Almost a year ago now our household went from a two to a one income household. At first I wasn't sure if we were going to be able to afford financially for me to stay at home. I applied for jobs, went on interviews, and looked for work. I soon realized that any job currently available to me wouldn't even support me working. By the time we paid private insurance at a higher rate than we currently were for the boys, childcare, additional gas expenses, etc the jobs available wouldn't cover those expenses. At that time we realized we needed to get serious with our finances and find a way to make things work. I went back to school full time taking all online classes. I became a stay at home mom, full time domestic engineer for the first time in my life. Over the past year I have realized that while it is my husband's responsibility to be the bread winner and make the money, it should be my responsibility to try to stretch each dollar as far as it will possibly go. I have evaluated expenses, had many long talks with the husband about areas we can cut back and cut out our spending, and set up a budget. It is still by no means easy, and most days I feel like I'm juggling, but it is completely doable! If you are in a position where financially the outlook is not good, there are a few tips I would suggest.
#1: Set up a worksheet in excel(or equivalent) listing each monthly expense. A monthly budget should truly encompass all expenses. Not only do you need to list your mortgage and car payments, but gas and groceries. Also, if entertainment is a part of your budget you need to allot for that as well.
#2: Be HONEST!!! If you spend $30 a month at Starbucks, you need to list it. If you can't be real about where you are spending your never going to save money.
#3: Go over your budget with your significant other. It is important to be open about spending. Money is the #1 thing that couples fight about. If you are open and honest and feel as if you are both making decisions and equal partners in the finances then it will help to cut down on tension when it comes to money. I am not saying it will solve all of your problems, but secret bank accounts and spending are not the answer to your problems either. HONESTY.
#4: Talk sincerely with your significant other about the true importance of each expense. Prioritize! You and your signifant other each number them (1=most important, 2=2nd most, etc) separately. This will let each other see what each thinks is important.
#5: GROW UP. Sometimes it is hard to give up those frivolous expenses. Realize that you don't NEED to spend $50 on eating out and a movie if you haven't paid the water for the month.
#6: This is the point where you can start cutting expenses. If you are just trying to save money, or make it from paycheck to paycheck this may be necessary. One tip is to look at your cell phone plan. You can look at your history to see how many minutes you are using monthly. If history shows you are under your allowable minutes by a large amount you may be able to save money by going to the next plan down. We did and save $20-$30 a month. Look at your cable bill...do you really need the $100 a month plan? (I cut our grocery budget hugely and we eat better now...but that's for another blog).
#7: Be vigilant. Try cutting some expenses. Hold yourself accountable, and re-evaluate after a couple of months. Make sure to plug in your numbers each month on your database. If you know you are going to have an added expense one month it may be important to look at your budget ahead of time so as not to get into a bind.
The important thing with all of this is to be honest with your significant other. Make sure to stick to it. Work with what fits you and your family/household.
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