Welcome to our monthly “Share it All” Family Household Spending and Saving Report (A REAL FAMILY BUDGET YOU CAN COPY THAT WORKS TOO!).
My mission for this blog is help others work towards financial and time freedom, and that means putting your money to smarter spending, smarter saving and then making sure you do some smarter living along with it.
So below you will find the exact tools and strategies I use with my family’s incomes for doing just that and our progress towards our ultimate goals.
Feel free to copy and use these for your own family, and I would love if you would like to share your budgets to compare using the hashtag #realfamilybudget too.
// Our Long term Goals
I take what I say and preach on this blog about creating a life of financial freedom and security, to create the balance of time and lifestyle of your dreams, very seriously.
Our family are working towards that very goal, and we are on target to hit it within the next 10 years, to retire early and live off our side businesses and investment increases.
In fact, with the power of compound interest and extra hard work than normal – it might be even sooner than that!
Our family knows the exact amount of money in Investments we need to reach in order to live off the interest payments indefinitely, and it isn’t rocket science.
You can calculate your value as your goal too here.
For any financial goal, whether it be to pay off debt like we have (we paid off £22k of credit card debt in the past few years alone with these strategies learnt) once you have the exact amount to work towards it will start to become reality as you take action towards it.
// Our 2018 Money Goals
We have a few buckets of money goals this year ahead, to keep us on track to hit our financial freedom long term goal but also so that we can live life comfortable and plan for the future.
This includes saving each month towards a bucket of money for Christmas and Home improvements, Insurance bills etc.
Next we have a large goal towards Invested money for 2018, which is a stretch on our normal comfortable saving pattern on Autopilot.
Then we are planning on holidays throughout the year and next, so we have a budget goal for that account.
Finally, we wish to create a 6 month Emergency Money account.
This means if we lose our regular incomes we would have 6 month’s worth of money saved to cover all the essential bills and food & petrol.
It’s then our job to recover those incomes within that time.
I should say that if you follow my Budget planning video, you will know that we apply a 10% additional payment to our Mortgage and Car payments, so that we will pay those off earlier than forecasted but also it allows a buffer if we needed to remortgage to a lower monthly amount if we were unemployed for any reason – and not lose our home!
You can find a few posts in particular about our Budget Style – I call it the 80/20 Budget – here.
// Our September Budget
Start of the month, our main savings amounts go straight out on autopilot standing orders to our budgets so that we save without even questioning it.
We pay our future selves first, then use the rest to have fun and live life.
This means even our investments are calculated and paid at the start of the month, so that we are not tempted to spend that money first.
Our Food & Petrol money account and our Family Fun money is then our free money to manage the rest of the month as we see fit.
The goal is to spend it on things that bring us joy, and it isn’t a challenge to make sure we have some left over.
Any left over from these money accounts though at the end of the month is usually transferred to our Emergency Goal account or Invested.
Then we start over the next month on a zero budget afresh.
If you want to learn more about the Electronic Cash Envelope System I use each month, working with a Zero Budget system, please check out this post here.
// How did we do this month?
Here is the screenshot of how much we saved over from our cash budget accounts, and how we are doing to targets for end of 2018 financial goals.
You can also see how we are doing to our overall Financial Freedom target.
I’ve also added in some extra data to my spreadsheet – How much money we are generating with our investments for the future.
You can see that by using rough estimates of return of investments percentages of 4% and 10%, by tracking the age that we can be financially free is inspiring.
I’ve also listed how much monthly money I have added to our family’s “retirement” budget if we SAVED NOTHING MORE and let that amount sit there and generate interest until I was 55.
The month those amounts for our “predicted” (as nothing is guaranteed in stocks and investments) monthly increase amounts if we stopped paying into our investments took a jump up which was exciting to see.
We managed to save more than expected this month, despite having our family holiday right in the middle of June and some expenses (hiring a car/petrol etc) included.
// How are doing towards our 2018 Goals?
It was a big month where we were glad for an emergency fund!
Our washing machine decided to go up in smoke at the start of the month, so after nearly 4 weeks of complaining to try and get it fixed we resorted to building a new one instead.
Dirty clothes just needed to be washed, so I used some of our emergency fund for that.
My plan is then to replace that money very quickly that was used, and then full steam ahead on the rest of the goals.
Our investments are going strong, committing to our monthly amount on autopilot as always, and I believe actually we will see our monthly amount start to increase as we balance life more.
We had lots of fun family days this month, and a few expenses though for my business and projects planned ahead.
This month really was best described as investments in our future, whether that is my own business ideas and development or working hard on ourselves and family.
I have a very firm goal for before Christmas to work and achieve something quite special, so the next 12 weeks of hard work in my spare time will really make a huge difference to our lives I feel forever.
We even had a few Zero Spend Days within the month, particular the weekends, since we had been away on holiday and wanted to enjoy the Scottish time at home.
If you have never heard of Zero spending days, please be sure to check out my post and video here – you will love it!
It is really exciting to see that our investment target will be smashed if we carry on the way we are with saving this year, and that it is generating extra money for our retirement and even potentially allowing us to retire early in a few years time mid-40s.
The power of money and compound interest is a wonderful thing!
// What went well and what can we do differently next month?
Great month for us – Investments continued to grow even with a busy month again and needing to purchase a new washing machine, plus my birthday.
My husband has been working hard to pursue a side line career in his spare time, that requires alot of learning and study for the next year or so and I’m very thankful that our balance in life allows opportunities like that.
I’ve also been so happy to hear all the wonderful comments from followers of my youtube channel and blog to see the progress they are making with their own journeys to financial freedom too.
It is very inspiring right now and so happy I get to share my journey with you all.
Remember to always make sure you plan for your goals too, and you never know what will come your way!
Be sure to check out my Youtube channel to never miss an update video on our budget, and for advice and tips on how to set up your own budget that works.