When my wife and I were attending Financial Peace University we consistently held weekly budget committee meetings. Due to the inherent differences   between my wife’s life experiences and my own, it was important for us to get on the same financial page. Each week, usually on Wednesday night (nothing good is on TV), we would sit down in front of our computer and go over our spending for the past week. We would also look forward to what we needed to spend during the next 3 to 7 days.

In our household, the budget meetings look something like this:
I would spend approximately 30 minutes preparing a zero-based budget for the current pay period based upon unrealistic expectations. My wife would then review it and laugh at my optimism. We would then spend the next 30 minutes discussing a realistic plan for the week. These weekly meetings really kept us focused.

Last night, we held our first budget committee meeting of the year. It was timely since we have had a few expenses sneak up on us, throwing our old budget out the window in the process. While most of our expenses are fixed in nature (i.e. mortgage, insurance, etc), there are a few variable expenses that needed to be addressed.

1. Cable TV/Internet/Phone – Currently we have a bundled package for our cable TV, internet and phone. High speed internet and the cable phone are worth a little extra in our household. For the past 2 years, our monthly bill has hovered around $100. Last month it shot up to $170. I guess we are no longer on the “promotional” plan period. When you un-bundle services, the price per service increases; but not by $70 per month. We elected to ditch our cable TV and purchase the new box that allows us to receive local channels for free. The box cost us $50 from Wal-mart and will pay for itself after only one month. Additionally, our un-bundled services will now cost approximately $70 each month. Doing some quick math, this entire process will save us $1,150 (or $96 per month).

2. Cell Phone – At one time in our lives, owning cell phones made sense. I traveled a ton and I was always on the road. The piece of mind it provided my wife was worth the $80 a month we spent. With my current job, I have absolutely no use for a cell phone at all. I sit at a desk for 10 hours each day, with a phone within arms reach. My house is 4 miles from the office and when I am not working, I am with my wife and son. As we were on month-to-month status with our carrier, I canceled my number. We elected to keep her number (they even gave her a new phone) and reduced the plan minutes accordingly. I like to know that if my wife needed me, she could call for help. Cutting this phone line will save us $480 (or $40 per month).

I must admit that this was a pretty effective budget committee meeting. In one hour, we managed to cut $136 a month from our expenses. I wish all meetings could be as effective!

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