How are you doing with recording expenses? This is so important to understand your finances. This week pull out 4 months of bank statements and credit card reports. Review them looking for ongoing expenses you may have forgotten such as subscriptions to magazines, TV, newsletters. What about those things you tried for a month free but never canceled like the exercise programs you never use? The ongoing charges you want to keep add to your budget cancel the others.
Next look at all purchases. Did you really need to spend that money or was it an impulse purchase? Do you see a pattern? Could you have rented the tool you only used for one project, or could you have borrowed one? Did you wait until an item was on sale?
Do you have a plan in your family for purchases? For example, do you confer with your spouse before spending more than $50 or $100 on something? As we face recession and uncertain job security now may be the time to add a plan such as this.
Do your children have to check with you before they make a purchase? Teaching children now how to evaluate purchases is one of the greatest gifts you can give them to ensure a healthy financial future.