Comments on: Step Two: Add Up All Monthly Expenses

By: One Frugal Girl

One Frugal Girl — Sun, 15 Jan 2012 17:59:40 +0000

@Pam – We don't include too much of our rental income in our estimates since we never know exactly how much we'll earn each year or what extra costs we might encounter there.

@WorkingMom – Thanks for the advice. I think you;re right about allowing ourselves extra wiggle room in the budget. I need to create a realistic picture of the ins and outs of our income and expenses, otherwise we are setting ourselves up for failure.

By: WorkingMom

WorkingMom — Sun, 15 Jan 2012 02:47:47 +0000

I left my full-time job for a part-time one when the Baby was born, and Hubby had been moved to second shift shortly before that, so the loss of income was offset by the lack of daycare. The biggest areas we cut back on were take-out and gifts. For Christmas, I made banana breads for everyone we normally give to - teachers, coworkers, etc. Meals out also was a huge part of our budget, and being home in the afternoon to cook makes a huge dent in that bill. You'll also eat better!

We cut back, but utilities, food, and insurance do add up. Don't be unrealistic; allow yourself some wiggle room on your budget for the unexpected (a jump in heating costs, the growth spurts when they're CONSTANTLY hungry, and grow out of sizes in 6 weeks!).

By: Pam

Pam — Sat, 14 Jan 2012 20:16:41 +0000

Are you factoring in any rental income to offset your mortgage payments, or is that too much like counting your chickens before they hatch?

If you ultimately decide to stay home I think you'll never regret it. My kids are 16 and 20, and I swear it seems like yesterday that my 20-year-old was born. You hear that all the time, but it really is true!