If you want to seriously review your financial situation, here is a process that can help. It is based on the idea that most of us spend a lot of money unconsciously, which has a devastating effect on our overall budget.
Step one: Get a small pocket note pad and set up some categories: Household expenses, unreimbursed business expenses, children’s expenses, personal maintenance, miscellaneous, etc. Add categories as necessary. Then, for one month simply keep a record of where all of your money goes. At this point you are not trying to change anything but simply bringing it all to consciousness. For a complete picture, you will need to do this as a couple although there is value even doing it as an individual.
Step two: Review what you have recorded and write a brief money biography on how you spend your money and what values your spending patterns reveal. My guess is that you will both be surprised at what you find and empowered to make some changes based on this new awareness.
Step three: As a couple, discuss what changes you would like to make in your overall expenditures. Don’t take giant leaps as you begin. Take little steps so that you can experience some small victories. Build into your budget a small celebration fund that allows you to reward yourself on successes.
Regardless of your salary, there is never going to be enough for all you want, but you can make conscious of and deliberate in your spending patterns.
