So, you’re trying to get your budget in check before the holidays so you can end the year on a high note and not struggle to gain momentum in 2019. I get it. Trust me. Especially after learning how it takes most families an average of four months to pay off their holiday debt. FOUR MONTHS, friends!

That’s bonkers!

This time of year I share a lot about setting up your Christmas budget, shopping the deals and saving the most amount of money you can, which is great. BUT… if you don’t have a good foundation to start on then you aren’t going to get very far.

That’s when today’s post hit me – I should be sharing where are money is going. Now I’m not going to get into too many small details; however, I think it helps to see how others spend their money. I’m pulling back the curtain and spilling the beans on our top five monthly expenses – the nuts and bolts of our monthly budget.

It’s hard to imagine where the bulk of your income should be going when you’re just starting your budget. If you’re like me then you want to make sure you’re getting it right, understanding where your money is going and that you aren’t making too many costly mistakes.

You can watch our latest video on how much we spend on our top monthly expenses and why. You can watch the video online or down below:

tweet this video

Now before you go re-doing your monthly budget there are a few things to keep in mind:

EMERGENCY FUND

Do you have an emergency fund started? If not, then that’s step one. You need a minimum of $1,000 in an emergency fund that’s off limits to most of your expenses (except emergencies, of course!).

DEBT

How much debt do you have? If you still have quite a bit of credit card debt, loan payments and store credit cards then that’s the second place you start. There are a few different ways you can attack your debt, so make sure you find the one that fits your family the best.

RETIREMENT

Once you have most of your smaller debt payments paid off then you really need to start working on your retirement. As I mentioned in the video, there is where I differ from others. I believe in starting retirement sooner rather than later. So watch the video for my best tips!

LARGER PURCHASES

I’m a huge, HUGE fan of sinking funds. That’s how we were able to pay cash for our new furniture and for all of other larger purchases. So make sure you plan for those fun trips, maintenance expenses, and larger purchases in your monthly budget.

Need More Help?

Grab my Budget Success Checklist to get your budget in check before the end of this year. This nine-step guide is perfect for helping you determine where your money is going and create a clear path to reach your goals. I’ve even included a free budget template to get you started.