Family Budgeting Part 3

While we are on the topic of expenses, I thought I would share another important tip.



Avoid using estimates in your budgets whenever possible.


For example, let’s say that I think I spend about $100 a month on groceries. But, if I was to pull out my checkbook, credit card statements and receipts, I would know that I actually spend $800 a month. If I was to build my budget based on my “gut feel” or what I think, I am going to be way off. And what is the result of such a big miscalculation? Well, it may mean that I spend too much in another area and then find I don’t have enough to pay for food that month. Some of you may have even found yourself in this exact situation which can be very scary and frustrating.


I know it isn’t fun to gather up all of your exact expenses for an entire year. However, the extra effort is going to pay off in the end because you are going to have a much clearer picture of where your money is being spent. In turn, this knowledge is going to help you to make better financial decisions and good decisions are what will put you onto the path of financial freedom!