Now that I’ve given some ideas to consider, lets get started with the process of financial control. The first thing you need to do is round up all your bills and sit down and list them. This would include fixed expenses like rent or mortgage payments, utility bills, car payments and insurance, property taxes, etc.
You need to list:
1)the name of the creditor
2)the total amount owed
3)the minimum monthly payment
Then you need to list the other more fluid expenses that are more difficult to track like all the groceries you buy, gas for work , daily lunches at work, clothing and makeup fees, dry cleaning, entertainment fees like video rentals, toys for the kids, and a rough estimate of things like gifts to family and friends.
EVERYTHING!
I know this can be very depressing, but you have to do it. What this will do will help you make judgments on what can be reduced or eliminated in the budget, what payments can be juggled around, and so on.
What many of the people I have sat down with this way have found out is that their income is less than their monthly bills!!! Obviously, in that case something must go. I’ll do a more detailed description of how to prioritize your expenses in an article next week, but for now track down every bill or expenditure, no matter how trivial. .
Get it all listed and for ease of use, put it in nice neat columns. Do this, and then, over the course of the next week -- put in all the little things you missed. For example, if I were doing this I’d make sure to list even the gum balls my hubby, son and I always buy after grocery shopping together, or the occasional pet treats we buy, the baby gift we got for one of my brothers and his wife, postage on the gifts, etc.
Next week after you have tracked your expenses, we’ll discuss how to analyze what you have listed.
One site I have used which saved me lots of money on car insurance and phone bills is:
LowerMy Bills.com
LowerMyBills.com.
Another site some friends of mine used to do the same is:
LoanOuotes:
GetAFreeQuote.com - get a free quote and save on loans, cars, insurance, home improvements, credit cards and more!
You might check them out!
For inspiration check out sample pages by other frugal authors at:
Complete Tightwad Gazzette
The Complete Tightwad Gazzette
Declare Your Finanacial Independence
Declare Your Financial Independence
Complete Cheapskate
Mary Hunt's Complete Cheapskate
Miserly Moms
Miserly Moms
You Can Afford to Stay Home With your Kids
You can Afford to stay Home WIth your Kids
