Welcome to Day 9! {Click here to find the topic menu for the entire month along with links to each day.} If you've made it to this sentence, it means you weren't scared away by today's topic. Good for you! :)
Our assignment yesterday was to spend some time plugging the leaks in our budget. We did this by identifying areas where we could make some decisions to reduce or eliminate spending on non-essentials in order to be in a better position to reach our goal(s).
One leak I plugged after my husband resigned from his job was garage sales. I {big fat puffy heart} garage sales. My heart races when I see a sign on the corner. Now, there were some things I purchased at garage sales that were essentials (clothing for my kids, for example), but I am way too inclined to justify buying something simply because "it's a great deal." Because I know this is a vulnerable area for me, I had to make the choice to just drive on by. My friend Susan has a list of certain things she is hoping to find at garage sales. She prays about this list and shops the sales very intentionally. (And she regularly finds items on her list!) I pray I will have the discipline to become more intentional so that I can start going to them again next spring. :)
My husband has had to be diligent about choosing to plug the leak of grabbing a pop or snack when he gets gas for the vehicles or runs other errands. He wasn't in the habit of doing it every single time, but those little expenses add up over the course of weeks and months.
The areas we looked at yesterday were relatively small leaks--those little areas of extra spending that may not look big on an individual basis but that add up over time.
Today we're going to examine the areas of our budget that are bigger (and possibly badder).
Mostly likely, the highest spending category in your budget is housing, whether it's a mortgage payment or rent. It's possible that for some people, that figure is too high. Its always a wise idea to evaluate whether your housing cost is disproportionate to your income. If it is, you may need to seriously consider renting a different place, refinancing to a lower interest rate (with mortgage rates currently at a record low, this may be a great time to do it if you have enough equity in your home and plan to stay there for a while), or perhaps even selling and downsizing. I'm not a professional and can't give specific advice in this area, but if you feel you may fall into this category, I strongly encourage you to seek advice from someone who can.
After housing, the big areas will vary from person to person or family to family. They could be food, gas, maybe even clothing. Perhaps it's your cell phone bill, especially if there are multiple people in your family with phones and data plans.
Today, look at your budget worksheets, choose one of those major expense areas, and begin to brainstorm ways you can save money just in that category. Be open. Challenge your thinking about needs vs. wants in this area. Be willing to make some tough decisions, knowing they will be worth it as you work toward your budgeting goals.
If you're working through these steps along with me, I'd love to know!
Please leave a comment and share how it's going.
The framework for this series is being used with permission from Inexpensively.
