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!

Family Budgeting Part 1

So what is the definition of debt? I would say that debt is the result of spending more money than what you have on hand.



Being debt free could therefore be defined as not owing anyone money because you have paid for everything in your possession.


One of the first steps in becoming debt free is to determine what you spend money on. I encourage you to make a list of all of your expenses for the past year. To help you make your list, below are some categories to keep in mind:

• MortgageCar


• Payment 1


• Car Payment 2


• House Insurance


• Car Insurance


• Health Insurance


• Doctor Visits


• Prescription Medicine


• Over the counter medicine


• Groceries


• “Eating out” Expenses


• Education Expenses (tuition, books, supplies, fees)


• Gas for Cars, Lawn Mowers, Snow Blowers


• Car Maintenance (i.e. Oil Changes, tune ups, etc)


• Parking Expenses


• Clothing & Accessories


• All Cards & Gifts (Birthdays, Christmas, Valentine’s Day, Just Because, etc.)


• Household Supplies (paper towels, napkins, food containers, foils and wraps, plastic bags, cleaning supplies, large storage containers, gift wrap containers, etc.)


• Personal Supplies (bar soap, shampoo, conditioner, hair products, feminine hygiene, lotion, deoderant, makeup, toothpaste, tooth brush, etc.)


• Vacations (Airfare, airplane food, hotel, rental car, luggage, gifts, momentos, etc.)


• Utilities (water, gas, electric)


• Phones (landlines and cell phones)


• Cable TV


• Internet


• Purchasing Checks from Bank


• Haircuts, Manicures, Pedicures


• Tithes and Offerings


• Subscriptions (magazines, newspaper, internet)


• Entertainment (movie theater visits, movie rentals, car shows, museums, concerts, special events, concession purchases, books, CD’s, DVD’s, etc.)


• Recreational Toys (motor homes, snowmobiles, sleds, skis, four wheelers, motorcycles, campers, boats, trailers, maintenance fees, storage fees, etc)

Please note that the little things add up and can really put you over the edge so don’t forget items such as your morning coffee from Starbucks, the daily newspaper you grab from the checkout lane, and your afternoon snack at the vending machine.