Great work estimating your income yesterday! Today, we’ll move on to the next step in creating a sound budgeting foundation: estimating our expenses.
Estimating our expenses is an important step — we all need to know how much we actually spend so we can start planning what we want to spend. But we also need to make sure that what we’re budgeting for is less than the income we’re bringing in. (We’ll worry about that later, though.) For now, let’s focus on estimating. And remember, this is a guilt-free zone — you’re just collecting info right now. The point is to just notice your spending trends and say, “Oh, I see.”
Today’s Assignment
- Estimate your expenses. You’ll need to take a look at past spending in order to estimate successfully. Head to your online bank account and take a look at what you spent last month. If you have multiple bank accounts, be sure to check those too so you can get the fullest picture of your spending. (If you’re already using the Goodbudget app, check out your Spending by Envelope report.)
- Looking at everything together, how much did you spend in total last month? How much did you give last month? How much did you save? Note: Some of your spending might not be “typical.” Be sure to still include those expenses in the totals above. Transactions that are unusual will always happen, and we want to work towards making space for them in our budgets. The goal here is to just accept the numbers we see in front of us.
- When you looked at what you spent, what struck you? What are your initial thoughts as you look at the numbers? Did you spend more or less than you thought? Did anything surprise you? Share your reflections with us in the comments below!
Note for couples: You can look up your past spending separately or together; just make sure you both take a look at what you find. By the way, if you have kids spending family money, remember to pull that up too.
Happy budgeting,
-The Goodbudget Team
252 thoughts on “Take a Look Back”
I wish I could honestly say that half the stuff I bought wasn’t really needed, but it seemed important at the time. Yes, I can do without many things but I’m not sure I want to. By the end of the year my average monthly spending has risen to $150 more than I take in. Obviously this is the time to get serious about living by a budget instead of by general awareness. I feel lucky to be in this class at this time.
We are completely overspending!
I am only spending on the absolute essentials. I have made a Travel envelope as I would like to take a holiday when I can afford it.
We are overspending on things that we could really live without.
I knew it was going to be closed, but I thought I would at least break even. I was shocked that I spend almost $400 more than I made.
Spending to live is expensive
We are both making bad mistakes in how we spend our money, being able to distinguish between wants and needs. We waste money on things we don’t need and over spend without noticing the outcomes.
My credit card debt is ridiculous. I need to build my credit rating back up in order to get a credit card consolidation loan. What I previously viewed as necessary, isn’t really. There are definitely some that need to be cut out. Some of those I have to check on how to unsubscribe when paid up for a year.
I acknowledged my credit card debt. There are things that I could cut out. I need to check my 4 in 1 plan to see if I can get a better rate. Knowing that once my mother’s & my cell phones are paid off that bill will go down plus as of the first paycheck of April 1 will no longer have a deduction taken out that I ended up not using. I see some hope where I felt hopeless. That feeling may go back and forth but I know that there is light even if it’s dim.
Well, lots of expenses are practical and had to be done. Doctor visits, insurance, manicure, food, petrol, house rent. I don’t want to say no to some expenses, like eatinf out. But they could add more to the budget.
I was shocked. I spent more than double what I made, at first I was like, how is this possible?!?! I am glad I am taking this course!
Lot of my “excess” spending are going into “Logement & Amélioration de l’habitat” and Restaurants…
A worthwhile exercise. Somewhat scary, as I know it’s only my income/expenses. My spouse is not taking part in this process. Had far more debits than credits. Paid phone/cable/hydro/gas twice as some bills were due Mar 1 then again Mar 31. That does not happen often. Did not realize how much interest is being charged as I don’t pay my credit card off each month. Was my birthday month and spent a shocking total on hair/pedi/make-up appointments. Forgot about the $ I spent for a co-worker’s BD gift. I’ve been using the credit card to pay for many wants. Going into retirement this must stop.
Literally spent almost $900 on eating out in various forms. Whether it was dining in at restaurants or a lot of $5-15 here and there at fast food and gast stations it all added up to about 18% of my monthly income! I knew the eating out was an issue but I’m seriously ashamed.
So many things caught my eye. I eat out too much. I need to cut a subscription. I spend on a few things but they are not in my budget. Impulsive purchases. Overdrawn. I had to move money from other accounts. Spend more than I thought but also I don’t think how how much I spend. Paid of a credit card. Went on a mini trip and did not plan for it financially. Other than giving to a family member there were no other places I give in my budget other than a few times where I’m asked to round up purchaes at the grocery store.
I am spending way more than I am making. I need to cut my eating out and my fun stuff in half. The little things like candies from the gas station can add up over time.
Well I recently learnt that I was going about budgeting all wrong. So I’m starting from scratch. I’ve laid the foundation for my income and expenses and it’s about what I expect it to be, but not where I want to be. But I know I will get there. I have to be consistent
I’m spending a lot more than I thought, and also wonder how long it’s really going to take me to pay off my big debt… 🙁
I am spending way to much on taking out and lots on wants.
My income is totally a function of how much I work. I can choose to work more and thus make more.
My spending, on the other hand, is driven by what’s in front of me – what I think I need in the moment. There is no budget plan.
I’m interested to see what I actually spend and what I could do without or find used items instead of new.
It’s amazing how things that seem so important and essential at the time you are buying them turn out to be so pointless after the fact and you wish you had never spent the money.
I hate to admit it, but I’m in my 60’s and have never had a need for a budget. Now, I’m happily unmarried and find it prudent to have knowledge and control of my finances. Being in this class is a good first step for me. Reading everyone’s posts also helps me formulate my plan and are good reminders of the bullet points made throughout the lessons, i.e., wants vs. needs. Thanks for everyone’s help, I look forward to learning with you.
I can say most of it was needed but the wants I can narrow it down better.
I knew my boyfriend and I overspend on food and coffee but actually tallying it up was an eye opener :O :O :O!!!
I spent $187.52 on coffee alone in a 30 day period and my boyfriend and I spent over $900 just in dining out (plus ice cream, gas station snacks, vending machine at work) in a 30 day period, NOT including food we bought at the grocery store. I will be showing him the numbers after work and we will set a specific amount each month for our fun, dining out budget and will be sticking to it! Looking back on the numbers makes me realize how easy it is to overspend and I wish we could get that money back.
I spend too much on things that are wants but not necessities and don’t focus enough on paying off my debt in a timely manner.
The last couple of months were not “typical” spending for me. There has been enormous change in my life and higher than average expenditures. So, my world is changing, so looking back isn’t giving me an accurate picture. I will revisit this in another month or two to see what my spending has settled into.
My husband and I have been consistently good at discussing expenses and keeping pretty close to our budget. We still tend to overspend in the moment though. Having a budget/financial plan and sticking to it are really different things! We found it beneficial to transfer a guilt free amount of money to a personal account that we can spend on whatever. All our other money is allocated for specific expenses. Having some free money eases the pain of managing a budget but still gives us the freedom of having a disposable income for moments of frivolity without blowing the bank.
I think I spent about as much as I make! My goal is to set some aside for savings. This month, all I had to really concretely add up is my bank and credit card stuff. I also had a wad of cash from selling some stuff and a side gig. I am awful – just terrible – at keeping track of my cash and keeping receipts, so I had to estimate that amount. But all in all, it wasn’t dismal. I have some hope that I can get this right, this time. Nope…not my first attempt at budgeting. And I’m old! But always time to learn a new skill.
I’ve known for a long time that we over spent and never budgeted our money. Now that I’m old and wiser and happily alone I realize the importance of a budget. I like”pretties” and love Amazon. That’s where I will be saving by closing my Amazon account or maybe just cutting way back. After seeing how much I spend at Amazon I need to up my willpower.
We spend way too much on groceries and alcohol.
Assignment #3: Spending by Envelopes
Answer: Surprised that the “Auto” envelope was higher than the “Housing” envelope. Thinking that my envelopes are not set up correctly.
I stopped eating out so much and drinking ridiculously lots of super expensive coffee out of the house last month, since I realized something didn’t add up to my finances. I am happy to see that it worked, since I didn’t over spend last month, which is already motivating. I also realized that my biggest problem is timing. So I’ll take the paycheck to paycheck course when I’m done with this one. Also I’ll get myself a saving goal. Never dared this one, because I believed myself incapable of achieving goals.
I have been over spending .Everything higher
I need a budget so bad. Based on my calculations I should still have 30% of my monthly income after bills. Some weeks I’m barely at 10% if not less
I glad i know what I know now..wish I could of knew along time ago on how to really budget..
I totally overspent the past year – a funeral, the solicitor, three international travels to sort out issues. .It was an unusual situation and the work is now to filter my normal living expenses. Grieving, I have been “comfort” spending as well
I am now taking a serious look at my expenses. I spend too much on fast food and Amazon. I need to seriously plan away when I get my paycheck and what I am going to spend on my needs and wants
I spend way too money instead of putting into a saving account
I did this before deciding whether to track my budget via an app or manually. I knew how much I was spending but it is enlightening to see the amounts in different categories. The past 2 months have been worse because of unexpected expenses like emergency vet bills and new tires on my car. I had enough in my checking to cover these things, but it would be even better to plan ahead and be more prepared for events like this.
Over spending