The Buffer Budget

A device for your family budget that will help you live like the rich on a poor man’s income! – Created by Jay Dougherty

Steps to implementing the Buffer

• Total up all your regular bills (this includes bills that you do NOT pay every month such as oil change, car registration, etc)
• Do not include extra things that you want (candy, fast food, games, etc). Only include bills you need to pay (car insurance, mortgage payment, gas, electricity, car payment, cable bill, internet, cell phones, groceries, etc.)
• Total up your monthly net income. Subtract charitable donations (tithing). Subtract savings (you should come up with a set number: 10% is ideal, but 5% is minimum). Subtract your monthly bill total. (Note: you should divide your non-monthly bills into monthly payments. Example: Maddy has a doctor’s appoint for $10 every 2 months, so I factor $5 per month into the budget).
• The Buffer! Choose a set number for your buffer and count it like a bill. This will vary based on the needs of your family, size of your family, cost of living in your area, etc. Let’s use $100 as an example.
• Anything that you spend that has not been budgeted elsewhere comes out of the buffer money. Examples below:
• You need a tool from Home Depot ($4.27)
• There is NO time to make dinner tonight, go to Taco Bell ($7.83)
• You’re with some friends and you want to buy a dessert to share ($6.67)
• You went over on your grocery budget ($9.94)
• Baby needs a new sleeper ($22.00)
• Keep track of ALL money you spend on your buffer and don’t go over your amount.

The Key to Making the Buffer Budget Work:

Never spend a dime without knowing where it came from! NOT ONE DIME. If it wasn’t budgeted somewhere, then it either comes out of your personal money (allowance), your buffer or sometimes even from savings. But don’t ever spend a cent unless you know where it is budgeted!

There is LOTS more information about this concept. It works wonders and will help you to get all your bills paid as well as have money for dates, outings, and all the extra things that we just can’t foresee each month that we need.

This is the EXTREAMLY shortened version of how this budget idea works. If the idea intrigues you, or if you would simply like to know more about the details of how it works then please click here to download the full version and description of the Buffer Budget.