Yesterday I shared how I became our family's Chief Financial Officer and that it must be a joint decision with you and your spouse.
So now...on for today...your husband agrees that it's time for you to handle the finances but you don't know where to start....
Crying yet?? Okay DON'T! We'll get through this together! I promise! It's easier than you think!!
Enough exclamation points yet?
1. Get busy.
The first thing you need to do is get a cup of coffee and take a deep breath! Then gather all of your bills -fixed, varied, monthly, quarterly, yearly...you get it...all of them! On a sheet of paper write out every single bill, the day it's due, and how much you pay. After you have everything written out reorganize it to list them by due date. Now figure out your debt. If you don't have any then I applaud you for a job well done!! Write out each debt you have, the minimum monthly payment, and total balance owed. Now reorganize your list to show smallest debt to largest debt. This is a good time to refill that coffee cup...
2. Expense tracker.
This is the not-so-fun part. Before you can come up with a budget you have to know where your money is going each month. So for the next month you need to write down every.single.thing. you spend money on. Whether it's a 25 cent pack of gum or $170 in gas. Write it all down. Every night you need to add everything up and get a total for the day. If you go to Wal-Mart and spend $50 on groceries, cleaning supplies, and cosmetics you need to write them down separately so at the end of the month you can not only see how much you are spending at certain stores but also how much you are spending on different categories. At the end of the month write out every single expense category you spent money on during that month (Household supplies, cosmetics, gas, entertainment, vehicle repairs...etc)
3. Come up with a budget.
Before you even get started with this part you need to know that this is not a one-time deal...a budget needs to be revisited every single month and adjusted as needed. Your first few months will be trial and error. You will probably get a headache but it will get better!! If you've never created a budget before don't get discouraged. There is plenty of information online about budgets...just do a bit of "Google-ing"! My first suggestion would be to check out Dave Ramsey and his genius plan! Find out what works for your family and stick with it!!
4. Only use CASH!
Dave Ramsey suggests using the envelope system and cash instead of credit/debit card for every day purchases such as gas and groceries. This way once you set your budget and know how much money you have for each category you won't over spend. When you get paid withdraw the amount of money you have figured out and divide in your envelopes based on your expense categories (ex. entertainment, gas, groceries, and household supplies Now each time you go to the store you only use your cash...NO DEBIT/CREDIT card...no taking from one envelope to supply another...when the cash is gone it is gone until the next check/month comes along...however you have it figured. You will always know how much money you have to spend and won't have to worry if you have enough money to cover a purchase!
5. Again, say NO TO CREDIT CARDS!!!!!
As of this moment do not use your credit card again! If you do not have the cash for a purchase then it needs to wait until you do! Do not rob Paul to pay Peter! I tend to find that if I want something today and I have to wait on it 9 times out of 10 I will decide I don't need it when I do have the money. Impulse buying is a huge problem today where credit cards and online shopping make it so easy! Avoid the urge to just buy something and wait a little bit! If you do have the money and it's not something you really need set the money aside for 30 days. When that time is up and you decide you don't want that item any longer add it to your emergency fund!
This is just the beginning of gaining control of your finances and becoming your family's Chief Financial Officer! Tomorrow I'm going to discuss your emergency fund and ways to grow it!
4. Only use CASH!
Dave Ramsey suggests using the envelope system and cash instead of credit/debit card for every day purchases such as gas and groceries. This way once you set your budget and know how much money you have for each category you won't over spend. When you get paid withdraw the amount of money you have figured out and divide in your envelopes based on your expense categories (ex. entertainment, gas, groceries, and household supplies Now each time you go to the store you only use your cash...NO DEBIT/CREDIT card...no taking from one envelope to supply another...when the cash is gone it is gone until the next check/month comes along...however you have it figured. You will always know how much money you have to spend and won't have to worry if you have enough money to cover a purchase!
5. Again, say NO TO CREDIT CARDS!!!!!
As of this moment do not use your credit card again! If you do not have the cash for a purchase then it needs to wait until you do! Do not rob Paul to pay Peter! I tend to find that if I want something today and I have to wait on it 9 times out of 10 I will decide I don't need it when I do have the money. Impulse buying is a huge problem today where credit cards and online shopping make it so easy! Avoid the urge to just buy something and wait a little bit! If you do have the money and it's not something you really need set the money aside for 30 days. When that time is up and you decide you don't want that item any longer add it to your emergency fund!
This is just the beginning of gaining control of your finances and becoming your family's Chief Financial Officer! Tomorrow I'm going to discuss your emergency fund and ways to grow it!
If you like would like to have My Blessings at Home delivered to your inbox daily, click here: Subscribe to Blessings at Home .
My Blessings at Home can also be found on Facebook, Twitter, and Pinterest.
All content © My Blessings at Home 2012.
My Blessings at Home can also be found on Facebook, Twitter, and Pinterest.
All content © My Blessings at Home 2012.
No comments:
Post a Comment
Thank you for your participation in this conversation. Each and every comment is welcomed and appreciated.
This is a place where wives, moms, and keepers of the home can share their opinions and be themselves. Remember that each ladies' journey is little different so please keep all comments kind, respectful, and on topic.
If you feel that you can't offer a constructive comment please feel free to email me so that we can discuss what's on your mind.