Manage Your Family Budget
Though the cash system may not be for everyone, especially those who constantly make big payments more than once per week, it can be modified to work with any family’s budget. Consider using a modified cash system to finance fun instead of necessities and shave off money wasted through impulse buying and things you don’t really need.
Coffee is my biggest vice, and while I’m not ready to give it up, I am limiting what kind of coffee I buy and how often. I love my fancy lattes, but is it really worth it to pay almost $4 for non-fat milk with a shot or two of espresso and a little vanilla syrup? I pay $4 for two gallons of milk at the grocery store, so for me it isn’t, but I must continue to go to fancy coffee houses in order to socialize with the many wives and moms who are also addicted to said chains. What I’ve done instead is allocate $10 per week for coffee, and I bought a reusable mug. Now I go into the coffee house, I order the drip of the day, and pay about $1.50 instead of $4. I add my non-fat milk and a bit of Splenda, and am not only saving money, I’m saving calories and my social life.
1. Make a List of Wants vs. Needs
Think about the little purchases you make on a daily or weekly basis. This can be coffee, sports drinks, candy, On Demand movies, even manicures or pedicures. Write down anything that you want and need, and separate out the wants.
2. Prioritize Your Wants
If you cannot see colors before having a cup of coffee, put this at the top. Go down your list and try knocking off a few things you really don’t want, but are just used to purchasing, like candy for the kids after the park.
3. Skimp on Quantity and Quality When You Can
Some things can be downgraded, like lattes to black coffee, colorful nails to clear gloss (which you can’t see when it chips, so a manicure will last longer), and gym memberships. Some gyms offer packages with childcare and classes. If you NEVER go to a class, take it off your package. Leave the kids with a friend or go early in the morning when the husband and kids are asleep. Moms should get a head start on the day anyway. I wouldn’t suggest skimming the quality of a spa since I once had a bad pedicure and lost a toenail to infection.
4. Assign a Fixed Amount of Funds to Your Wants
Decide how much petty money you have to spend per month. If you only want to spend $100 a month on small things, then distribute that hundred bucks accordingly. Coffee used to cost me $112 per month. Now it only costs me $42 and I can afford to put my kids in pre-school one extra half-day a week. Three extra hours of silence is worth the coffee downgrade.
5. Spend Accordingly
When the money is gone, it’s gone. The goal is to limit how much you spend on your wants, to better your needs. A main need should be saving for retirement and, if that means giving something up now for a better future, don’t you think you deserve it?
6. Enjoy Life by Enjoying the Things Money Cannot Buy
Kids’ laughter, looking for lady-bugs, spending a day at the lake. The best of life’s pleasures come from stimulating the five senses, not from spending.
