photo credit: curiouslee
This weekend, I finally finished our 2009 budget. Unlike traditional budgets, I don’t set a hard and fast dollar amount for each category. Rather, I plan for the important things (tithes, taxes and retirement savings) then see what’s left after that. That amount is considered discretionary spending (my personal spending, Mr. Savvy’s personal spending, travel expenses and household expenses). I was surprised to see how much disposable income we have left, especially since it sometimes doesn’t seem like it.
However, when I look back over our 2008 spending, I can see where the bulk of the money went. Travel expenses (something we LOVE to do) and household expenses. Last year was our patio project as well as the purchase of some big-ticket furnishings and incidental decor. I suspect that this year will show similar spending. We have a week-long vacation coming up soon and are in the process of planning a week-long spring/summer vacation. We just purchased dining room furniture and will probably buy another big-ticket item this summer (still deciding on which one).
Do you budget? If so, what method do you use? If not, why not?