I think writing down a budget is an important step in your financial life. It is important to know where your money goes and create a budget that works for your family. Many people don't have a budget and just spend money as they go. Creating a monthly budget will help you realize where you have room to change your spending habits and be able to save more money for yourself.
If you don't have a budget, I suggest tracking your spending for a month. This includes everything you do (that Starbucks coffee, the grocery bill, the mortgage/rent, etc.) and all other spending. Once you have what you spent for the month, try creating a budget for your expenses and see where you have room for improvement. The next month, track your spending again and see how well you did sticking to your budget. Budgets take some time to get down and usually require some trial and error before it works for you.
Do you currently have a budget written down for your family? If not, I challenge you to track your spending and create one! You'll probably be surprised how much money you "blow" on little and big things that aren't a necessity.
We really had to sit down and do this when I was on maternity leave and then CJ started daycare. We have our "rough" months, but try to stay on track for the most part. I think it also helps to sit down with a financial adviser, preferably one that will come to your house, and use their knowledge to learn how to save your money wisely...and to keep it liquid.
ReplyDeleteI've also thought about having my DH take over the finances for a few months...maybe then he would understand how those $1.50 Mt. Dews every day tend to add up :-)