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Letter to the editor

Sticky notes and Excel help budgets

Do you have a budget?

By Helen Huntley, Times Personal Finance Editor
Published November 4, 2007

We asked

Do you have a budget?

I keep a sticky note of our budget on the checkbook register and mark out each item paid. If we go over on an item, it means less cash allowance; if we go under, that's "mad money." I track every hard-earned dollar. Bonuses and gifts are budgeted half to indulgences and half to savings.

I encourage my friends who drink two premium caffeine drinks every day to substitute one or more a day with home-brewed, and they could have over $1,000 to put toward a vacation. Following a budget means living affordably for your particular income.

Valerie Wolf, Riverview

I have all my expenses tracked for the last two-plus years on an Excel spreadsheet. I try to stick to the budgeted amount for each category, but I also set the spreadsheet to average each category across the year as entries are added. That way I have my budgeted amount as well as an ongoing average to show me when and where the budgeted amounts should be adjusted to reflect changing reality and inflation. I really depend on my budget to keep my family on track. It is a huge help.

Sherrie Williams, Largo

You asked

When my 50-year-old daughter was evicted after losing her job and going through a divorce, we put up the money to move her into a new apartment and get all the creditors off her back. She has two young children. She finally got a job and we worked hours laying out a budget. The first week we returned three cable boxes and she agreed to no Internet. The following week she ordered Internet, transferred $150 from the budget account and now has reordered cable. Every item on the budget she changes, even though she won't have the money. How do you help a shopaholic spender?

You can't. Your daughter will have to decide on her own whether she is willing to change the behavior that has gotten her into trouble.

Unfortunately, financial help often does no more than enable adult children to continue behaving irresponsibly. My recommendation is tough love, which means no more money from you.

My suggestion is that you focus any future help on your grandchildren by buying them things that they need or babysitting them if you are able. Tell your daughter that you're there to offer emotional support if she wants it, but no more money.

Make it clear that if she is evicted again, you won't be there to bail her out. Then back off.

It's her life, and she gets to make her own choices, whether they are good or bad.

Should your daughter decide she wants to change, I recommend she seek out counseling or classes through a consumer credit counseling service or local extension service in her county.

I think she's more likely to accept advice from a neutral party.

Next week's question:

Should we have national windstorm insurance or some other type of federal catastrophe fund?

To ask a question, make a comment or answer the Money Question of Week, e-mail hhuntley@sptimes.com or write Helen Huntley, P.O. Box 1121, St. Petersburg, FL 33731. Visit her MoneyTalk blog (blogs.tampabay.com/money) for more money information.

[Last modified November 2, 2007, 21:34:37]