Financial Freedom Fridays-Know What You Spend
|January 21, 2011||Posted by Jessie under Financial Freedom Fridays|
This may seem crazy to some of you, but the majority of adults do not know exactly how much money they spend on what each month. This was something that Mike and I went through ourselves. When we first created our budget, we were shocked at how much money we spent on certain items. We thought we had an idea of how much we spent on groceries each week, for example, but turns out we spent almost double what we thought we were. We didn’t track our money or limit ourselves and spent way more than we should have been. We cut out more than half of our grocery bill and that became our amount for our budget. I know it sounds crazy, but you can really live much cheaper than you are now or much cheaper than you think you can. Once we discovered how inexpensively we could put meals together and planned out our meals, we spent much less than we had been.
This could be a fun little task for you this weekend (at least for me it would be). Write down some categories of things you typically spend your money on each month and make a guesstimate of how much you spend in each category. Then go through your account and figure out how much you actually spent on those categories in the last month. My guess is that you will be surprised at how much extra you are spending or how much more you spend than you think. This can help you when you create your family budget-tips coming soon:) Think about all that extra money you can put away for your kids, a vacation, your retirement, etc. just by being aware of your financial situation. Fun stuff.
Have a great weekend!