Budget Tips First – Cookies Next
Are you avoiding making a personal budget because you don’t know how to put one together, don’t know what categories to use or what numbers go where? Not sure you are putting everything you need on the document? Are you wondering if you even need a monthly budget? Is the blank page throwing you off? So many questions, but what are the answers that would help you feel more comfortable about trying to write out one? Please read on.
There are many trains of thought when it comes to making a budget document. Most thoughts are valid, many of them express fear, while some are avoidance. Most people do not think they need one, because they do not have a lot of money. Then there are those that don’t want to be on a budget if their friends are not on one. Who wants to be the party pooper or in other words the responsible one?
Let’s change this up and look at having a personal monthly budget in a different light. I am actually going to use something that everyone can identify with…..a cookie jar. Yes, inside that cookie jar are delectable morsels that will make your mouth sing. But what happens when you want a cookie and that cookie jar is empty? You look for a way to make sure that there will always be cookies in the house. You make out a shopping list and make sure your favorite cookies are on it.
That is the same logic behind having a budget. Instead of waiting to see what you might have to pay on or buying emergency cookies, you can have the budget document with your bills already on there. Beginning balance, bills that need to be paid and an ending balance that you decide on.
The beginning balance is the amount of money, you have in your account before you add any pay.
Bills are what you pay or the money that is going out. These are also called expenses.
The ending balance is what is left when the bills are paid. The ending balance can be adjusted to the amount that is wanted at the end, if you have extra left. At the end of paying the bills, if you are fine with the ending amount, there is nothing more to do. However, if you want to adjust the ending amount, it is easy to set a personal limit.
If the bills are all paid, but you want to spend more, but not go overboard, decide on an amount that you will not go below.
Example 1 ——> Beginning amount: 500.00 Bills Total: 300.00 Regular ending balance: 200.00. Done.
Beginning Balance 500
Total amount of bills – 300
Ending Balance = 200
Example 2 ——> Beginning amount: 500.00 Bill Total: 300.00 Decided ending balance is: 100.00.
With the decided ending balance, you have given yourself 100.00 to spend and you still have 100.00 in the bank.
Beginning Balance 500 Ending Balance 200
Total amount of bills – 300 Allowance/Spending – 100
Ending Balance = 200 New Ending Balance = 100
When it is time to work on your next pay period, the beginning amount for example one will be 200.00. The beginning balance for example two will be 100.00. Choose the method that is best for you.
As the bills are paid a check mark and date should be written on your budget to show that this transaction was completed. It is just that easy. Now it’s time to talk about cookies.
Yummy cookies and a budget do not seem like they would go together, but they do have some similarities. Let us look at these three different types of budget documents and cookies.
The Sugar Cookie Budget!!!
Just like its name, this cookie does not have anything fancy about it. The ingredients are mixed, they are shaped or just dropped on a waiting cookie sheet. Bake, cool and then eat.
With this cookie, you may want to include an occasional add in or two. It is easy to sprinkle in nuts, ginger pieces or maybe even some butterscotch chips to shake things up from time to time.
This budget is also plain. There is the beginning balance, those bills that need to be paid and an ending balance. There is nothing fancy about this budget. Do what you need to do and you are done!
Do you want to go to a baseball, basketball, football or hockey game? Maybe a tennis or soccer match? A trip to the local amusement park? How about dinner at a nice restaurant, concert tickets or maybe just a new pair of shoes. Start with the beginning balance, get those regular bills paid and then check the ending balance. If you have a little extra amount left and it will not hurt your ending balance, take out some for that occasional add in. This occasional add in can also be part of advanced planning. Enjoy!
This Cookie has a ‘Filling’
Budget
These cookies can have a caramel, cream, fruit, ice cream or nut filling. It could be a little filling or a double stuff. These cookies may take a little more time to prepare. The traditional way is to make the cookie first. Cool. Mix the filling cool or freeze, which ever method is needed. Put the filling on one side of the cookie, put the other cookie on top and you are ready to chill to set. Then it is time to eat!
This budget is like a budget with a filling. This budget is not hard to do, but there are more steps to it. You start off with the beginning balance, your regular bills and the supplies and then the ending balance. The filling is for those careers where you might want extra items to compliment what you already have been supplied. These can be pencils, pens, ink, clay, extra film and more. The filling can take many forms. Most teachers are familiar with this type of budget. There are basic supplies that are given at the beginning of the school year. Some are given a voucher with a specified amount. I used my voucher for more of the basic items, however, I always wanted special materials for activities and projects, during the school year.
Among other activities, there are the homemade cards for Mothers and Fathers ( stickers, yarn, glitter, lots of glitter), those change of season and holiday crafts (making kites, apple tasting and winter season) and the classroom parties at the end of each semester. These are all extras or the ‘filling’ to the regular budget.
Once you have this filling amount complete, look at your ending balance. If you think your end balance is too low, you can go back and adjust the amount you are spending for that filling.
I Want Everything In and On my Cookie
Our last cookie is the cookie with everything or almost everything. This cookie can have many ingredients in it and on it. There could be warm spices added like a little cardamom, cinnamon, clove or a dash of black pepper. This cookie can also have chocolate chunks, caramel ribbons, oatmeal and almonds. Do all these ingredients work together? Yes, they do! It does not take a lot of any one ingredient or add ins to change the flavor of this cookie.
This Everything budget is just like the cookie. There is a lot you can add to it.
It starts with the basic budget items, then someone may need a pair of teeny shoes for P.E. at school, a present for the teacher, pants, a new coat. There may be a going away, birthday, promotion, holiday party or you may want to help by donating a few dollars. What about the emergency room trip for your big or little daredevil?
Although this budget can have a lot of items listed, it doesn’t have to be headache. Take your time and work through it. Depending on how many ingredients and add ins you need, your ending balance may fluctuate.
In the End
A budget document and tasty cookies don’t seem like they have anything in common, but strangely they do. Budget documents can vary just like cookies. There isn’t just one budget or cookie for all. When making your budget document, allow yourself a little flexibility.
Just as in baking or buying cookies, you might start off with a sugar cookie, then gradually move to the next cookie. If you start with a cookie that has a filling one day, the next day you may be craving a no-frills sugar cookie.
There is no need to be anxious about creating and using a budget document. There will be unexpected bills that pop up, but with your budget document ready to be used, the number information is right at your fingertips.
Will your numbers always be correct? The bills that you receive every month are the easy ones to track. It is those that sneak up on you that can send you spinning. I have experienced those too, so you are not alone. Don’t worry, you got this!
Knowing that you have met the challenge of maintaining your household finances and creating a reasonable ending balance, will keep the confidence level high and the need for frantic spending low. What budget suites you so your cookie jar will never be empty?