I Could Not Have Said it Better
I received this email this morning and I could not have come close to expressing this advice as well as Rebecca:
For the past six months I have been recording every penny I spend (even cash items) – and putting it all into a computer spreadsheet. I have multiple columns that categorize my spending (grocery, clothing, vehicle, utilities, etc.). Even after doing this for a single month it became very easy to see where I could, and should, cut back to better my finances. I also know the minimum amount of money I need just to pay the monthly bills.
I now have a difficult time rationalizing eating out but for maybe once a month as a treat. When I see in writing how much money I would spend on a single restaurant meal – versus how much home cooked food costs – it can be a great deterrent to eating out.
With the money I have been saving I have now started to stock up on everyday non-food items. If you buy one extra item each week or two of things like deodorant, toothpaste, lotion, shampoo, laundry detergent, etc. – it quickly adds up. I also write the date I start using a product on the container – so I can gain a better idea of how long it will last me with normal usage. It is my thought that perhaps I should also be prepared with storage items other than just food. You never know when you will be in an extreme financial bind, and it brings great peace of mind to know that I could survive for a number of months without needing to purchase anything at all. Plus, I have also been able to put more money into a savings account for those rainy days that may come – possibly sooner than any of us think.
Yes! She has been doing what we have all been trying to do and she is reaping the peace of mind that comes when we are prepared. Did you notice she dates items she does not use up all at once, just like us! When you are trying to establish a budget keeping track of every penny is a great idea. The key is to have every adult and almost adult member of the family carry a small notebook and write down every purchase. I guarantee this will be a huge revelation as to how much you are really spending…and wasting. It's just like the coin jar we started. Those coins add up very quickly.
Thank you so much Rebecca, for sharing your experience with all of us. How about the rest of you…what are you learning?
