Our journey towards a well maintained family budget is ongoing. The frugal home mistakes that have ruined the budget, became obvious. Our frugal techniques were working. Our family was able to save money. Dollars will stretch when given a definite job in the budget.
I decided to put more effort into my budget to eliminate my frugal home mistakes. Money was being spent in area’s that I had deemed important. Taking note of unnecessary financial purposes is the challenge for this year.
In addition to many other items, my not so obvious mistakes have been narrowed down to three for right now. Spending is an addiction. Habits like excessive spending will create havoc on a budget. To overcome spending habits it takes desire and discipline.
The first step toward saving money is the family budget. Using a budget is like a track to a train. A family without a budget is like a train without a track.
Overspending on Budget Categories
Narrow down actual categories. Designate spending on primary bills first. Next, pay those bills. Then, they are done. Now that every part of our financial lives are online, the actual physical touch of spending money becomes obsolete. Thus, making it easier to spend more.
For example, setting a monthly grocery budget of $400.00 seems feasible. Until the end of the month comes, and actual expenses total $550.00 through the debit card or phone. A tough realization occurs that overspending is the culprit. No physical contact of money. Using my debit card has helped me to overspend each month.
Frugal Home Expense Report
Monthly expense reports do not have to be fancy. A plain 10 cent notebook will work. Developing a time at the end of each month and writing down what goes on in our checking account will be progressive toward change. Some people used to sit down and balance checkbooks each month. I am also betting that these people had a tight hold on their financial situation.
Here’s what had to happen, I had to become a numbers person. On a monthly bank statement, or online app go through what is spent where. Finding the area’s that need work will bring financial control closer.
Lack of Financial Vision
Having a savings goal is motivation. Instead of shopping for clothes that will be tossed in a year, I had to remember the family car that we wanted to save for next year. Setting goals helps to keep financial boundaries at the forefront of our minds. Without something to work towards it is hard to stay motivated.
Financial motivation will differ from person to person. One not so obvious mistake that will ruin a budget is to not take the building steps. First, See which category needs to be revised, and how. Next, keep track of monthly expenses, and be informed where household money is being spent. Finally, have a vision for your money. Setting a savings or retirement goal will fuel the speed of shaping up the budget for the future.
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You go girl! I applaud you on those cloth diapers. Not an easy thing to do, but I am sure there is great savings.
We are always looking for creative ways to save as well. We are Dave fans, and have been debt free for almost 2 years now. However, the saving and cutting the spending parts have proved harder than I ever imagined they could be.
Our latest challenge – driving really old cars while saving for that next car!
Came over on Mama Moments today, and I’m glad to find your site.
Hope you have a blessed day~
I love Dave Ramsey and his financial plan. Our biggest challenge is starting at the beginning of 2016…Paying off our home mortgage. Wish me luck!