Argh! It is time for me to sit down and create our yearly budget. I am finding that we simply are not planning well enough for emergencies, family outings, and medical expenses. In the past budgeting has saved my sanity. Now that we have the hang of what it means to live below our means it's time to start seriously saving and planning for our future. I found a website that was really helpful in looking realistically at our spending. betterbudgeting.com had some simple worksheets and tips to help me get it going. I love spreadsheets and lists because it gives a clear picture of where we are financially and where we want to be.
The biggest expense we have is medical. We don't have great coverage and Lee and I pay out of pocket for everything, as we only have catastrophic coverage. Our goal is to set aside a medical spending account so that we are not constantly draining our savings paying off medical bills.
I'm especially thankful for my friend, Marsha, who is helping me with our budget. Sarah also has some great stuff on her blog on saving money.