We completed the September challenge of keeping track of all of our expenses for the month. 30-day-challenge This was an important exercise to help understand where our cash is going and if there is room for improvement. See results below.
The big surprise is out debt to income (DTI) ratio. For our mortgages its over 36%. Our debt repayment, credit cards is our second highest at over 24%. This was not a surprise. This is our biggest issue, and the focal point of our budget right now. We are trying to eliminate this in the next 3-5 years. The was surprised that gas (transportation) was only a bit over 2%, it feels like it should be higher. 16% for food for a family of five I think might be slightly high when you combined the 1% for eating out. The one item we don't have capture in our budget is entertainment. We need to include this in the future. Now that this challenge complete, we look to take on another, turning the excl sheet with our budget around, Instead of just tracking where our money goes each month we will tell it were to go before we spend it. This is just another step in getting our finances in order.
How do you manage your budget? Do you track it? Set limit before you spend it?