Tip of the Day May 29, 2009

Where does it all go?

Have you taken a family spending inventory lately? Grab your last bank statement and categorise every cent spent in the last 30 days.

You may be surprised at where your hard-earned money is going. If one category seems particularly bloated (grocery, entertainment, and miscellaneous are typical budget busters), spend an hour brainstorming with your family to find ways to trim the fat.

Set a specific goal (ie. resolve to drop $50 off of your grocery bill), create a concrete plan, and review your progress weekly. Plan a special treat as a celebration when you meet your goal.

Next month, plan another family budget challenge. One that we always enjoy (we play this little ‘game with our kids two or three times a year) is to find ways to cut 20% off our electricity bill. It s a real challenge in our house and the kids really begin to appreciate how much utilities such as electricity actually cost.

This is not only a great way to save money, but a fun way to teach children about planned spending.