Now that you’ve set up your budget and you and your spouse are both on the same page, I want to show you how to work your budget.

I do our budget weekly because we get paid weekly. If you’d rather do your budget biweekly that’s fine. Like I always say, find a system that works for you and stick with it.

Whether you are using my Excel Budget Spreadsheet or a sheet of paper, you will end up having two columns with numbers in them. When you setup your budget and gave each category a number you already setup your first column. I call this column my allocation column because that number is how much I’ve allocated out of my paycheck each week. I call the second column my actual column because that’s how much money I actually have in that category. The actual column is your running tally.

Each time you do your budget you will take the figure in your allocation column and add it to the actual column. For instance, if I have allocated $200 a week for my mortgage I will add $200 to my actual column.


As you make purchases you will subtract that amount from your actual column. For instance, if you have $150 in your grocery category and you spend $75 you will end up having $75 leftover in that column. It’s not rocket science but it does take some effort to keep track of what’s coming in and what’s going out. It might be slow at first but I promise it will be well worth it!!!

Other Posts in this Series

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