Question

OK, so I've completed the free week course and gone through our finances in the last three months with a fine tooth comb. Some things I've not been able to allocate to a category as I don't know where they went (like I took out cash but no idea what I bought or online purchases that I can't remember! ). This was quite a chunk of our spending (about a third). So although I now know what we spend on average on transport, food, eating out, entertainment and clothing there's still a lot of grey area. I can see that our income in the future does not equal our outgoings so we're looking at needing to cut back. Going forward, I'm planning to start using the cash envelope system from our payday on the 6th March, but what steps can I take to reduce our spending to help (and potentially still continue to save)? Or will this happen naturally anyway as we'll be more considerate with cash than we are with cards? I always thought we were quite frugal in our spending but I've realised we spend like double on our food bill than I thought. We weekly meal plan, we have some annual memberships as a family so entertainment is lower as we utilise those, shop around for utilities and insurance every year and we don't ever go just "shopping" we go with a clear list. We are debt free apart from my hubby's student loan that's accruing now and our mortgage. We also have a good emergency fund (3 months bills and spending) in place should we need it. Thanks!  

Answer 1

I found once I started writing down everything I spent money on - even $1 drink I was shocked at how much money I really wasted. It was quite a shock. I have definitely found using cash has helped. I have a weekly allowance for misc spending that I can use on I want and always hate spending it all. .  

Answer 2

Gray area is bad. You need to track the cash spend to get an accurate budget and answer that question. Things you can do are specific to your lifestyle. Like coffee at home, don’t buy. Usually cash. Bring lunch and snacks to work. Do you spend cash on snacks? Do not step foot inside the stores that are your trigger place (like do you walk into target for one thing and end up spending $100?! ) do not eat out! You said you meal plan but then you say you overspendnon food. Meal plan is key. Miko said Have a “go to” meal plan. Gray is bad. Logging is good!