Write about your approach to budgeting.

Once upon a time, there was a young man and a young woman whose eyes lit up as they looked at each other while walking hand in hand down the center aisle of the church’s nave.

They stepped through the vestibule and opened the doors to a shower of rice, a cloudless blue sky and a brand-new life.

As most newlyweds in the mid-to-late 1980’s, they planned to be successful and have the best of what the world had to offer.

The world, on the other hand, had a different plan in store for these two dreamers.

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The first thing we realized after being married that day is that no one owes us a good living. We were not entitled to our own happy ending. That was the part of our story we had to write for ourselves.

Many couples fight over money-related matters, separating his and hers into individual accounts. Fortunately we were never ones to argue over cash, as we were busy trying to find ways to make enough money to fight over in those early years.

On the positive side, we both developed into frugal spenders, and also great budgeters.

Many of the budgeting methods we use today were formed and later honed and sharpened back in the early days of our marriage out of sheer necessity.

Here are a few tips and tricks we’ve picked up over the decades, some common sense and some just our special way of working together.

Note: I’m not a financial planner. Seek competent financial advice from a professional.

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WRITE IT DOWN

Figure out your full list of income resources and expenses (including cash to go on) and then split out when things are due and where you’ll allocate payment of your bills based upon pay dates.

We use a customized Excel spreadsheet and created a “Budget Book” with a three-ring binder. You can keep schedules, supporting documents and other financial information in one convenient place!

CREATE A BUDGETING FORECAST

When you create your budget, be sure to plan out a number of months in the future (we do quarterly), keeping track of your ongoing balance (or expected balance) and altering your forecast as you move through the year depending upon unexpected changes.

CONSOLIDATE DEBT WHERE IT MAKES SENSE

If you elect to get a loan to consolidate several debts, cut up any cards associated with the debt you’re consolidating to eliminate the temptation of putting yourself deeper in debt by using lines of credit you got a loan to discharge.

BUYING A CAR?

My experience is to avoid buying a brand-new car. It depreciates the minute you drive it off the lot. Buy used instead and get a loan arranged with a credit union before you go shopping.

WHAT DO I PAY FIRST?

If you have a number of debts, pay off the ones with the highest interest rate first (unless you have a handful of low balance items that could be paid off quickly), and then once those are paid, focus on the next highest, and continue until you are debt-free.

KIDS CLOTHES

Find upscale and discriminating consignment shops to dress your kids in name brands. Because they grow so fast, secondhand clothes for kids are super affordable and normally the name brand means higher quality merchandise when you get it home and washed.

MORTGAGE PRINCIPAL

Do your best to pay extra on the principal balance with your monthly mortgage payment. Knocking down the principal will knock down the total interest you pay over the course of your home loan.

EATING OUT

I try to avoid soda due to the liquid calories and trying to stay in a caloric deficit. But sometimes I get a craving for a Coke. I tend to have a silent agreement with myself that the only time I can drink soda (vs. water) is when eating out in a restaurant. Even then, we are cost conscious as normally one of us gets a water and the other the soda and take advantage of free refills (which at $3+ isn’t really free).

ACCOUNTABILITY

She usually handles the budget planning with my input, while I sit across the room with my phone when it’s time to actually pay the bills. Additionally, I balance the checkbook periodically so we’re both aware of our financial position at any given time.

FINANCING BIG PURCHASES

Whether it’s furniture or replacing your furnace and central air units (something we found ourselves doing last summer), look to no interest financing and make certain you set a plan to pay the promotional balance off a month before the promotional rate expires. That is, of course, if you don’t have a ton of cash lying around to use instead!

REVIEW YOUR CREDIT REPORT AND CREDIT SCORE

Whether it’s part of an identity protection program (we use Allstate through my employer), a service of your financial institution, or simply requesting the one you are entitled to annually at annualcreditreport.com, make sure you are checking your credit report for errors or unexpected dips in your credit score.

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NOW IT’S YOUR TURN

These are just some things we’ve found to be helpful in the budgeting process and handling our money, some things common sense and other things we’ve figured out on our own through trial and error.

What’s the most important thing on our list? Creating a budget and writing it down makes it real and allows you to have a concrete vehicle to keep track of your money and where it goes from paycheck to paycheck.

So, have you utilized any of our suggestions and how did they work for you?

What specific methods have you used not presented here that have been of great help to you in managing your money? Share those ideas with our readers in the comments!

“Used correctly, a budget doesn’t restrict you. It empowers you.”

Tere Stouffer