I read this great article on this website "The Legacy of Home" (http://thelegacyofhome.blogspot.com/) about the finance of your home. A quote from the article says "Whether the income be small or large, certain or uncertain, the good housewife will keep an accurate account of income and expenditure". She has a list of To-Do's, and I decided to start this financial adventure. Here's the plan...
In a notebook of some sort (or journal) you write down every single cent you spend every single day. You write down the date, description and amount - save your receipts in an envelope too. You should also keep your debit transactions and checks you write out. They say on the site to add up and review your spending and to see if you can improve on this at all for next month.
I've decided to go 1 step further. I want to calculate my spending once in the MIDDLE of the month to see where I'm at. THEN adjust, if it is too high. Maybe in addition it's good to have a spending limit. Maybe you say you don't want to spend over a certain amount for that month. Then check in the middle of the month to see where you are with your limit and budget out the rest of the month. I started today, and have 2 entries for this month so far.
I think this will be a great way to see where my money is going and see if I can spend less. Also, the site say you can involve your children in the process. I have a 13 year old and am thinking about involving her in the process. What a terrific way to learn about finances and budgeting!!
If you try this, please let me know how it goes! I'd love to hear about other people's tricks and tips as well! And check out "The Legacy of Home" too! Peace!