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When organizing your household budget, things can get a bit overwhelming. Each purchase usually comes with the belief that you can make payments each month and everything will be fine. While that logic is valid, after five or six payment plans, it starts to fall apart. Add that to the daily lunch habits and other spending patterns and your monthly budget can get out of control.Have you ever asked yourself, "Where does all my money go?" While the question may be meaningless and asked rhetorically, it might also be serious. Do you know where your money goes? If you can't account for it, try scrapping everything you're doing with your money this month and start over.
Next are the utilities that are non-essential like cell phones, the internet access, and TiVo. Can you live without any of these? If not, could you live with a smaller plan? Now that you've gotten through your major bills, look at what's left from your monthly income. Are you happy with the amount? This answer might make that cell phone plan with unlimited texting and internet seem a lot less important.
Prepare yourself to feel shock. The list will be extensive, and some of the expenses may seem frivolous once they're actually logged in. The worst feeling will be the one you get when you drop a minus sign in front of your tally. Remember, you're logging in all spending, whether on the credit card or the actual bank account. Don't let yourself get down; you're working to fix your financial health. By opening your eyes to how much you spend a month on lunches or valueless items you'll correct your thinking and your spending.
If you come up negative at the end of one month because of the credit card, you just have to save that much more next month to create not only a positive balance, but to pay off the owed balance from this month. It's the way families were taught to budget decades ago on columned legal pads without online banking that make money into an abstract concept.
Nowadays, the only way to survive with gas and food prices rocketing is to find cost cutting measures for your household budget. My household budget consists of food and cleaning supplies, yard and house maintenance and entertainment and family gifts and clothing.