six months?

 

Mr. 39 Months.

 

 

4 thoughts on “Six Month Review Template – Budget review and adjustments”

  1. I think it’s pretty hard to be much closer to a budget than you have been this year. Nice job!

    Our spending over the first half of 2018 is higher than it was a year ago, but pretty much the entire difference was because of a long-anticipated trip to Walt Disney World with our children. Both my wife and I went on family trips there when we were kids, and it was something we always wanted to do with our family that we finally put on the calendar this year.

    Other than that, our spending is pretty much as expected, although, like you, I made a trip to the grocery store this morning to stock up on food to bring in for lunch next week to avoid spending more at work!

    1. The trip to Disney World seems like a “rite of passage” for American families. When I was young my grandmother lived in Tampa FL, and we ended up going every year for about 6 years. A lot of fun, even back in the 70s. Its a lot more expensive now, but still one of those “must dos” for the kids.

      Glad you are stocking up, like me.

  2. Thanks for sharing, Mr. 39 Months! I’m a big fan of net worth updates and personal spending reports. They are great for holding yourself accountable. Looks like you’re good with your budget for the year overall. A 5% variance is pretty good. I’m meeting my savings goal for the most part, but I’ve overspent on junk food too. I have been buying too many lunches out. Thanks for the reminder to stay on point.

    1. Yes, I find spending on foods/snacks is where I tend to fall down. I was using a miles credit card to pay for it all over the last 6 months, but that hasn’t worked out. I’m back to taking $60 out at the beginning of the week in cash, and when that is done, I”m done. Also trying to pack more lunches. Anything to get back on track.

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